TIMBER PRICES

New Zealand Times, Volume LIII, Issue 12618, 1 December 1926, Page 11

TIMBER PRICES

LESS THAN DOUBLE OVER TWENTY-FIVE YEAR PERIOD REPLY TO CRITICISM A few days ago the president of the Dunedin Chamber of Commerce stated that “in the past 25 years the price of timber in New Zealand has advanced from 500 to 600 per cent/ 1 To ibis statement Mr A. Seed, secretary of the Dominion Sawmillers* Federation takes exception. “Figures of the census and statistics ottice for wholesale timber in 1900 have been quoted,” said Mr Seed yesterday, “and in criticism a line of timber has been selected which represents possibly 2 per cent of the usual output of the average country sawmill working in the predominant type of ‘mixed’ bush, that is bridge quality heart rimu. “NOT WHOLESALE" “While every respect is dtoe to the publication of the census and statistics office the timber prices recorded bv that office are not wholesale at all, but are taken from the price lists published by the retail town timberyards and one cannot be certain whether even discounts and trade allowances to builders have been allowed for in the prices recorded. The only true comparison that could be made between timber prices in 1900 and 1926 would be gained by contrasting the average mill price for the whole output of all classes and grades, but this it is impossible to obtain owing to the great variation of such qualities at different mills and in different districts. Some Kimu mills, for instance, do not average five per cent, of the higher priced qualities, while other mills working in mountain rimu and with the costs of logging very much greater might produce up to 15 per cent, of these qualities. Consequently the fairest comparison obtainable would be to take the prices for 0.8. rimu (framing quality) which constitutes the bulk of the production of by far the majority of country sawmills. LESS THAN DOUBLE “Sawmillers’ actual prices are not available for 1900, but in 1901 the wholesale price of 0.8. rimu at the mills supplying Wellington was 6s lid and in 1926 it is 13s id, hardly two and a half to three times the 1900 level, as stated in the Auckland Chamber of Commerce. The price given in 1901 is the net wholesale price, less discounts, at the mills in mid-Wairarapa which was then the main source of Wellington’s timber supplies, and the 1926 price figure is the net wholesale price free on rail Ohakune, which is now the price point governing the W ellington supplies. , ~ .. "In the meantime besides the increases in minimum wages of roughly 100 per cent., other costs of operating and transport have advanced proportionately. Freights have increased by actual advance in rates as we.ll as bv distance to market from 2s 2d per 100 super feet to 5s 9d, and the Government royalties have advanced in the same period from, at most 6d per 100 to 3s 6d per 100 on tlir Main Trunk, and in some cases a> high as 4s lOd per 100 feet. Thew two items alone represent an addi tion to the cost of timber quite be vond the control of the producer of 6s 7d per 100 super feet, an average increase of 347 per cent, for these two costs aloue and other costs, sue)' as that involved in working rougher country, more sparsely timbered stands. longer haulage, increased rents, rates and taxes, and more cost ly workers’ accommodation also ha—advanced.”