In the Doldrums

Sun (Auckland), Volume I, Issue 147, 12 September 1927, Page 8

In the Doldrums

Timber Trade Slackness Introduction of New Tariff ALL those associated with the timber trade ill Xew Zealand are awaiting for interest the revised timber tariff expected to be placed before Parliament to-morrow or ednesday. It will be the Government’s contribution toward a solution of the distressing problems with which the trade is a: present wrestling.

TN preparing its new Tariff schedule. -*■ the Government has consulted representatives of different phases of the industry, and delegates from the Auckland millers, as well as from the employees, were recently in Wellington explaining their views to a committee. In Auckland any measure that will effect an improvement of trade conditions will be cordially welcomed. The big concerns in Fanshawe Street are still working on short time. Some have reduced their week by the elimination of Saturday morning, others by cutting off Friday, as well, and all

agree that the work now spread over , five days could easily be compressed ] into four. ( One miller stated to-day that he j would have to shorten the week by , another day unless the expected ( Tariff revision gave promise of better ( times. At the same time, he was j sceptical of hopes for improvement. t DUTY ON IMPORTATIONS 1 Merchants are aware that increased * duty on imported timber, particularly ' in smaller sawn sizes, is likely to be . one measure introduced by the Gov- : ' eminent in its effort to restore the ; f stability of the trade, but they ar.e not j * unanimously optimistic about the re- j f suits. _ . I ! A leading miller said this morning ; t that the higher duty would stimulate j t the re-sawing business in New Zea- , £ land. Timber that now came in I £ sawn would be imported in “junk” i sixes, and would be cut as required I (

in New Zealand. Otherwise the only effect would be to raise the cost of building, particularly as many local bodies had followed Auckland's lead in prohibiting the external use of the o.b. classes of Xew Zealand timbers. He pointed out that there was now a distinct “fashion” in imported timbers, particularly for joinery, such as doors and window-frames. Homebuilders now preferred Oregon, with its vigorous marking, to rimu. Hence a joinery shop that formerly built wholly in rimu was now doing over 50 per cent, of its business in Oregon. At present the duty on Oregon, and other American timbers, is 2s a 100 feet. In Australia the tariff on American timber is 7s for the same quantity, though New Zealand timbers, under the reciprocity arrangement, are admitted duty-free. Under the revised tariff to be applied in New Zealand, some believe the duty on American timber will go as high as 8s per 100 feet. Builders point out that the increasing scarcity of kauri has created a stronger demand for American timber for beams and joists. Through this alone they predict that a higher duty will raise the cost of building. OVER-PRODUCTION

Over-production is held by many to be at the root of the present slackness in the New Zealand trade. Allied with this factor are other far-reach-ing economic agencies that have placed timber in the doldrums throughout the British Empire. In New Zealand the post-war boom resulted in the establishment of many small mills, which lost heavily .vhen slackness set in. Those that have not already been submerged by the welter of economic pressure are now grimly hanging on, hoping for Governfcient aid. Scores of *nills have closed down completely, and valuable plant is deteriorating, -while the former prosperity of King Country towns has been commuted to stagnation by the failure of the basic industry.

One of the present handicaps by which New Zealand timber is burdened is the fact that American timber, felled and sawn under easier conditions, and on a colossal scale, is cheaper at the main ports of New Zealand than a corresponding grade cut from New Zealand’s own forests, only 100 or so miles away. With that in mind, the up-country millers contend that a protective tariff would help them, but importers assertHhat the demand for the American product would still be insistent.

Meanwhile, there appears to be no immediate prospect of better business for the big mills in Auckland, and they are likely to continue to work short time. It is now several months since the harassed millowners adopted the short week, in preference to putting off tried and trusted hands, and as a result of the decreased payrDll, in a staple industry, the city’s spending power has been substantially reduced.