REVENUE FIRST

Sun (Auckland), Volume I, Issue 149, 14 September 1927, Page 1

REVENUE FIRST

New Tariff on Timber NOT HAILED WITH DELIGHT Dwellings May Go Up £ls NEITHER the millers nor the workers, according to views expressed by their representatives this morning, are particularly pleased with the Government's answer to the timber trade’s 5.0.5., revealed in the revised tariff schedule issued to-day. There is provision for heavier duties on imported timbers, particularly in smaller sizes, and dearer houses are predicted as a consequence.

A UCKLAND merchants and builders said this morning that the tariff alterations were just what they had expected. They endorse the official view that over-production and economic conditions are as much to blame for the present slackness, as . importations from outside. In a waterfront timber-yard 10 45feet lengths of 12 by 4-inch Oregon were mounted on squat trolleys. Straight and clean-grained, the huge

beams were without a flaw. They had been ordered for an up-country dairy factory and could not be supplied in anything but the American timber. Kauri Supplanted “Work of that class used to be done in kauri/’ said the merchant, “but kauri in such sizes is now practically unprocurable, and would cost more. The use of the American timber is inevitable.” In the 12-inch by 4-inch size the beams, as cut:, would under the old tariff be subject to a duty of 2s per 100 super feet. Under the new duty such sizes will carry 3s more tax, 5s per 100 feet, in all. As it happened, however, they were not imported as twelve-by-fours, but were sawn in Auckland, from a huge baulk, 16 inches square across the butt. In the past, junk timber of that size has beer, subjected to the same duty as the smaller sawn sizes, but whereas the duty on the latter rises by 3s per 100 feet, on the former the increase is only one shilling. Cutting to size in New Zealand will thereby be encouraged. The higher duty will apply to all timber of less than 25ft. lengths, or 150 square inches in cross-sectional area. Would Not Help Mr. W. B. Leyland, well-known in the Auckland timber trade, said this morning that the altered tariff could not at present do much to improve business, as there simply was not the demand for timber. Other factors, besides importations, were responsible for the slackness in New Zealand. He expected the higher price of Oregon would result in the use of more New Zealand timber in homes, and for joinery, and when the demand improved the price of rimu would perhaps rise by 3s per 100 feet, a figure which, at least, might allow mills to pay their way, while it would perhaps bring into production a few establishments that were at present idle. The general price of house-building, however, would be more. Mr. E. J. Phelan, secretary of the Timberworkers’ Union, has been a consistent advocate of a protective duty, and recently gave evidence on the question at Wellington, but this morning he expressed disappointment with the measures brought down. "It appears to me,” he said, “that the duties applied are more for revenue purposes than for protective purposes.” Revenue Producing Mr. Phelan added that he could not discuss the details of the tariff until more about them was available. Speaking generally, however, he thought the proposals were not very satisfactory. They would give little relief to the timber trade, and hence would not he much good to the workers. Similar views were expressed by Mr. E. Clayton, manager of the Kauri Timber Company, who said the new tariff was revenue-producing, and that was all. He quoted the following Australian duties on imported timber:—12 x tt ana over, 4s per 100 super feet. 7 x 2i, os 6d per 100 super feet. Under 7 x 2.1, 7s per 100 super feet. Dressed timber, Ss 6d per 100 super ft. By comparison, the new duty introduced in New Zealand would be less likely to discourage importations. There was not sufficient difference to make importations in big sizes pay for the cost of cutting in New Zealand. Astute Provision Moreover, the Government had very astutely placed the minimum crosssectional measurement for big sizes just above the commonest stock size, 12 by 12. The minimum had been fixed at 150 square inches, which meant a baulk measuring 12 i inches by 12, a size never habitually cut. In joinery the extra protection on imported doors would just about balance the higher price to be paid for the timber for the now popular Oregon doors. Speaking generally, Mr. Clayton said the duty would tend to raise the price of rimu, and as a result he thought the cost of the ordinary home would go up about £ls a house.