Tariffs and Timber

Sun (Auckland), Volume III, Issue 877, 22 January 1930, Page 7

Tariffs and Timber

EFFECT OF DUTY ON IMPORTS Reply to American Inquiry TO ascertain the status of Pacific Coast woods in New Zealand, and the effects of increased tariff on importations from America, the “Timberman,” an American trade publication. recently wrote to the Maoriland Importing Company, Dunedin, for authentic information on the subject. In view of the discussion there has been about importations of timber into this country, the reply of Mr. Carl Ruhen, of that firm, should make interesting reading. Mr. Ruben’s- reply is as follows:

The Timberman: Regarding your question as to whether the demand for Baltic is increasing, as far as sawn and planed timber such as flooring, ceiling and weatherboarding is concerned, I doubt if it will come into this Dominion in any quantity. The principal reason for this is that there is no direct steamer communication from the ports of shipment to this country. Any small parcels which may come forward require to be transhipped either at London or at some of the Australian States, and the steamer freight makes the copt prohibitive. In regard to California redwood, in the South Island this timber is used for sash and occasionally for fireproof doors. By this 1 mean that in some of the large stores where there are dividing walls, connection between the different portions of the stores is by means of doorways, and the doors are manufactured from California redwood and covered with iron. The insurance companies insist that this wood must be used. In the North Island California redwood is used very largely for weatherboarding. It is imported in 1 x 6 and 1 x S, rough sawn, and is planed locally. As far as the South Island is concerned our native timber is still used for weatherboarding. Our sawmills are not so far away from the towns and the freight is not so heavy. California redwood, although it may make a better job, cannot compete with our native timber.

With regard to the importation of American, Canadian and Baltic shook we in the South Island still have a fair amount of native white pine available to manufacture cheese crates and butter boxes, but in the North Island a fair number of butter boxes have been imported for the export of butter. These boxes have been imported from Finland, and they are manufactured from small trees, because although the sides of the boxes are only about wide, some of the boards are made from three pieces. Some of the Swedish manufacturers of sawmill machinery have placed on the market a planer which

planes the timber two sides, tongues and grooves it, joins and glues it, and crosscuts the boards to the exact size. When entering New Zealand these boxes pay the ordinary duty as on sawn dressed lumber, that is, 7s 6d a 100 ft super inch, plus 20 per cent. As soon as they are exported and it is proven to the satisfaction of the Customs Department that they are imported boxes, a drawback of the duty is granted, with the result that the quantity of imported butter boxes used in the dairy trade is increasing. We, ourselves, have made several experiments, and it has been proven to the satisfaction of the dairy experts that Sitka spruce is suitable l'or containers for butter. The apple growers use Pacific Coast timber for export cases almost exclusively. A similar drawback of duty is granted to the apple exporters. In this connection it is worthy of note that since the last election, when a new Government came into power, the Prime Minister, Sir Joseph Ward, and the Minister of Customs have been travelling around and have met a number of deputations. They visited the West Coast of the South Island, and a deputation from the Sawmillers’ Federation interviewed them and made the proposal that the importation of foreign timbers should be completely stopped. Two days later these same Ministers were in the Nelson district and the apple growers In that district asked them for further concessions so as to reduce the cost of the containers. It

is evidently a case of everyone for himself and the devil take the hindmost. So far as the increased duties on foreign timbers stimulating the demand for New Zealand native timber, I fail to see that this has resulted. My reason for this conviction is that we are depending on the Pacific Coast for the supply of Douglas fir, which can be obained in long lengths and is easy to handle and work. As far as sawn dressed timber, such as flooring and lining is concerned, it arrives here in a perfectly seasoned condition, it is kiln dried, the flooring is perfectly straight, and there is no waste. These are very big factors and help the sale of Pacific Coast timbers. Another aspect of the question is that the price of our native timber is so high the cost of housing is almost prohibitive for the ordinary artisan. There is no getting away from the fact that the fall of the price level of all the commodities we export must affect our own economic position. So far these commodities have kept on a high price level since the war, but it may be possible that dairy produce from the Latvian districts will compete seriously on the London market with our product, and in the future lower prices may rule. We hope this will be a long time distant, but should it eventuate our sawmillers will have to meet the falling markets of the world. CARL RUHEX, Maoriland Importing Co.