TIMBER DEPRESSION

Sun (Auckland), Volume IV, Issue 937, 2 April 1930, Page 10

TIMBER DEPRESSION

MR. TAVERNER OPTIMISTIC “PRICE-CUTTING MUST END” Press Association WELLINGTON, Today. Referring to the remarks attributed to a well-known sawmiller as to the present state of the sawmilling Industrie country, the Hon. W. B. Taverner. < 'ommissioner of State Forests, expressed the opinion that the position ts i - - Lfficult is stated 1 f i . u.-ri. - : ' . ir. ' • : - rock level last year. What had intensified the depression v.as the undesirable price-cutting j policy adopted by some smaller operators. so that the mills were forced to 1 dispose of their output at a loss, until : finally conditions became so chaotic ' that producers were forced to co-oper- ;■ te. After long-drawn-out negotiations the operators had agreed to adopt central sales agencies in the more important milling regions, and since then improvement had taken place. "The practical question is," said Mr. Taverner, “what of the future? Balancing the various factors involved I think we will have to be satisfied with the same demand as has ruled during the last three years. The sales policy requires careful handling. It has. of course, resulted in some producers increasing their previous volume of sales, and others in decreasing theirs. These latter naturally look askance at any decrease in their production, often forgetting to consider at the same time their improved earning position, duetto the stabilised prices and other benefits arising out of the central, co-operative sales policy. POSITION IN AUCKLAND "It is to be hoped that producers will continue to support this policy and avoid price-cutting, which would bring chaos to the industry.” In answer to a question whether there was regional depression in Auckland. the Minister said he • was inclined to think that trade in Auckland was less buoyant at present than elsewhere. At least, that is what would appear from building satistics from the four main centres for December and January. During the last two years Auckland permits were down on the corresponding period for the previous year by almost £140,000, whereas the other centres were up by from £ 23,698 for Dunedin to £177,318 for Wellington.