TIMBER SUPPLIES

Taihape Daily Times, 4 September 1918, Page 4

TIMBER SUPPLIES

Within the past two or three weeks a further rise has taken place in the price of timber in Wanganui, a fact which is difficult to understand in view of a statement made by the Wellington correspondent of a Southern journal that a reduction in the current prices of timber is likely to take place shortly as a result of the comprehensive regulations governing the export • and milling of timber. The dent says: Timber prices in New Zealand have been controlled, as in the case of butter and meat, not by the actual cost of production in the Dominion, but upon the price which can be secured by exporting the product In brief, the cost of timber to the New Zealand user is its price in the Australian market, less, frieght. This controlling factor is to be eliminated, by careful regulation of the output, so as to conserve sufficient for New Zealand requirements before export is to be allowed. Twnber millers who lose profits by supplying locaL markets will be compensated by ah equalisation fund provided out of the profits on the exported portion of the outpflt* The millers themselves are in favour of this system, and there is every probability of smooth working.

From responsible officers associated with the new timber scheme it is learned that the regulations throw upon every miller the onus of providing his proportion of the New Zealand requirements. The output of every mill is being ascertained, also the requirements of the New Zealand market. Export is not to be stopped, but it will not be permitted at'the expense of local demands. Thus the butter box industry, and also the building trade, is being safeguarded. Wheii the local and export requirements are known it will be easy to apply to each mill a percentage of the output which it will be permitted ■ to export. It may be awkward for some mills to provide the exact proportions for each branch of the business, and the Government has' accordingly consented to a pooling arrangement sub- > mitted by the Timber Millers’ Asso- 1 ;| ciation. Under this system, out of half ” a dozen mills, four of which are well ' situated for supplying local business, may see to this branch, leaving the other two free to export the whole of their output. They will get higher prices than the mills furnishing timber to the New Zealand market, under the pooling arrangement'- their loss of profit will be made up by the equalising fund voluntarily adopted, by the millers. The Board of Trade is fixing the proportion of exportable output, and is also going to fix the schedule of local timber prices. It is' understood that prices will be lowbred compared with those which have prevailed, but as wages and other expenses have increased during the war there is no hope of coming down to anything approaching pre-war rates. There is a large exportable surplus: of timber from New Zealand mills,and an unlimited market in Australia at high prices. White pine, used almost exclusively in New Zealand for boxes, is regarded in Australia as a splendid building material, for the reason that, in marked contrast with New Zealand experiences, white pine is one of the few timbers absolutely insect proof in the Australian climate. Australia will take the second quality white pine which is unsaleable in New Zealand, I for the dairying companies will only accept heart timber for butter box purposes. It is suggested that the dairy companies are too extravagant in their timber consumption, and that they should use more of the second class, quality white pine if they wish to conserve supplies. Experience in the us& of other kinds of timber for butter / packing are still going on.

It is anticipated that there will T)ea serious world shortage of timber after the war, and that New Zealandwill not be able to draw, as in the past upon American pine, because the rebuilding of the devastated areas of Francd and Belgium will require large supplies, and these countries will for some years get the preference. Thus the complete control of timber export and prices in New Zealand is a wise precaution. —Wanganui Herald.