POLITICAL OUTLOOK

Taupo Times, Volume XIV, Issue 51, 1 July 1965, Page 3

POLITICAL OUTLOOK

Prices of timber and timber products are expected to be decontrolled withI in five weeks. This course has been predetermined, it is understood, though disciiS8ionfs are still going oii between various sections of the timber and building industries and the Minister of Industries and Commerce, Mr Marshall. It is understood that the sections of the industry so far consulted have not been able to guarantee that the prices of wanted types and grades of timber will remain stable on decontrol. The reason for this is that there are too many unknown factors, or factors out of control of millers, merchants and others expected to set a retail price. * * * One of the main unknown factors is stumpage rates. These are paid to the forest owners by those who cut and process the tree/s. The rule has been in the past that the stumpage rates provide compensation fr>r growing and maintaining the forest and for replanting. Recent practice, however, has been to link the stumpage rate with the retail value of the timber. This means that a proportion of every increase in the retail price is paid to the owner, and is lost to the person responsible for upgrading the product. Some sections of the timber trade have suggested that stumpage rates should

be pegged before any request is made to keep timber prices down. Many forest owners, the biggest of whom are the government's own Forest Service, are just as sure that they should participate in any retail price rise. * * * With the Budget debate running out of jsteam and only a few measures ready for discussion, members of Parliament are wondering how they can possibly fill in their time until July 16, when the oflicial recess is expected to be taken. The "streamlining" of Parliamentary procedure, plus the early commencement of the session, has meant that the first two big debates — the address-in-reply and the budget — are almost finished, while only nine bills are ready for their second reading debates. The estimates have been brought down, it is true, but many departmental annual reports have still to see the light of day. It is not considered ethical to discuss estimates unless the annual reports are also available. Some members are regretting the days when backbenchers were each expected to speak for forty minutes in the address-in-reply debate and for a full hour in the budget debate. It is realised somewhat belatedly that these members were providing a windowdressing behind which select committees met and law draftsmen worked on legislation. The select committees have only just been appointed. So far there is little for them to do anyway, for many of the promised bills are stil a long way oif. So an earlier recess would be no solution. It would merely mean so much wasted time — and the loss of a week or two of the advantage gained by the early start. * * * A concerted effort will be made shortly by a large group of employers to persuade the Government to admit some 3500 skilled migrants from Britain and the Continent to assist in projects which urgently require workers. The argument is that if, as economists say, the skilled migrant creates inflationary pressure in his first year or two, then the Government is the only body equipped to take care of this. The employers' suggestion is that this money should be budgeted for, as any other developmental necessity — and that migrants are needed, even if their initial cost is £10 million. — N.Z.C.N.A. News Service.