11

H.—44

In the case of rimu the last-mentioned Order in Council provides a maximum for the year 1922-23 of 15,000,000 ft. for allocation to mills which were in the export trade prior to December, 1918. In view of the decreased home consumption, a special quota of 2,000,000 ft. that year was fixed for sawmills not engaged in the export trade prior to the 31st December, 1918. For succeeding years the maximum export quantities were fixed as follows : 1923-24, 12,000,000 ft. ; 1924-25, 9,000,000 ft. ; 1925 26, 6,000,000 ft. In the case of kauri the maximum allowed for export for the year 1921-22 was 7,000,000 ft. For the year 1922-23 the quantity was reduced to 1,500,000 ft., and for each succeeding year to 500,000 ft. The quantity of kauri so fixed does not include timber inferior to that classed as medium grade in the New Zealand classification (provided that evidence is produced that this timber cannot be absorbed by the New Zealand market at reasonable prices), nor timber shipped to Samoa or the Cook Islands, which, being under the control of the New Zealand Government, are entitled to receive reasonable quantities for home consumption. Throughout the control of export the shipment of timber has been allowed only subject to permit, and in all such permits a condition has been inserted providing that the permit is only exercisable if the New Zealand demand is first satisfied at reasonable prices to the extent to which available freight made supply possible. This condition was rigidly enforced during the shortage periods, with the result that the actual quantities exported fell far short of the maximum quantities fixed by the Order in Council. The process of fixing maximum quantities for export has the effect of conserving the New Zealand forests, as the aggregate output of all mills must of necessity be limited to the quantum fixed for export, with the addition of approximately the quantity that can be absorbed in New Zealand. The only New Zealand timbers extensively used for building purposes, in addition to rimu and kauri, arc matai and totara. The export of these timbers is not permitted except in the case of ordinary building matai produced in excess of New Zealand demands. By the Order in Council of the 13th April, 1922, the maximum quantity of beech for export was fixed at 2,500,000 ft. per annum. The policy enunciated in previous reports with respect to white-pine is still continued—that is to say, the export is allowed of the quantity produced in excess of that required to meet the New Zealand demand. During the year ended the 31st March, 1923, the export market for rimu was dull, and a relatively small fraction of the available export quota was called for. This has apparently been due in part to the competition on the Australian market of soft timbers from other countries, which have been tending to displace supplies of rimu previously drawn from the Dominion. Out of the total available quota of 17,000,000 ft. of rimu only approximately 4,000,000 ft. have been exported. During the past few months, however, a remarkable change has taken place, and the export demand for supplies of rimu has so increased that the restriction on export is preventing to a material extent the acceptance of orders from abroad. The Department has received many requests for increased export allocations, but has, of course, been unable to accede to such requests, the whole of the permissible export quota having been definitely allocated to mills which were in the export trade prior to December, 1918. The non-inclusion in the regulations of any quota for "new" mills for this year would appear to have resulted in difficulties for those mills which had expected a continuance of export privileges. Full publicity was given some years ago to the Government's policy in this matter, and mills which were not in the export trade prior to the initiation of control were definitely advised that they could not expect to receive export permits in future years. In regard to the exportation of kauri, the Department's report for last year indicated the substantial reduction of previous years' quotas as made by the regulations of April, 1922. The reduction from 1,500,006 ft. last year to 500,000 ft. in 1923-24, following upon a reduction from 7,000,000 ft. in 1921-22, has been the subject of strong protest from sawmillers. The restriction relates, of course, only to kauri of a grade not inferior to medium, but it is apparently for the higher grades that an active export market exists. As was indicated in the previous report, regulations relative to control of timber-prices were revoked when supplies became fully adequate to meet the local demand. A tendency towards a lower price-level has been noted, but cost of production, which is essentially based upon labour costs, has not as yet shown any material fall. The cutting-out of the more accessible timber areas tends towards an increasing cost, and, while certain price-adjustments have been made as between the different grades and qualities of timber, no general and substantial reduction of prices has taken place. The following figures show the total quantity and value of timber exported from New Zealand during the year ended 31st March, 1923 : —

Variety. Quantity. Value. Cauri Vhite-pine limu .. Seech liscellaneous —New Zealand produce „ not Now Zealand produce .. Super, ft. 3,865,533 35,687.358 4,536,253 726,109 384,810 79,973 Number. 2,000 £ 73,168 363,444 38,830 10,031 4,275 1,016 Shingles 190