H.—2B

gait. Timber for butter-boxes and cheese crates. Seed, cocksfoot. Tins, imported with other goods packed therein. Spices, ground (in small packets). Tools, artificers. Staples, fencing. Trade catalogues. Stationerv, manufactured. Typewriter ribbons. Stone, granite, dressed or undressed. Strapping for butter-boxes. Vegetables, tinned. Tea. Wallboard (wood-pulp board). Textiles — Watch-cases. Artificial-silk piece-goods. Wines. Cotton piece-goods. Window-frames, of steel. Lace material and net for women's underwear. Wire fabric, electrically welded. Shoddy piece-goods containing wool. Wire, plain metal. Unions, cut up for shirts, &c. Wire-strainers. Tiles, roofing, earthen or glass. Wool rugs (carpets). Timber. Woollen piece-goods. Timber —Box shooks. (Other lists of articles which appeared in the New Zealand Gazette of 13th January, 1927, 10th February, 1927, 17th February, 1927, 3rd March, 1927, and 14th April, 1927, as well as notifications of sittings of the Commission, have not been printed.)

APPENDIX B. —SPECIAL REPORTS.* TIMBER. A claim for increased duties on timber has been made on the ground that there is a depression in the timber industry, and that increased duties are necessary to place the industry on a satisfactory footing. In view of this the Commission thinks that it is necessary to consider whether or not a depression exists and, if so, to deal with the various causes which have contributed thereto and the extent to which importations have been a factor in bringing about depressed conditions. The matter has acc irdingly been investigated under the following headings : — (1) Whither or not there has been a depression; (2) If so. the duration and intensity of the depression ; and (3) The causes of the depression. In view of the importance of this industry it is considered that these matters should be discussed in some detail. In order to deal satisfactorily with this matter it has been found necessary to deal with the subject firstly in regard to the conditions existing in the several main timber producing areas of the Dominion and secondly i ir the Dominion as a whole. (i) Whether or not there has been a Depression. From the following the Commission is satisfied that relatively depressed conditions exist in the New Zealand timber industry : — (a) Evidence has been given in various centres showing that mills have closed down as a result of slow sale of timber which the mills have been producing. (b) Short time is being worked in many mills. The evidence shows that since about the middle of 1926 a shorter week has been worked in practically all the mills in the main timber areas in both the North and South Islands. (c) A reduction in the number of employees engaged in or in conjunction with bush sawmills. (d) A falling-off in the sales of New Zealand timber as disclosed by railway transport and other figures, including the direct sales records of timber milling companies. (e) The accumulation of relatively heavy stocks of timber, particularly ordinary building (O.B.) rimu and white pine. (f) The reduction of list prices in several districts, particularly for low-grade timber, and the sale, especially in the North Island, of timber below list prices. (2) The Duration and Intensity of the Depression. This may be gauged from the following facts : — (a) It does not appear from the evidence, that conditions prior to about March, 1926, were such as to suggest an unsatisfactory position in the industry. Production up to that time was at a high level and sales were still satisfactory. The depression during the latter part of 1926 and at the present time must be considered, of course, in relation to the conditions existing in the immediately preceding years. The evidence indicates that in the years 1924 and 1925 the demand for timber was strong, production was correspondingly high, and the industry was in a flourishing condition. These facts must be considered in relation to the present state of the trade.

* Portion of this Appendix, being confidential, has not been printed.

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