r< o \.'. ■ — o

ever-shortening plywood supplies from abroad as a result of the war, this development is a welcome one, particularly in view of the competitive element which it is likely to introduce into the plywood industry m respect to both price and quality. The second development is the installation of an integrated sawmill structural fibreboard plant by N.Z. Forest Products, Ltd., at Auckland. This also is anticipated to come into early production and will likewise relieve the shortage of both exotic timber and imported structural fibre-board. The enterprise is a licensed one, and the interests of all other growers of exotic timber have been safeguarded by a provision that the owners may be required by the Bureau of Industry to purchase raw material from their forests. Section E. — Timber-production . 71. The output of sawn timber for the year ended 31st March, 1940, as reported by the Government Statistician, totalled 336,000,000 board feet, an increase of 6 per cent, over the previous year's cut and 11,000,000 board feet over the estimated cut. The acceleration in demand which began on the outbreak of war enabled many plants to work to capacity, with the result that the highest production since 1925-26 was achieved. The distribution of production by species and districts is scheduled, in Appendix XIII. The demand for timber has continued strong ever since, and it is estimated that a cut of 340,000,000 board feet will be secured for the year 1940-41. 72. The increase for 1939-40 was confined to two species—viz., rimu and insignia pine-—which accounted for 75 per cent, of the total production. As expected, the output of kauri and matai was reduced, but the production of white-pine, totara, and beech remained at practically the same level as in the previous year. Rimu, the principal timber used for both civilian and defence constructional reached a peak figure of 206,000,000 board feet—almost treble its minimum production of 71,000,000 board feet recorded in the depression year 1931-32. The growing demand for insignia pine is illustrated by the increased production from 10,000,000 board feet in 1929-30 to 47,000,000 board feet in 1939-40, at which level it now accounts for 14 per cent, of the total cut and ranks second only to rimu in importance. 73. From the outbreak of war to the date of the fourth ballot, official figures show that 1,207 men connected with the sawmilling and timber industry (about 16 per cent, of the total number engaged therein) had joined the defence forces. Impressive as these figures are, they become more so when it is pointed out that they might well be increased by another 200, as it is known that many timberworkers were not included in that category owing to the fact that when registering for service they omitted to define clearly their civil occupations. Only sixty-one key men have been withheld from service, and they too will gradually be released as substitutes now being trained become sufficiently competent to step into the key positions. Section F.—Domestic Markets. 74. Production has been unable to keep pace with demand during the year, and in general timber stocks have dropped to the lowest level for a decade, more particularly in the North Island than in the South, where the position has been easier. Although, as was expected, domestic building dropped considerably, 6,011 permits were issued for dwellings, as compared with 6,549 issued during 1939-40—a decline of only 8 per cent. This small decline in house-building has been more than counterbalanced by the erection of defence and .emergency works of various descriptions, the difficulty of securing steel, &c, and the extreme urgency in construction work having compelled the extensive use of timber. Insignis pine is now accepted as the standard timber not only for concrete boxing and for the manufacture of containers other than butter-boxes and tallowcasks,. &c, but also for such purposes as the frame or core of flush doors, &c. ; its use in domestic building, particularly in rural districts, is likewise extending. Throughout the year consumers experienced considerable difficulty in securing supplies, and now that current production cannot keep pace with, demand, stocks are being rapidly depleted, and it is anticipated that priority of supply for essential uses will be necessary. The more extensive use of beech, rimu, and matai for general boxmaking is therefore inevitable.

28