The news magazine of the South Pacific · since 1930

Pacific Islands Monthly, 18 December 1931Vol. II, No. 5

Vanikoro Timber

p. 39 · Read in the full issue

Discussion at Canberra Unfair Treatment Alleged

IN the House of Representatives, Canberra, on September 23, a dis cussion took place regarding the duty of 30 per cent, recently imposed on kauri logs entering Australia from Yanikoro, British Solomon Islands, where the Yanikoro Kauri Timber Co. operates.

Hansard thus records the proceed ings: Mr. White (Balaclava): The Treas urer (Mr. Theodore) has invited us to bring matters under the notice of the House, if we think that there are suspicious circumstances connected with them. I draw attention to the case of the Yanikoro Kauri Timber Company. This is a Victorian com pany operating in the Solomon Is lands. It imports Kauri logs into Aus tralia and they are landed mostly at Sydney and Melbourne. In June, last year, the duty was increased to 30 per cent, against that company, yet a company operating in British North Borneo, and importing similar timber, has to pay only a 10 per cent. duty.

Mr. A. Green: Is that Charley Marr’s outfit?

Mr. White: I do not know. Since this company has repeatedly ap proached honourable members, hav ing sent a representative to Canberra repeatedly, and since its secretary re sides in my electorate and has brought the matter under my notice, I again direct the attention of the Government to it. The company was formerly permitted to bring the logs to Melbourne and saw them into planks in bond, but even that conce sion has now been withdrawn. This company has to land its timber in planks, and pay a duty of 30 per cent, ad valorem, whereas a company oper ating nearer Queensland is allowed to land its goods at 10 per cent.

Mr. Latham: Is the Yanikoro Com pany an Australian concern?

Mr. White: Entirely; the whole of its capital has been found in Aus tralia. Burns, Philp and Company are paid a subsidy of £9,000 a year by the Commonwealth Government to trade to the Solomon Islands, but its ships are getting very little cargo there, because the Yanikoro Com pany’s logs are shut out. I raised this subject on the estimates, when the subsidy to Burns, Philp and Company was under consideration, but no ex planation has been given why discri mination has been shown in the treatment extended to these two com panies.

Mr. Scullin: Do the two duties ap ply to the same class of timber?

Mr. White: I believe so. Let me read the following quotation relating to the operations of the company: Vamkoro kauri does not compete to any extent with Australian timbers, as it is a Zealand kauri; and practically identical with New Zealand kauri; and, though New Zealand might benefit should Vanikoro kauri cease to come to Australia, there would be little or any benefit gained by the local saw-milling industry . . . Logs from British Borneo are allowed into Australia at the rate of 10 per cent, ad valorem, and whilst it is claimed that there is no justification for the imposi tion of any duty on Yanikoro logs, the rate should certainly not be in excess of the pre

ferential rate allowed on timbers imported from British Borneo.

In the last letter I received from the company it was stated that, as the result of the Government’s withdrawal of the permission to saw the logs in bond, about 50 persons had lost their employment in Melbourne and Syd ney. On more than one occasion I have drawn the attention of the Min ister to this matter, and he has pro mised to bring it under the notice of the Government. I now ask him why this discrimination has been shown, and whether the tariff will be satis factorily adjusted?

Since the subject was discussed in the House, the Federal Government has increased the duty against the Borneo timber, so that it now has no advantage over that from Yanikoro.

A notable event in November was the gift by the Crown Colony of Fiji of £5,000 from its surplus funds, to the Home Government, as a little gesture of goodwill towards present difficulties in England. The amount is small but it is at any rate a token of appreci ation of the services of the Royal Navy.