VOICE OF COMMERCE

Evening Post, Volume CIX, Issue 88, 14 April 1930, Page 12

VOICE OF COMMERCE

WELLINGTON CHAMBER

ITS YEAR'S WORK

BRAKE ON IMPOSTS

Members of the AVcllington "Chamber of Commerce meet to-morrow for their sixty-sixth annual meeting. They will consider the annual report for 1929. This opens with the statement that from a trading point of view 1929 has been generally satisfactory, the calendar 3'ear showing a fair excess of exports over imports by an amount approximating that of the Dominion's interest indebtedness overseas. But 1930 has opened with depressed prices for the principal products of the Dominion, and a.close watch will be required from the commercial community in order to maintain and keep satisfactory the Dominion's economic position. AN INVOLVED POSITION. ■"At the present time the position is involved with that of our neighbour across the Tasman Sea, who is passing through a period of strain which it is hoped will not be unduly prolonged. The brake placed on imports by exchange and interest rates is such as to bo likely to keep New Zealand's trade in a stable condition, but there will no doubt be some economic adjustments to be made to meet the reduced national income occasioned by the lower prices ruling for wool, butter, cheese, meat, and other products." The report covers a wide range of subjects to be dealt with by the council "to its best endeavour in the interests of the membership and the general public, and the council feels that its labours have not been unprofitable to the commercial community." Full satis' EXTERNAL TRADE BALANCE. The council, in reviewing the external trade figures for 1929, states that they mako a very ' satisfactory showing, though not quite up to the level of the previous year. In 1928 exports reached a record total for the calendar year, and 1929 shows only a light reduction of £040,318, or a little over 1 per cent. In 1924 and 1925 the Dominion experienced two exceptionally good years for exports, followed by two lighter years, and then 1928 and 1929 have been two excellent years. Following the good export year in 1928, imports expanded by £3,890,368, which, with the decline in exports, reduced the excess of exports from £10,726,279 to £6,195,591, but this is still a very creditable surplus. '. Tables are given to show how the movements in exports affect the movements in imports in the following year, as imports cannot be regulated rapidly enough to move more closely "with exports. "This is all right when exports are rising, but a sudden drop in 'exports not only produces an adverse balance, but, by reducing the general purchasing power, makes it uiorc difficult to assimilate the over-heavy imports. It is, unfortunately, very obvious that exports for tho. current year will suffer considerable contraction. BANKS' ACTION. "The prompt and early action in revision of bank interest and exchange rates will probably -assist materially to minimise the inconveniences of the situation,'but the outlook for trade/for 1930 is generally a difficult one, and general economy will be required to offset the reduced national income -re* ceivablc from exports to overseas. Trade has been good generally throughout the past year, and the surplus of exports of £10,921,870 for the past two years puts "the Dominion in a good position to meet a lean period. VARIED SUBJECTS. Other subjects covered by the chamber and referred to in its report are briefly as miller:— The South African Government trade treaty with Germany received with concern. Wellington Chamber supported action of .Federation of Chambers of Commerce of ths British Empire in cabling representations to the Mouth African Prime Minister requesting further consideration of the treaty. Endorsement was given to the step taken •by the Government to appoint permanent trade representatives to Canada and Australia, and general satisfaction expressed at the selection of Mr. jr. W. Collins to go to Canada, and Mr. L. J. Schmitt to Australia in the capacity of New Zealand Trade1" Commissioners. "Good wishes go to them'in their mission to promote and improve trading relations with tho Dominion in which residence will be taken up." TRADE WITH THE EAST. Reporting on possibilities of further trade with Eastern Asiatic countries a special committee of the chamber has given consideration to the development of New Zealand trade in that quarter. The Prime Minister announced that the Government might consider assisting a direct steamer service to the East. "Up to the present the disability of the cost and inconvenience of transhipping to the East has not favoured the marketing of New Zealand foodstuffs, but with assistance to "meet the additional costs associated with transhipment, or by reasonably low direct freights, it is felt that a ready sale would offer for this Dominions high quality products, not only amongst those of European stock resident in the East, but also amongst those nationals who are gradually acquiring a taste for Western foods. With trade connections established,, steady and profitable business can be anticipated, and with reasonable subsidy there should be little difficulty in arranging direct steamer services which would open up a new outlet' for the products of this country." TRADE WITH AUSTRALIA. It is regretted that tariff relations between the Commonwealth and New Zealand interfere with their mutual trade. The annual average for exports from New Zealand to Australia during the five years 1920-24 was £2,356,330, and for the five years 1925-29, £2,992,----747; whereas tho annual averages for imports from Australia were £5,336,669 and £4,100,340.' "Prom New Zealand's standpoint the disparity in trade has been reduced from an annual average of £2,980,333 to £.1,107.593, and while this may be. encouraging to this Dominion it is to be regretted that sectional interests should so influence the Commonwealth tariff that this result has been achieved more by reduction of exports from Australia than by expansion in New i Zealand goods crossing the Tasmau Sea." PRIMAGE DUTY. Reference is made to the raising of the primage duty from 1 per cent, to 2 per cent. The council of the chamber conveyed to the Prime Minister that this additional levy upon all imports, dutiable and non-dutiable, was in its opinion, not warranted since increasing customs revenue could reasonably be anticipated from the enlarged importations coming into the Dominion, and the additional duty would in most instances be generally passed on to the consuming public, thereby increasing each individual's cost of living, Tho situation, it was felt, was one where relief from tho burdens upon the community could well be considered for [ the encouragement of and revival in trade and industry; and the actual receipts by way of Cnstoms revenue show

every evidence of exceeding by a very large amount that forecasted in tho j 1929 Budget for the financial year to i end 31st March. The Government so considered tho represenation made that a Statute was passed exempting from the additional 1 per cent, primage duty as from Ist April, 1930, a great- number of items, and while it may be too early as yet to expect repeal of primage duty as an item of Customs revenue, it is hoped that further concessions will be considered this coming year. PORT OF WELLINGTON. The chamber holds that "Wellington has every reason to pride itself ujxm the able and progressive administration of the affairs of its port, which are in the hands of the Wellington Harbour Board. . . . Under capable management tho port has so progressed that to-day it possesses facilities to meet all the ordinary demands upon a modern port, and the Wellington Cham-, ber of Commerce extends its congratulations to the Wellington Harbour Board upon the attainment of its jubilee and will always bo proud of its achievements in the fifty years of its existence." RAILWAY FACILITIES. Special reference is made to' the "considerable advancement" in railway works in Wellington. The 1929 Kail ways Statement reported: "The work in connection with the Wellington new station and yard is also proceeding steadily, though some delay in carrying out the .necessary reclamation has occurred through difficulties which have been encountered in constructing the- storm-water culverts across the reclaimed area." The new goods-shed is now in Bourse of erection, but for the new station tenders have not yet been invited. Suggestions were offered in September for a replanning of the area reserved at Thorndon- for railway purposes, and for re-sit-ing the new central railway station thereon. Among these it was" suggested that a goods assembling yard be created at Petone, 'away from the city. Tho business section of the , Capital City could not be indifferent to these proposals—provision of up-to-date and adequate terminal facilities at Wellington were much, overdue, and concern was felt that there might without reasonable justification be further delay— and the council immediately got into touch with the authorities, and it was most reassuring when the Hon. Minister of Railways announced that the existing plan of lay-out would be proceeded with. South Island Main Trunk.—The Government affirmed its intention to prosecute the completion of the Main Trunk Railway via the East Coast of tho South Island, but the council questioned tho economic soundness of this proposal. "A good deal of information (including departmental reports) had been tendered regarding the possibility of this line not being revenue-earning, and it is to be regretted that it has not been favoured to have an inquiry before the expenditure of such a large capital as will be involved in the completion of this line was proceeded with." Successful'protests against continu-' aneo of the overseas C'.O.D. parcel service is noted. . j Special attention was given to taxation, and resolutions on the subject are given. j Company law-, the Electoral Act, 1927, main highways, rural intermediate credits, summer-time, publicity, calendar reform, cash orders, commerce trains, fire waste, and that unblessed word "Australasia" are also referred to in the report. The membe-rhip is increased to five hundred and eighty-four.