U.K.MADE GOODS

Auckland Star, Volume LXXVI, Issue 164, 13 July 1945, Page 6

U.K.MADE GOODS

GREATER OUTPUT

EXPORTS TO NEW ZEALAND

How Britain, despite considerable difficulties, had increased production during the war was told by Mr. G. W. Clinkard, representative in the United Kingdom of the New Zealand Ministry of Supply, at a luncheon meeting of the Auckland Chamber, of Commerce this afternoon.

The United Kingdom had had special problems to face, said Mr. Clinkard, who referred to the effect of the partial blockade, the damage to homes, buildings and transport, the hindrance of the blackout,, which retarded production and transport, and the disorganisation consequent upon the redistribution of population.

Nevertheless, production in 1944, as compared with that of peace years, showed a material increase. Factors enabling this were the utilisation of labour previously unemployed or not normally called upon, the institution of longer hours, better industrial methods and new plants developed. for specific purposes.

Referring to the cutting down of civilian consumption, Mr. Clinkard spoke of the redistribution of material and labour, the concentration of industry, the control of imports and exports, the manufacture and use of utility .and austerity designs, particularly in respect of clothing, the zoning of.transport and direct rationing, especially of food and clothing.

Taxation and savings had also had a strong bearing on civilian consumption. There had been a heavy increase in income tax and the excess profits tax had "been adopted. Furthermore, a limit had been set on non-essential capital construction.

Tax To Be Repaid

Twenty per cent of the excess profits tax would be repaid to the taxpayer on the condition that it was spent ultimately on capital replacement, Mr. Clinkard continued. Indirect "taxation had been heavily increased, purchase tax on luxury lines, for instance, being at the rate of 100 per cent.

Considering all the factors it was not surprising that exports to New Zealand and elsewhere had fallen very materially and had recently been less than one-third of the prewar level in money and presumably very much less in volume.

In order that supplies available from the United Nations might be distributed according to the needs of the claimant countries a system of combined planning had been evolved, and operated through the committees of the Commonwealth Supply Council in London and the Combined Raw Materials Board, and the Combined Production and Resources Board in Washington.

Supplies from the United Kingdom, although under, certain circumstances purchased -by the Government, were mainly obtained through commercial channels. There were, however, certain limitations imposed by quotas, sponsorship, export licenses and other restrictions to ensure that supplies went where they were needed. New Zealand's Demands The influence of lend-lease restriction on the United Kingdom's ability to meet New Zealand's, demands was declining, but apart from that'there were still material .difficulties-in the way. of .the United Kingdom meeting in full and promptly: all. New.Zea-' land's requirements. . _";'■■. Although the United Kingdom's industrial potential would be greater after the war than before, extensive reorganisation was necessary and would take some considerable time. There had been an enormous transference of labour from peacetime production to war production and there were also- considerable tech-, hical readjustments to be made^ As to the prospects of the supply of goods from the United Kingdom to New Zealand, some goods would remain difficult to obtain, particularly certain textiles and goods based on rubber, while in other cases the position would become easier comparatively rapidly. For the most part the difficulty would be one of rearranging the labour supply and not any problem of a shortage of raw materials or industrial:capacity.

. There was an urgent desire to redevelop and extend the : export trade, but there was a heavy home demand and also the demand of the war with Japan, the maintenance of forces elsewhere, and other factors to he considered.

The United Kingdom had been through a very difficult period added Mr. Clinkard,. but he did not think the people sought sympathy so much as an understanding of what those difficulties had been, and what they represented in regard to her future industrial and economic welfare.