RAW MATERIAL SUPPLIES

Press, Volume LXXXIII, Issue 25253, 4 August 1947, Page 3

RAW MATERIAL SUPPLIES

SOME PRODUCTION HAMPERED

DEPARTMENT’S EFFORTS TO CORRECT DEFICIENCIES “There has been, during the last year, a further deterioration in the overseas supply position of many important materials and commodities essential to New Zealand’s economy. On occasions the shortage of certain materials in New Zealand has reached a critical stage, hampering production and creating temporary pockets of unemployment,” it is reported by the Department of Industries and Commerce. . . “Unceasing efforts have been made by the department throughout the year to correct these deficiencies, and lull advantage has been taken of the overseas organisation, both as a means of keeping local industry in touch with alternative sources of supply, and also—when the occasion demanded—for the purpose of arranging direct Government piocurement. Full support has been given to import licence applications in respect of essential items in short supply on production of satisfactory evidence of availability. Wherever possible, efforts have been made to satisfy requirements from sterling sources; but, where necessary, recourse has been had to hard currency areas. “Jute, which has a highly important end-use in New Zealand in the production of woolpacks, etc., has been in extremely short supply, the allocation by India for 1946-47 being less than our minimum requirements. Gypsum, plaster, cement, veneers, hardboard, and hardwood timber, all of which have been urgently in demand in the building trade, have also been short. Shipping has been a contributing factor. Other items in short supply in this group have been paper, woodpulp, sisal, and manila hemp. Shortage of Chemicals “The main supply difficulty in chemicals has been centred in the alkali group, which has included caustic soda, sodium bicarbonate, sodium silicate, sodium metasilicate, and soda ash. The scarcity of alkalis has been increased throughout the year. The chief source of supply is the United Kingdom, and production there has been limited by the shortage of coal. Demand has continued to be substantially in excess of the available supply, and, although every effort has been made to secure increased allocations for New Zealand, these have been less than our minimum needs. "The paint and varnish industry has also been affected by acute shortage of a number of raw materials, including antimony oxide, titanium, lithopone, and white lead, all of which have been subject to production difficulties in the United Kingdom. Linseed oil has been extremely short and has been subject to strict export control within the supply countries and international allocation through the International Emergency Food Council. Paraffin-wax, from Assam, which has been allocated by the British Ministry of Fuel, has been insufficient for our requirements, and supplies were subject to direction by the Factory Controller during the year. “Supplies of iron and steel generally have been shorter during the year than at any time during the war. This position has been influenced by production difficulties, both in the United Kingdom and in Australia, and. in the latter case, shipping has also been an important factor.

Throughout the year demand for shipping space for the transport of coastwise cargoes and cargoes from Australia has i remained at a level substantially in excess of supply. This position has continued, notwithstanding the acquisition of additional tonnage, both by charter and otherwise, and heavy accumulations of goods awaiting shipment have been apparent. particularly in Australian ports. I Trans-Tasman cargoes principally affected ;by shipping difficulties have included hardwoods.. pig iron, steel, gypsum, salt, wheat, sugar, tyres, and a wide range of : transhipment cargoes from South Africa and the East. In the coastal trade the effect has been most marked in the case I of coal, cement, timber, and o-ther build- ; ing materials, and, as regards the Internal j distribution of goods.