N.Z. WOOLLEN INDUSTRY

Press, Volume XCIII, Issue 27914, 10 March 1956, Page 8

N.Z. WOOLLEN INDUSTRY

EFFECT OF IMPORTED GOLDS COMMENT ON REMARKS BY UNION SECRETARY “We have covered extraordinary business in the last ten years and we should be prepared to take a little bit less,” said Mr W. R. Carey, general manager of the Kaiapoi Woollen Manufacturing Company. He was commenting on a statement that New Zealand’s woollen industry was being hard hit as its markets were flooded with goods imported from overseas. Mr. L. Swan, secretary of the New Zealand Federated Woollen Mills and Hosiery Factories Employees’ Union, who made the statement in Dunedin said that in mills throughout New Zealand looms were idle for lack of orders, and that the Government’s policy of unrestricted imports, and to a lesser extent credit restraints, were to blame.

“I can see the end of this,” said Mr Carey. “I think the statement from Mr Swan is exaggerated.

“Our mill is not so busy as it was and we have not always made staff replacements. We have kept the strength of our female division up and can do with more skilled operatives generally—men or otherwise. “The recession is by no means what it was. . We have had a wonderful period for 10 years or more and kept as busy as we could be. “We have not dismissed any workers,” added Mr Carey. Mr Swan said also that a line of silk hosiery was being imported into New Zealand which was inferior to the local article. No protection had been given to manufacturers of fullfashioned silk and nylon hosiery. This section of the industry, more than any other, had to compete against goods from overseas countries with low wage structures and excessive hours of work. Hosiery Imports “The importation of woollen goods and hosiery from overseas is the finest thing out for New Zealand.” said Mr L. B. Miller, managing director of Miller’s, Ltd., commenting on Mr Swan’s statement. “It will wake New Zealand manufacturers up. Both woollen goods manufacturers and hosiery manufacturers in New Zealand need to put their house in order. "N.Z. hosiery manufacturers have priced themselves out of the market,” said Mr Miller. “I have just returned from a visit to 2u overseas countries. In countries where wages are double what they are here, hosiery is about half the price it is in New Zealand. The standard of their hosiery is much higher than here too. “Hosiery manufactured locally has been lasting only two or three days,” said Mr Miller. “That’s not much good to a New Zealand housewife.

“The importation of hosiery into New Zealand will force the New Zealand manufacturer to compete. They have just got away with it too long. Now the New Zealand manufacturer is meeting competition he is dropping his price. He is not paying more for nylon than English spinners either. That has been one of the excuses he has put across. The New Zealand hosiery manufacturer has just got excuses all the time.” Mr Miller said that in the woollen industry there had been a “falling off” in the demand for “carded,” but a tremendous demand for worsted. “There’s tons of business for New Zealand manufacturers in worsted if they like to get down to it,” he said. A leading woollen goods and hosiery manufacturer said that the New Zealand retail trade would not substantiate Mr Miller’s claim that New Zealand hosiery was inferior to overseas.

"I think the Government is aware that excessive import licences have been permitted in woollen goods,” said the manufacturer.

A leading Wellington. retailer said that 90 per cent, of retailers were of the firm opinion that New Zealand hosiery, both in quality and price, was fully up to overseas hosiery. Most New Zealand retailers preferred to buy locally made hosiery because the price was right, the quality was right and there were no stock risks inherent in having to decide colours a long period ahead as when hosiery came from England.

PROTECTION OF N.Z. GOODS

MR EYRE DEFENDS ADEQUACY REPLY TO CRITICISM BY UNION SECRETARY (New Zealand Press Association) WELLINGTON, March 9. The Minister of Industries and Commerce (Mr D. J. Eyre) claimed this evening that the woollen and hosiery industries in New Zealand were being given adequate protection. He was replying to criticism by Mr L. Swan, national secretary of the New Zealand Federated Woollen Mills and Hosiery Factories Employees’ Industrial Association of Workers. Last October the Government had reimposed import control on woollen and worsted piece goods, pending a complete tariff hearing by the Board of Trade on all goods produced by the New Zealand woollen mill industry, Mr Eyre said. As a result of this reimposition of control, imports of these goods would be reduced by half. However, said Mr Eyre, it was only to be expected that the full effect of this step would not be felt until later this year. “It is incorrect also for Mr Swan to say that no protection has been given to the local manufacturers of fully-fashioned silk and nylon hosiery,” Mr Eyre said. “This industry has been, and still is, subject to import control. • It is true that licences have been issued in the past, but this has been primarily because the local manufacturers have been unable to meet the demand. “Since 1950, several new hosiery factories have been established, and other units have increased their production potential. The position today is that the industry has a productive capacity considerably in excess of present demand. In such circumstances, it is reasonable to expect a greater degree of competition among firms. “Mr Swan has commented on the unsatisfactory state of the industry, but it is interesting to note that for at least some of the units in the industry, last year was a record one. both as regards profit and production.” said Mr Eyre.