Feltex sales ahead; “good year probable"

Press, Volume CXII, Issue 33062, 1 November 1972, Page 2

Feltex sales ahead; “good year probable"

(New Zealand Press Association)

WELLINGTON, October 31.

Sales by Feltex New Zealand, Ltd, increased in the first quarter of the present financial year by 15 per cent on those for the corresponding period last year, the chairman (Mr I. D. Reid) told the annual meeting today.

Mr Reid said that profits were meeting budget objectives, and i another good year for the company, seemed probable.

But further savings must be achieved in some divisions in order to meet individual budgets, he said. “The results for the year will be influenced by the degree to which the country can continue to hold wage and cost levels,” he added. Measures were well in hand to protect the company’s markets for woollen products, bearing in mind that the wool market was an uncertain element affecting company trading. “A greatly increased range

of carpets which blend wool with synthetics must be produced if we are to protect the consumer from the full impact of the high prices for wool.

“Quality carpets are an essential item of domestic furnishing, and we simply cannot allow them to be priced beyond the reach of the average householder,” Mr Reid said.

The company had opposed the compulsory acquisition clause of the wool marketing scheme legislation because of a belief that it would not affect the level of world prices, but that it would increase the selling costs to the farmer. “The present auction system has apparent disadvantages, but we are not convinced that restricting the freedom of sale and purchase of wool is any answer to its problems. “In the circumstances, we think the Government was wise to remove the compulsory acquisition clause from the legislation. It will give all interested parties a further opportunity to consider how best to ensure a stable market and good prices for wool.” Mr Reid reiterated the concern expressed in the annual report that the Government policy, substituting tariffs for import controls, might fail to maintain the healthy growth of domestic and export markets and limit employment opportunities for New Zealanders.

“Already, there have been some instances where the relaxation of import licensing has caused some unemployment,” he said. “After initial uncertainties, however, it has been a definite reassurance to industry that Government spokesmen have lately stated without qualification that growth and employment would be safeguarded in the future and that where tariffs would not accomplish this, import licensing would be retained.” Mr Reid said industry had no doubt about the good faith of these intentions, but it had to remain watchful of Tariff and Development Board decisions. This was in case errors of judgment or unforeseen consequences of such decisions caused serious damage to the economic base of manufacturing, Mr Reid said. “International trading remains an economic and diplomatic jungle of contending interests, and the smile on the face of the big tigers should not lead small countries, like New Zealand, to believe that this is the only use they make of their teeth. “Industry is now providing a living for half the population of this country, pays

I about the same proportion of I the total tax bill, and is i rapidly developing its exports. We can justifiably i claim that our concern about the issues of import controls and tariffs is not a selfish, sectional attitude, but related to the future economic wel-j fare of the nation,” Mr Reid: said.