Alliance Textiles exports fall

Press, 2 December 1978, Page 16

Alliance Textiles exports fall

rrt uuneuni Export sales by Alliance Textiles, Ltd, dropped 28 per cent in the year to July 31, because of an over-abund-ance of carpet yarns on overseas markets at very low prices, Mr W. R. Jackson, the chairman of directors said at the annual meeting.

A reduction in local demand for carpet resulted in carpet makers’ being unable to utilise their yarn-making capacity, and the surplus yarns of New' Zealand carpet mills, and others, flooded export markets at very low prices, he said. There was optimism that the coming year would be more favourable in the export field in that the company had received orders for other than carpet yarns — normally the biggest export earner — amounting to SI.OM.

“The reduction in the rate of inflation in New Zealand is encouraging, and will play an important part in the fight for the return of industrial prosperity and growth. “The export tax rebate scheme is enabling the company to write substantial business overseas, and following the appointment of an Australian manager a year ago the board has approved the establishment of a warehouse and branch in San Francisco; such is the determination of the company to pursue its long-term commitment to export,” Mr Jackson said.

, Concern was also expressed by the chairman regarding the increasing level |of wages. I “Increased wage levels are. lof real concern, particularly (where increases are not( matched by productivity improvement, and some higher-1 priced products are suffering consumer resistance. “The price of raw wool, although continuing to flue-1 tuate, is presently at work-j able levels with our current: cost being within the rangei budgeted. “The need remains for a woo 1-price stabilisation scheme, and a system of marketing as applies to synthetics where price is firm, and credit terms are available,” he said. The proposed tax-free dividend of 4c a share raising the annual rate 0.5 c to 7c a share, was approved by shareholders. Three directors, Messrs W. R. Jackson, C. S. Chalmers, and H. R. Cowan, retired in accordance with the company’s articles, Messrs Jackson and Cowan being reelected upon nomination. i " Mr Chalmers, who had: ; been with Bruce Woollen (Company from 1941 to 1962,: (when it" was taken over by Alliance, and with Alliance (since then, retired after the i meeting. The directors’ remunera-l tion was increased from ($16,000 to $20,000.