OVERSEAS TRADE

Dominion, Volume 16, Issue 171, 7 April 1923, Page 8

OVERSEAS TRADE

INTER-IMPERIAL CO-OPERA-TION GOVERNMENT’S POLICY COMMENDED INTERESTING BRITISH REVIEW A thoughtful review of the overseas trade of New Zealand, the preference to Great Britain, and the Government’s policy of inter-lmperlal cooncration, is a feature of the latest trade supplement of the Yorkshire "Post,” which commends the Government of the Dominion as being fully alive to the necessity for the adeauate development of its resources. New Zealand is, after Newfoundland, the smallest British Dominion, file area being approximately 104,000 square miles, with a population of (inly slightly over a million inhabitants. Yet, for its size, it is one of the best of the Dominion markets to-day (says the Yorkshire "Post”). It is New Zealand’s boast that it import* more goods than any other country, and also buys more British goods per head. It is essentially a pastoral country, its main wealth being derived firstly from its sheep, and thereby wool, and secondly from its dairy produce. Tn common with every other country during the war and after it. New Zealand was hard put to it financially. Her stocks of wool and foodstuffs were bought at high prices during the war. and while this was greatly to ths benefit of the producer, it also had the effect of putting up prices in New Zealand. Following the war, large orders were placed by New Zealanders in the United Kingdom. These had ■ to take t,heir turn, and in many cases the slump came before thev could be executed. The result was that shipments of goods were being ■sent to New Zealand, invoiced at the prices quoted when the goods were ordered, and the New Zealand importers were called upon to pay higher prices than they could actually afford. This had the effect of diminishing the supply of New Zealand credits in London, until they almost reached vanishing point. The Dominion Government, however, stepped in and proclaimed a moratorium on mortgages, etc., and so averted what would have proved widespread financial disaster. The heavy stocks imported after the war have been grad-, ually liquidated, and the market is now going up and assuming a more stable condition. A Progressive Policy. The Government of New Zealand is fully alive to the Dominion’s resources more especially ns regards hydro-elec-tric power. The possibilities for the development of this power aro great and two loans have recently bene raised in London amounting to approximately ten millions. A general idea of New Zealand credit can be gained from the fact that those loans were rapidly taken up and over-subscribed. The first hydro-electrical scheme undertaken by the -Government was that at Lake Coleridge, in the South Island. Th ip scheme was originally begun shortly before the war, but its scope has now been considerably extended. Further water-power schemes in the North Island have been decided upon, and when the various plans reach maturity the effect upen the country as a whole will more than repay the necessary initial outlay. New Zealand, of all. the Dominions, is the most general and persistent buyer of British goods. In this respect, it may be noted that the New Zealand have recently remedied an injustice suffered by British exporters in competition with foreign exporters from countries whoso currencies have appreciated in relation to the pound sterling. In such cases the New Zealand Customs authorities had power to levy duty on the basis of the current rate of exchange, instead of mint par value; but they had not exercised this power. Tim New Zealand Government have now instructed them to do so. The Government’s decision in this respect proved of great assistance to British trade, at a time when it was very far from flourishing, owing to the results of the slump.

In common with other Dominions, such as Australia and Canada, New Zealand is anxious to increase her population with certain selected types of immigrants. It is pointed out that while the towns are carrying a certain amount of unemployed, the agricultural districts can absorb a considerably increased population, provided that that population has a knowledge of agricultural work.

Meanwhile, the cost of living is going down, and the immediate prospects are good. Imports from the United Kingdom. The following figures will give some idea of tho United Kingdom’s position as an exporter to New Zealand at the present time. While certain figures for the year 1922 are available, all the figures are not, arid, therefore, the figures given below are for the year 1921:— Textiles:— Value in £ United Kingdom ... 4,510.058 United; States 170.236 Japan 266,409 This gives the United Kingdom practically 89 per cent, of the textile trade. Wearing Apparel:— United Kingdom ... 2,379,469 United States 221,489 Australia • 318,032 It is also to be noted that in this class of trade Great Britain is steadily gaining ground, as opposed to the United States. In machinery, however, the position of Great Britain is not so satisfactory. Tho 1921 figures are: — United Kingdom ... 1,997,698 United -States 1,241,118 Manufactured metals excluding machinery give the United Kingdom • £4,125,987 United States 1,168,937 Australia is third with 558,921 In view of the 1921 figures for woollen mill machinery, which shows imports into New Zealand from the Mother Country to tho value of £109,667, it is worthy of notice that at the moment there are eleven woollen mills in operation in New Zealand. The first of these was established nearly fifty years ago, but owing to the very keen competition which it had to experience the progress of locally made woollen articles has been slow. In 1895-1896 the New Zealand woollen mills employed 1,416 persons, with an output valued at £342,423, while in 1919-20 tho number of employees had increased to 2,025, and the value of th« output to £1,143,265. It is believed that the I estimated capital of these various concerns amounts to about £1,500,000, I their principal output including tweeds,

clothing, flannel, rugs and shawls, and blankets. New Zealanders are much exercised at the present moment at the somewhat alarming decrease in the number of their sheep. In 1918 the number of sheep in New Zealand was estimated at 26,538,302, while in 1922 they were estimated at 22,245,473. This shows a decrease in four years of 4,294,829. The number of dairy pattie has increased. In 1918 the number was estimated at 793,215 cows. This has now increased to 1,049,240. Satisfactory as that increase is, _ it cannot in any way act as a set-off to the loss of 4j million sheep. Inter-Imperial Co-operation.

It is worthy of mention that New Zealand, in common with Australia and South Africa, has adopted the, form of invoice recommended by the Imperial Customs Conference. Over and above that, she has come to an arrangement with Australia whereby goods° sh.pped from Great Britain to Australia or New Zealand may be transferred to the other Dominion out of bond without being considered as goods coming from a foreign country. This agreement is of considerable assistance to British manufacturers who, say, hold stocks in M ellington and are short in Sydney, or viceversa. Prior to this arrangement a transfer of such stocks meant payment of duty as at the general rate ruling for the class of goods; now, however, they may be transferred in bond, as it were, from oiie Dominion to another, and on arrival will be entitled to go in at British preferential rates In the autumn of 1921 New Zealand introduced a new tariff, which has been in operation throughout 1922. As in the case of the Australian and Canadian tariffs, it comprises three headings, Brit'sh ‘’referential, Intermediary, and. General. As far as is known, onlv the first and last headings are in use" at the moment, but manufacturers would do well to bear in mind that, should New Zealand come to any reciprocal trade agreement with another country, there is the intermediate tariff to bargain with. ' Like other Dominions, New Zealand has introduced into her tariff certain provisions for anti-dumping duties. She has also introduced special rates of duty leviable on goods coming into New Zealland ifrom countries whose currencies have depreciated. Considerable latitude is allowed by the Tariff Act to enable any portions of the tariff to be adjusted, should it be made clear that they are not operating in the way intended. In framing this tariff, the New Zealand Government has to the utmost limits of its ability given preference to goods of British manufacture. Naturally it has been framed, as are all such tariffs, with a view to protecting home industries, and to supply the Dominion with revenue, at the same time making it possible for goods of British origin to compete satisfactorily in the New Zealand market with similar goods from other countries. The Preference to Great Britain. In various classes of textiles which are sent to New Zealand for making up, British goods get a preference of 15 per cent., while a preference of 20 per cent, is given on some manufactured goods of iron and steel: steel rails also have a preference of 20 per cent. Oil and gas engines are dutiable under a British preferential tariff at 15 per cent, up to 100 horse-power (8.H.P.), and in this class secure a preference of 25 per cent, over similar engines of foreign manufacture. Over 100 horse-power (8.H.P.), foreign engines pay 10 per cent-, whil& British engines go in free. It can safely be said that no Dominion does more than New Zealand to help the British manufacturer to sell his goods. With this in mind, and in view of New Zealand’s high financial standing, a gradual increase of trade between the Dominion and the Mother Country may be looked for in the near future. One last small point is perhaps worthy of mention: New Zealand, while "relatively close to Australia, is still a considerable distance from the Commonwealth, and therefore manufacturers in Great Britain would probably do well to secure independent representation in both these two Dominions.