TRADE DIFFICULTIES

Dominion, Volume 26, Issue 103, 25 January 1933, Page 10

TRADE DIFFICULTIES

Burden of Exchange Charges SERIOUS DISADVANTAGE Dominion Special Service. Dunedin, Jan. 24. Discussing trading difficulties which affected New Zealand compared with countries of the Old World to-day, Mr. 11. Trouser, the representative of a firm of agricultural implement makers in Mannheim, Germany, referred to what he described as one of the most serious disadvantages under which the Dominion, in common with Australia, laboured. It was the absurdly high level of overhead costs with respect to importation of goods from overseas. “My firm’s manufactures, which are widely used in New Zealand, are sold at exactly 100 per cent, more than they bring in Europe. Exchange on London, in view of departure from gold standard, accounts for 35 per cent.; exchange New Zealand on London for further 25 per cent., and freight which is unavoidable and harbour dues and selling costs make up the remaining 40 per cent.” A product costing £lOO in Germany was sold for £2OO in New Zealand, and an extra £lOO was paid by the farmer, but not to the manufacturer ; it simply disappeared and no one knew who really got the money. If he sold a £250 tractor in New Zealand, it cost the Dominion land owner £500,’ and neither farmer nor manufacturer was any better off for the higher figure paid.