MINISTER REPLIES TO COMPLAINT

Dominion, Volume 33, Issue 84, 3 January 1940, Page 8

MINISTER REPLIES TO COMPLAINT

Manufacturing Company

CONSERVING STERLING FUNDS Dominion Special Service. DUNEDIN. January 2. "My attention lias been drawn to a Press'message from Dunedin in regard to Hie manufacture of rubber products and certain other goods, a number ot which are already being made in New Zealand, or for which substitutes in alternative materials tire being produced in the Dominion or the importation of which from the United Kingdom is still permitted,” says a statement issued by the Minister of Industries an'd Commerce. Mr. Sullivan, in reply to complaints made by Mr. Neil Mcßae, managing director of Neil Mcßae and Co., Ltd., and promoter of a new company, Dollite (N.Z.), Ltd. "The Government." Mr. Sullivan said, "has given very serious consideration and much thought to the complaints. The proposals involve the allocation of a substantial amount of overseas funds, some of which represent dollars, which are so urgently required at present by the Imperial Government and her Allies. At present other more important industries, already established in New Zealand, have a prior right to sterling and other overseas funds, in order to enable them to secure necessary raw materials to carry on as effectively as possible. “It is true that licence from the Bureau of Industry, which is under my administration and under the Industrial Efficiency Act. to commence the manufacture of items proposed by the Dollite Company was not required,-for the reason that none of them came within the definition of any industry licensed under that Act. but a licence to import machinery and raw material must always be applied,for in detail to the Customs Department. Moreover, the company did not. receive any assurance that its application would be granted. "To sum up the position.” Mr. Sullivan concluded, "the applicant fails to realize that a very essential point at present because of the heavy demand on available sterling funds, is that the Government must necessarily give preference to industries already established in the Dominion. I hope the. time will shortly arrive when the company’s application can be reconsidered, as I am very keen to see new economic industries established, and will continue to do my best to help.”