MANUFACTURED GOODS

Evening Post, Volume CVII, Issue 61, 15 March 1929, Page 3

MANUFACTURED GOODS

CAN NEW ZEALAND EXPORT?

(To the Editor.)

Sir,—According to the report in the "Post" of Monday last of "the interview of i the delegation of the Clothing Trades i Federation which waited on the Minister of Customs to seek further protection for the clothing. industries of the country, there appeared to be some doubt in the minds of both the Minister and the speaker on behalf of the delegation as to whether New Zealand could : successfully export manufactured clothing. The Minister, in l'eply to a statement of Mr. Cooke that, if the secondary industries were given an opportunity to thrive, thoy should be able to build up an export trade, asked quite: naturally, "Where do you suggest we should export to?" .The answer.of Mr. Cooke that we could export to the Continent of Europe and America did' not appear to have been very convincing, as no further reference was made to the matter.

Without desiring to enter into the question of "Protection," as such, I would like to suggest that New Zealand can very well be an exporter of manufactured goods, if the right kind and the right market were selected for the purpose. The goods i have in view are woollen manufactures^, and the market is Western Canada. The arguments in favour of such, as I have on many occasions taken the trouble topoint out in your colunws, may be summarised as follows: —

(1) New Zealand is a. wool-producing country. Canada is not, except in. a very small way. ■ ■ ■

(2) Canada is a country with a very cold climate, rendering woollen garments necessary. She has to import woollen goods or use cotton. garments instead.

(3) New Zealand/goods are admitted to Canada under a preferential tariff. Canada sends about four or five times the amount of exports to us, as compared with what we send her. If any attempt was made to penalise New Zealand woollen goods, New Zealand would therefore be in a position to retal'alc.

(4) There is a direct monthly line of steamers to Uaucouver, besides the Canadian Government Line.

(5) New Zealand has some 13 woollen mills, which make heavy woollen clothing as good as any other country' in the world. At the same time, they also turn out a fair proportion of very excellent medium ■and fine woollen goods. Until recently, there was no woollen mill in the whole of Western Canada (i.e., West of Montreal), - although recently two mills have been established in Alberta, thus showing that business 'is to be done in this class of goods if it is sought after. There is a population of' some three million people in 'this area, all of whom, because of the climate, would be potential buyers of. New Zealand woollens. By reason of the difference in climate, Canada is .our natural:'market for such goods as she requires, which she cannot produce herself.

(6) Apart from the kind of clothing and under-garments usually worn in this country, there are many I'articles of clothing peculiar to Canada, because of its severe climate, which "could be made specially for that market—such as Mackinaw jackets (a kind of short top coat used by lumber-jacks and men engaged ip outdoor work in the fishing fleets, mining-camps, farms, etc.). Likewise, jerseys, woollen caps, scarves (for both, men and women), and many other articles required in a cold climate for which there is a ready market. Samples of these could be obtained and made in" New Zealand also for export to Canada. . '■■..'

(7) As-these goods would all be of. the heavy type, our crossbred wools are eminently suited for the purpose. The same applies to blankets, rugs, and even to the -worsteds and tweeds which are turned out in. this country, having in. mind the fact that there is a good market for such for working men's suits over there. Further, there is no reason why "a large trade should not be done in I'eady-made suits as well, once the requirements.of the market are studied and understood, for, in Canada, as in. U.S.A., the large proportion of suits worn there are readymade. . .:■'.■'

The possibilities of this market having, I trust, been'clearly indicated,' the nest question arises as to, the'methods by which the trade could best lie" developed,. and this calls for the co-operation,of,the,mills themselves. In this direction, we have the experience of the exporters of our primary products to assist us.: The large export trade in butter, cheese, meat, fruit, honey, and other products carried on by this country lias only been rendered-pos-sible' through the combination- of the various interests involved to secure the best results. Is there any reason why the mills should not be able to combine in p. similar manner to open up and maintain an export market. for their, manufactured goods? ■ • To' accomplish this, the, easiest method' is to form a New Zealand Woollen Manufacturers' Export Association on the following lines:— . '"■ ■ Assume that five or.six mills were agreeable to come into the scheme, and each contribute, say, £5000 to form a separate export company, with a capital of £25,000 or £30,000, which would be.quite sufficient for the purpose. ■ Each mill would be represented by a .director on the board of the new company, so as to safeguard the interests of the individual;mills forming the company. The'new, company would, be. run as an entirely .separate entity and would be concerned with the export trade only—that is to say,- the obtaining of the orders,,attending to their. fulfilment, arid the despatch and distribution of the goods at the other end, arid payment for the sanie. : , ' : '-. ' ."■.' ':': ,

Haying formed the company, the procedure would be as follows: —

(I)' Establish, .an office of the. company and shipping warehouse in somp convenient centre, say, Wellington, to attend to the affairs of the company, as above indicated. ■ .'•... ■•■•'..-

(2) Establish an office in Vancouver, withva representative,' whose business it is to-secure the orders in the Usual way. He would-be responsible for the advertising which would be carried on in the name of the association, and not in the names of the individual, mills, that is to say, by what is known as ;"trade advertising," just as the linen manufacturers,of Belfast advertise Belfast linen generally in the United States, etc. , "Buy New Zealand-made rugs, blankets, undergarments, etc.." would be tho slogan, and not "Buy the goods .of ■ any particular mill." A trado name could be used, by which all the goods handled by the association would be known. By means, of combination in this manner, the.association would be able to present a much -more effective showing ,in the overseas . market in the maintenance of stocks, salesmanship, advertising, etc., than .could ever be accomplished by the same mills constituting the company, operating independently, on their own account. ■ (3) At the New Zealilud end, the mills would agree among themselves on the different . articles to be, made by. each. If certain mills agreed to make only.certain j articles for the export trade, this would I ensure standardisation and economy of manufacture by reason of repetition in process and tho bulk orders which, should be obtained, .in a modified form, this I would mean "mass-production," and all I the advantages of reduction in cost of manufacture by that means, which are now so well-known. For instance, one mill would agree to make rugs; another, blankets; another, a certain kind of undergarment, and so on. This is a -matter 1 for agreement between the manufacturers, according to the special facilities of each and their willingness to undertake certain lines. In this regard, it may well bo that some line which was regarded at first as" being unprofitable, may ultimately turn out to be the best selling, but with a little give and. take on the part of tho mills, it should not be difficult to come to some equitable agreement on the point, and make any necessary readjustments which may be necessary,, as they went along. Export association, I may say, are largely used in the U.S.A. to promote the export trade of any group. This briefly is the method by which this trade could best be carried on. The market is there, if it is gone after, and with such combination by the various mills ;as is 'hero/suggested,' there is no doubt that a very larsje trade with Western Canada-, in woollen Roods could, be | soon developed. This is an ago pC mergers, combinations, and amalgamations. - Already in New Zealand there have recently been mergers in tho brewing, brick-making, and chemical industries. Why should -, not the woollen mills similarly get together and combine,, for the export trade? 'There have been many complaints recently by the mills themselves of the competition between them. Here is an outlet for

their surplus goods iii an export market with great possibilities, besides offering an opportunity for 'effecting economies even in the New Zealand home market by agreement, so as to prevent over-lapping in 'manufacture, selling,". and distribution generally. ■ ; ■ As regards the Western Canadian market, I. would add that I speak with spuie knowledge of the subject, having 'lived in Vancouver for some • years' and ; having looked into the question whilst there. To-day, Canada is enjoying a period of great prosperity. It would not be a> costly matter for the mills to contribute:,the cost of sending a representative to.investigate the 'possibilities of this market on the spot.—l am, etc., . ■■"-,. • GEO. TOOGOOD. 13th March. . ' . •