COST OF HOSIERY

Evening Post, Volume CXVI, Issue 2, 3 July 1933, Page 10

COST OF HOSIERY

IMPORTERS' CLAIMS

REPLY TO LOCAL MAKERS

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A reply to the representations to the i Tariff Commission by the New Zealand hosiery manufacturers was made to the Commission today by Mr. G. S. Amos on behalf of the United Kingdom Manufacturers and New Zealand Itepresentatives' Association (Inc.). The local firms had asked for tho retention of the present duty of 27J per cent, on English hosiery. Mr. Amos said that one speaker had stated that there was no economic reason for importing finished goods as they could bo produced; efficiently and economically l>y New Zealand factories provided that sufficient protection was granted to compensate for the difference between United Kingdom and New Zealand general values and costs, and to secure for tho New Zealand industry a . sufficient share of the market to enable it to continue producing on an economic basis. .He said that if these firms could compete against a duty of 27J per cent., how was it that during last year, when the duty, with 6urcharge on English hosiery, amounted to approximately 44 per cent., these same firms were importing from Canada, Australia, and even England, undyed and unfinished hosiery which they were only dyeing and finishing and boxing in what they were led to believo are efficient hosiery factories? ORIGIN OF EAW MATERIAL. The'local manufacturer had also stated that the-raw material used was partly'of Dominion origin. If this was the case, why was it that New Zealand hosiery manufacturers could not produce woollen hosiery (which was the only raw material of New Zealand origin, as no artificial silk, pure silk, or cotton was produced in New Zealand) at a price which would compete with imported English lines which had today to bear landing charges of from 70 per cent, to 80 per' cent, according to value of• the goods? Confidential costs and samples would be produced to the Commission proving that in cashmere hosiery the New Zealand factory price was approximately doublo that of the English manufacturer. Mr. Amos said that they would also ask,the Commission to inquire as to what part of the 68,196 dozen silk and art silk hose mentioned as being manufactured' in New Zealand was manufactured and what i>art was imported and only dyed and finished in Now Zealand. ALLEGATION DENIED. "Perhaps the most serious misstatcment of facts was that made concerning end-of-season jobbing or dumping by English manufacturers," said Mr. Amos. "Of. all sections in tho drapery trade, the hosiery section is one section that has never been affected in this way. I have been in the,hosiery trade for many years in this country, and I was also for a period of seven years in tho English hosiery market. I have also had experience in tho American, Canadian, and Australian markets, and I have never onco been offered or been able to obtain a job ■ because of hosiery, even factory seconds being difficult to obtain, as the local market trade of the hosiery districts of England absorbs the whole available supply of .factory faults. There is no reason nor possi-' bility of end-of-season dumping of hosiery stocks, as it is .a practice in this trade to .manufacture only to order, and not make or carry stocks, except in an unfinished state, of lines which are being constantly called for. This contradiction will be endorsed by any person who knows the English hosiery trade. , IMPORTERS' BURDEN. "It was stated that tho local manufacturers had to bear the cost of the exchange rate on the raw material. Tho imported goods have to bear not only ;the exchange on the raw material, but also the cost of exchange on tho total pries of the finished goods, in addition to duty, and can still be sold at a profit under, the price of the New Zealand lines, but unfortunately, the public have to pay much more for their hosiery than they should do, owing to the excessive landing charges. "Until a few month's ago there was not a manufacturer in .New Zealand producing full fashioned hosiery, which is more in demand than circular hosiery, but although it was not produced in New Zealand it was still subject to the same high duty, arid as a result sales were affected. "Until about three years ago 90 per cent, of the full fashioned silk hosiery was imported from Canada and U.S.A. During the last three years the English manufacturers have endeavoured to provide, for the requirements of this market, and their lines have been reduced in sympathy with tho downward trend of world prices to such ah extent that even although, landing > charges j have doubled during tho last three years, lines of English hosiery are retailed today at prices 25 per cent, lower than three years ago,, and if English silk" hosiery could be landed on, say, a 40 per cent, basis, retail prices would be so low that imports would be greatly increased. . . . ' "The cost of manufacture of full fashioned hosiery is heavy owing to \ the very expensive machinery required and it is necessary ,to have a large market to manufacture at an economic] price, and we request that the duty on English hosiery sHould bo reduced to 20 per cent."