LADIES' CLOTHES

Evening Post, Volume CXVI, Issue 22, 26 July 1933, Page 11

LADIES' CLOTHES

LOCAL INDUSTRY

END-OF-SEASON LINES

TARIFF REQUESTS

A joint caso oa behalf of tho New Zealand manufacturers of ladies' outerwear was presented to the Tariff Commission today. Tho Comptroller of Customs (Dr. G. Craig) presided, and associated with him were Professor B. E. Murphy and Messrs. J. B. Gow and G. A. Pascoc. Mr. A. E. Maudcr, secretary of the New Zealand Manufacturers' Federation, who outlined tho case, said that tho present duties on apparel and ready; made clothing were 274 per cent. British preference, and aOuer cent, general. They asked for the sulr-cUvision of this item (a) apparel of wool or containing wool, 32A- per cent. British preference, or Co per cent, general; (b) apparel, n.c.i., 27-1 V CL' cont- British preference, and 55 per cent general. Tho industry, like all' other sections of tho clothing industry, had been subject since the Ottawa Conference to a reduction of approximately 13 per cent, ad valorem in its protection against imports from the United Kingdom. Tho eight firms associated in tho application liad an aggregate capital of £83,000. In 1932 they used materials costing £111,000, and tho value of their output during tho year was £215,000. These linns employed Go males and (339 females at an aggregate weekly wago of £1548. GREAT DIFFICULTY. ■ "One of tho greatest difficulties with which this industry has to contend is tho competition of imports purchased at job prices," said Mr. Mander. "At tho end of the British summer and winter seasons tho British manufacturers and wholesalers job out their stocks N (this of course is essential), and unfortunately for the New Zealand mantle manufacturers, the bulk of these 'end-of-season' job lines have in recent years found their way to this Dominion. The prices at which these lines arc sold do not bear any relation to production costs; in fact, the prices realised in many instances would not pay for the material in the article, apart from the labour and other costs involved in the production. "As tho profits made by tho British manufacturers or wholesalers on fashionable lines are fairly heavy in tho beginning of the season, it will bo seen that they can not only afford to 'job' at low prices, but that it is good business on their part to get these job liiw;s!out of tho country as it does not upset their regular trading. "Owing to tho fact that our seasons are the reverse to the English seasons, it will further bo seen that Now Zealand is a particularly favourable market, but, as far as the New Zealand manufacturers are concerned, this business' is on 'all fours' with dumping in other branches of industry. COMPETITION KEENER. Tho competition of these imported end-of-scason lines has become much keener during recent years. Formerly a largo amount of this class of import was taken by Australia; but since Australia lias shut the door there remain only two countries in the Southern Hemisphere where those goods can be disposed of. These arc South Africa and New Zealand —with a combined white population only about 33 per cent, of the former market, which included Australia. It will be realised, then, that the pressure of these end-of-season goods on the Now Zealand market is now about three times as great as it was when Australia also was open to them. In our own particular branch ,of industry this end-of-scason problem is perhaps more serious than in any other 'field, and if safeguarded from this form of competition wo arc convinced that within a year wo could employ two or three times as many workers as we employ now, and double or treble our output. The resuit would be a lowering of our costs of production per garment, and internal competition would ensure that the public received tho benefit, of lower prices. "Wo ask the Commissioners to give their earnest consideration to this matter. Our suggestion is that every overseas invoice for clothing of any kind should bo endorsed with a declaration by the exporter of tho average wholesale price at which similar garments were sold or offered for sale in the country of origin during the preceding six months, and that the duty .payable shall bo tlio difference between the actual invoice price and the amount stated in the declaration, plus the ordinary rate of duty under the tariff. It would be necessary also for a Customs officer in Britain to check a proportion of these declarations. "Wo submit that tho differences in costs of efficient and economic production in New Zealand are not less than 27i per cent, greater 'than costs in the United Kingdom." COMPARATIVE COSTS. Mr. Mander said that tho wages paid to New Zealand workers were substantially higher than those paid in England, and among higher comparative costs in Now Zealand were:—(a) Freight, insurance, etc., on imported material; (b) duty on imported woollen material; (c) 3 per cent, primage on duty-free materials; (d) higher cost of building, plant, and machines; (c) higher cost of. finance; (f) the greater stock of materials which- New Zealand factories, being so far distant from their source, are compelled to keep in hand, and also the necessity of ordering materials some mouths in advance of requirements; ,(g) tho fact that New Zealand manufacturers must allow for a percentage of bad debts, whereas tho United Kingdom manufacturer has practically no bad debts in New Zealand, and is normally paid cash against documents; (h) the fact that all NewZealand clothing factories are expected and obliged to meet small orders from retailers at frequent intervals, whereas the British exporter usually obtains orders for a whole season's supply at a time; (i) higher distribution costs which result from tho fact that usually tho British manufacturer sells to a New Zealand buyer in London, while the New Zealand manufacturer must sell lo- his customers scattered over a coiiufvy a thousand miles long with a population of only 1,000,000, and his travel- ' Ids' are expected to call regularly at short intervals; (j) mil and coastal sti-iMicr freights in New Zealand arc a '• substantial set-off against any natural ; protection which might bo afforded by the overseas freights of competing imports.

They claimed that the New Zealand industry was thoroughly efficient, and that eoati, costumes, and dresses made in New icaland were- in quality and design secmd 1o none. If measures were taken to check the importation of end-of-sensoi lines, they we're convinced that m prico and qualify NewZealand lines would be unchallenged.

Staying at tl c Hotel St. George are Mr. and Mrs. A ]•;. Morgan (London), Mr. and Mrs. J. Truseott (Auckland), Mr. and Mrs. J. Languoldt (Christcliurch), Mr. and Airs. A. H. Ashdown (Featherston), Messrs. P. H. Court, J. C. Campbell, J. L McMillan, J. H. Francis, H. Dyson, md A. I?. Hashing (Auckland), G. R. karris (Palmerston North), A. V. Smiti. (Christchuroh), and J. Corry (Blenheai).