MANUFACTURERS AND COMPETITION

Evening Post, Volume CXVI, Issue 142, 13 December 1933, Page 8

MANUFACTURERS AND COMPETITION

(Io the Editor.) Sir,—ln connection with the reply made by the Ne\r Zealand Manufacturers lederation to the Farmers' Union,1 in your issue' of the 9th instant, there is one statement to -which, on behalt of the United Kingdom manufacturers, I take exception. > , . I consider it regrettable that the various interests in New Zealand cannot work in closer harmony, and am loath' to enter into the present controversy, but in justice to the members of this association and to the buying public o£ New Zealand, I must' answer the New Zealand manufacturers' statement, which, is as follows (inter alia):—"This is not borne out by the evidence, which goes to show that in many industries there is no real competition (in price) among British exporting firms, which work closely together in fixing export prices, and sell at different prices to different countries according to whether or not they have to meet the competition o£ industries on the spot." Statements such as this, . unsupported by facts, are most unfair, and. when read by the United Kingdom manufacturers cause a good deal o£ ill' feeling, especially as they feel at present they have been badly treated by the imposition of 25 per cent, exchange and the delay in implementing the Ottawa Agreement. s Evidence has recently been given by United Kingdom manufacturers before the Tariff Commission, which has paid particular attention as to whether, in the lines where reductions of' duties have been requested, there are any "price-fixing rings" In England, and I feel sure that before any reductions are recommended the Commission would see that the public are protected, if such were necessary. However, I can assure you that the ' competition amongst the United Kingdom manufacturers and manufacturers, outside the United Kingdom who desire to export to New Zealand is keen enough to prevent any exploitation of the public of NewZealand in the improbable event of reduction of duties causing the corresponding New Zealand industry to close; at the same time any reductions of duties asked for by this association would not mean the closing of New Zealand industries; this we do not desire, but we do request that the United Kingdom manufacturer will have a fair chance to trade in this market. I hope that the New Zealand Manufacturers' Federation will recognise the inadvisability of making statements which, without doubt, are harmful both to New Zealand and to the United Kingdom.—l am, etc., ' , G. 0, SUTTON, 1 Secretary.