FOOTWEAR TRADE

Evening Post, Volume CXXIV, Issue 89, 12 October 1937, Page 10

FOOTWEAR TRADE

INCREASED IMPORTS MANUFACTURERS' POSITION SHORTAGE OF ORDERS Owing to imported footwear having captured a large share of the local retail trade, at least two of the four principal footwear manufacturing firms in Wellington have decided to take steps themselves to get their manufactures before the public by entering the retail business. One firm stated to a "Post" reporter today that they would not be able to keep their staff working one full day a week if they relied solely on retail orders. Both firms have dismissed employees—one fifteen hands—and short time is being worked. The position has been brought about, it is stated, mainly as a result of overseas competition. The Government's legislation loaded manufacturing with extra costs, and there had been no compensation in, the way of Customs protection. The present duty on footwear—2o per cent.—was considered too low in view of the duty of 25 per cent, on other clothing. By the time locally-made footwear, which was practically 100 per cent. New Zealand material, and Which had to carry extra costs, was ready for sale, it could not hope to compete with imported footwear. Another cause of the present state of affairs is the ample stock which is at present being carried, the manufacturer stated. When it was known that industrial legislation was to be introduced retailers stocked up. "That was when the Government was saying that factories were very busy, but it's a different matter today," he remarked. "We have seen this coming for three months, and now. it all depends on what the Government is going to do. They promised to make a statement about the position." UNABLE TO QUOTE PRICES. Another manufacturer blamed the British re-armament programme, together with the New Zealand Government legislation, for the state of affairs. The re-armament programme was responsible for a scare of shortage of materials, and importers guaranteed prices for the succeeding twelve months owing to heavy holdings of stocks in the Old Country. Some New Zealand manufacturers had to dismiss travellers because they could not quote prices. The New Zealand manufacturer could not guarantee a price, and coate had had to be adjusted with the introduction of the 40-hour week. •> • , Another local firm manufacturing footwear, but one not so affected as the others already referred to, said that business had fallen 'off from Whangarei to Bluff. Every retailer's and wholesaler's business was down. The lack of orders was due to the lack of buying on the;part of the public, ! and the public were not buying owing to lack of confidence. Prices had increased, also, and shoes which were £1 Is in July last were' now £1 6s. There, was a boom towards the end of last year, but sales had now fallen off with the rising market. Imports affected Auckland and the North Island much more than they affected the South Island, where a heavier and i locally-made type of shoe or boot was wanted than in the north. ]