IMPORTS QUESTIONS

Evening Post, Volume CXXVI, Issue 132, 1 December 1938, Page 7

IMPORTS QUESTIONS

LOCAL INDUSTRY

MANUFACTURERS' VIEWS

LONDON FUNDS

London funds and imports were discussed at the annual conference of the New Zealand Manufacturers' Federation yesterday afternoon, the upshot being a motion designed to restrict the importation of consumer goods in the interest of local manufacturers. The motion, as framed, was lost. The original motion, which was moved by Mr. S. L. Wright (Canterbury), read as follows:— That this conference deplores the action of some people in transferring funds overseas, and in view of the difficulties confronting the Dominion at present because of over-importa-tion of goods, urges the Government to take immediate steps to control the situation and restrict such imports of consumer goods as can well be manufactured in the Dominion. Mr. Wright said that the transfer of funds overseas was endangering the whole fabric of the Dominion.' The over-importation of goods was in the same category, and he felt that as manufacturers they should strengthen the Government's hand by letting it know that in- their opinion, steps should be taken to bring the situation under control and restrict imports of such consumer goods as could be made in New Zealand. He did not think many people fully realised the amount of raw materials, imported for use by New Zealand industries, so that, besides being manufacturers, they were also large importers. Restriction of the importation of consumer goods would lead to an increase in imports of raw materials for industries. There would be a substantial margin, which would reduce the drain on the London funds and at the same time the demand for New Zealand-made goods would be stimulated. NECESSITY FOR PROTEST. The remit was seconded by Mr. A. M. Hollander (Canterbury), who said that finance for local production was being decreased because the banks were reducing overdraft limits. That showed the necessity of making some protest to show that the manufacturers were fully aware of the dangerous position in which local industry was being placed. If local manufacturing was to be expanded more finance would be required. The sending of money ■abroad affected the finances of local industry very closely, and if it were stopped would, coupled with a restriction of imported consumer goods, benefit the local position immensely. Mr. D. llenry (Auckland) said it had been readily assumed that all the money in New Zealand had been'made in New Zealand, but that, of course, was not so. A , great deal of the money used in enterprises in New Zealand had ben brought into the country. If investors for their own good reasons brought money into the country for investment, and were not satisfied with the nature of the investments offering they could not be blamed for taking their money out again. If the directors of a company entrusted with funds did not invest them where they received the best return, they would be lacking in their duty. The president (Mr. J. T. Spears) said that a great deal of money had been brought into New Zealand for ordinary investment and for commercial purposes, and restriction of its flow would probably penalise rather than assist New Zealand. He preferred to (see more attention given to the quesj tion of imported consumer goods. Mr. C. V. Smith (Dunedin) said that people spoke glibly of money leaving New Zealand, but they had no idea of the real amount. GOVERNMENT ACTION. Mr. Henry asked what purpose the remit could serve. It was perfectly clear, he said, that the Government intended to control the position and recognised that there was over-importa-tion. Mr. Wright said that the Government could take steps tomorrow to control exchange without necessarily benefiting the local manufacturers one iota. They should see that whatever action was taken by the Government would benefit the manufacturers, and he was sure that the Minister of Industries and Commerce (the Hon. D. G. Sullivan) would do his utmost in that respect. The motion was amended to read as follows:—"That as the economic problems,- at present confronting the Dominion, particularly the position of the balance of funds available in London, indicate the necessity for restricting or regulating importations, the federation welcomes the indication given by the Minister of Industries and Commerce that the Government proposes to take steps to deal with the situation, and wishes to record the opinion* that such steps as may be decided upon should be directed towards restriction of imports of consumer goods of a kind that can be manufactured within the Dominion." The motion was lost.