STILL WAITING

Evening Post, Volume CXXVII, Issue 8, 11 January 1939, Page 10

STILL WAITING

IMPORT PERMITS

LOCAL FACTORIES

"UNABLE TO MEET DEMAND".

Most of the larger importing firms in Wellington are still waiting anxiously to learn the fate of their applications for import licences, and are for that reason withholding comment meanwhile. Some firms whose business is entirely dependent on importations are gravely apprehensive of the future, but others faced with limitation of hitherto available markets are already casting about for alternative means of obtaining stocks. There is a general fear that even goods at present manufactured in New Zealand will be in serious short supply because existing organisations will be unable to cope with more than a small fraction of the increased demand. Retailers and wholesale distributors state that even under past conditions local manufacturing fin s have been unable to effect prompt delivery, and that, unless the import restriction policy as disclosed in licences already issued is drastically amended, an acute shortage of stocks is certain. The manager of a department store company said that when stocks became depleted, as was apparently inevitable, the law of supply and demand would force up retail prices. Purchasers would be in competition for many lines which would then assume a scarcity value, and articles that were looked upon as necessaries would become luxuries. EXPLANATION WANTED. Almost every section of the business community ioins in the general expression of regret that the Minister of Finance (the Hon. W. Nash) had not seen fit to make a frank statement setting out the Government's intentions and giving importers exact details of the policy the Government proposed to pursue in control of imports. It was pointed out that, quite apart from the effect on business of import restrictions, the present delay was becoming increasingly serious every day. At this time of. the year it was usual to place orders for the next summer and Christmas season, and unless overseas buyers could be quickly advised of the position there was a strong possibility that overseas factories would be unable to execute orders in time for the Dominion's requirements. "Applications are apparently being dealt with in accordance with cast-iron rules and without due regard to the circumstances of particular importers," i said one importer who has received his permits. "Decisions are apparently being made by Government officials who obviously have little or no knowledge of the problems peculiar to importers. "It would have been far better if, instead of telling business people how much they could buy and where they could buy,-with no regard for the consequences and repercussions of such decisions, the Government had simply told importers the extent to which it desired imports to be cut down. While we all recognise that general imports must be cut down it would have been a more businesslike proposition, would have saved the Government enormous expense, and would have, above all, obviated holding up commerce and inflicting loss on the commercial community, if the Minister of Finance had frankly stated the percentage by which he wished to cut down imports for the next six months. Supposing for example that he had decided that imports must be cut by 20 per cent, for the next six months, then the same object would have been achieved. There would have been no hold-up in industry and commerce, and the merchants themselves could have determined, without undue disorganisation of their businesses, the particular classes of goods that they could port.----"I feel quite certain that if such a course had been introduced all loyal New Zealanders would have given full co-operation and there would have been no complaints, as it is quite obvious and indeed proper that the Government should take appropriate steps to rectify the position regarding New Zealand's overseas credits." DEPARTMENT STORES. Amongst the more important licences issued during the past 24 hours were those applied for by two of the large department store companies with headquarters in Wellington. Meanwhile until the licences can be fully examined and the effect of the restrictions gauged neither of the general managers concerned is prepared to estimate the probable effect on his firm's business. One of the general managers said that goods from foreign countries had been almost entirely eliminated and there had also been heavy reductions in goods from the United Kingdom. Not more than 5 or 10 per cent, of the goods cut out could be manufactured in New Zealand, and, if the restrictions indicated in the licences issued remained unaltered, a serious shortage of stock would eventuate within a few months. Any idea that the larger firms operating in New Zealand were holding big stocks was incorrect. If they were doing so^it would indicate that they had had available large liquid reserves which; they had been able to invest in stocks, but examination of their bal-ance-sheets would show that that was simply not so. "We handle an enormous number of lines," he said, "and it will be impossible to gauge the full effect of the restrictions until we have examined them in detail with regard to the requirements of our various departments. We are also endeavouring to. find out if there are other markets that we can substitute for those that have been denied us. For instance, we would like to know whether we will be permitted to import from the United Kingdom at least a proportion of the goods we have hitherto obtained from foreign sources and which have now been deleted from our licences. "Unfortunately there is at present no provision for approach to the Customs Department by importers. IMPORTED MAGAZINES. Fears that drastic limitation Was to be placed on the importation of periodicals were raised this week when some booksellers were unable to obtain deliveries of Australian magazines. The magazines were, however, delivered after a delay of one day. It is understood that the delay arose through a misunderstanding on the part of Customs officials who took it for granted that the parcels of magazines were being imported by the booksellers to whom they were addressed, whereas they were merely direct deliveries arranged, as in the past, by the New Zealand distributing agent for the magazines. It is also understood that current magazines are meanwhile being imported under a special arrangement with the Customs Department. One of the principal importers of periodicals

stated today that no licences had yet i been received, and that no comment : on the position could therefore be made. EXHIBITION SPACE CANCELLED. "I have been forced to cancel my space at the Centennial Exhibition because I now have nothing to show," said the general manager of one of the principal New Zealand importers of washing machines, refrigerators, and radio receiving sets. "I know of at least two other firms in Wellington that have cancelled their space for a similar reason," he added. This man said that his supplies of British radios had been cut by 75 per cent, compared with the quantity imported during the first six months of last year, and he considered that would be a fair estimate of the treatment -being given to radio importations generally. American radio receivers had been cut out completely and radiogramophones had been reduced by 75 per cent. American refrigerators had been reduced by 40 per cent, and American washing machines had been completely banned. STOCKS IN NEW ZEALAND. As far as radio sets were concerned fairly heavy stocks were at present held in New Zealand, "The Post's" informant continued, but stocks of refrigerators and washing machines were very low. Although radio stocks were sufficient at present, it appeared likely that there would be a shortage later in the year. In his firm's case, for instance, shipments of radio sets and refrigerators due to arrive in New Zealand within the next fortnight would more than eat up the quantities permitted under the import licence. Gramophone records had not been interfered with, but for some unknown reason gramophones had been cut 50 per cent. "As far as we are concerned the restrictions will not affect retail prices," he said, "but if the restrictions of which we have been notified are not amended it will mean a reduction of 50 per cent, in our turnover and we will certainly meet that by a reduction of similar proportions in our overhead." Wide inquiries made this mqrning amongst the principal wholesale and retail softgoods merchants and clothing manufacturers in Wellington failed to discover one that had received any reply to his application for an import licence. In most cases applications were lodged several weeks ago, and the belief is growing that the Customs Department has a special reason for withholding licences for this class of imports. EXCEPTION TAKEN. A prominent Wellington merchant, who has during the last few days had occasion to comment adversely on the effect of the restrictions, said today that he took strong exception to the remarks of one importer (published yesterday) criticising published statements on the grounds that they had drawn wrong inferences from individual import licences. When the importer referred to was told of this he said he wished to make it clear that he had not intended in any way tj> question the good intention or reliability of any statement made in Wellington, but that his criticism was principally aimed at. a statement emanating from Christchurch i which had been the subject of a cable message to England that might unfairly injure the Dominion's business relationship with British manufacturers. That statement had since been declared grossly inaccurate, and it was to be regretted, therefore, that it had been sent out from New Zealand.