DRAIN ON LONDON FUNDS

Evening Star, Issue 23129, 1 December 1938, Page 17

DRAIN ON LONDON FUNDS

iDISCUSSIOH BY MANUFACTURERS CONTROL OF CONSUMER GOODS SUGGESTED MAJORITY AGAINST PROPOSAL [Pek United Press Association.] WELLINGTON, Nov. 30. The position created in the Dominion by the reported transfer of funds overseas and what was described as the over-importation ox goods with their consequent effect on sterling funds in London was discussed at the annual conference of the New Zealand Manufacturers Federation in Wellington to-day. Motions urging the restriction of irm ports of consumer goods of the kind that could be manufactured in the Dominion were tabled but did not meet with unanimous support, and a final motion submitted on this question was defeated on the voices. Mr S. L. Wright (Christchurch) moved the following motion:—" The conference deplores the action of some people in transferring funds overseas, and, in view of the difficulties confronting the Dominion at the present time because of this and the over-importation of goods, this conference urges the Government immediately to take steps to control the situation and restrain such imports of consumer goods as can well be manufactured in the Dominion.”

“The transfer of funds overseas

is endangering the whole fabric of the Dominion, and the over-importa-tion of goods is in the same category,” Mr Wright said. “ I feel that we should strengthen the hand of the Government by letting it understand that we think it should take steps to bring things under control. Besides being manufacturers, we are also large importers of raw material. Therefore, I think we should emphasise that imports of consumer goods should be restricted. That would reduce the drain on our London funds and stimulate the demand for our locally-manufactured goods.” Seconding the motion, Mr A. M. Hollander (Christchurch) said that finance for local production was being decreased because of the situation, which proved the necessity for making some proposal that would show that manufacturers were aware of the dangers in which industry was being placed. The sheer disloyalty of sending abroad New Zealand funds was a matter which affected very closely the finances of New Zealand industry.

“It is very easy to stress the obvious, and we should always accept the obvious with a great deal of reserve,” said the immediate past-pre-sident of the federation, Mr D. Henry (Auckland). “The speakers have assumed that all the money in New Zealand has been made in New Zealand, but a great deal of the money used in New Zealand has been brought into this country. If investors have sent money here for investment here, are you going to blame them for taking their money somewhere else?”

The president (Mr J. T. Spears): I would like to see the resolution substantially confined to consumer goods.

Mr C. V. Smith (Dunedin): Ws have no idea just how much money has gone out of the country. Mr Wright submitted an amendment to his motion as follows:—“ In view of the difficulties confronting the Dominion at the present time because of the over-importation of goods, this conference urges the Government immediately to take steps to control the situation and restrict such imports of consumer goods as can well be manufactured in the Dominion.”

Mr Henry: The question is what purpose such a resolution will serve in view of the statement by the Minister of Industries and Commerce (Mr D. G. Sullivan) in opening the conference. The Government intends to control the position, and it has already stated that there is over-importation of goods. Mr Wright: The Government tomorrow can take steps to control exchange without benefiting the manufacturers one iota. We want to see that the steps taken will benefit the manufacturers. It is up to us to try to strengthen the Minister’s hands.

Further opposition to the motion and the amendment was expressed, .and consideration of the subject was deferred.

On resumption, Mr Wright submitted the following motion: “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 (Mr D. G. Sullivan) in his address to the conference 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 b r directed toward the restriction of imports of consumer goods of the kind that can be manufactured within the Dominion.” The motion was lost cn the voices.