“N.Z. ON THE ROCKS”

Evening Star, Issue 23354, 25 August 1939, Page 6

“N.Z. ON THE ROCKS”

TRADE POLICY HAS FAILED RIOTOUS LIVING LEAVES BARE CUPBOARD AS SOUTH AFRICAN PAPER SEES US “ New Zealand is proving to be a rather sad exception to the general maxim that nothing succeeds like success. Her Socialist Government, after literally living off the fat of the land, is now shocked to find the cupboard bare” (states the South African ‘ Natal Daily News ’). Her Socialist programme, it becomes plain, has not in the long run fulfilled the rosy promises of its initiation period, when exports from the land brought home the gold with which to lubricate the wheels of an intensified industrialism. It seems to be generally felt in London that New Zealand it biting off more than she can chew in the industrial sphere. Her Government has planned a very lavish schedule for the development of her manufacturing industries, and this, it is thought, may have to be curtailed in order to effect wise economies. In the meantime, the Federation of British Industries is frankly displeased with New Zealand’s trade policy. The New Zealand Government’s action in instituting, for the first six months of 1939, a severe system of licenses and quotas to cover imports from Britain and other countries into the Dominion, followed by still further restrictions and a complete embargo on a largo variety of British manufactures, is regarded by the federation as an obvious breach of the Ottawa Agreement, and as contrary to the interests of the Empire as a whole. OFFER FROWNED ON. Further, the New Zealand Government’s offer to waive licenses, quotas, and emhargos in favour of manufacturers and suppliers who are willing to send goods to the Dominion and to allow the payment for these goods to remain in New Zealand for an unstated time at an unstated rate of interest is regarded by the federation as wholly unacceptable. The federation is urging its member interests to refuse to carry on business on those terms. 9 fair basis wanted. The federation points out that New Zealand enjoys _ under the Ottawa Agreement the right of free entry for her products into the markets of_ Britain (which already takes some 85 per 1 cent, of her exports), but, at the same time, severely restricts, or refuses entry altogether, to British manufactured goods. • . . The federation is of the opinion that this state of affairs amounts to a complete violation of the agreement, and urges that arrangements should be made for trade between the two countries to be conducted on principles which bind equally both parties and operate fairly to their interests. T. AND P. MILK SUPPLY COMPANY STATEMENT OK PROPOSED AMALGAMATION The directors of the Taieri and Peninsula Milk Supply Company Ltd. have issued the following statement on the proposed amalgamation with the Co-operative Dairy Company of Otago Ltd.;— The board was unanimously in favour of amalgamation, and deeply regret that, owing to the fact that the directors of both companies were not unanimously in favour of the proposal for amalgamation, the question could not be submitted to a vote of the shareholders in both companies. Owing to the procedure adopted it was not possible to make the principal points of the joint report of the auditors known to suppliers and shareholders. It is possible to state, however, that savings in working expenses of between £7,000 and £B,OOO a year were envisaged on a conservative estimate of reductions in working costs. It has to be remembered that these savings, under careful management, should more or less be repeated from year to year thereafter. For instance, over a period of 10 years these savings would total approxiniatey between £50.000 and £70.000. To obtain savings it is necessary to have, an efficient, up-to-date factory capable of handling expeditiously the joint output. Although an amount of about £20,000 may be required for capital expenditure in the first instance, it has to be recognised that very considerable sums of money should be made available within a short space of time from sales of machinery and plant, buildings and land not required in the business. We think that a simple plan could be evolved to give existing shareholders scrip in the proposed company on an equitable basis of ‘ exchange. The directors are firmly convinced that a vital question such as this should have been referred to shareholders and should be decided purely on economic grounds—to improve working conditions in order that the greatest possible savings may be obtained to the advantage of butter-fat suppliers in the province. At a meeting of the directors of the Taieri and Peninsula Milk Supply Company yesterday it was decided to make a" final payment for the season to suppliers at the rate of lid iper lb of bntter-fat, making the total distribution for the season over Is 3d per lb.