WOOLLEN MILLS OVERWHELMED

Evening Star, Issue 23498, 12 February 1940, Page 6

WOOLLEN MILLS OVERWHELMED

CANNOT COPE WITH CIVILIAN REQUIREMENTS GOVERNMENT ORDERS' PRECEDENCE—LESS IMPORTATION Just over 12 months ago the woollen industry in New Zealand was definitely languishing. Mills were “ feeling the pinch.” When import restriction came into vogue .about that time, and the Department of Industries and Commerce asked the mills to supply the deficiency created by a somewhat drastic cut in importation, business showed a welcome improvement. Import restriction gave a big fillip to the trade at a time when it was badly needed. But the mills could not then cope with the demand created by the import cuts. Wh i war broke out the position was intensified. Government orders took precedence, and the huge volume, coming on top of the import restrictions, precluded the possibility of replacing those lines restricted from importation. Now the mills cannot hope to supply the demand for civilian requirements —the alternative is, a shortage in future. To add further to the seriousness of the position is the fact that many importers of garment materials have had delays in the granting of their import licenses. With the market rising steadily some are in a quandary, wondering whether to buy large quantities on an unfavourable market trend, or wait until more satisfactory buying is offered. Increasing prices overseas mean less material imported under the license. This, too,' will contribute to the shortage. Mills _ now are working overtime to cope with the great amount of busiMen are being worked on looms at night because women are not permitted by the Government to work after 5 p.m. This cannot be said to be profitable for the mills, because women can do the same amount of work and the men have to be paid higher wages. But this has had to be done to cope with Government orders alone. Women are hard to find for factory work, especially in country mills. They prefer to work in the city, where the life is probably more attractive. One aspect of the situation that might tend to alleviate" the shortage prospect is that men are going overseas with_ the forces. They will assist in making the demand less, but it seems that with the mills so occupied on Government work _to the detriment of civilian production, 'ess material being imported, and almost as much demand as previously, a shortage in domestic lines is inevitable. One fortunate aspect, however, is that the mills are not being hampered to any great extent by a shortage of threads, linings, ‘ buttons, or dyes, as the treatment given by the Government in this respect is not being complained of, according to inquiries mad« LITTLE RELIEF FROM OVERSEAS Overseas much the same position obtains. Home mills cannot guarantee supply of goods ordered by New Zealand houses, while costs have already ■ advanced 50 per cent. Mills there are well behind in their civilian output because of the boom in soldiers’ requirements. One warehouseman protested that the Government was not helping manufacturers by making them buy on a rising market through delay in granting import licenses and • the requisite exchange permit. They did not know whether to buy large stocks and chance a much depreciated demand, or suffer from increasing prices with every eon sigument. ■ . On February 7 the woollen mills increased the price of woollen materials by 15 per cent. Even with this additional charge, he said, the mills could now compete with the imported product, while they could not before prices began to advance overseas. This meant dearer clothing, however.