GREYMOUTH IMPORTERS

Greymouth Evening Star, 21 January 1939, Page 5

GREYMOUTH IMPORTERS

DISCUSS RESTRICTIONS C ()N FFRE N C F. RETRE S E NT ATI ON, After a full discussion of various aspects and anomalies of the import restriction regulations, a decision to bo represented at the conference with the Minister of Customs and Finance, at Wellington, nevi. Wednesday, and to seek an extended period of two years, or failing that, one year, for import licenses, was reached at the meeting of importers at Greymouth. yesterday afternoon, convened by the Greymonth Chamber of Commerce. Mr, P. J. McLean. President of the Chamber presided, and also present were Messrs. W. F. Harley, G. M. Truman. J. North, E. McDonnell. C. Neville, N. Kilgonr. A. Smith, A. M. Carroll, A. J. Wilson, P. C. Heaphy, L. J. Wicks, and 11. Anderson. The Chairman, in opening the meeting, said that, all were aware of the object, of the meeting. The import restrictions were a very serious thing

for the community, in one way. and it was evidently’ an economic necessity. At. the same time, there were such a number of anomalies that it had been decided by’ the various Chambers of Commerce to make overtures to the Minister of Finance, who had agreed to have a conference on Wednesday next. The Minister would address the conference on Wednesday, and on Thursday he would he open, he (Mr. McLean) understood, to hoar the importers’ side of the matter. Me (Mr. McLean) had been away on. holiday, but. he thought that it. was such importtint. business that ho had made a special trip from South Westland to

attend the meeting that afternoon. There was not a. great deal to discuss, but at. the same time, he thought that it. was essential for the Chamber to

have as strong a representation as possible at the conference in Wellington. It was essential for the Dominion to have adequate representation. It was not, a matter of dictating to the Government, but to offer co-operation, in an endeavour to get things on a

proper basis. It was not for the Greymouth Chamber, or any other, to dictate to the Ministers, who had been put there by the people. lie (Mr. MrLean) had got in touch with the Collector of Customs at Greymouth (Mr. Butcher) and he had thought he would be able to attend the meeting. He had communicated with Wellington, for permission, but had since had no advice, and, under the circumstances, he could not come along. They did n t want to do anything to antagonise the Department. He had, on receipt, of a telegram from the Canterbury Chamber of Commerce, got in touch with importers in Westport and Hokitika, and had received a letter from Renton and Co., Hokitika, apologising for their absence, and stating that, there were very few in Hokitika who were interested. As far-as they themselves were concerned, they got most of their supplies through WollingO'ii firms and had received advice from a Wellington firm that the position wtis more clarified and looked as if it would straighten itself out. An apology had also been received from Baillie and Co. (Westport). If the Greyinouth Chamber was not. adequately represented at the conference, continued Mr. McLean, it was his opinion that they would not get the same consideration as other centres, and possibly would be subject to dictation from them regarding quotas. Therefore, it. was of the utmost importance that as many as possible he there. He understood that 200 wore coming down from Auckland, where, incidentally, a suggestion had been made that he did not. agree with, as it was a Government, matter. Mr. Truman said it seemed to him that they should be represented at the conference, and he did not think they could do any more than that. They certainly had to abide by the decision of the Government, and it was their duty, as a Chamber, to work with the Government.

Mr. A. Smith: I. take it that wo are hero to protest against the restriction —it is very drastic. Mr. North has just been telling me of the drastic suggestions. I look on this as a protest, and are wo going to the meeting to protest, against the Government's action ?

Mr. McLean said that at the meeting the matter of a protest would bo set out by the Associated Chambers. He thought that it was not so much as a protest, but to come to a bettor understanding. While he did not agree wi'h what had been done, it was not so much to protest as to advise. ADVISORY CAPACITY. He really thought they were going to meet the Government in an odvisory capacity, said Mr. Carroll. While they may not agree with all of the things that had been restricted, there were some which could be manufactured in New Zealand, which was a laudable object. In his own case, he had found that goods that were already on the water when he applied lor a license had been included in his quota, which was not the position as stated, but the Customs officer could not explain it, as lie simply did not know. He (Mr. Carroll) thought they should meet the Government in a conciliaiory and advisory spirit, pointing out toe lines that could be manufactured in the country, and those which could not. The position could be clarified that way. They could lie of assistance to the Government without being antagonistic to their policy. He thought they all understood the economic 'position, and the restriction seemed an easy way out. He supposed that every man in the room had protested at the license he had received.

Mr. McLean said that, he thought Mr. Carroll’s was the right idea. Personally. he appreciated getting goods manufactured in New Zealand, as long as they were reasonably priced. !l > regard to some goods, however, it was going to be very difficult. He had had prepared a. list of articles which had been restricted, bin he thought that thev should bo taken in committee, as it. was likely io cause trouble with the Government. G-oods which had been prohibited included: peroxide, preserved ginger. Engli-li confectionery, Fiji pineapples (Singapore allowed). asparagus, tinned peas, presm i ed vegetables, drinking straws, currants from Greece, tigs. Alaskan salmon (] coinage allowed from Canada.), smrh African apricots. American driml fruits. Australian salt. Sicily almonds, ground almonds, Camulian conked spaghetti. Mr. Carroll said that In' ilmm.’li: t hr-Tt- \v:is :in answer l<» most ol th 1 lines mentioned by Mr. McLean. Ibero wore seasonable imports, and as six mouths’ licenses only had been gramed, a lot of them would not come 01 the first six months. For instance, >ie had been refused a license to import

tea from Ceylon, as he got it annually, and it. was not in his first six months’ imports last year. That is why he stated that they wanted to meet, the Government in an advisory capacity. The Government did nor, understand the position in such cases, and they were the sort of anomalies that wanted pointing out. Continuing with his review of the licenses he had received. Mr. McLead said that he had been allowed 53 per cent, of arrowroot. 27i per cent. of paper bags— Mr. McLean again suggested that tile statcmeni should be taken in commitI <?(>. Mr. McDonnell said that he could not see that it would make much difference, as all of the importers had the same thing. It. should be made public. If spaghetti, for instance, was prohibited, the people should know. Air. Neville said that from time to time lists had appeared in the newspapers. and he did not see any reason why they should not be published. On the motion of Messrs. McDonnell and Neville, it was decided that the list be taken in open meeting. Continuing. Mr. McLean said that his tea. allocation had been cut down to 07 per cem.. which was going to be serious.

Mr. Carroll: Against that, 1 was told by a Christchurch importer that his tea had not been cut down at all. 1 understand that if yon ask for more than you got last, year, yon have no chance at all.

Againg quoting his restrictions, Mr. McLean said that glauber sails had been cut down to SO per cent., and ordinary salt also to SG per cent. BASIS OF LICENSE. Mr. North said that the chief difficulty he could see in regard to hardware was that, the imports for the next six months were going to be based on the same period last year. Hardware did not turn over as quickly us groceries, and the only supply of a certain class of goods would probably last twelve months. For instance, if goods were bought in December, 1037. and they lasted a year, there would lie none imported in IT'S and accordingly. they would bo cut out. of the license. Brattice cloth was one article that, went out only when the mines wanted it. and then in big quantities. He had run out and had put. in for a big quantity, but. it had been cut, out. If' they could not gel brattice cloth, then, he was told, the mines would have to close. The application had not. been finally refused, but it had been held up for a fortnight. He had ordered 2-1 dozen slashers in 1037, which had lasted throughout last year, and as he did not. get any in the meantime, they had been refused. That was the chief trouble lie could see in regard to the licenses. Mr. Carroll: \Ve wanted twelve months' 'licenses, not six. Mr. McDonnell said he thought what was wanted was t<> have the licenses based on what had been imported over the past two years. Mr. North said that crockery had been a 'bit quiet last year, and he bad not ordered any. Now lie wanted it. hut. it was cut out. Mr. Carroll: Il is not a fair proposition to say "we will give you the same for the first six months as you had in the first six months last year." as ‘boy were not allowing for periodical orders.

Mr. McLean said that it did not allow for expansion in business. Mr. Heaphy said that. from the Government point <>l view, they had to gel a basis, and they took ii as s>x months. He thought- that the system would improve after the meeting w ; (h tlm Minister. That was the proper course io follow—to assist the Minister to arrive at a proper basis. Mr. McDonnell said that be had bought dried fruits from America last

year. lie could now switch rhe order 0 - io Auslralin. Imi wa-. m>i allowed to do ii. Similarly. Im could change or dors from Holland (<• Euglaml. bin Was flol. aIIOW I'd. ,\lr. McLean: I suppose you all had letter from the Government some i ime ago, asking, for part icular- of viiiir --loi'l.s. They ; ire conversant with ;.||| slock :. arnl it looks to me as if the opjeci is to force people io liquidate

i Peir stocks. Mr. McDonm-ll sttggesiod that ill? request for information regarding stocks uf foodstuffs ami other necessities arose through the war scare. Referring to the object of the meet ing. Mr. Neville moved that the Gret mouth Chamber of Commerce be re]

resented at the conference with the Minister by as many members as possible, and that immediate arrangements he made to ensure that they would have a voice in the discussions In seconding the motion, Mr. McDonnell said that he thought it was essential for Greymouth to be present. Otherwise, it was possible that they would get pushed off the map. by the big centres. The motion was carried. WILLING TO ATTEND. Mr. Truman said that as far as the drapery trade was concerned, they did not know where they were. Personally, he felt like going to Wellington to see if he could find out. where he was.

Messrs. McLean, Smith and McDonnell also signified their intention of attending the conference. while Messrs. Neville, Lindley and Shallcrass were mentioned as others likely to attend.

Mr. Heaphy said that he understood some of the mining people from Reefton also intended to be present. .Mr. Wicks said that drapers’ orders were placed once or twice a year, and as his Winter orders had been placed before December 5. they were not affected. As far as the next season was concerned, he would not know where he stood until February. Mr. Harley suggested that the conference should attempt to have the licenses based on 12 months’ imports, instead of six. and if the Department could, not be sure of the imports over that, period, they should take them over two years. In his case, linoleum books went out every 12 months, and it was usual to spread the order over so many shipments. Under the six months' permit, they would be restricted to one shipment, and the firm would probably cable back that 70 per cent., was out of stock, In regard to eastern markets for, say kapoc. one wanted to buy on the lowest market, possibly once a year, and that was impossible under a six months’ permit.

Mr. Lindley also suggested urging 12 months' permits, pointing out that as his firm’s annual balance was in July, they naturally let stocks run down in the first six months, and now they could not get a license for certain articles which they had not imported in the first six months of last year. Mr. Harley said that, in the case of overseas goods,, by the time that samples were received and the order dispatched, the six months’ permit would have expired. Mr. Wilson said he thought some consideration should be given to the increase in prices. For instance, if an article went up 25 per cent., then the license would be for 25 per cent. less. ftlr. Lindley said that lie had made enquiries on that point, and had been informed that some latitude would be allowed. The matter of the likely consumption of certain articles during the year should also be given consideration, said Mr. Neville. Mr. McDonnell said he thought some of the New Zealand manufacturers were being spoon-fed. in view of Hie fact ilial after paying exchange, duty, ami freight, overseas articles could still be bought cheaper. Mr. Smith: What is the idea behind the whole thing? Gan you toll US? Mr. McLean: Ir is a matter of finance — the economic situation in New Zealand to-day. The Government is ’.Tying to conserve the funds in London.

Mr. Neville: It should not be nevessarv. bur that is not the point. Mr. .McLean: They are trying to meet (heir responsibilities. Mr. Neville: They are trying to catch up what they have lost — Mr. McLean: This is not a political meeting. Wo are here to do our best for the business community. Mr. McLean suggested that each delegate to the conference should bring forward the mailers as they concerned him personally, showing their various difficulties. Mr. McLean said that ho 'would leave for the conference on Monday, and the other delegates could go on Tuesday, if Mondav was inconvenient.

The meeting concluded with a vote of thanks to the Chairman for calling the meeting. PROFITEERS WARNED AGAINST PRICE INCREASES. CHRISTCHURCH, January 21 A warning that profiteering on account of the import regulations would

not be tolerated, was given by the Minister of Industries (Mr. Sullivar ) to-day. “My attention has been drawn during the past, few days to statements which appeared in the papers regarding increases in prices,’’ said Mr. Sullivan. “I refer particularly to the news item originating frorii Auckland, concerning grocery lines allegedly affected by the import restrictions, and in respect of which advances in prices have been made by wholesale suppliers, and by retail shops. Some of the lines affected were matches. Australian canned fruit, salad, canned apricots, canned vegetables, imported biscuits, canned asparagus. English meat pastes, and imported sauce. It was stated that increases in these lines had been brought, about through some wholesalers advancing their prices for the remaining stocks, in anticipation of a coming shortage. I also refer particularly to a statement, which appeared in the ‘Dominion,’ on January 20, to the effect that some 'Wellington wholesale grocery houses had advanced prices by 5 per cent, on practically all tinned foodstuffs, sardines, salmon and herrings being among ihe lines so affected. The reason given was the shoitage of supplies because of the impel t restrictions.

“There is, in my opinion, no justification whatever for such increase in prices, and where such increases have taken place, allegedly on the grounds of shortage resulting from ihe import control, such increases AMOUNT TO EXPLOITATION of the public. I wish to make it clear the Government will not countenance such exploitation, and wherever it has taken place, the Government will not hesitate to take immediate action, either under the Board of Trade Act. or the Prevention of Profiteering Act.” Mr. Sullivan said the officers of the Department of Industries and Commerce were investigating the increases said to have already taken place, and wherever wholesalers and retailers advanced their prices for the reason given, they would he well advised to reduce their prices again. Through the Department, a very close watch was kept on prices, and the public could be well assured, the Government would not. permit either wholesalers or retailers, or anyone else, to take advantage of the Government’s import control police to exploit them in any shape or form. Heavy penalties were prescribe! bv tile Board of Trade Act. and the Prevention of Profiteering Act. and the Government would not hesitate to take action in any case involving breaches of these Acts.