raw materials

Greymouth Evening Star, 9 August 1946, Page 9

raw materials

GROWING-SHORTAGE EFFECT ON EMPLOYMENT POSITION MORE STAFF REDUCTIONS AUCKLAND, August 8. Although there is a great unfulfilled demand for labour in many branches of industry, in others the livelihood of thousands of men and women is threatened by a growing shortage of materials. These include textiles, pig iron, steel, tin plate, sheet iron, cement, gypsum, leather, sugar, chemicals, coke and wood for furniture. The future supply of many of these materials is uncertain. Woollen, cotton and rayon materials will be more difficult to obtain in the next 18 months than at any time during the war. Some manufacturers have already been forced to reduce their staffs because production has been limited to conserve materials. Many clothing firms have only sufficient material on hand to provide work for their employees for one more month. They have no guarantee that supplies will be available then. Wholesale houses are unable to import textiles from Britain or any other country in quantity and delivery dates for orders placed now have been given in some cases as the end of 1947. “Warehouses Bare”

“It is not a question of licences being refused by the customs,” said an importer. “Licences are available but the goods are not. The textile manufacturing countries have neither sufficient raw materials nor sufficient labour to supply New Zealand. The United States is producing huge quantities of rayon but is keeping most of it for her own needs. Clothing manufacturers in New Zealand are at their wits’ end. The shelves of ihe warehouses are bare.” The situation that exists in the clothing trade is somewhat-compli-cated as some sections using materials not so scarce are ipaking frantic efforts to increase their staffs. Others are now faced with the need for reduction. Until recently New Zealand imported Australian textiles to supplement the imports from Great Britain and the woollen goods made in New Zealand, factories. Australian manufacturers are now, however, unable to fulfil their contracts with New Zealand as lack of coal and labour shortages in their factories have retarded production. Limited Woollens Output.

In the woollen mills in New Zealand production o£ suiting materials and woollen piece goods is restricted because of labour shortages. Since the lifting of the manpower controls, labour has drifted away from the olderestablished manufacturing industries to the newer and more attractive industries. One large mill in Auckland which normally employs 200. is today operating with a staff of 150. A serious shortage of cement, although more severe in southern districts, is embarrassing Auckland builders. They can see little hope of immediate relief as production of cement has been curtailed by the lack of coal. All types of buildings, the manufacture of pipes, outside-board, housing blocks and other concrete commodities are affected by the shortage and it is thought that a certain amount of unemployment will result. Certain major building contracts in the Auckland area may be held up by a shortage of steel which has been caused by shipping difficulties. Some 20,000 tons of steel is in Australia waiting transportation to New Zealand and arrangements have been made Cor 12,000 tons to be loaded in a chartered ship. This shipment will temporarily relieve the shortage. Lack of Pig Iron. Lack of pig iron is severely curtailing the production of Auckland founderies and engineering firms. One concern has two weeks’ normal supply left and during February was forced to reduce its staff and halve production. The Kairangp is loading 250 tons of pig iron in Australia but it is estimated that 1000 tons is needed to ease the shortage. Fibrous plaster factories in New Zealand have in recent weeks been forced to close because of the shortage of gypsum rock and in Auckland some employees of the largest fibrous plaster factory have been dismissed. The State flats in Symonds»street are among the building contracts suffering from the shortage of fibrous plaster. “There is no doubt that the shortage of basic raw materials in a wide range of industries must result in reduction of staffs,” said Mr. J. R. Don, secretary of the Auckland Manufacturers’ Association. “The Government is giving its full co-operation to the ’manufacturers in endeavouring to secure adequate supplies of raw materials and in arranging shipping if and when these become available.”