RAW MATERIALS

Gisborne Herald, Volume LXVIII, Issue 20526, 9 April 1941, Page 11

RAW MATERIALS

OVERSEAS SUPPLIES ANXIETY IN INDUSTRIES BRITAIN'S NEW POLICY Industries are awaiting with concern the possible reduction in the supply of raw materials owing to the decision ol the British Government to limit manufacturing largely to actual war needs. The New Zealand Government is reported to be investigating the chances of obtaining supplies for the engineering trades through the British Purchasing Commission in America. The footwear industry js dependent on essential supplies from overseas and its requirements are receiving official attention.

In the clothing industry there is anxiety over an impression in England that the textile trade is to be regimented and its production for both the domestic and export market drastically reduced.

Manufacturers in Auckland point out that, while the present necessity is to explore other markets than Britain for their supplies oi raw materials, the terms of most impor licenses under the "preference to Britain" policy of the New Zealand Government prevent such a course being followed. A crisis in industry is almost certain unless the Government relaxes its policy to meet the changed situation.

Indeed, there are rocks ahead for industry even if Britain does not take the threatened action to reduce her exports. New Zealand industries have been expected to “take up the slack' of a reduction in the export of finished goods, but allocations of raw materials under fifth period licenses are sometimes as much as 50 per cent, below the quantities imported in LB3O when all factors are taken into consideration.

The view that many import licenses were issued under a fallacy that the supply of the goods would be possible was also expressed by Mr. W. J. Truscott, president of the Auckland Manufacturers’ Association, who urged the need for a revision in Governmental policy. “Even under present conditions of supply of raw materials I can see a fair amount of unemployment looming up in industries in the next three to six months,” he said. “And I will be surprised if there is not a good deal of unabsorbed labour toward the end of the year.”