CONTRACT FOR WIRE

King Country Chronicle, Volume XXXIII, Issue 4801, 23 June 1939, Page 6

CONTRACT FOR WIRE

GIVEN TO AUSTRALIA.

London, May 25.

Commenting on the decision of the New Zealand Government to place its general wire contract in Australia, thereby going past Great Britain foi the first time, Mr. A. T. Johnson, chairman of Richard Johnson and Nephew, Ltd., said at the annual meeting this week:—

“The successful tenderers, the Australians, were aided by the exchange position, which has the effect of giving them a 25 per cent, advantage. This has been in existence for some years, but hitherto the New Zealand Government has no doubt been influenced by the fact that New Zealand’s sales are two times and a half as large as her purchases from this country, whereas New Zealand enjoys an unfavourable balance of trade from Australia.

“The loss of this important section of tbe trade involves not only a considerable tonnage of wire, but also a considerable tonnage of British steel, and establishes a very dangerous precedent as regards the general purchasing of British goods in the Dominion. “It has been quite clear that we have been threatened in this direction for a long time, and I cannot help feeling that this calamity could and should have been avoided. Ever since I returned from New Zealand three years ago I have spared no pains to bring about an arrangement which would support the efforts which your company has for many years made as an individual, but I regret to report that my appeals have fallen on deaf ears. It will be said indeed if the goodwill which your company has created and maintained over more than half a century is allowed to die unaided.”

The 'company's net profit for the year was £73,809. The dividend was 9 per cent.