Licences Inadequate To Maintain Production

Northern Advocate, 6 April 1948, Page 3

Licences Inadequate To Maintain Production

MANUFACTURERS WARN

WELLINGTON, Tue. (Sp.).—“Licences issued for factory raw materials for 1948 are totally inadequate to maintain production and employment.” The New Zealand Manufacturers’ Federation says this in a statement issued yesterday.

Only immediate action by the Government ‘could prevent a most serious dislocation of production, employment, and supply in the latter half of this year and early next year, the statement warned.

A factual up-to-date analysis of the position was staggering and gave reason for the gravest concern.

•'(?,) what, amount o! overseas funds is being allocated this year respectively for debt services, debt repayment, Government buying, private imports and miscellaneous contingencies?

“Appeals for licences to meet urgent requirements have been practically ignored and the attitude of the authorities to these requests demonstrates beyond all doubt a complete disregard of the manufacturer’s obligation to safeguard the employment of his staff,” the statement adds. “One survey covering a representative group of manufacturing industries whose total licences for 1947 amounted to £2,935,066 shows that for 1948 only £1,569,612 had been issued to these same firms.

“(3) What were the equivalent amounts spent, or allocated if the actual expenditure is not yet available, under these groupings for 1947?

"(4) What percentage of 1947 licences will be allowed to manufacturers for 1948 and when will these he issued? “We feel that no Government can administer a policy of import selection without having this information available,” the statement concludes.

“Our survey and information indicates very clearly that the crisis anticipated by the federation is unfortunately here. IMMEDIATE ACTION URGED “It is too late even now to repair the whole of the damage, but immediate action by the Government can to seme extent avoid a complete breakdown.

“Manufacturers are daily having to turn down offers of goods from the United Kingdom because we have no import licence. “It does not require the assistance of an overseas supply mission to obtain many of the goods; it requires only that the Customs Department will issue the necessary import licence. “But that licence must be issued while these goods are offering, and in sufficient time for shipment to New Zealand before we have had to retrench staff, or otherwise reducg or taper off production, and before the expiry of the licence period. “As a federation we are appreciative of the information so far supplied by the acting Minister of Customs (Mr Nordmeyer). “As manufacturers we recognise to the full the closeness of our ties to the United Kingdom and the necessity of New Zealand falling in with the requirements of the Homeland. FAIR QUESTIONS “However, to safeguard the maintenance of full production and full employment, we must be sure that as a group we are not being askpdvto accept more, than our relative share o' any necessary reduction. “To appraise the position satisfactorily we feel not unreasonable in asking the following questions:

“(1) What is the estimated value of New Zealand exports for the 1948 licensing period?