SERIOUS POSITION

Nelson Evening Mail, Volume LXXIII, 26 October 1939, Page 6

SERIOUS POSITION

IMPORTERS OF UNITED KINGDOM GOODS FIRMS CLOSING DOWN MODIFICATION OF RESTRICTIONS SOUGHT lUnited Press Association) WELLINGTON, This Day. A special meeting of the Council of the United Kingdom Manufacturers’ and New Zealand Representatives Association was held yesterday to consider the import license schedules just issued. A statement issued to-day on behalf of the Council says that grave concern is expressed at the fact that although the import regulations have been in force nearly a year it is still necessary to place severe restrictions on various classes of imports from the United Kingdom. It was reported that within the last few days some firms dealing only in United Kingdom goods had decided to close down with the consequent dismissal of staffs. There was no doubt that this position would be accelerated as many firms had carried on till now in the hope of a definite easing of the restrictions. The effect of the restrictions would extend from the importing side to retailing interests and it was feared that unless considerable modification was made a serious unemployment problem would result. Some of the businesses already closing down had been in existence for many years and dealt in nothing but United Kingdom products.

The problems arising from the difficulty of overseas suppliers obtaining immediate payment for goods shipped to New Zealand, were also considered. As a preliminary step towards finding some solution of the present grave difficulties faced by importing, retailing, and local manufacturing interests it was decided to support the holding of a national conference composed of all interested bodies, and immediate steps towards this end have been taken. The Council decided that the Association do all in its power to obtain modification of the present restrictions, the effect of which was being felt not only by commercial interests and primary producers, but also by the consuming public. Many lines were already in short supply and would soon be unobtainable.

Reports received from interests in the United Kingdom indicated that in spite of the war the United Kingdom was determined to maintain its export trade; in fact it was essential that this be done.

The Council realised that the availability of sterling exchange had a bearing on the subject, but felt that consideration of the whole position at a national conference should result in obtaining the best indication of what course should be adopted to find a solution of the present position.