HIGH OVERHEAD COSTS

New Zealand Herald, Volume LXX, Issue 21399, 25 January 1933, Page 12

HIGH OVERHEAD COSTS

DOMINION'S DISADVANTAGE GOODS FROM OVERSEAS [by telegraph—own correspondent] DUNEDIN. Tuesday After discussing several advantages which New Zealand possessed over countries of the old world, Mr. 11. Tronser, representative of a firm of agricultural implement makers in Mannheim, Germany, referred to what he described as one of the most serious disadvantages under which the Dominion, in common with Australia, laboured. It was tho absurdly high level of overhead costs with respect to tho importation of goods from overseas.

"My firm's - manufactures, which aro widely used in New Zealand, qre sold at exactly 100 per cent more than they bring in Europe," ho said. "Exchange on London, in view of the departure from the gold standard, accounts for 35 per cent; exchange, New Zealand on London, for a further 25 per cent. Freight, which is unavoidable, and harbour dues and selling costs mako up the remaining 40 per cent." A product costing £IOO in Germany was sold for £2OO in New Zealand and the extra £IOO was paid by the farmer, but not to tho manufacturer—it simply disappeared and no ono knew who really got the money. If the German firm sold a £250 tractor in Now Zealand it cost the Dominion landowner £SOO, and neither the farmer nor tho manufacturer was any tho better off for tho higher figure paid.