LOCAL GOODS

New Zealand Herald, Volume LXXIV, Issue 22805, 12 August 1937, Page 13

LOCAL GOODS

OVERSEA CHALLENGE MENACE TO INDUSTRY FACTS FROM WAREHOUSES PENALTY OF HIGH COSTS , No. 1., Upon the question of new. and increasing outside competition with secondary industry, there is a remarkable divergence of thought. For many of the arguments of the manufacturers whose trade is definitely menaced by imports from Australia or England there is a counter from other departments of commerce.

For instance, it is contended that an increasing turnover in the New Zealand retail market, which must provide a wide variety of choice—wider, probably, than in most countries of the size, seeing that New Zealanders will not be regimented —necessarily means an expansion of importation, irrespective of price. For the moment, however, we must confine attention to what the manufacturers regard as fundamental facts. Actually few, if any, factories have reduced hands and lessened output. What faces many of them, however, is a prospective reduced demand. And, as the representative of one extensive business remarked yesterday, it is ncessary to have orders ahead to have a healthy manufacturing business. This statement becomes obviouß to the most unexpert inquirer when he realises the influence of fashion and seasonal variations in a wide zone of industry. Action Expected • It is believed in the clothing section of industry that the challenge from abroad is so serious that the Government cannot possibly fail to act. Among men who hold this view and who, incidentally, are prepared to argue that because of the uncertainty orders are being withheld, when they are expected, are some who see no future hope for their respective industries unless protection in one form or another is adopted. They say that while there has been no change in the fiscal situation the increase in local costs brought about by the £e nera l rise in wages and the reduction of hours represents a substantial reduction in the promotion sj-stem. One need not pause at the moment to deal with the prompt comment of the indent agent who says that in certain lines the protection, including exchange, often amounts to 70 per cent. He may have his say in a subsequent article. It must be conceded that in many important lines of trade the new burden of oyerhead created by the wages-hours policy of the Government, has jeopardised local enterprise and employment. Australian "Invasion"' • It is impossible to be precise over the whole of the menaced field, but there can be no hesitation in quoting the man whose vision of the whole question is wider than" that of the average. He says: "There is an impending invasion of oversea commercial travellers. Already there is a large amount of stuff on view. Australian is largely in the picture, but English goods will also be here to compete with what we have always regarded as our own. I '-' He referred particularly to woollens. "When his contention was mentioned to importers, freei of local manufacturing influence, they became derisive, suggesting that protection in the woollen trade is more than adequate. At this poiiit the inquirer must suspend .judgment. Vast difficulties confront him in this field. Goods on the Market But, whatever prejudice, bias or conscientious reasoning may suggest, there is plain fact to support the demand of the clothing manufacturers for some protection. To-dav, in Auckland, Australian do me stic flannel, which is used for schoolboys' shirts, for workiugmen's singlets and for many other family purpases, is on sale. A year ago no one in the trade would have dreamed that this type of goods could have entered New Zealand to the grave detriment of local industry. Yet it is coming in and whatever the local manufacturer may say .about its quality, it is selling. It is even selling through agencies which have a manufacturing side to their warehousing business. ,

Men's felt hats from Australia are hero. They are mainly in the lower grade of price. Definitely they are upsetting the New Zealand industry.

Australian blankets have come in. It had long been imagined that the Dominion was supreme in the local market in this trade. The New Zealand manufacturer may argue quality, but that does not prevent the Australian product gaining a sale. Australian Woollens A really expansive trade in men's socks from Australia is being done. If New Zealanders were not interested in design the imported article would not be so attractive. But New Zealanders are so interested. And in this connection it is pointed out, even by manufacturing people, that the retail trade must have wider scope than can be supplied by the local mills. One saw .1 wide array of woollen cardigans and pullovers, all from Australia. Will they wear? Well, that, as always, is for the buyer to decide. If they look all right they will sell. The most astonishing exhibit of the tour was a shirt —an ordinary cotton shirt with two collars of the kind largely used by business- men. This shirt was a sample from England. Not in 15 years had the head of this warehouse seen an English cotton shirt. New Zealand factories had supplied practically the whole of the local trade. Yet here we find a sample shirt of the lower grade that will compete with the New Zealand article made from dutyfree material. Australian boots and shoes are not in -J so great abundance as tbey were a few.'S months ago. One must hesitate about hazarding a reason. But English shoes are pouring in, all because of the rise in the local price. "And, remember," said one man, "the retailer must offer variety in New Zealand and nearly always likes the imported article because usually he can make a better profit on it." This statement may be challenged, but on an inquiry of this nature one must be prepared to be challenged at every corner.