IMPORTS PROBLEM

New Zealand Herald, Volume LXXIV, Issue 22853, 7 October 1937, Page 13

IMPORTS PROBLEM

MANUFACTURERS' VIEWS FEELING OF UNCERTAINTY GOVERNMENT ACTION AWAITED "It is impossible to imagine that the Government, knowing the position of the manufacturing industries, would permit anything in the German trade agreement that would militate against the interests of manufacturers," said .Mr. J). Henry, president of the New Zealand Manufacturers' Federation, in commenting on the legislation embodying the agreement. Mr. Henry added he had not yet had the opportunity of a close study of the legislation, although he had noted certain classes of imports mentioned which did not conilict with manufactures in the Dominion. But he was confident the Government realised that a certain amount of unemployment had developed in the manufacturing industries and the tendency would increase unless heavy overseas importations were prevented. Mr. Savage's Recent Assurance The Prime Minister had announced last Friday that action would be taken to safeguard the interests of manufacturers and employees in industries that were being harmfully affected, Mr. Henry said, and that it was hoped to make a statement within a fortnight setting out the procedure to be followed. In the light of that announcement, it was hardly likely that anything would be done in the meantime to make the position worse as it affected industries.

It was apparent that the reaction of many manufacturers to the legislation was that it provided an instance of further attention to the sale of New Zealand produce while nothing had so far been done, in spite of protracted negotiations, to ensure that manufacturers were able to sell their products to advantage. A manufacturer remarked that the Government had devoted much attention to New Zealand industry with the idea of raising the standard of living of the workers, and that it now proposed to buy goods from Germany produced by what he described as sweated labour. Inference From Agreement

" Mr. Nash li as said that agreements made by the previous Government with Great Britain had to some extent tied his hands in making arrangements to help New Zealand manufacturing industries," said one large manufacturer. "It is apparent, however, that the agreements are not so rigid that they prevent concessions being made to assist German manufacturers. The logical interenee is that if the British authorities aje prepared to modify conditions to assist German manufacturers, they should also be prepared to do something to assist New Zealand industries. "1 am prepared to admit," continued the manufacturer, " that the agreement gives me a certain amount of pleasure, because it will enable me to buy with a good conscience certain materials from Germany previously purchased in England, and which I use in my business. I feel that in doing this I have the blessing of the Government. Disappointment Expressed

"Nevertheless I am disappointed that the Government has put through legislation further to help the primary industries, which are not at present in a desperate condition, while it continues to neglect the taking of measures calculated to assist the secondary industries, some of which are working short time and have discharged staffs, while others are not working to their full productive capacity considered by Mr. Xash to be the ideal state." Another manufacturer referred to the uncertainty existing among manufacturers regarding the future. He said that if his firm knew that industries were going to be given more security in the future, it was prepared to buv certain machinery from Germany which it had long wanted. Something more than pious wishes for future prosperity was wanted by manufacturers from the Government. PROSPECTS FOR WOOL CONFIDENT EXPECTATIONS LARGER CLIP PROBABLE The expectation that the new trade agreement with Germany should mean the wool industry would participate in any benefits which might accrue was expressed yesterday by Mr. B. ,T. Marquet, chairman of the Auckland Wool-

brokers' Association, who also said he •ould not prophesy whether a

heightened German demand would result in higher prices for wool, or whether there would he any general expansion in the European market. in the absence of any setback, which could not be foreseen, said Mr. Marquet. the first wool sale in the 1937-38 season could be awaited with confidence. The general position was very healthy. Exports of wool from New Zealand to Germany in 19.35 were at the 10-.v level of 5.400.0001b., and, although last year this increased to i ,600.0001b., the total was a good deal lower than those of 1933 and 1934, when totals of 45,000.0001b. were recorded. The large decreases were due mainly to the transfer of Germany's

purchases to certain smaller countries, such as China. Turkey, Chile and Brazil, and at the same time there was a pronounced fall in the stocks of raw wool available for manufacture in Germany.

Substitutes for wool had increased rt demand in Germany at the same ime as her demand for wool lessened.

lie said, and it was satisfactory that Germany was prepared to expand trade, even within the bounds of a bilateral agreement. It appeared there was the probability of a larger wool clip in New Zealand this year than last, and with favourable conditions the limit of 25,000 bales should be reached at the Auckland sale on November 27. IMPORTS OF WINE LOCAL INOUSTRY CONCERNED Concern was expressed yesterday by a wine merchant and manufacturer in Auckland at the effect the trade agreement with Germany might have on the New Zealand wine-making industry. He said it was a growing industry, but, if insufficiently protected, it was not yet strong enough to compete with cheap imported products. The tariff on German wine other than sparkling was 4s a gallon, plus 20 per cent ad valorem, or 6s a gallon, whichever was lower. "This is a direct incentive for Germany to send cheap wines to the Dominion," said the merchant. who considered it was Germany's intention to flood New Zealand with cheap wines. He instanced the revival of the industry in Germany, which was also able to import wine from surrounding European countries and re-export it as the German product.. There were more than 130 licensed wine-makers in the Dominion. No money spent in the industry left the countn with the exception of a small amount for items such as corks. Vineries could be established on poor and wha+ otherwise would be waste land and the industry was responsible for the employment of a large number of people.

1 bat the Government was not ignorant of the New Zealand industry was shown by the fact that it was in competition with private owners, producing grapes for wine-making at the Waerenga experimental farm at Te Kauwhata and also at Arataki, Hawke's Bay.