CYCLE IMPORTS

New Zealand Herald, Volume LXXVI, Issue 23273, 16 February 1939, Page 18

CYCLE IMPORTS

DRASTIC REDUCTION FEARS OF A SHORTAGE ADVERSE EFFECT OF CONTROL Complaint that while drastic reductions in the number of cycles permitted to be imported have been made under the import control regulations, no increases in materials that would permit of an extension of manufacture have been authorised, is voiced by members of the trade. It is considered that in the circumstances a shortage of cycles is inevitable. However, the claim is not made that the restriction on the importation of materials is an experience singular to the cycle industry. It is stated that tho condition applies almost to every branch of industry. Extent of the Cuts Importers and others in the trade pointed out yesterday that there was over-buying in 19.'37 because the market was then firming in England, the country of supply of bicycles and materials. There was no corresponding heavy buying by the New Zealand public of imported stocks, with the result that importations in the first six months of last year, both of bicycles and materials, were abnormally low. Cuts had been made in cycles of about 45 per cent, according to the general experience, compared with the corresponding six months of last year. Except for some accessories, reductions had not been made on materials, but they were limited in quantity to the low figure of the basis period. There were exceptions, however, to this experience. One Auckland firm imported cycle parts of one make, shipments being distributed direct to four New Zealand ports. At two ports, 100 per cent of the quota was permitted, at the third port it was 60 per cent, and at the fourth, 50 per cent. The reason for such inequality of treatment, it was stated, was difficult to understand. Dominion® Requirements The annual requirements of the Dominion total not less than 30.000 machines, it was stated. One Auckland firm alone imported and distributed from 5000 to 8000 a year. The position was simply that the manufacturing industry was not yet organised sufficiently to handle the full demand that in the present circumstances was inevitable, even if it had the opportunity to acquire sufficient materials to permit of expansion.

The experience of a large firm with branches throughout New Zealand illustrated the present position. Its Wellington branch carries out manufacturing. The Auckland branch lodged an order with the Wellington branch for 2-3 machines. The reply was that, they would be made within three weeks, provided the necessary equipment was first supplied. That condition represented a difficulty not yet overcome.