STEEL SUPPLIES

New Zealand Herald, Volume LXXVI, Issue 23338, 5 May 1939, Page 12

STEEL SUPPLIES

RESTRICTING IMPORTS THREAT TO INDUSTRIES BUILDING AND ENGINEERING EFFECT ON EMPLOYMENT Something approaching consternation has boon caused, not only in the building industry, but in the engineering and allied industries, by the announcement by the Prime Minister, Mr. Savage, that, in future it is proposed to review applications to import steel on their merits to determine whether a licence to import should or should not bo granted. The suggestion by Mr. Savage that a slowing up of commercial building construction would -assist in releasing workers for housing work was not supported, it being pointed out that most types of commercial building tradesmen are specialists who would lie unsuitable for the building of dwellings. Two Types in Building Two types of steel are chiefly used in building. One is the structural type employed in the framework of tlio .lean Batten Place building, which has been fabricated according to earthquake resisting specifications. The other applies to reinforcing rods, used as a general rule wherever concrete is employed. Architects estimate that in a commercial building of several storeys, similar in type to one now being erected in Queen Street, the cost of structural steel, its fabrication and erection, and also reinforcing steel rods, would represent about 19 per cent ol the total cost of construction. A big proportion of tho balance of 81 per wnt would represent labour" directly employed or indirectly in producing materials. Crux of Situation Tho situation is described as depending on how drastically the new conditions arc to be enforced. For that reason much speculation by architects and others is withheld. But it is pointed out that already many large Auckland building projects are threatened. There is also a fair amount of factory extension work projected, and, although steel may be made available for this class of work, architects and others think there may be difficulties ill obtaining it as there are with raw materials. /Users of stool for other purposes than building nnticipato in instances that import, restrictions for their supplies will now lie correspondingly tightened. Engineering firms point out that they import steel for many purposes, include ing fabrication for buildings, and it would be very difficult and hampering if they had to specify the purposes for which it was intended at the time of application for licences. Tho employment of large bodies of men in this industry is dependent on a free supply of steei. Government Steel Stocks The Government, it is stated, is now the largest user of steel in New Zealand. It has followed the example of tho previous Government and is replacing wooden bridges with ferro-con-erete structures. Its defence programme mentis a largo expenditure of steel. Indeed, it has steadily built up large stocks of steel at the principal ports, and is now ill a position when it lets contracts to builders for Government construction to specify that it will supply the stool. This it is doing from its own stocks. It is assumed that the Government will permit requisite supplies of reinforcing steel for private, house construction. Steel is used in houses whore both brick and concrete are employed. The general opinion in the industry appears to be tlint a reduction in building where stool is employed would release a very small proportion of carnonters who could bo employed on housing, for a good proportion of workers in this trade arc specialists, while on the other hand workers in a variety of other occupations would be thrown out of employment.

RAW MATERIALS REQUIREMENTS CUT DOWN MANUFACTURERS COMPLAIN INCONVENIENCE CAUSED [nr telegraph-—own connrsroxnENT'] •\VF.LLIXOTOX, Thiiwday. The extent to which New Zealand manufacturers can extend their output to balance import restrictions is governed largely by their ability to got the plant, capital, goods and raw materials necessary, and from overseas when it cannot he procured in the Dominion. It is commonly assumed that imports of raw materials and plant are practically unrestricted because of this, but the experience of a number of Wellington manufacturers shows that in many cases there have been restrictions and frequently considerable restrictions. One manufacturer, discussing the position to-day, said tho public had been led to believe that plant could bo got for the askiiig- That was not true. There were all sorts of forms and ceremonies to be complied with, and even then applications were being cut down. Manufacturers had to go to a great deal of trouble to prove why they should bo allowed to import the full quota of plant and raw material for which they had applied. ' It was pointed out V another man that it was not customary to carry moro stocks of raw materials than were needed in a given period. When stocks came from England, as they generally did, usually from four to six months' supplies were held. It was noi economic, generally speaking, to hold larger stocks. When applications for import licences to replenish supplies were held up for a month, as was Happening, that meant that the manufacturer stood a chance of running out of raw materials. There arc not many manufacturers in New Zealand who manufacture only one line, it was stated. In the state in which manufacturers were to-day they had to be able to ration their work to finish one line and get on with the next, because normally it was not economic t"b mix the production of different lines at one tune.