RETAILERS' FEARS

New Zealand Herald, Volume LXXVI, Issue 23339, 6 May 1939, Page 15

RETAILERS' FEARS

SUPPLIES CUT OFF SERIOUS CONSEQUENCES MANY. MAY HAVE TO CLOSE "APPEAL TO PRIME MINISTER rnr TELEGRArH-7— PBESS ASSOCIATION'] «• -WELLINGTON. Friday Pointing out that unless some relief e forthcoming hundreds of small reSi businesses would have to close and S!t much unemployment would ensue, Inrce deputation, representing the - Zealand Federation of Drapers, rintliiers and Boot Retailers, waited ' Clot Mfe Prime Minister, Mr. Savage, ° r *fdetailed the effect the import re- , "frictions were having on their* busx-

: T 0. Bishop, secretary of the • deration, said ,tl;at instead of manu--Ilouring firms sending out travellers ; look for orders, retail firms were sending out buyers to look for goods a were frequently unsuccessful. In fj. reply Mr. 'Savage said that if any- • ■ b ouid put forward a better method smeeting the position the Government mild be glad to hear it, but he would not consider reducing -ages. Ho beTcvedXe*' Zealand manufacturers could "irnand their production and if a time ' lac was going to cause trouble something' VOuU have to be done. .-.T Eeduction tl Trada

Mr Bishop the sources of supply ,/„ o o<k distributed by members of the association. New Zeilnnd manufactures comprised' 20 per ,-ent, direct imports 40 per cent, and imported goods pur- ' chased locally 40 per cent. It was the considered opinioi of those with an expert knowledge tf trade that these last two items would b6 reduced by; 70 per cent, so that if goods of New Zealand manufacture renamed at 20 per cent the effect wou'd be a reduction of 56 per cent of tie total volume Qf trade. To maintain the volume of turnover, therefore, thr figure for New Zealand- - jnade goods must be > increased to 76 •per cent. Tley submitted that it was utterly impossible for the supply of JSexr Zeaknd-made goods for "their trade to multiplied by 3.8 within any feasoiable time. There must, therefore, be ai immediate reduction of the total volime of trade. It was not possible to estimate what the falling-off would fej but it could not fail to be Eubstanial enough to have very harmful effcts. Mo Source ol Supply

Mr. Bishop said New Zealand manufactuers were suddenly faced with, a . tiemaid many times greater than they ■were ever, previously asked to supply. -They could not satisfy the demand and so vere closing their small accounts and supplying only larger firms. It was no exaggeration to say that i hundreds of small shops would have to dose for the simple reason that they iad.no source of supply. The effect on large businesses would be equally serious and involved discharging hundreds of hands.,' . Employment and Prices Mrs Bishop submitted that the depulatioa liad established the following points:—"The structure of New Zealand retail business has been developed largely upon an unrestricted supply of imporfal goods under a protective tariff. The effect of/the new regulations is to cut off New Zealand merchants from their former sources of supplies, and-there are no immediately-available loutjees of supply within New Zealand for. the great majority* of the lines previously imported /and for many lines there is no prospect of any source of supply being created.- The stimulation of demand which arises from fashion, novelty, variety, general attractiveness and saleability must be lost, at any rate for a considerable time, if none but New . Zealand-made goods are available. "A number of small businesses will disappear, and there will be a reduction in the number of workers employed in retail trades. Prices inevitably must be increased and the standard of living tannot.failj'to suffer a reduction. There Iwill be far-reaching reactions upon all bther members of the community." Suggested Eemedies "The.question now arises as to remedial measures which might be taken," Air. Bishop continued. "It is suggested . *Pr your consideration that, while there be no question about the desirability of expanding the manufacturing Industries in New Zealand, it is clear wat their expansion cannot be so sud- ■ oefl tad complete as to immediately • inase up for the entire cutting off of ? Present sources of supply. It is instable, that there will be a consider- - Sole time lag. Therefore, haste should be made elowly and the prohibition of any lines imported goods should bo applied < Sf* t '-T' an 4 not suddenly, in cases in there is no local supply or in hf le l° ca l supply is greatly short w the demand. '' Gradual Decrease n?"'d n °t the complete prohibition he relaxed and gradually de5 < 3. ua Qtities be permitted to be _ ported during a prearranged develop- ,)• *? period? It is suggested also that fnr ke granted more freely y r . l&Hgdom manufactures, that 'thm ijl u Pon children's apparel :tif m ! re ™ovcd, and that restrictions •' . no ' einris and other goods ihmiiiL 18 lm fl°ssible to obtain locally e / econsi^r cd. It is also sugW n som . e greater latitude should licences 0 " iu tho allocation of l)r^V^' S k°P' s rerna rks were supported Wanwiv Hurst • (XcJson) - HigginCI,J? aDganin) ' J - W. Court They conil' a "? * orman (Wellington). ttaff ß i, je expected to carry nm? the. counter when there' nothing to sell/it was stated. NEW ZEALAND GOODS subsidy for buyers IFKOSI otJ ® owx correspondent] ■, _ Hamilton, Friday Port roif?f S^-' nn that the present imvv°ur nf ons , s ]\°uld bo abolished in V i Sul)Sl dy to buyers of all "1,! '•', Roods was made in a . a meeting of the >,f sub-provincial "- e Oharm i * lir,llf, rs' Union, from A n2 t°; )ra,u ; n of .' thp union, carry .„ f4 embodying the remit was Cr co,)Sl derablo discussion by