PAPER SUPPLIES

New Zealand Herald, Volume LXXVI, Issue 23486, 25 October 1939, Page 10

PAPER SUPPLIES

DRASTIC; REDUCTIONS | EFFECTS OF IMPORT CUTS PRINTING TRADE PROBLEMS REPRESENTATIONS TO BE MADE Drastic reductions in paper supplies for the printing trade are anticipated under the conditions imposed by the third term licensing of imports scheme, operating in the first half of IJ-10. Unless the conditions are modified in respect of printing paper, heavy unemployment is predicted in the industry and the development of a wide range of industries dependent on paper will be checked. The situation was discussed at a conference vesterday of the Auckland section of" the New Zealand Wholesale Paper Merchants' Association and the Auckland section of the New Zealand Master Printers' Association. It was then stated that, on present indications, the printing trade could expect a supply of paper next year of not more than half of its present requirements and the position might still fuither deteriorate. Both organisations agreed to request their parent bodies to make representations on the subject to the Minister of Customs, the Hon. W. Nash. Effect of Price Rise It was explained that about 50 per cent of the Dominion's requirements in printing and writing paper come from the United Kingdom in the normal course, and the remainder .from Canadian and foreign sources. Under the third term licensing scheme British imports were retained up to the limits of the 1938 figures, and there was a 50 per cent cut in Canadian and foreign supplies. On the face of things, that allowed New Zealand 7-5 per cent of its normal requirements. But since 1938 there had been an advance of at least 50 per cent in prices of paper and markets were still rising and likely . to continue so for some time. As the comparison with 1938 imports under the licensing scheme was on values, the net result would be that, instead of New Zealand receiving 75 per cent of the norma] supply, the reduction in practice would be to 50 per cent. British Supplies Curtailed However, further complication was introduced into the situation bv the fact that, because of war conditions, the United Kingdom was unable to supply its usual trade. The supply of timber and ptdp from the Baltic countries to England was seriously interfered with by the submarine campaign. German war vessels appeared to be paying particular attention to steamers carrying pulp and it was stated that, already advice had been received of the sinking of 15 since the outbreak of war. One large Auckland importing firm has already been informed - that two of the largest British mills with which it dealt had been closed down because they were unable to obtain sufficient supplies of pulp. It was pointed out that at the close of the Great War New Zealand was receiving almost all of its printing paper stocks from North America, so that the situation fast developing in the United Kingdom paper export trade was in keeping with previous war conditions. In the circumstances, chaos would result if the allocations in the third term licensing scheme were adhered to by the Government.