WARTIME TRADE

New Zealand Herald, Volume LXXVI, Issue 23504, 15 November 1939, Page 8

WARTIME TRADE

MAINTAINING INDUSTRY OUTLOOK OF MANUFACTURERS IMPORT LICENSING PROBLEM "It is too enrly yet to estimate to what extent manufacturers will bo affected by war conditions," states tlie report which will be presented at tho annual meeting of the Auckland Manufacturers' Association on November 27. "It. is important, however, to note that although New Zealand is not yet fully equipped industrially tho country's security depend? in a largo measure on having important industries already operating. Instances liaro already occurred where long delays havo been avoided through having equipment readily available for construction and repairs. "This association, through the federation, has offered the fullest co-opera-tion with the Government in this national emergency. Advisory committees have been set up by tho federation and by the association in order to maintain the greatest efficiency in industry and supply to the Government the best information relating to factory production." Year of Problems The report adds that tho year just Concluded was. full of problems for manufacturers. When the committee took office, manufacturers wero facing a serious situation arising fiom heavy importations of manufactured goods, and representations were made to tho Government that steps should be taken to safeguard manufacturers. Following a long period of heavy importations and depletion of sterling credits, tho Government introduced import licensing covering both finished goods and raw materials, and manufacturers were assured that they would bo permitted to obtain necessary raw materials for manufacture, and that the regulations would bo administered to enable manufacturers to supply a greater part of tlio local market. Manufacturers who had increased their productive, capacity or who had to obtain" materials or machinery in excess of tho previous period's importations, were subjected in numerous instances to much inconvenience through tho long delays before the grant of necessary . licences. The association was able to render valuable assistance in scores of cases where licences were required. Sterling Difficulties Depletion of London credits created other difficulties for manufacturers, the report states. Manufacturers requiring supplies of raw materials in many cases had not been able to induce suppliers to continue to sell on the extended terms offered. The exports credits scheme did not assist manufacturers to any known degree. Tho committee made representations for a simplification of tho procedure necessary for obtaining licences and making the best use of credit allocations for goods most urgently required. In this regard some advantages were obtained; but generally the working of the system brought about many serious difficulties for manufacturers, such as inability ,to purchase raw materials ns they have been required, variations in price through delays, and tho disorganisation inseparable from uncertainty regarding necessary supplies of raw materials. To what extent manufacturers would be permitted to obtain supplies in the quantities necessary to maintain full staffs was not yet determined. The report records a membership of the association of 553, including 43 new members for the year, and states that there is a credit of £233 in the accounts.