EMPIRE TRADE

New Zealand Herald, Volume LXXVII, Issue 23816, 18 November 1940, Page 9

EMPIRE TRADE

lower importations NO SURPRISE CAUSED PKOBI/EMS in dominion riFTH LICENSING PERIOD The announcement by the president of" the British Board of Trade, Capta;n Olirer. Lyttelton, that restrictions sr e to be imposed on Empire trade f anie as no surprise to Auckland importing interests. The British attitude n-as anticipated by tho Minister of Customs, the Hon. W. Nash, in issuing the schedule for the fifth import licensing period which extends over whole of 1941. Mr. Nash made this quite clear to a deputation of Auckland importers which recently waited upon him. He then read communications on the subject from the British Government upon which he had acted. It is regarded as unlikely in the circumstances that there will be further reductions in tho schedule of importations permitted in the fifth period. Unexpended Licences Issue However, opinions are expressed that jf a big proportion of the value of fourth period licences ' unexpended by December 31 next through shipping and other difficulties, is counted in fifth period allocations, as is proposed by j Mr. Nash, there will be crave scarci- 1 ties ot manufactured goods and raw j materials that will affect employment! adversely. On that subject it is likely j that an influential deputation of busi- j Hess interests will shortly wait upon Mr. Nash. Rigid restrictions on imports that have been progressively „ intensified wider the Government's control scheme have so depleted stocks of goods in the Dominion, it is pointed out, that the country is ill-equipped, compared with other Dominions, to face the situation announced by the president of the British Board of Trade-"and also by Lord Stamp, chief economic adviser to the British Government.

Possible Unemployment Should there be further restrictions jit the importing source, or should allocations for the fifth period be cut into by' any considerably quantity of unexpended fourth period licences, there will be a scarcity of raw materials for manufacturing, in the opinion of the president of the Auckland Manufacturers' Association, Mr. W. J. Truscott. In such case, unemployment in the manufacturing industries would result. Much depended, lie said, on howmuch would be forfeited of some £'30,000.000 worth of unexpended licences mentioned by Mr. Nash.

The president of the 'Auckland Importers' Association, Mr. Hugh Thomson, said the stock and importing situation was such that if Mr. Nash persisted with his present intention regarding unexpended third and fourth period licences, present scarcities would be increased. It should not be overlooked that thp public was already using substitutes for some classes of foods and was doing without others. The present situation was so acute that the country would feel intensely a tightening of the siege.

Conflict ol Views Importers of many classes of goods direct attention to-the- conflict between the views expressed by the British Government and the production position disclosed to them by British manufacturers, who / state that with the 'closing of the European market to them, they are deeply concerned over the" question of "finding markets for the goods which' they are able to produce freely. One example mentioned was that of the /pottery and chinaware industry in which manufacturers stated they were able to make deliveries for shipment within' two or three weeks from receipt of an order. It was stated that provision, was made *iti import control schedules for sufficient importation of classes of building materials u§ed in the construction of State houses, but there were likely to be scarcities the hardware contained in the customs schedule under the classification of hardware, n.e.i. There were. now • scarcities of non-fer-rous metals, except lead, and these were likely to become more pronounced. The outlook was, bad also for artificers and machine tools.

While they criticise import control in denuding the Dominion of goods far below safety point, importers state they cheerfully accept the need for economy in the use of goods stressed by the British authorities.