IMPORT CONTROL

Otago Daily Times, Issue 23703, 10 January 1939, Page 6

IMPORT CONTROL

FURTHER SURPRISES NATURE OF RESTRICTIONS DEPARTMENT’S GIGANTIC TASK DELAY IN LICENCE ISSUE (Per United Press Association; WELLINGTON, Jan. 9. Because Wellington is the principal commercial centre in the Dominion, the Customs Department has been faced with a tremendous task in handling the applications for import licences. It was hoped that the majority of the applications would have been dealt with by the end of last week, but inquiries today showed that a large number of interested parties are still anxiously awaiting replies. They included many leading drapery firms and departmental stores. The office of the Customs Department at Wellington was besieged today with inquiries. In addition, the department has asked many applicants to supply further particulars concerning their applications, which total many thousands

Essential Lines Curtailed

Further surprise was expressed to-day by a number of importers who received their licences at the nature of the restrictions. Many lines which have been severely curtailed are not manufactured in New Zealand, or to a very small extent, and these lines are essential from the production and labour point of view. They included sewing machines, linoleum, bicycles, motor cycles, and rubber goods such as waterproof clothing, the bulk of which are imported from Britain. A disturbing feature was the proportion of goods allowed. Of four cycle dealers, one has been granted 45 per cent, of last year’s imports for the first six months, the second 35 per cent., and the third 10 per cent. The fourth has been refused a licence altogether. A licence for British tyres and tubes has been refused one importer. An embargo has also been placed on specially-manufactured machines used for industrial purposes. Even imports of raw materials for use with the machines have been curtailed.

Stud Stock Quota

Substantial reductions in the quota of imported stud .stock was reported by a number of Wellington mercantile firms to-day. It was contended that this would have serious repercussions on the blood stock situation in New Zealand, unless some easing of the restrictions followed the appeals which were certain to be lodged. It was pointed out that New Zealand was one of the biggest exporters of stud stock in the world and must maintain its flocks and herds by importing the best stock from overseas countries. Thousands of pounds worth of such stock was imported yearly, it was stated.

Leading Wellington importers stated to-day that quite a large quantity of stock ordered was now on the way, but the quota allowed under the import restrictions was well below the usual. It was further stated that these imports represented a small percentage compared with New Zealand’s export trade, but it was essentia] if the Dominion’s primary production and quality was to be maintained. Years had been spent in building up this production and quality, and any setback would have serious consequences. Already there were many difficulties in the way of importing bloodstock into New Zealand, but the reasons were perfectly legitimate. There seemed no logical reason for further restrictions.

THROWN OUT OF WORK TYPISTES APPLY FOR VACANT POSITION WHOLESALE DISMISSALS FORECAST (Special to Daily Times) WELLINGTON, Jan. 9. In the Dominion this morning a Wellington firm advertised for a senior shorthand lypiste. By midday it had received five applications, and three of them were from young women who had been dismissed from their former positions because of the import restrictions “I believe that ihfe Governmem does not care how much unemployment it create) by the measures designed to build up the London funds,” said a Wellington business man. “It is prepared to pay sustenance, 1 think, as it does it with New Zealand money.’’ Another importer estimated that by the end of January the import restrictions would have thrown 10,000 persons out of work in New Zealand In his own small firm alone, he said, it seemed inevitable that four persons would lose their jobs. ‘ Business Wiped Out ” “ Seventy-five per cent, of our business has been wiped out, and it seems inevitable that we will have to close down.” said the representative of a Wellington firm of electrical importers He added that the value ol goods that they were to be allowed It import during the next six month*- was not equivalent to that of one month’s sales. He gave the fo. 11 owing details of the licences granted, the reductions in each case being on the amount imported in the first six months of last year:— Australian Car Batteries.—Cut 75 per cent Porcelain electric jugs.—Cut 70 per cent. Motor car gears.—Full quantity allowed. Electric plugs and adapters.—Full quantity allowed. Rubber garage headlamps.— Licence refused. Immersion Heaters. —Licence refused English radios.—Cut 70 per cent. Radio Valves. —Licence refused. Radio dry batteries—Licence refused. Two-volt accumulators. —Licence refused. Cycle parts.—Full quantity allowed. Cycle chains. —Licence refused Car polish.—Licence refused.

American electric car bulbs. —Full Quantity allowed. German electric clocks.—Cut 50 per cent.

In the first half of last year this firm imported £540 worth of English radios. In the second half of the year it imported £ 1700 worth. In the first half of this year it is to be allowed to import £ 135 worth of Goods which it was desired to im«|rt could be divided roughly into the following classes:—American, 40 per cent.; British, 40 per cent.; Australian, 10 per cent.; foreign 10 per cent.

Agricultural Machinery

A licence to import £5 8s worth of spare parts to service for six months £4OOO to £SOOO worth of a certain type of agricultural machinery in use in one South Island province has been granted a firm with headquarters in Wellington. The manager of the firm said to-day that at the port serving the province in which the machinery was in use he had applied for licences to import £ 750 of new machinery, the same as in the corresponding period last year, and £SO worth of spare parts He had been granted licences for £220 worth of new machinery and £ 5 8s worth of spare parts. “ That £5 Bs,” he said, “is to provide all spare parts for machines which will be busily engaged in autumn cultivation. In the next six months, unless the Government sees fit to allow some relaxation under the appeal which is being lodged, farmerowners of machines will have no alternative but to place them in their sheds as useless property.” He added that at the port covering another province the application for spare parts had been reduced only 50 per cent., while that for new machinery had been reduced 75 per cent. The machines were made by an Australian firm which held the world patents. For certain sections of the farming industry the machines were becoming essential, because of the type of work they could do and the saving they effected in production costs. If it was made impossible for a farmer to continue purchasing such equipment his production would be reduced or his costs increased.

Plight of Salesmen

“On the reduced business available, our salesmen employed among the farming community will be unable to carry on,” said the head of the firm. “The amount of commission they can earn on one-quarter of the normal business would not pay travelling expenses.” , The manager of the same firm said that last October he introduced a new line for the control of mould on cheese and the prevention of taint in food under refrigeration. He had applied for a licence to import £IOOO worth of this line but had been refused completely. IMPORTATION OF FILMS RESTRICTION NOT EXPECTED (Per United Press Association) WELLINGTON, Jan. 9. “ Importers of kinematograph films have applied for exemption from the restrictions imposed by the import licensing regulations, and, though their requests have not been granted yet, they do not expect that the importation of films will be restricted,” said Mr R. M. Stewart, secretary of the Film Exchanges’ Association, to-day. Mr Stewart pointed out that the film exchanges did business in a manner entirely different from most importers. They did not receive samples before they ordered goods, and did not know the value of the product till after it had been received in New Zealand. Among the reasons why an attempt should not be made to restrict the importation of films were the facts that films could not be produced in New Zealand, that restriction would cause a shortage where already the supply was not sufficient, that there could be no suggestion ol importers stocking up, and that the amount of money that was sent out of the country for films was extremely small compared with the size of the industry in New Zealand —much smaller than most people supposed. FULL INFORMATION WANTED REQUEST FOR DEPUTATION TO MINISTER BUSINESS MEN CONCERNED (Per United Press Association) WELLINGTON, Jan. 9. A decision to ask the Associated Chambers of Commerce to arrange for an immediate and representative deputation to wait upon the Minister of Finance (Mi W. Nash), requesting a full public statement a_ to the Government’s policy on the issue of import permits, was made at a special meetin of the executive and the importers’ committee of the Wellington Chamber of Commerce to-day. The proceedings were not open to the press. The president (Mr P. E. Pattrick) in an interview to-night said that it was generally felt that, while early action by the chamber was essential to protect the interests of the general public as well as those of the commercial section from the injustices and losses considered to be an inevitable consequence of the regulations, it would be helpful to all concerned to seek further information before taking other steps. Accordingly, added Mr Pattrick, the following motion was put and carried unanimously:—

•‘Thai this meeting, being greatly concerned regarding the lack of available information with respect to the policy that has actuated the recent legislation relative to the issue of import permits, asks the Associated Chambers of Commerce to arrange an immediate and representative deputation to the Minister to request him to make a full public statement as to the Government’s policy in the matter.” GLASS EYES AND LENSES HEAVY RESTRICTIONS ON IMPORTS (Pm United Press Association) WELLINGTON. Jan. 9. Heavy restrictions have been placed on the importation of glass eyes and lenses for spectacles. At a meeting of Wellington importers of optical accessories to-night it was decided to write to the Minister of Customs (Mr Nash) asking for clarification of the position regarding restrictions on the importation of glass eyes. One optician said that as glass eyes were brought into the country in bulk at irregular intervals over long periods the control of their importation should be different from that exercised in the case of goods imported on a regular basis. Eyes were imported in bulk chiefly for building up existing stocks. Interviewed to-day. one importer

of glass eyes said his application for a licence to purchase £4O worth of eyes had been cut to £4. Glass eyes were bought by the hundred, as it was necessary to keep large stocks, on hand to suit customers. He could not* expect to sell more than about 50 of these eyes in a year. In New Zealand between 30 and 40 people lost an eye each year, and, if the Government restricted the importation of glass eyes, it would soon be impossible to supply satisfactory eyes to people, for even if as large a selection as his it was not always possible to match eyes. He bought his eyes in Germany, which was the only country where they were made in bulk. Eyes were also made in England, but these cost three times as much as those made in Germany. Some eyes were made to order, however, and these were usually supplied by English firms.

An importer of lenses and raw glass for lenses for spectacles said his application had been cut 25 per cent. Lenses were made in the United States of America, which was far ahead of England in methods of manufacturing them. In New Zealand thousands of lenses were made from raw glass imported from the United States each year.

APPROVAL OF ACTION BEST WAY TO REGULATE TRADE AUSTRALIAN BUSINESS MAN’S VIEWS (Special to Daily Times; AUCKLAND, Jan. 9. Complete agreement with the New Zealand Government’s action to licence exports and control imports was expressed by Sir Walter Carpenter, managing-director of the Australian firm of V/. R. Carpenter and Co., Ltd., merchants and shipping agents, who passed through Auckland by the Monterey to-day or. his way to spend a holiday in Great Britain. “Now that New Zealand has import control,” he said, “you should never relinquish it.” In his opinion, he said, the New Zealand Government had taken the only sensible way out of its difficulty. Had it attempted to correct its unfavourable balance of trade with various countries by increasing its duties, it would have offended other countries and invited reprisals by restricting imports. This danger was avoided, for no country could complain of unfair treatment when it knew that for years it had been exporting more to New Zealand than it cared to import. County First “ There are bound to be bellows of rage and disappointment,” Sir Walter said, “from individual exporters in other countries, just as there must be bitter complaints from importers in New Zealand, but ii such cases it is not the individuals who can or must be considered—it is the country as a whole. New Zealand had to face up to an uncomfortable position so far as its trading balances were concerned, and I think she deserves every credit for the action she has taken. ■ “ I do not for a moment believe, he said. “ that the rage of exporters in other countries will be communicated to the governments as would quickly have been the case if tariff duties had been raised. After all, other countries know from their own experience that, if they are not prepared to import as many goods at reasonable prices as they like to export to them, they cannot complain if action is taken to restore the balance. “ Bad New Zealanders ’

“ I also know that New Zealanders --bad New Zealanders I call them—have been sending a lot of out of the country,” he added. This is not likely to do any country any good, and the action by the Government is the only way to stop -t. Sir Walter said that apprehension oi the res'tits c i their businesses of the New Zealand Government s action was being felt in some Australian quarters. It was natural in such circumstances, however, for the effect on the country of unfavourable trade balances to be ignored and for the necessity of determined action not to be appreciated.

BRITAIN’S ATTITUDE QUESTION BEING CONSIDERED LONDON, Jan. 8. The Federation of British Industries is considering New Zealand s import restrictions. The Birmingham Chamber oi Commerce foresees strong representations by the British Government. The secretary of the Birmingham Manufacturers’ Union says that it can hardly be expected that Britain will buy products from New Zealand when the latter bans British manufacturers. OUTLINE OF POLICY BASED ON IMPORTERS’ LICENCES MANY ANOMALIES APPARENT (Special to Daily Times) WELLINGTON, Jan. 9. Although the Government has apparently remained deaf to the appeals by the commercial community for a frank statement of the policy under which the new import regulations are being administered, scraps of information gathered from those who have already received licences may be fitted together to give a broad impression of some, but by no means all, of the main outlines of that policy. It seems that in all cases the amount of goods imported in the first half of last year is being taken as the maximum to be allowed in during the corresponding period this year. Where no imports of a P&rlicular line were made in the first half of last year applications are apparently being refused automatically, but the commercial community hopes that reasonable consideration may be given to the appeals. Having taken the amount oi imports from January to July last year as the maximum, the Customs Department is apparently trimming applications according to a variety of considerations—whethei the goods are British or foreign, whether similar goods are made in New Zealand, whether a local substitute is available, whether the goods are regarded as necessities or luxuries and whether they are for direct consumption or to meet the needs of industry. Already many anomalies have appeared. In one instance imports of a British product have been drastically cut, apparently because a similar line is made in New Zealand, and yet the importation of an ingredient essential in the manufacture of the New Zealand product has been

banned completely. Businessmen are hopeful that such obvious anomalies will be adjusted on appeals. Blank amazement was the reaction shown by many Wellintgon importers who received their licences to-day Several of them are faced with a loss of 75 to 100 per cent, of their business Already a number of employees have been dismissed, and it is estimated by one business man that by the end of January the total out of work will be 10,000. Although the manufacturing industries stimulated by the restriction of imports will no doubt be able to absorb additional laoour, it is considered it will be of a different class from that displaced from importing firms.