IN SORRY PLIGHT

Otago Daily Times, Issue 23941, 17 October 1939, Page 6

IN SORRY PLIGHT

WAREHOUSE AND FACTORY THREAT OF UNEMPLOYMENT STOCKS ALARMINGLY LOW " UNHAPPY NEW YEAR " Closed factories, half-empty warehouses, serious unemployment of warehouse and factory workers, and confusion in business circles figured prominently in a picture painted by Dunedin business men when approached by an Otago Daily Times representative yesterday afternoon. The Government's policy, including: import restrictions, the rationing of sterling and the fixation of prices, was blamed for the existing state of affairs and not the war, which, it was stated, had merelv aggravated the position. " The country will be in a dreadful position after Christmas," was the opinion of the manager of a big warehouse. "Things are bad enough now, but there is always a slight fillip given to trade by the Christmas season, and this might tide,things over until the New Year. I do not like to contemplate the difficulties that will be facing us. all then. And it is not the war that is to blame. We are merely feeling the effects of the Government's policy. "Take the position of factories." he continued. "Many of these manufacturing concerns—those, for example, making shirts, women's dresses and general clothing—should be working full time at present for the autumn, but they cannot obtain the necessary material. The Minister of Finance (Mr W. Nash) has spoken of announcing a new schedule of import restrictions this weak, but no matter what the Government does now it will be 100 late to help these factories this summer. " The result will be that the factories will have to dispense with all their employees," he added. "Ninety-five per cent, of these workers are women, and most of them avs skilled workers who could not be absorbed in other employment. All this would have happened if there had not been a war. Warehouses are also faced with the unpleasant task of discharging some of their employees. We are trying to keep them on as long as possible, but the time is not far distant when we shall be compelled to retrench. At present we are experiencing a mild boom in that shops are buying up what stocks we have, but soon our shelves will be alarmingly empty and we shall have no work for our employees." Stocks Extremely Low Practically every warehouse in .the city faces a serious shortage in imported lines, and at present a system of rationing is in operation with a number of the firms. Orders are being received from all over the Dominion, and often the whole, of a firm's stocks of certain lines are being sought. Warehouses are looking after the interests of their regular customers first and rationing what is left. . ■ "We have not a single pair of women's hose in our warehouse." said the manager of a large Dunedin firm. " That is just an instance of the manner in which our stocks have been depleted, but it is an important one from a woman's point of view. There is not a pair of silk, woollen, or cotton stockings on our shelves, and we can't get any more. "There are only two or three small factories making stockings in the Dominion," he added, " and they can supply only a very small portion of the stocks required. It would be ridiculous to try to increase the size and output of these factories, for the work is highly skilled, and the machinery, which is very expensive, would have to be imported, which, of course, would be refused because of the depleted sterling funds. " We are short of all dress materials," he added, "and we can't even supply the Government with materials it requires for the troops. The trouble is, too, that there is no more coming." A shortage of all hardware goods, enamel ware, china, and crystal was reported by the manager of another warehouse, who stated that there was no chance of obtaining any more of these lines for some time and perhaps not until after the war. Added Difficulties for Business Apart from import restrictions, sterling rationing, and added costs, business is at present being hampered by numerous other difficulties; not the least of which has been caused by the Government's Price Tribunal. "The Minister of Finance recently announced that where the prices of some goods had been advanced since the granting of import licences permits would cover only the amount of money allowed previously," one business man stated. " This means that we get far fewer lines of goods than those for which we were given licences even though the amount of money is the same. For example, we might have been given licences to import 1000 articles costing £IOOO. but, with an increase in price of 50 per cent, at Home, we now can purchase actually about 666 articles for the same money. This further reduces our imports and adds another handicap to local industry requiring overseas raw materials. In some lines the price has been increased 50 per cent, at Home, the freight has gone up more than 25 per cent., and then there is war insurance, not only on the sea. but from factory to wharf. On to this is added interest on the deferred payments we are forced to make by the Government, and then as well numerous manufacturers in England will not export goods without a guarantee of receiving the money for them. "And to come to the most tiresome matter of all—the activities of the Price Tribunal. Under the regulations we are not permitted to pass on any of these increases without the permission of the tribunal. We have to make returns of everything coming from overseas, stating detailed particulars of costs prevailing before the import restrictions came into force and those of to-day. Sometimes it takes weeks to supply the various returns of lines received in one shipment and, no doubt, it will take the Price Tribunal much longer to go through them and give us its decision. " If we are not permitted to pass on the increases we shall be heavy losers, and even if we are allowed to pass on only the actual increased price of the goods we shall show a slight loss. Business, which is also meeting increased taxation such as higher- postage rates, costing our firm alone £2OOO per annum, is completely dislocated because of the delays caused bv the Price Tribunal. Things are indeed bad. but they will be in a shocking state in a few months' time "