TRADE OF AUSTRALIA.

Taranaki Daily News, 2 January 1926, Page 11

TRADE OF AUSTRALIA.

IM FOR T ANT DEV ELO I’M EN T. WOOL CONTROL QUESTION. PURCHASES EROM BRITAIN. By Telegraph—Press Assn.—Copyright. Received Dec. 31, 5.5 p.m. London, Dec. 30. Mr R. W. Dalton, British Trade Commissioner for Australia, in his annual report remarks that the development of manufacturing industries by the system of high protection is intensified by the drift of population to the cities and will probably continue to do so. This aspect in Australia's life has considerable interest and importance from the economic viewpoint and must be taken into account in considering organisations for the development of trade. Regarding the suggestion for the control of wool Mr Dalton says: “Despite the break in the market probably the majority of the more conservative growers doubt the advisability of rcinstitutmg schemes which are considered unnecessary and undesirable in ordinary peace times. People are beginning to realise that there is a real possibility of the introduction of substitutes for wool and it is time wool values stabilised at a level which will permit the growth of consumption and remove any desire to adopt substitutes which may ultimately become serious competitors 1 with wool.” Mr Dalton advocates that a delegation from Bradford should visit Australia to place before the growers Bradford’s real viewpoint and the desirability for stabilising values at as low a price as possible consistent with adequate return to the growers and others conseined. METAL AND TEXTILES. The report continues: “Australia’s most important industries are those connected with metals and textiles in which there is rapid development, particularly in iron, steel, and woollens. These had, and still have, to face very serious competition from imported gods, and cnsequently have been unable to work with the success which should be assured to them, and there have been persistent requests for increased protection for these industries which is likely to be granted. A number of branch factories of British firms established in Australia in some out-

standing cases have been unsuccessful owing partly to over-capitalisation, high production costs, the uncertainty of labour conditions, and the fact that the home market did not prove big enough to absorb the products of works the efficiency of which demands a considerable output.” “Therefore it will soon, even if not now, be necessary to find an export outlet for certain sections. Tn the meanwhile some industries established in Australia have been signally successful, and have proved themselves more than able to compete with outside firms.” THE IMPORT TRADE. Regarding the import trade, Mr Dalton points out that while the United Kingdom’s share during the last two years showed a. serious decline, the United States* share considerably increased, largely due to motor-cars . It may fairly be said that the United Kingdom’s decline is not due to any relaxation of effort on behalf of British firms, but. rather to Australia's protectionist policy, which naturally affects Britain’s trade more seriously than that of any other country, because Britain is Australia’s chief supplier and chief competitor in her industries.

The obvious inference is that it will l>e necessary for British firms to put forward increased efforts to secure th a maximum possibilitv of the trade which Australia takes from overseas. Mr Dalton urges British firms to visit Australia and see the possibilities of the developments of trade, and also to take great care in appointing agents, for though Australia at present is passing through a period of high protection policies, this should not, and will not, rule out rhe possibility of the development of British trade.

Mr Dalton expresses the opin’nn that the new preference regulation will prove beneficial on the whole, but it will bear hardly legitimately on British industries which trade with Australia. It may also be expected to eliminate from preference many foreign goods which formerly pa ri ici p a t ed.

Mr Dalton i-omments that the definite belief of Australian producers is that they hitherto have been overmuch at the mercy of London buyers and speculators, owing to the fact that haphazard shipping leads to a glut. The producers are genuinely sanguine that the pooling systems will bring a great improvement, including more accurate and more constant knowledge of the condition of stocks in England.