Fencing Wire in Short Supply

Waikato Independent, Volume XLIV, Issue 6075, 11 July 1947, Page 2

Fencing Wire in Short Supply

DIFFICULTIES OF PRODUCTION AN EXPLANATION MADE In view of the desperate shortage of fencing wire in New Zealand, the following extracts of remarks made by Mr Michael Johnson, chairman of Messrs Richard Johnson and Nephew, Ltd., in his address to the annual meeting of shareholders in London recently will be of particular interest: “Low output of steel wire: I am sorry to have to report that our output during the year was, with one exception, the lowest for 11 years, and that today we are working at a much lower level than at the beginning of the\ year. The climax was reached in February, when, owing to the one hundred per cent, power cut, consequent on the coal crisis, we were comieled to close our Manchester Works for a period of three weeks, and our Ambergate works for a fortnight. I am sure that you will approve of the decision of the management to make ex gratis payments to our employees during this period of enforced unemployment. Insofar as our two works are concerned the stoppage cost the country something approaching £200,000 worth of wire, ferrous and nonferrous.

“Our main difficulty has, of course, been shortage of steel. lam certain-

ly not going to indulge in recriminations at the expense of the steelmakers, who in my opinion (and I think 1 can claim some knowledge of the situation) have done a wonderful job under the most trying conditions, of which I shall have more to say later. “It is only fair to record that on frequent occasions it has been impossible for them to deliver to us, owing to embargoes on rail traffic imposed by the Ministry of Transport. The fact, however, remains that our receipts of billets during the year under review amounted to only about twothirds of the tonnage received during the immediate pre-war period. Such a state of affairs can only be described as disastrous.

“Few people realise the importance, or the wide ramifications, 'of the wire industry. For example, steel wire is used in over 30 different forms in the manufacture of a motor car. The wire trade is, in fact, largely a trade of bits and pieces, and large scale production can often be held up for want of a little wire in one form or another. We have done our best to explain the circumstances to our customers, and I must thank them for their patience. “Export plans hampered: It will be appreciated that the steel shortage and power cuts, coupled with the growing demand for wire for vital reconstruction purposes in the home market, have played havoc with our carefully laid export development plans. In the interim period between the two World Wars, exports accounted on average for a good third of our ferrous trade. Exports today have had to be so drastically cut, as compared with a year ago even, that they are virtually confined to token tonnages.”