OVERSEAS CIGARETTES

Wanganui Chronicle, 28 January 1948, Page 4

OVERSEAS CIGARETTES

THREE MONTHS STOCKS ON HAND <P-A.) Wellington, Jan. 27. With probably three months’ stock of overseas brands of cigarettes held by importers and merchants in the Dominion, no import licences on the 1948 quotas are at present being issued. It was stated today by one merchant as his opinion that no such licences would be granted if it became established that the new efforts by Dominion manufacturers to overcome labour difficulties and meet the needs by internal production were proving effective. Some Dominion manufacturers have established factories in smaller centres, and these, principals stated yesterday, gave promise of proving very beneficial to production. In the meantime there is an abundant supply of overseas brands and some merchants are trying to quit their stocks to retailers. It was explained that importers are drawn on for payment in London for these supplies often three months before they can obtain delivery at the port of entry. Since payments are often financed on overdraft it becomes incumbent on importers and merchants to quit stocks as soon as possible, since interest on overdraft, tends to swallow up the margin of profit. It was stated by the president of the Wellington Retail Tobacconists Association (Mr. E. W. Humphrey) that he had not been pressed to take extra stocks, but individual tobacconists gave instances of it being done, one stating that an unordered case had been delivered. It was returned to the distributor, who had nevertheless since tried to press its acceptance.