GREAT POSSIBILITIES.

Dominion, Volume 1, Issue 129, 24 February 1908, Page 8

GREAT POSSIBILITIES.

britain;s trade with new ZEALAND.

A BOARD OF TRADE REPORT. . "With tho exorcist of reasonable vigilance and attention to the dosires, and, perhaps, the. prejudices of tho consumers, there is no reason why British traders should not maintain and oven improve their position intho New 'Zealand market."

Such is. tho opinion of the Commercial Intelligence Committee of the British Board of Trade, after consideration of the evidence collected. by Mr. R. J. Jeffrey, who visited this country as a commissioner in 1906, and other information,from several sources. A summary of tho Committee's conclusions, appeared on Tue Dominion's "Oversoas Page" lust Saturday. Copies of tho Blue Book containing the full text of tho report have now reached the Chamber of Commerce and other authorities in Wellington.

The Committee states that " although Now Zealand is still comparatively a small State, it yet constitutes a market which is of considerable importance, is steadily developing, and offers great possibilities for -the near future. , It is, therefore, worthy of the most careful consideration by English manufacturers and merchants. At present British trade has a great pre-ominenco in the/ Dominion, but it is encountering considerable and uctivo competition from foreign' countries." Import Statistics. Statistical tables, are quoted as showing (a) the marked' increases-amounting to 15.4 per cent. —of the total imports in 1906 as compared with, those' of the previous year ; (b) the nearly equal increase—l4.6'percent, —in tho imports from tho United Kingdom; (c) the fact that to the British Empire no less , than 84 per cent, of the total liAporb trado .is credited, which is a slightlv higher percentage than "in any one of the previous five years; and (d) the romarkahlo. steadiness of tho proportion assigned to tho United Kingdom, which has been -62 per cent.' in'each of the years 1903 t0'1906 inclusive. The total value of imports to New Zealand in. 1906 was £14,303,000, made up as follows---United Kingdom, £'8,920,000; Australia. £1,955,000;' other British possessions, £1,111,p00; United States, £1,406,000; other countries, £911,000. ' . Britain's Qyerwhslming Pre-eminoncc. "It is to be remembered that of these total . imports a : certain jart-.. consists of goods which t-ho United Kingdom does not itself produce, and also, for gecgraphical reasons, do not , go to the Dominion by way of .United- Kingdom ports, or do so only..to -a very small extent. . .'The total value' of commodities of these kinds imported into Now Zealand in 1906 was not less than £l,5f)0,000, and the deduction of this amount from .tlie; total -rirajjorts in that year, .would raise tho;-,'United Kingdom's share of 'the trade, in,which it could reasonably bo expected to participate, to about 70 per cent. So far, then, as the available, statistics go, it is, evident that'the United Kingdom has at present an - ' overwhelming pre-eminerica in the. Now •• Zealand trade; that, (even "when all allowances are made for the difficulty of interprotmgr.the: figures) "it is clear that the slow declirio .which was taking place up to 1900 and 1901'j, has, been cheokofl, arid that' in: the" last • fiij'o years British traders have , hold their, ground;'and secured ,in 1906 their full, share,; of. the; striking expansion which characterises, that year." ' Preferential Trade. ' Discussing, tho effect of'the Preferential and Reciprocal iTrado Act, 1903, the roport quotes figures which go to show that the olroct* of tho prbferontial arrangements has been to divert to the United Kingdom and the British possessions a portion of the trado formerly held by foreign countries in commodities affected by : the preference, and that in particular in the "list year.- (1906).■ tho United Kingdom, and - British possessions 1 ' were enabled io securo the , whole ' of . tho increase in the imports of these commodities, which-; constituted m~that year about 22 per jcont of'the total imports. ' This conclusiori is bornVout : by evicfehco collected both in the Dominion and in the United Kingdom itself, from various firms' engaged in the New Zealand trade. The Committee considers that the tariff of 1907 must have a considerable effect on British trade as a result'of tho additional' ■ preference granted, particularly on food commodities, drugs, chemicals,' medicines, inotar manufactures, electrical niachinery, some leather goods, furniture, 'cabinet ware,' and ■ numerous ; miscellaneous articles. Though tho protective tariff which tho British manufacturer and trader lias to encounter has in the main not been diminished, the new - arrangement increases the advantage which lie enjoys in the New Zealand market over his foreign rivals. 1

"Steamship .Communication.' With . - preferential trade is bracketed sceamship communication as . another, influence of general importance in determining tho share of the United Kingdom sn. tho total • import-.trade of : Now Zealand. Thero is no., direct stoamship, communication between tho Continent of Europe aiid ports of the Dominion, and consequently, in 'most cases goods go via London (as transhipments there), the through-rates, from Bremen and Hamburg being generally , about 4s. per ton higher.than froni London. In some cases* however, rates are. the same, and in other instances even lower than from London, the British lines being-said-to accept the*samo or lower, rates for.continental 'traffic, in' order to diminish' the possibility ofMincs of steamers being run direct from the Continent to riow Zealand. A certain amount of goods goes, liow.ever, - by. German steamers to Australia, the goods being transhipped there for New.. Zealand. -.

New Zealand Manufacturers, ■ But British, manufacturers have, to consider not only foreign competition,', but also the-competition which arises within tho Dominion itself. The report notes "the energy and persistence with which a policv of industrialisation is being carried out*" "In such' food '■ commodities as beer, aerated waters, . and biscuits, practically tho whole of tlie demand- is supplied from within' tho Dominion, and the same is true- in oiily a slightly less degree of jam and confectionery. Other domestic requirements mainly supplied by., homo; industry -are furniture. (86,4 per cent.); blankets (80.2 per cent.), soap (69.3 per cent.), clothes (65.7 per cent.), andboots : and shoes (64.4 per cent.). United Kingdom and foreign manufacturers supplied in 1906 less than one-tenth of the tinwaro required in the Dominion, and less than two-fifths-of the agricultural machinery, whilst the New Zealand manufacturers -have the creator part of the trade also in saddlery and harness, cordage, rope and twine, fire-bricks and cement, -.- and. nearly half - the supply of candles. ■ •

The Future In Manufactured Goods. " These are practically all industries which would:naturally: be the first to develop in an agricultural country such .as New Zealand. ; In regard- to all these commodities, it appears-'to be clear that' a continually growing share of the trade will be taken by the ■ New Zealand .manufacturers, and that, consequently, British manufacturers cannot look for any particuiar expansion of the oxports of these -kinds'from-tho-United' Kingdom,"'! This section of tho report concludes with tho statement that, "with the exception of clothing, woollen goods, and boots and shoes, there are no manufactures which compete, or appear-likely to compste, seriously with the class of . manufactures in which tho United Kingdom is chiefly interested, and it hardly seems probable that even tho: combination of protective duties on manufactured goods with the free admission of raw materials can call into being industries for which New Zealand' has not within itself, or close at hand, large supplies of the-neces-sary materials, such as cotton and iron." Foreign, Competition. "Whilst tho United Kingdom has to encounter. a severe competition in certain branches of the import trade into New Zealand, yet,- as a whole, its position is not seriously menaced at present. Ita two chief

competitors are tho United States and Germany. The competition of the former has declined somewhat in the last two years from its maximum in 1904, when it reached the total of £1,528,000, to £1,406,000 in 1906. . . . The only other foreign competitor of importance is Germany, and the share of that country in tho Now Zealand trade, though still comparatively small, is undoubtedly increasing with some rapidity ; the fact that the goods come either through London or Australia makes it difficult to estimate their precise amount, but, according to the New Zealand returns, the imports,. declared to be of German . origin, increased from £277,407 in 1903 t0,£33G t O6O in 1906." The resport notes the activity of tho consular representatives of foreign powers in tho Dominion, and refers to the recent appointment of trade correspondents by the Board of Trade as likely to bo of considerable value in giving to British manufacturers who may not hitherto have had any share in the IVew Zealand trade an acquaintance with the "'ants of the country and tho opportunities afforded by its markets. From a survey of tho question of freights, tho Committco infers that there does not appear to be any feeling among British exporters that the rates from the United Kingdom aro too high, or that the service: which is provided is in any way inadequate. I