AUCKLAND TRADERS

Evening Post, Volume CXXVII, Issue 3, 5 January 1939, Page 10

AUCKLAND TRADERS

LOSS OF BUSINESS

EXPRESSION OF ALARM

(By Telegraph—Press Association.)

AUCKLAND, January 4.

Auckland importers received many surprises when their import licences were received in today's mail. Japanese goods appear to have been completely banned under the trade licensing restrictions. British goods have been variously affected. In some instances there have been heavy reductions in the quantities allowed, but in many cases the full amount applied for is- approved by the Customs Department. , Because of the big cut in trade which will result, some; Auckland indentors and importers decided this morning tHat immediate action must be taken to reduce their overhead. Members of some- staffs were given notice of dismissal, and the position of many others is uncertain till it is ascertained whether appeals against the decisions of the Department will be successful.

"The Government will be swamped with appeals," said a leading merchant in commenting on the position. "If applications are not granted, there will be large reductions in wholesale and retail, staffs in Auckland within a few days. There is no alternative open to indentors jand importers if

they cannot maintain the supply of goods for their businesses!" AUTHORITATIVE STATEMENT. In an official statement the Bureau of Importers states that officials have been inundated with inquires as to the reason for the prohibition of the import of British goods. Application was made for permission to import £ 1400 worth of brushware manufactured in six countries but the firm had been allowed to obtain £80 worth of these articles from Great Britain and none from other States. The principal of the firm said that Continental barometers were completely banned and for a particular type of brushware which was definitely not made in the Dominion sn application to spend little less than £2000 resulted in a licence for £100. The work of years in building up the sale of many varying types of articles was now wasted, he continued. Seven years ago they had sold the first box of a popular line of Egyptian cigarette papers and now, apparently, they had sold the last, as further importations had been refused. Last year a new agency for perfumery had been undertaken and 12 months' effort in developing the market was now nullified by the Customs prohibition. There was no question of protection for local industries wLei hand mirrors were under consideration. However, the firm's importation of these from foreign countries was vetoed and only 2 per cent, of the amount it sought from Britain was allowed. Tobacco pipes and pouches from Bri* tain were permitted in the quantity sought but the same • articles from France, where all cheap pipes were made, were reduced to one-sixth of the figure applied for. BRITISH ARTICLES. "On making extensive inquiries we find that there seems to be no system in the method adopted in the refusals to .grant licences for British goods," states the bureau. "Importers are convinced that there are definite embargoes on certain goods, though specific assurances were given by the Prime Minister and the Minister of Customs, Mr. Nash, that no lines would be prohibited. It is likely that there ,will be serious repercussions from Great Britain when the extent to which the import of British goods has been prohibited becomes known in England." Many importers, when approached to give specific instances of British goods' for which import licences were refused, declined to give details, though they stated that there seemed to be no apparent reason for discrimination. "Our view is that if publicity is given to the articles that have apparently been banned, there will be an immediate rush by the public to buy. This will be followed by profiteering and hoarding, which is against the interests of sane business," said one business man. A 50 PER CENT. REDUCTION. More than half the quantity of goods normally purchased by an Auckland firm of importers from manufacturers in about 10 overseas countries are stated to be prohibited under the drastically restricted licences which the company received from the Customs Department today. Many articles, some of which, it is,claimed, cannot be manufactured in New Zealand, are totally disallowed and ,others are to be permitted in such small, quantities as to be practically valueless.

"In cutting down our importations by fully 50 per cent, the Department has shown a slight preference for British goods.' ' However, these have also suffered very severely," the. importer said. "Unless there is an immedjate change in the system complete reorganisation of our business will be necessary and the service of more than half the staff will no longer be required."

It was possible to appeal against the licences, but appeals would no doubt be judged by the same people who had made the rules and regulations. . No real method or system seemed to underlie the drastic reductions and, in fairness to the trade, it.was essential that the basis on which the import quotas were calculated should be published. Without this, firms had no means of determining whether or not they wer<? being treated unfairly.