STEEL IMPORTS

Gisborne Herald, Volume LXVI, Issue 20027, 28 August 1939, Page 13

STEEL IMPORTS

PROVISION OF FUNDS

END OF DEADLOCK

RESERVE BANK’S ACTION

ORDERS IN AUSTRALIA

(Por Tress Association.) AUCKLAND, this day. The financial deadlock which pretented the .importation into the Dominion of steel and wire from Australia, has ended, according to advices received by merchants. It is stated, that arrangements have been made with the Reserve Bank foi remittances overseas covering sieel products, the permit authority accepting such goods as among those classed as essential. As a result ail orders at present in the hands of the Broken Hill Proprietary, Limited, Australia, and which are subject to second-period import licenses will be placed by the company. Manufacture will be made in the first rollings applying to the particular classes.

The hold-up of steel supplies started in June when it was announced that because the Reserve Bank would give no guarantee that sterling would be available in respect of import licenses issued for the second-period, no shipments would be made by the Broken Hill Proprietary and its subsidiaries unless payment could be made in Australia.

In a subsequent statement in Australia, the explanation was made that it was considered that the continued shipment on the basis of deferred payment would virtually amount to a loan to New Zealand of capital which the industries concerned could better use to their own advantage. Australia is practically an exclusive supplier of steel to the building trade which lias suffered from the hold-up. Stocks held by merchants for the engineering trade are very low, and there is some evidence that work by this industry has also been affected by the scarcity. Indeed, urgent representations on its behalf had already been made to the Government.