DRASTIC CUTS

Gisborne Herald, Volume LXVI, Issue 20077, 25 October 1939, Page 10

DRASTIC CUTS

SUPPLIES OF PAPER

UNEMPLOYMENT FEARED WAR CHECKS TRADE BRITAIN AND DOMINION (Tor Pri’ss Association.) AUCKLAND, this day Drastic reduction;.! in paper supplies for the printing trade are anticipated under the conditions imposed by the third-term licensing of imports scheme operating in the first half ol 1010.

Unless the conditions arc: modified in respect, of printing paper, heavy unemployment is predicted in the industry, and the development of a wide range of industries dependent on paper will be checked.

The situation was discussed at a conference of the Auckland section of the New Zealand Wholesale Paper Merchants' Association and the Auckland section o£ the New Zealand Master Printers’ Association.

It was stated that on the present indications tile printing trade could expect a supply of paper next year of not more than half of its present requirements, and tiie position might still further deteriorate.

Eolh organisations agreed to request their parent bodies to make representations on the subject to the Minister of Customs, the Hon. W. Nash.

It was explained that about 50 per cent of the Dominion’s requirements in printing and. writing paper come from the United-Kingdom in the normal course and the remainder from Canadian and foreign sources. Reduction in Imports Under the third-term licensing scheme, British imports were retrimmed up to the limits of the 1938 figures, and there was a half cut in Canadian and foreign supplies. On the face of things, that allowed New Zealand 75 per cent of her normal requirements, but since 1938 there had been an advance of at least 50 per cent in the prices of paper and the markets were still rising and were likely io continue so for some time. As the comparison with the 1938 imports under the licensing scheme was on values, the net result .would he that instead of New Zealand receiving 75 per cent' of her normal supply, the reduction in practice would be to 50 per cent. United Kingdom Supplies A further complication was introduced into the situation, however, by the fact that because of the war conditions the United Kingdom was unable to supply her usual trade. The supply of timber and pulp from the Baltic countries to England was seriously interfered with by the submarine campaign. German war vessels appeared to be paying particular attention to steamers carrying pulp, and it was stated that already advice had been received of the sinking of 15 since the outbreak of war.

One large Auckland importing firm has already been informed that two of the largest British mills with which it dealt had been closed down because they were unable to obtain supplies of pulp. It was pointed out that at the close of the Great War New Zealand was receiving almost all of its printing paper stocks from North America, so that the situation fast, developing in the United Kingdom paper export trade was in keeping with the previous war conditions. In the circumstances, chaos would result if allocations in the third-term licensing scheme were adhered to by the Government.