DEARER CLOTHES

Gisborne Herald, Volume LXVI, Issue 20097, 17 November 1939, Page 2

DEARER CLOTHES

RISE NEXT YEAR MANUFACTURER’S VIEW HIGH COST OF MATERIALS DELAYED IMPORTS EFFECT “A very substantial rise .in the price of clothing may be expected in New Zealand next year, solely through the Government issuing third period import licenses so late that Dominion importers missed the market," said an Auckland manufacturer of women s clothing. He said that judging by the increased cost of imported cloth, artificial silk and woollen goods were likely to rise by 25 to 35 per cent, and cottons by very much more.

“Importers were not allowed to order for next winter at. the usual time, the .end of last winter,” the manufacturer continued. "The result is that we have entirely missed the market, and many manufacturers in England will not quote at all. If they do quote, however, tlieir prices are greatly increased. This statement is based on accurate information, including cablegrams received from England in the last few days.

“Thus, if we are to maintain our quality, which we are unwilling to sacrifice, and to continue to give the public fair value for money, we have to cut down our output. That is obvious, because to buy the same class of goods at an increased price means less material when the amount that may be spent on imports is rigidly controlled by the Government. Reduction of Staff “I expect to have to put off about one-third of my staff shortly after Christmas,” he said. “I have already advised somes of them that I will be unable to carry them all, as there will simply not be the material for them to work with when present stocks are exhausted. I am not reducing staff before Christmas as we have enough material to carry on with meanwhile.” Some specific instances of increased costs of imported materials were quoted. The manufacturer said that one line was being landed until recently at 2s lid a yard, and it now cost 4s. This made a difference of 4s 6d in material alone in the price of a frock, and in addition there were the greatly-increased landing charges to be faced in determining the retail price, even assuming that the cost of manufacture did not rise, which was not definite.

The higher prices, he continued, were the result of the war, but the New Zealand Government must accept the blame lor these prices having to be paid on third-period imports. If the licenses had been issued at the proper time, importers could havo bought at the pre-war rates. Rise in Woollens “The increased cost of woollen goods is even more, because in many cases English mills which could have quoted three months ago will not quote at all now,’’ he said. One instance was given in which a New Zealand manufacturer had had to 'be content with 5000 yards of cloth less than his usual requirements, because of the higher prices and the difficulty of obtaining supplies.

It was emphasised by the manufacturer that higher profits were not being sought in New Zealand. The rises in price which he forecast would be solely the result of very much higher costs, both in New Zealand and in England.