N.Z. MANUFACTURES

Hokitika Guardian, 26 January 1933, Page 2

N.Z. MANUFACTURES

' NEW DIFFICULTIES ARISE. COST OF RAW MATERIALS. AUCKLAND, January 24. A serious view of the Cabinet’s action in deciding upon an increased rate of exchange was taken yesterday by Mr J. Findlay, secretary to the Auckland Manufacturers’ Association. He said that most manufacturers in New Zealand imported 'raw materials, which would cost more in consequence of a higher exchange rate. “It is just another example of Government interference with private trading,” Mr Findlay commented. “All we can do is to protest against the higher exchange. Conditions will he made much more difficult for the average manufacturer.”

The higher rate would affect practially all Dominion manufacturers who were required to import raw materials. It was to be recognised that several manufacturing industries, such as clothing production, were of growing importance to the Dominion, and any setback at such a time was not desirable in the interests of the community. What would amount to a tariff against British goods would also result from the higher exchange, but New Zealand manufacturers would stll have to import the raw materials esential to their industries. It would be only a matter of time before the cost of living was increased. Tn due course the greater portion of the exchange would probably be added to that cost The sudden increase would undoubtedly be severe upon those manufacturers with shipments of raw materials en route to Now Zealand, unless some special concession were granted. Tt did not seem that there would lie such a concession, as , the Government was evidently pledged to take ovqr exchange from the hanks. Orders of goods in the future would probably ho restricted to bare essentials.