BRITISH STEEL

Rotorua Morning Post, Volume 3, Issue 603, 7 August 1933, Page 7

BRITISH STEEL

OFF N.Z. MARKET HIGH EXCHANGE FORCES DOMINION TRADE TO AUSTRALIA. CHRISTCHURCH OPINIONS. British iron and steel manufacturers are practically off the New Zealand market at present because of the high exchange rate, having lost their trade to Australian mills which are stated to have dropped their quotations until in many cases it is impossible for the British manufacturer to compete. One result has been to debar British manufacturers from competing for the supply of steel which will be | required for the new Dunedin Post Office, and a telegram on the matter has been sent by the Otago Importers and Shippers Association to the Aeting Prime Minister (the Rt. Hon J. G. Coates). The association suggests that, taking into aecount the present quota discussions, it would be a graceful gesture for the Dominion Government to stipulate that the steel he rolled in Great Britain. The additional cost over Australian rolled steel should not exceed £3000 in the most favourable circumstances, the telegram says, and over the whole eontract period, allowing for possible reductions in freight and exchange, might involve no addi- . tional cost. "In this speeifie contract, j could not the Government make pro- j vision to pay for the material in London, thus removing the exchange dif- , ficulty, and effecting an economy in the cost of the building," it concludes; |

A Christchurcn hardware man saia on Saturday, (states the Sun) that he was entirely in aceord with what was stated in the telegram. The position was that the English firms had been pushed off the New Zealand market, their trade having been captured by Australia. The Australian firms were doing so well that they were laying down bigger mills. "Yet Australia is doing nothing for us," said this man. He mentioned that 3000 tons of steel would be needed for the Dunedin Post Office. The English manufacturer had the 25 per cent. exchange against him in the first place, and on top of that the Australian exchange was a fraction more 5s per cent. — in New Zealand s favour. Then the freight rates were strongly against England. On steel bars, for instanee, the freight from England was 52s 6d a ton, and from Australia 26s. In fact, the Australian manufacturer might be able to come to an even better arrangement than that. Some import figures showed how much Australia had gained at the expense of Great Britain. In the year 1928-29 New Zealand imported 340,000 cwt of bars, bolts and rods from the United Kingdom, but in 1932-33 only 78,600 cwt canie in. The imports from Australia, on the contrary, grew from 500ewt in the previous period to 93,300 cwt last year. The same thing had happened to angles, tees, channels and girders. In 1928-29, 266,400cwt was imported from the United Kingdom and 1050cwt from Australia. In 1932-33 13,600cwt was bought from the United Kingdom, and 19,500cwt from Australia. Facts of this kind, the hardware man continued, were heing placed before the Tariff Commission in Wellington, with a view to the iniposition of a duty against the Australian manufacturers. What had happened was that since the war sheltered mdustries had grown up in Australia, and had had no difficulty in disposmg of their output on their local market. But when the depression came it was necessary to find additional outlets foi their products, and New Zealand was the country selected. For eeonomical operation blast furnaees had to be kept running continuously; hence it was necessary to maintain output( to secure eeonomical working. At first the prices quoted hy the Australian mills in New Zealand were apparently based on those ruling on the Australian market. However, finding themselves unable to compete with the British manufacturers, the mills gradually dropped their quotations lower and lower, and now they seemed willing to sell at almost any price in New Zealand in an endeavour to keep their works going.