CONTROL OF IMPORTS

Wairarapa Times-Age, 5 January 1939, Page 5

CONTROL OF IMPORTS

OPERATION OF THE NEW POLICY

Concern Expressed by Trading Firms

LIMITS ON TRADE

VIEWS OF WELLINGTON IMPORTERS NO PROSPECT OF EXPANSION SEEN. CONSERVATION OF LONDON FUNDS. (By Telegraph—Press Association.) WELLINGTON,' This Day. Very few licenses under the Government’s import control restrictions had been received in Wellington yesterday. From inquiries made it was learned that there was a considerable degree of concern among the business community, particularly as in many cases no import orders had been sent overseas since December 5.

Significance was attached by leading importers, who had already received "their licence notifications, to the fact that the new licences restricted them to their 1938 import figures. It was claimed that this indicated that the Government was more concerned at the moment with conserving London funds than with expanding New Zealand manufactures.

It was further contended that the buying by importers during the first part of 1938 did not disclose the true requirements of trade generally, because of a number of factors, and that restriction to and below the 1938 level would result in a serious depletion of stocks, as it would be impossible for New Zealand manufacturers to meet the demand.

“Far from leading to an expansion of business, it would, appear that the regulations will restrict business—at. least till the London funds improve,” was the opinion expressed by one importer. In anticipation of increased business, his firm had applied for an increase in its supplies of raw materials for the manufacture of goods in New Zealand. It had confidently been expected that his firm would be able to extend the activities, of its factory, but under the licence granted, the imports were limited to the same as in the first six months of 1938. No allowance was made for the natural expansion of business one would expect with evidence of greater spending power among the people. “The only, inference I can draw from this is that, unless some mistake has been made in the drafting of the regulations, the Government's primary concern is one of restoring the London funds to their normal level rather than one of expanding production in New Zealand,” he said. Substantial reductions in his imports compared with 1938 were imposed on a plumbing merchant. They were (approximately): Baths (from the United Kingdom) by 50 per cent.; hardware (from the United Kingdom) by 20 per cent, from Canada by 55 per cent, and from the United States of America by 66 per cent. Household taps imported from the United Kingdom had been reduced by 30 per cent, and sanitary eartherware by 40 per cent. Practically all these lines were manufactured in New Zealand.

The only comment the importer was prepared to offer at the moment related to baths. Though those made in New Zealand were the equal in quality. if not better than those imported, they were more or less standard productions. Overseas manufacturers, catering for a much larger demand, produced a much more varied selection, for which there was quite a fail’ demand in this country.

AUCKLAND-OPINIONS

REDUCTION OF BUSINESS ANTICIPATED

TALK OF CUTTING DOWN STAFFS.

JAPANESE GOODS APPARENTLY ' BANNED.

(By Telegraph—Press Association.) AUCKLAND. January 4. Auckland importers received many surprises when their import licences were received in today's mail. Japanese goods appear to have been completely banned under the trade licensing restrictions. British goods have been variously affected. In some instances there have been heavy reductions in the quantities allowed, but in many cases the full amount applied for is approved by the Customs Department. Because of the big cut in trade which will result, some Auckland in-, den tors and importers decided this morning that immediate action must be taken to reduce their overhead. Members of some staffs were given notice of dismissal, and the position of many others is uncertain till it is ascertained whether appeals against the decisions of the department will be successful. MANY APPEALS IN PROSPECT. “The Government will be swamped with appeals." said a leading merchant in commenting on the position. "If applications are not granted, there will be large reductions in wholesale and retail staffs in Auckland within a few days. There is no alternative open to indentors and importers if they cannot maintain the supply of goods for their businesses."

In an official statement the Bureau of Importers states that officials have been inundated with inquiries as to the 'reason for the prohibition of the imt of British goodi

MANUFACTURERS SAID TO BE SATISFIED.

“On making extensive, inquiries we find that there seems to be no system in the method adopted in the refusals to grant licences for British goods,” states lhe bureau. "Importers are convinced that there are definite embargoes on certain goods, though specific assurances were given by the Prime Minister and the Minister of Customs, Mr Nash, that no lines would be prohibited. It is likely that there will be serious repercussions from Great Britain when the extent to which the import of British goods has been prohibited becomes known in England.” Many importers, when approached to give specific instances of British goods for which import licences were refused, refused to give details, though they stated that there seemed to be no apparent reason'for discrimination. DANGERS OF PUBLICITY. “Our view is that if publicity is given to the articles that have apparently been banned, there will be an immediate rush by the public to buy. This will be followed by profiteering and hoarding, which is against the interests of sane business,” said one business man. More than half the quantity of goods normally purchased by an Auckland firm of importers from manufacturers in about 10 overseas countries are stated to be prohibited under the drastically-restricted licences which the company received from the Customs Department today. Many articles, some of which it is claimed cannot be manufactured in New Zealand, are totally disallowed and others are to be permitted in such small quantities as. to be practically valueless. Application was made for permission to import £l4OO worth of brushware manufactured in six countries but the firm had been allowed to obtain £BO worth of these articles from Great Britain none from other states. The principal of the firm said that Continental barometers were completely banned and for a particular type of brushware which was definitely not made in the Dominion an application to spend little less than £2OOO resulted in a licence, for £lOO. WORK OF YEARS WASTED. The work of years in building up the sale of many varying types of articles was new wasted, he continued. Seven yeags ago they had sold the first box of a popular line of Egyptian cigarette papers and now, apparently, they had sold ' the last as further importations had been refused. Last year a new agency for perfumery had been undertaken and 12 months’ effort in developing the market was now nullified by the Customs prohibition. There was no question of protection for local industries when hand mirrors were under consideration. However, (he firm’s importation of these from foreign countries was vetoed and only two per cent of the amount it sought from Britain was allowed.

Tobacco pipes and pouches from Britain were permitted in the quantity sought Jjut the same articles from France, where all cheap pipes were made, were reduced to one-sixth of the figure applied for. “In cutting down our importations by fully 50 per cent the department has shown a slight preference for British goods. However, these have also suffered very severely,” the importer said. “Unless there is an immediate change in the system complete reorganisation of our business will be necessary and the service of more than half the staff will no longer be required.” It was possible to appeal against the licences but appeals would, no doubt, be judged by the same people who had made the rules and regulations. No real method or system seemed to underlie the drastic reductions and. in fairness to the trade, it was essential that the basis on which the import quotas were calculated should be published. Without this, firms had no means of determining whether or not they were being treated unfairly.

ORDERS CUT

POSITION IN CHRISTCHURCH REGULATIONS CRITICISED. PARTICULARS OF REDUCTIONS. (By Telegraph—Press Association.) CHRISTCHURCH. January 4. Keen dissatisfaction with the working of the Government's import control restrictions was expressed this morning by numerous Christchurch importers. The salient features of interviews with several importers are that no import orders have been sent overseas since December 5. and that unemployment of warehouse hands and subsequent cutting down of staffs because of the small quantity of overseas goods arriving are likely. In the case of metal goods reductions ranging up to 79 per cent-on last year's imports have been imposed, sewing cotton has been cut down by 75 per cent, and in the case of textile piece goods (cotton and linen), embroidery, and linen patterns, there is a total prohibition.

Importers resent the secrecy and arbitrary nature of the Customs Department's import assessments and its refusal to give reasons for the prohibition or reduction in imports. Complaints will bo heard at a special meeting of the Chamber of- Commerce in a few days. “At the moment it looks to me as if we will have to close down. We arc practically forced out of business, and a nice Nev. Year present that ij,” com-

plained a wholesale dealer. He added that he had been limited to 25 per cent of one section of stocks he formerly carried, and other sections had been, completely wiped out. Importations of sewing cotton had been cut 75 per cent. In his case British textile piece goods in cotton and linen lines had been eliminated. Art embroidery and traced linen lines had been wiped out. and similar lines formerly imported from Germany and France had also been eliminated. Paper transfers from the United Kingdom had been banned.

Another cause for concern was the restrictions placed on the importation of special articles required to fill tenders. These lines were not regularly imported, so that if they had not been imported in the previous year they could be included in the quota provided they were off-set against builders' shelf goods, thus seriously reducing the necessary stocks.

One importer gave the following instances of how his requests for metagoods (apart from builders’ hardware and tools) had been cut down. Imports from the United Kingdom were reduced by 23 per cent, from Australia by 70 per cent. Canada 581 per cent. United States 79 per cent, and Germany 74*1 per cent. As no orders hud been sent overseas from New Zealand since December 5 there was likely to be a serious unemployment problem in March and April next. A reporter was told that no goods would be arriving from overseas and employers would have no option but to dismiss hands who were no longer required. With the reduced volume of imports fewer men would be required in future.

MOTOR ORDERS FIRMS GREATLY CONCERNED. FEARS OF SERIOUS EFFECT ON BUSINESS. WELLINGTON, This Day. The head of a large motor company said that, so far, no import licence had been obtained by his firm. “Our effect must be felt later in the year, he said. “Unless business falls off, the ordering is completely at a standstill,” There will be a gap in the arrival of supplies—and just how wide the gap will be depends on how long we are kept waiting. We are hoping every day for a final decision, but so far it has not come.”

A second motor dealer said it appeared that the amount of goods imported during the first half of 1938 was to be the standard for the present six-monthly period. This would have a serious effect on business. In October, November and December, 1937, sales were booming; the commercial public did not believe that it could continue, and consequently cut down their buying in the first part of 1938. As it turned out, however, sales continued high. The result was that the buying for the first part of 1938 did not disclose the true requirements of the trade. Another importer said that he had recently brought back from England the agency for a new line, which he had never imported before. The local Collector of Customs told him that he was unable to issue a licence for goods which had not been imported during the first half of 1938 and that to obtain such a licence it would be necessary for him to make representations to the Minister and the Controller of Customs. “The tendency seems to be to destrictthe development of trade in new lines,” the importer commented. IMPORTS OF MATERIAL MANUFACTURERS SATISFIED NO DIFFICULTIES ANTICIPATED. GOVERNMENT DOING ITS BEST. AUCKLAND, January 4. Most of the manufacturers in Auckland who import machinery and raw materials, particularly from Great Britain, for the production of New Zealand goods appear to be satisfied with the treatment they have received under the new imports licensing scheme. Those who have yet to make application did not expect any difficulty in obtaining their requirements in expectation of increased business.

Some manufacturers stated that they proposed applying for larger quantities of raw materials than they would have brought normally. “Our licences, which are for goods amounting to several thousand pounds, are complete for exactly the same amount as we imported in the first six months of last year,” said one business man whose firm is engaged in the large-scale manufacture of radio sets. “The licences relate to machinery, insulating materials, screws, nuts and bolt) wire, glass, switches and a special type of solder, all of which are not manufactured in New Zealand. They are imported mostly from England, but also from the United States, Canada and Australia.

“We are very happy about it,” h continued. “It seems that the Govern ment is doing its best to encourage New Zealand industry. If, later on we find that we need more raw material we feel sure that we will be abk to get them. We are confident we can now go ahead and expand out business.” SOME SPECIFIC DETAILS. EXPERIENCE OF WANGANUI FIRMS. (By Telegraph—Press Association.) WANGANUI, January 4. Refusal of import licences has ah ready been experienced by large Wan ganui importing firms. Restriction have been applied to the import o. ; drapery from England. Applications for licences have been dealt, with a follow: —■

Boys’ slipovers from Australia: Licence refused.

Men’s dressing gowns from Australia: Licence granted for half the quantity requested. Sporting requirements from Australia: Licence granted for four-fifths of quantity required. Rotary duplicator from Australia: Licence refused.

Paint from England: Licence refused. “As we expected, following the holidays applications are pouring in for import licences,” said the Collector of Customs in Wanganui, Mr W. A. Cameron, today. “We issued licences before the holidays to Wanganui business men and will continue to do so as applica-

lions come to hand.” Mr Cameron said he was unable to give any figures or supply information regarding the granting or refusing of licences.