IMPORT REGULATION

Wairarapa Times-Age, 6 January 1939, Page 7

IMPORT REGULATION

STAFFS REDUCED

ACTION BY IMPORTING FIRMS IN AUCKLAND.

POSSIBILITIES OF CLOSING DOWN.

(Continued, from page 5.)

(By Telegraph—Press Association.) AUCKLAND, January 5.

“Six firms today advised that they have already dismissed some members of their staffs, and two other firms have definitely indicated that unless the Minister is prepared favourably to reconsider their applications they intend to close their businesses.” says a further statement issued by the bureau of importers dealing with the import situation. "The majority of importers will absorb the greater part, if not all. of their permits with goods ordered prior to December 5 and shipped after that date, so that once those goods arrive there will be little or no work for their staffs, in other cases the available balance of the permit will be so small that the selling and distribution costs which would be involved would not be warranted.

“In addition.many firms at this time of year are booking orders for - delivery from /July op, but the present state of uncertainty, together with the fact that the Minister has refused to make a pronouncement regarding goods for the ‘second period,’ has compelled them to dispense with their selling staff. One of our members states that from January onward he books orders for delivery only during and after September, and for this reason he dismissed two of his country travellers this morning. Clerical staffs have not' yet been seriously affected, but, once orders in hand have been dealt with, some readjustments must take place.

One firm of commission agents today stated that its commissions for the ensuing six months would at least be cut in half, chiefly because it had been refused permits for English plated ware clocks and artificers’ tools, none of which are made in New Zealand.” The application of quotas must bring about increased selling and distribution costs, the statement added. Whereas in the past a traveller had been able to offer 50 or 60 lines he was now reduced to 15 or 20. The costs involved were still the same but the cost for each article had increased by 25 to 35 per cent. One member stated that the amount allocated to him would not warrant a trip round his territory and he therefore had no alternative but to confine his sales to the town. Speculation in some lines had already taken place and merchants were’ willing to pay increased prices for goods which had been either prohibited or placed on the quota. The effect of the regulations would be felt in many quarters. Freight charges would inevitably rise, as many ships would be forced to come out in ballast, and handling costs would increase, in addition to the inevitable rises controlled by the law of supply and demand. MORE WORKERS NEEDED BOOT INDUSTRY EXPANSION. PROSPECTS IN CHRISTCHURCH. CHRISTCHURCH, January 5. Hundreds more workers will be required for boot and shoe factories in Christchurch within the next 18 months. This will be one of the early results of the Government’s decision to restrict the import of overseas goods. The extension of the footwear factory of Suckling Bros, Ltd, will take place immediately. The firm will go ahead with a £lO,000 building scheme which will double the area of the present factory and allow for a 50 per cent increase in output. Other factories in the city will also be faced with the demahds of increased business and reorganisations will be necessary.

Mr J. A. East, managing director of Suckling Brothers, Ltd, said that when extensions to his firm’s factory were completed and the new plant all in operation at least 200 workers would be required in addition to the present staff of 330. It would take not less than five months to complete the buildings. Mr East estimated the output of boots and shoes in Christchurch factories at present at approximately 12,000 pairs a week. There were also about 6000 or 7000 pairs of slippers produced. Already the effect of the import regulations was apparent in the firmer demand for local shoes, and it could be safely said that there would be a big expansion of the output this year. He estimated that about 500 new operatives would be required within the next 18 months or two years. Already his firm was preparing workers for the extension of the factory by training them in work that would be required. The direction of so much more business into local factories could be expected tc give them for the first time regular •employment for the whole year instead of having boot and shoe operatives working for some months on full time and some months not.