STAFF DISMISSALS

Wairarapa Times-Age, 27 October 1939, Page 5

STAFF DISMISSALS

ON ACCOUNT OF IMPORT CONTROL I EASING OF RESTRICTIONS DEMANDED. NATIONAL CONFERENCE ADVOCATED. (By Telegraph—Press Association.) WELLINGTON. This Day. Within the last few days some New Zealand firms, dealing in United Kingdom goods only, have decided to close down, with consequent dismissal of staffs, according to a report made to the Council of the United Kingdom Manufacturers’ and New Zealand Representatives' Association at a special meeting in Wellington yesterday, when the position arising from the control of imports and exchange was discussed. There was no doubt, it was stated, that similar action would now be accelerated. as many firms had carried on up till now in the hope of an easing of the restrictions. The effect of the restrictions, it was stated, would extend from the importing side to retailing interests, and it was feared that unless considerable modification was made a serious unemployment problem would result. Some of the businesses already closed down had been in existence for many years, and dealt in nothing but United Kingdom products. The, meeting was held to consider the import licence schedules just issued. In addition to a full attendance of Wellington members, there were also present representatives from the Auckland branch.

Grave concern was expressed at the fact that though the import regulations had been in force nearly a year, it was still necessary to place severe restrictions on various - classes of imports from the United Kingdom. The problems arising from the difficulty of overseas suppliers obtaining immediate payment for goods shipped to New Zealand were also considered. As a preliminary step toward finding some solution of the present grave difficulties faced by importing, retailing and local manufacturing interests, it was decided to support the holding of a national conference, composed of all interested bodies, and to take immediate steps toward this end. The council decided that the association would do all in its power to obtain modification of the present restrictions, the effect of which was already being felt not only by commercial interests and primary producers, but by the consuming pitblic. Many lines, already in short supply, would soon be unobtainable. Reports received from interests in the United Kingdom indicated that, in spite of the war, the United Kingdom was determined to maintain its export trade —in fact it was essential that this be done. The council realised that the availability of sterling exchange had a bearing on the subject, but felt that consideration of the whole position at a national conference should result in obtaining the best indication of what course should be adopted to find a solution. SERIOUS POSITION PROTESTS BY AUCKLAND RETAILERS. SHORT STOCKS AND RISING PRICES. AUCKLAND, October 26. Grave concern at the severity of cuts imposed by the latest import restrictions was expressed at a meeting of Auckland drapers, mercers and shoe retailers. It was stated that many lines were excluded altogether, while the percentage allowed on others was so small that they were not worth considering. Instances cited showed that importers would receive about one-eighth of the requirements for a normal season's trading. When present stocks are gone, prospects for replenishment for next season are very poor. It was stated that retailers in the Auckland association alone gave employment to some thousands of assistants and, if present conditions prevailed much longer, unemployment was bound to follow, solely through the inability of traders to obtain stocks. The late issue of the new schedule would mean much higher prices in the future, because all overseas prices had increased and the local importer was denied the opportunity of operating before the rises in prices began. Matters were further complicated by the sterling exchange position, because the overseas supplier was not likely to look for deferred payment when he could sell his goods for cash to other customers. The opinion of the meeting was that increased taxation, rising costs on all sides and less merchandise to sell had created a serious problem. Unless a solution was quickly found much hardship to the community would be caused. POSITION IN MASTERTON NO REDUCTIONS IN STAFFS YET. DEVELOPMENTS NEXT WINTER LIKELY. Inquiries made in Masterton today relative to the effects of import restrictions locally indicated that so far no reductions had been made in the staffs of business firms. Business generally was quite good, though it was difficult to say what the future held. Some retailers were rather apprehensive that by next winter the position resulting from the enforcement of import restrictions would be felt much more sharply. Although a shortage had occurred in some lines it was not reflected in business generally and many firms would require increased staffs to handle the Christmas trade. Explaining why the more serious effects would be felt next winter, a leading Masterton department store proprietor said that no orders had yet gone forward to England for next season’s winter goods, whereas there were usually despatched in August. As it was the end of October now it looked as if it would'be the end of next month before the orders for these goods could be sent away and the result would be that these would reach the manufacturers right in the middle of their summer goods season. There was little prospect of these winter goods being shipped in January for arrival in New Zealand in February, especially as the war would further delay delivery. As the warehouse stocks in New Zealand were largely depleted it was not going to be an easy matter to get goods and if they did not come to hand, the staffs would have to be reduced.