A VALUABLE INDUSTRY

New Zealand Herald, Volume LXIII, Issue 19485, 15 November 1926, Page 20

A VALUABLE INDUSTRY

New Zealand-made Footwear.

Considering its difficulties the boot manufacturing industry of New Zealand has made a remarkable effort since the war and has pretty well held its own. The difficulties are not confined to local influences. The greatest factor is tho shrinkage of world markets since the war, in consequence of which the industry in Great Britain has been seriously depressed. There is no escape in New Zealand from world influences. Because of depressed foreign markets it is said there has been over-importation to New Zealand, which manufacturers affirm has bad the effect of dumping. After the war, it was explained by an authority,, the boot factories of England more than doubled their previous capacity only to mCet a shrinking market. Among the most attractive markets for the surplus was New Zealand because of the certainty of the goods being paid for. Thus British boot manufacturers had been selling to New Zealand at cut prices and, incidentally, local manufacturers had been helping to encourage this competition by the fact that while the importer was drawn upon at sight for payment they had had to give longer terms. It had not been dumping in the eyes of the law perhaps, but it had been no better than dumping as far as local manufacturers were concerned, because much of the imported footwear had been sent in at prices not actually payable to the manufacturer. One of the reasons why footwear should receive tariff protection is that in this country with its small population there cannot be mass production comparable with that of Britain and America and the consequent opportunity of specialising in a few types of boots and shoes. Even in Britain and America specialisation has become much more difficult since the war because of the reduced capacity of the world's market. Notwithstanding all arguments to the contrary local manufacturers are compelled to cater for much more than special trades. In some lines they cannot compete at all, notably in children's footwear and in rubber-soled canvas shoes. In regard to children's footwear, the first handicap is that it is duty free if of British origin and another is that the comparatively high wages of New Zealand make it impossible to compete with goods made under such conditions as obtained in the East End of London. The tariff for ordinary boots and shoes is as follows: General, 45 per cent.; British preferential, 25 per cent.; Australian reciprocal, 35 per cent. The general rate has made it impossible for foreign countries to enter the market to any appreciable extent and Australian competition is negligible, because in tho Commonwealth the industry is working on conditions on a par with those of the Dominion and a 55 per cent, duty could be surmounted only by dumping methods. The importation of boots acd. shoes, excluding children's, last year totalled 169,251 dozen pairs, valued at £850,978. Detailed figures for the principal supplying countries are:— Country Dozen Pairs. Value. £ United Kingdom . .. .. 134.305 725,180 Canada .. 29,773 82,846 Australia . . .. , .. 474 4,896 Switzerland . . 1,064 9,489 United States .. 2,842 26,521 The importation of children's footwear amounted to 38,016 dozen pairs, valued at £75,494, of which the United Kingdom received £70,559 and Canada £4107. Total importations for the last three complete years were:— , , Dozen Pairs. Value. *■ ■ . £ 1923 ,< », 210,503 1,059.238 I 1924 . .. .. . . .. . . 173,794 841,727 1925 .. .. 207,267 926,472 The current year will probably show an increase upon the figures for 1925. For the nine months ended September 30, 174,003 dozen pairs, worth £753,395, had been landed from all quarters, the corresponding figures for 1925 being 153,483 pairs, valued at £702,845. Imports from the United Kingdom comprised 85, 84 and 82 per cent, respectively of the total figures for 1923, 1924 and 1925, the Canadian percentages for the same period being. 12, 14 and 16. Thus the import trade in all departments is overwhelmingly British, which speaks well for the tariff and the Empire sentiment of the buying public. It would be better business for New" Zealand, however, and just as advantageous to Imperial trade in the long run, if, instead of hardly holding their own, the factories of the Dominion could supply a larger market. As it is, the industry is to be congratulated upon what it has accomplished during the past decade of diffioulty. In spite of the handicap inseparable from a limited market, the comparatively high rate of wages paid, and the comparatively easy conditions of factory labour, it is surprising that it lias secured so large a share of the trade. One of the reasons is the enterprise displayed in keeping plants and organisation up-to-date. There has been very little of that industrial blight which may be called drift. Fashion is now a greater facto? in the footwear industry than formerly. The Styles of ladies' shoes are constancy changing, but if the old countries set the fashion New Zealand manufacturers have been quick to follow it, and in this somewhat hazqff&Ris branch of the trade they have secured substantial business. Another factor is the skill and general capacity of the New Zealand operative. " As good an operative as there is in the world and for initiative, better," is the manner in which a close observer has described the type who man the New Zealand boot factories. The operatives, who are fully aware of the difficulties of the time, are working with a fine spirit of co-operation and factory outputs show what such harmony and co-operation can accomplish. The Dominion manufactures for the last three years are as follow: Dozen Pairs. Value. £ 1923-24 , , s .- .. g . 122,591 1,304,576 1924-25 .. .. ..... 114,393 1,181.122 1925-26 .. .. .. 113,641 1,149,1191 In addition slipper, shoe-ettes and uppers for sale were manufactured, tho total value of these for the three years being £23,066, £16,794 and £18,580. It would appear that excluding footwear for small children, 15 pairs of boots and shoes were imported last year for every 10 pairs made in the country. The significance of this fact in regard to economics is apparent when one considers the following statistics of the industry:— 1923-24. 1924-25. 1925-26. Establishments .... 81 81 81 Employees 2,471 2,475 2,541 ~£ £ £ Land, buildings and plant . , 431,107 443,873 449,158 Salaries and wages .. 427,582 408,422 426,964 Cost of materials .. ~ 705,240 597,372 589,914 Other expenses ... . » 92,881 93,293 100,335 Value of products . . .. 1,354,833 1,225,698 1,197,785 Added value ; . .. . 649,593 628,326 607,871 N.Z. Leather used i . «« 366,655 309,414 306,246 Imported leather used . . 250,954 209,100 186,164 The difference between the cost of materials and the value of the products is the added value, which is recognised as the best basis upon which to judge growth or decline of.an industry. The above table shows that added value has declined from £649,593 in 1923-24 to £607,871 in 1925-26. This is not a good sign but it could be corrected if the public, realising the interdependence of all trades and industries, made an insistent demand for New Zealand-made footwear. It would help to increase employment and the spending power of the city, and would have similar results in the tanning industry. To reduce the proposition to its simplest terms the larger and busier local factories are, the more money is spent in the city. Everyone benefits in some way from the grocer to the picture theatre proprietor, from .the drapery house to the milk and butter shop. Unless this fact is realised generally and its lesson practised, the day of small things in manufacture will continue indefinitely. The immigrant may bring with him from the Motherland natural preferences for the goods of England, but if he refuses to support local industries which are giving sound value he is acting counter to his own interests as an adopted New Zealander. But the New Zealanders-born are just as much in need of reproof. Many fail to recognise the effect, which ultimately reacts upon their own interests, of their consistently buying ■ imported goods. Unfortunately so many of them have prejudices against local goods without knowing why. They have no choice in so many lines that when it comes to the occasional lines where local industry does offer a choice they refuse to admit it. A point that should be emphasised in such a discussion is the standard of living secured for factory workers by Arbitration Court awards and the Factories Act. The standard is not surpassed in any country in the world and is much higher than that of the countries from which competition in footwear •comes. There is no child labour, although some of the operations in boot factories could be performed by children. Notwithstanding the difficulties of the times there is no desire by employers to reduce wages and alter conditions of labour in their own favour. There is recognition of the fact that it would-: be against national interests to sacrifice the standard of living attained for the workers to immediate financial benefit;. And when the protectionist policy is assailed manufacturers have a strong argument from this aspect of the matter. The measure of protection granted the footwear industry is not merely for the purpose of revenue and for nursing it, but also to help it to pay wages and maintain conditions that are not enjoyed in Europe. V