N.Z. INDUSTRIES.

Ashburton Guardian, Volume XL, Issue 9897, 30 August 1919, Page 5

N.Z. INDUSTRIES.

IMPORTANT SUGGESTIONS,

WELLINGTON, August 2S

The report of the ParJiamentary Industries Committee which poured the Dominion in the recess forms a bulky volume.

I , The Committee state ihat everyI where they were impressed with the genuine scarcity of labour. Alany industries, in consequence, were m a languishing state, and new enterpriser were being delayed. Hundreds of small industries in the near future should ho considered or assisted by the State. The cost would be great, but it would be reproductive, and payment in many cases could be mado in interest-bearing bonds, redeemable at stated periods.

With regard to water power, it is urged that the Government should at once carry out a comprehensive scheme for the whole country, acting simultaneous^' in both islands. The Government should supply the current in bulk, leaving the distribution to the local authorities.

A separate Department of Industries and Commerce should be set up, to consist of three members of wide business experience, under a Minister of the Crown. Extensive authority should be vested in the Board, which should take over the functions of the Board of Trade, with increased powers, I and act also as a Tariff Board, with powers of recommendation. The Board should be empowered to engage in trade, investigate and control prices, prevent exploitation, make advances to industrial and commercial concerns, investigate trade conditions, prevent vii' fair methods of competition, and report direct to the Minister on all matters inquired into. Tariff recommendations are summarised as follows: (1) The general'tariff''should-be' revised without delay. (2) Before increased protection on locally manufactured goods 'is given the Board of Industries should ascertain that it will not result in prices being unfairly •raised against the public. (3) A further measure of preference should be given oil goods imported from the United Kingdom, but no preference should be granted unless at least 50 I per cent, of the value of such goods is of Brtish manufacture, production. |or origin. The present regulations [ should be amended accordingly. (4) Imported machinery which cannot be made in the Dominion, with new or patented machinery, should, for the encouragement of local industries, be admitted free. (5) An anti-dumping law should be passed, on similar lines to the Canadian Act. (6) Steps should be taken to enter into reciprocal agreements with the several British Dominions. Going further than the Board of Trade's report, the Committee would nationalise the coal industry entirely, buying out the private owners at valuation. Workers should be represented on the Board of Management, a superannuation scheme should be established, and the State should own and control the shipping for transport. Closer settlement should be pushed on and land aggregation prevented. A vigorous road and railway policy is also urged. Farmers should be assisted to provide proper workers' ' accommodation. An expert to teach seed-growing should be appointed. Experiment farms should be placed in each provincial district. Lincoln College should be subsidised, to allow its staff to perform experimental work in the way of plant breeding, etc.. A dairy school should be opened for' the a scientific training of factory managers and, assistants. The present method of providing butter for local' consumption below the market price for export is held to be not sound, as it only applies to one industry, and must cause a decreased output %of butter owing to farmers taking up the more profitable production of cheese, dried milk, etc. The Government must see that the retail price of butter is kept •within reasonable limits, but any reduction in the price paid to the producer should .be made a charge on the Consolidated' Fund.

A Board of Science and Industry should be established to advise producers and carry on research. Suggestions are made for the extension or technical education. in regard to overseas trade, the Government should convene a conference of producers and importers, to endeavour to make a fair arrangement with tho steamship companies in regard to fares and freights. If the companies refuse to make a satisfactory arrangement, the Government should, in conjunction with producers and importers,, establish a State line of steamers for the whole of our overseas trade. A State ferry service is urged. Suggestions are made for the revision of railway freights, and a. "local industries" campaign. An inquiry should be held to show if there is exploitation or profiteering by manufacturers or merchants in the woollen -trade. Intermediate profits might b© reduced if the retailer were enabled to deal directly with the mills. Detailed recommendations! are. made for the encouragement of the fishingindustry. Up to £2,000,000 should be appropriated to a National Housing Department, composed of business Commissioners, under a Alinister, to build 3000 houses.

Suitable labour should be attracted from the United Kingdom to provide requirements needed for developmental work and domestic service. A Committee of Parliament should be appointed to investigate and report upon the whole of the banking business of tho Dominion.

The new Department of Industries should be specially empowered toeheek combinations in restraint of trade, and investigate complaints with regar.l thereto. Operations of meat buying firms must be watched, to prevent the American Meat Trust from getting a str angle-hold. The committee reports as follows on the subject of the wheat-growing industry:—The oommittee took evidence in the wheat-growing districts in reference to this industry, and the dominant note was the necessity for encouragement by the Governing "-,t by way of guaranteeing a reasonably remunerative return to the growers -if the supply is to be maintained in sufficient volume to meet the ■requirements' of our,own people. , The past season's bountiful harvest and the price of 6s 6d per bushel, which was guaranteed by the Government, have for the first time for many years given the grower a, fair return for his outlay. It was stated that owing to the increased cost of all factors entering into the production of wheat, the price of 6s 6d per bushel was equal to only 4s under prewar conditions. ' °* .

There should be no difference of opinion as to the wisdom of New Zealand growing sufficient wheat for its

own requirements, or of the folly of depending on importation from other countries, with- all the uncertainties of shipping, droughts, labour disputes, quarantine embargoes, etc. The question of the regular and certain supply . of the people's daily bread is too serious a matter to permit of the entry of any element of doubt, aud compels the adoption of a policy that will not admit of any risk of shortage. The „ maintenance of the wheat-growing industry has another aspect, namely, the supply of'bran and pollard. Those by-products are a necessity for the raising of stock, and the bulky nature, of the offal would make importation almost prohibitive. In view of these facts the committee, are of opinion that the present system, of encouragement to tho wheat-grow-ing industry cannot be avoided, and must be maintained until normal,conditions return. Arrangements should cover two- years' operations ahead, and should be" announced early in each - season so as to allow wheat-growers to' lay their plans accordingly. In order to regulate the price and to lead to the more equitable distribution of flour, with the view of controlling the price of bread, the committee strongly recommend, that the' Government "shall establish at least one flour mill in the North Island and not less than two in tho South Island, and that such mills shall be run on commercial lines, including the payment of all rates, taxes, and other outgoings for which private firms are ' liable. ' The committee also _ recommends that .in addition to fixing the price of pollard a standard of quality be determined.