TARIFF INQUIRY

Ashburton Guardian, Volume 53, Issue 212, 20 June 1933, Page 3

TARIFF INQUIRY

ENGINEERING TRADE.

ADVOCACY OF PROTECTION. ' (Special to the " Guardian.") WELLINGTON, June 19. A joint case on behalf of the New Zealand engineering and metalwo iking industry was submitted to the Tariff Commission to-day. The ease was outlined by Mr A. B. Mander, secretary of" the Manufacturers' Association, who said that the industry imported the greater part of its material—iron, steel and non-fer-rous metals—in a semi-manufactured state from the United Kingdom. The British suppliers of these materials had a definite interest in the preservation of the New Zealand industry, and representations on behalf of those who supplied material would be made to .the Commission. In 1930 the .totaJ importation into the United Kingdom of ferrous ■ metals and manufacturers was valued at £23,298,000, and of nonferrous metals and manufactures £29,363,000. This was one of the best fields for the application of the principle recommended by the Imperial Economic Committee on Imperial industrial cooperation, namely, that Great Britain and the Dominions should reach an agreement for the former to supply material in an unmanufactured or semi-manufactured state, and for the • latter to convert it into manufactured goods ready for the market.^

Value of the Industry. Mr Mander said that ihe 36 firms engaged in the tinned-plate and sheetmetal working trades were employing--10 workers each, and there were also 65 engineering firms in the same category. The employees engaged last year totalled 3920, and the salaries and wages amounted to £719,704. The capital involved in the metal-working industry was £937,850, and in the engineering industry £1,928,873. The output last year totalled £1,161,974. The industry needed protection to compensate for the difference in costs. In the United Kingdom in 1931 the average wage for males was 50s 4d, and the average wage in New Zealand was 71s Bd. On behalf of the Precision Engineering Company, Robert Burn said they required a minimum protection of 25 per cent. Referring to the term "mass production," witness said the average person had a wrong conception of this. Factories were not necessarily immense. Omitting the iron and steel works and factories producing finished machines requiring a large number of different parts, such as motor-cars, the average factory in England was not so very much larger than in New Zealand. The size of a factory for economical production rested entirely on the number of operations required, to produce a given article. For instance, a nail-making machine was a complete production unit in itself, whereas 100 suitable machines would not be a complete production unit for a motor-car. Witness said that, not more than 2 per cent, of the materials used by his firm were jrafchased outside New Zealand and England. Engineering was a key industry, and was the basis of all other manufacturing industries. A sound engineering industry was required to train men for all repairing and other factory industries, and it was also a necessary part of the national defence. ~

"Its House in Order." In the items over which the industry had control it had put its house in order, but on those factors outside its control they were at a disadvantage. These included the restrictions due to the Industrial Conciliation and Arbitration Act, the Apprentices Act, payment in terms of hours and not results, and the high cost of youth labour where it was permitted. Professor Murphy asked whether the repeal of the compulsory arbitration legislation last year did not make award conditions controllable in the future. • Witness replied that that was so as long as the legislation was not re-enacted. However, as long as there was uncertainty about the position there were difficulties in the way. He instanced a job spread ' over 12 months, and said that if compulsory arbitration was reinstated they might find themselves in an awkward position. Mr Marnier asked whether they

were any longer bound by the InConciliation and Arbitration Act. Witness: As a matter of fact the engineers' award has lapsed. Mr ManderT It does not follow that you will be able to reduce wages to the British level? • You would not feel that you could do this in view of the cost of living and other factors? . Witness: I think we are morally bound to pay good wages. We. have paid them before, and it would not be fair to take them down at the moment. If conditions changed the men would accept reductions as they have accepted them in the past. Mr J. B. Gow: Would alterations in the conditions of staffing, that is in the proportion of skilled aiyd unskilled labour, be of assistance? Witness: I do not think so. It pays to" use skilled labour. There is very little difference between the cost of skilled and unskilled labour, and the award for unskilled labour is still in force.

Apprentices. Answering further questions, witness said that apprentices had no production value.. Mr Gow: Can the Arbitration Court not give you better control ? Witness: Well, it has not up till now.. Mr Gow: Are you simply taking the matter lying down and passing the costs on? Witness said that representations had been made in the matter but the powers that be had not made any move.

Professor Murphy said that the

provisions relating to apprentices had been excluded .from the Arbitration Court by the legislation of 1923. The original idea had been to keep apprentices out of the contentious atmosphere of the court, but apparently the idea bad not worked out in the desired direction.

Witness'said that apprentices were regarded as noil-productive labour, but at the same time they added to costs. Given parity in regard to wages, taxation, and other conditions he had no hesitation in stating that a considerable portion of the goods now imported could be produced in New Zealand, in competition with any country in the world. The tariff increases afforded the industry in 1927 had resulted in lower prices all round.

K. Pallo, of Pallo, Ltd., said his firm was employing some Technical College boys and teaching them the metric system of engineering measurements. ' They considered that the boy's could be more easily trained in this than older men. It was hoped that next year the boys would be useful ,to the industry.

Piston Rings. ' ( C. P. Sutdiffe, representing D. F. Fisher, Ltd., asked for a protection on metal piston rings of 3d a ring up to five inches and a percentage duty on rings over five inches. Professor Murphy: What does 3d a ring amount to ad valorem? Witness: Fifty per cent. Witness also asked that pistons be classed as metal manufactures in line with piston rings, the present tariff on which was: British 20 per cent., and foreign 45 per cent. He contended that owing to the small value of each article the present tariff on rings amounted to little or no protection. The commission adjourned until to-morrow morning.

PETROL PUMP INSTALLATIONS

ONE TO EVERY 27 CAPS

WELLINGTON, June 19.

The economic aspects of the number of petrol pumps within a country were briefly discussed before .the Tariff Commission to-day, when Mr K. Pallo, on behalf of- Pallo, Ltd., sought protection to enable his firm to manufacture these pumps. Professor Murphy asked the witness how many pumps there were at present in New Zealand, and whether he did not think .that the country already had enough pumps. Mr Pallo replied that there were about 7000 pumps installed in the Dominion.

Professor Murphy: Is not this country already over-supplied with pumps? There is not likely to be a demand for new ones. -

Mr Pallo replied that that was the general opinion of people. He pointed out that the official French publication on weights and measures had shown the number of pumps in New Zealand at 7000, and the number of cars at 200,000. That meant that there was a pump to every 27 cars. Professor Murphy: Is that not an excessive waste?

Mr Pallo said that the number of cars a pump in England was ,22, in France 25, in Belgium 11, and in Switzerland nine.

Professor Murphv: Is that not highly uneconomic? I want to .tell you what is in my mind. Our figures are uneconomic, but' the .figures of those countries are even more so. I should say that one pump to every 200 yebicles would be sufficient. Anyhow, it would he a fair thing if the number of cars a pump was over 100. Mr Pallo said that a -pump cost £IOO to install,'and it generally lasted for 10 years.