AIDING INDUSTRIES

Ashburton Guardian, Volume 56, Issue 80, 16 January 1936, Page 3

AIDING INDUSTRIES

POLICY OF THE QpyERNMENT.

VIEWS OF MANUFACTURERS.

(Special to the "Guardian.") WELLINGTON, January 15

Important questions affecting the immediate future of New Zealand industries will be the subject of representations by a deputation to-morrow from the New Zealand Manufacturers' Federation to the Prime Minister (the Hon. M. J. Savage), the Minister for Finance (the Hon. Walter Nash) and 'the Minister for Industries and Commerce (the Hon. D. G. Sullivan). Subjects to be discussed include primage on goods from the United Kingdom, trade agreements with Australia and Canada, the exchange rate on State Departments' purchases, and end-of-season trade, referring particularly to women's clothing imports from Japan.

Representatives of the federation state that the leaders of the Labour Government, even before assuming office, announced in unequivocal terms that it was one of their major purposes to foster the development of the manufacturing industries which declaration was naturally welcomed by the Manufacturers' Federation. The federation says it is clear that the expansion of existing industries, together with the establishment of new industries, offers to-day the most hopeful means of increasing New Zealand's national wealth and welfare.

"That the Government itself recognises this fact is most heartening. There are, however, one or two general considerations which we desire to place before the Government at the outset," the statement proceeds. "Presumably the Labour Government's chief aim will be to raise the standard of living of the mass of the people, and some of the steps in this direction are bound to be of such a nature that they will result in raising tho cost of production in New Zealand industry. The manufacturers as a body certainly do not subscribe to the theory of low wages. Apart from all other considerations, it is obviously contrary to the interests of an industry to have its potential customers without adequate spending power.

"At the same time, it is necessary to realise that New Zealand industries are obliged to compete in this market with the products of overseas factories, and if our production costs are raised without some compensating safeguard the result must bo to increase the price of New Zealand goods in comparison with imported goods, which means that the sales of New Zealand goods will drop, and consequently that New Zealand industries will be unable to keep so many workers in employment. It is not necessary to press this point further; but we do ask that the Go\> eminent will recognise the position in which our industries are placed. It our costs are raised without some compensating safeguard, the number oi workers who can be employed in industry is bound, for the reason given, to decline. We believe that the Government will agree that this must at all costs be avoided, for instead of a decrease we all want to see a large and rapid increase oi employment.