FACTORY COSTS

Ashburton Guardian, Volume 56, Issue 276, 3 September 1936, Page 7

FACTORY COSTS

INCREASES AND IMPORTS.

PREMIER REASSURES MANUFACTURERS.

tPer Press Association.) WELLINGTON, Sept. 2. An emphatic declaration that the flooding of New Zealand markets with the products of cheap labour from overseas would not be tolerated was made by the Prime Minister (the Rt. Hon. M. J. Savage) in an interview after he liad received a private deputation from vthe New Zealand Manufacturers' Federation to-dav. Mr Savage said there was no need for panic in the minds of representatives of legitimate manufacturing industries. At the same time, the Government would not allow the doors’” of any New Zealand factories to he closed or any legitimate business which was now being done by the representatives of overseas firms to be lost.

The Prime Minister said that the representatives of the Manufacturers’ Federation were concerned about the position of manufacturers in respect of the increased costs caused by shorter hours and higher rates of pay, and they were also afraid of orders going over seas to their disadvantage. They had admitted quite frankly that some orders must go overseas, as New Zealand had to exchange goods with Britain.

“They are asking for a fair run,” said Mr Savage, “and I have assured them that the importer lias no more guarantee of being able to get his landed cost in respect to things he is bringing here than the manufacturer has of collecting his manufacturing costs. Our job is to protect manufacturers in New Zealand and at the same time to balance our trade with Britain. The manufacturers think that ultimately the Nov/ Zealand market will ho swamped with imported goods, and the local manufacturer put out of business. I told them that would not happen. We are pledged not only to the manufacturers, but to the people of New Zealand, to see that there is a substantial development in secondary industries. We are pledged to that, and wo are not going to do anything less. It is just as well for people who are sending large orders abroad to know that we ard not going to allow unlimited imports to break down the living conditions of the people of New Zealand.

“In effect, the importer cannot expect, and will not be allowed to get, any advantage out of the reduced hours and increased wages,” said Mr Savage in conclusion.