INCREASED COSTS

Ashburton Guardian, Volume 57, Issue 26, 10 November 1936, Page 6

INCREASED COSTS

RELATION TO INDUSTRY. “NOT MUCH REASON FOR FEAR.” STATEMENT BY THE MINISTER. (Per Press Association.) DUNEDIN, This Day. The Minister of Industries and Commerce (the Hon. D. G. Sullivan) attended a meeting of the Dunedin Manufacturers’ Association last evening, addressing himself to the task of reassuring them from the anxiety indicated in their annual report regarding increased costs and the Industrial Efficiency Act. The Minister stated that he had examined many reports from industries fearful of losing business to overseas competitors. He was hound to say that investigation had not disclosed the reason for so much fear. One of the countervailing factors had been general stimulation of industry and increased turnover through increased wages. Another was the improvement in the overseas trade position. These factors were providing some compensation for increased costs. In addition, manufacturers had reorganised! their industries to meet the new situation and some of the results achieved had astounded him. In regard "to the tendency of overseas (prices to rise, the Minister detailed the measures taken to meet the difficult situation, admitting, however, that there remained some industries where apparently our manufacturers would be at some disadvantage. However, negotiations had been opened up with various countries competing with New Zealand.

“We are making substantial progress toward the end I have in view,” Mr Sullivan said. “Knowing the Prime Minister as I do and knowing his determination to make good Iris word, I think that in the long run. you will have no reason to be disappointed and that you will feel that the Prime .Minister has made good his word, and is as determined as I am to see that industry, receives the assistance to which it is entitled.”