BUSINESS PROBLEMS.

Auckland Star, Volume LIX, Issue 77, 31 March 1928, Page 19

BUSINESS PROBLEMS.

ATTEMPTED SOLUTION. AUSTRALIAN EFFORTS. MANUFACTURING GROWTH. (Spccial to "Star.") WELLINGTON", Friday.

As president of the Association of Chambers of Commerce of Now Zealand, Mr. C. M. Bowden was representative of the Dominion at the recent conference of Australian Chambers held in Hobart. In an interview with "The Post," Mr. Bowden said the conference presented many natters of interest to him in a general way only—such as the respective fields of taxation of the Commonwealth and the States and the constitution and operations of the Tariff Board —but the majority of the subjects were those which are discussed year by year in New Zealand. It is realised that the point of contact between the primary and secondary industries, and their effect one on the other, is a subject which must be studied. Transport is another vital problem, especially as regards road and rail. Immigration and unemployment, the basic wage, child endowments, industrial relationships, immunity of Government enterprises from taxation, were all to the fore; and the Navigation Act came in for a great deai of criticism and blame. Strong efforts were made to bring about the introduction of penny postage, but tho remit was not adopted. Mr. Bowden was impressed by the wonderful programme of entertainment, and the hospitality of "the members of the Hobart Chamber.

"Being the only representative from New Zealand," he said, "I came in perhaps for a special measure of kindness. The people of Hobart retain many recollections of the times —prior to the opening of the Panama Canal —when the vessels to and from New Zealand and the Old Country called there. "Tasmania has a wonderful^asset in the hydro-electric development, and numerous very large industries are established or in view. Nevertheless, it is said that the island has progressed little of late years, and the lack of communications with the mainland is blamed as the chief factor. Then, too, the island is not large enough to offer facilities to retain its young people, many of whom go to the mainland in search of wider fields.

Trade Quiet, Money Tight. "In Melbourne and in Sydney inquiries elicited the opinion that trade is somewhat quiet and finance is generally described as being 'tight.' But trade figures indicate that improvement may be expected. Though the value of wheat exports is less than in the previous year, the crop having been lighter than the average, the outlook for next season is bright on account of the wonderful rains which have been experienced. Excellent prices have ruled for wool, and the yield was up to the estimate for the season, namely, 2} million bales. Banks hare been pursuing a restrictive policy, and as a result imports are contracting, which will tend to further improve the position of the nation. "A great menace to Australia is the domination of industrial condition# by pxtreme labour leaders, who frequently

interfere in industries which are successfully operating under conditions satisfactory to both workers and employers, with direful results. The Prime Minister recently called a conference to be held on lines similar to that opening here to-day, but the labour leaders refused to cooperate. Mr. Bruce has issued an appeal to them to reconsider their decision.

"A good deal of dissatisfaction exists on the score of expense in administration, and there appears to be some measure of overlapping as between the Federal and the State Governments. Time and a spirit of compromise and co-operation should reconcile these differences without much difficulty. I was greatly impressed with the new city of Canberra, which is laid out on a scale sufficient for decades to come. Conditions in the city itself are depressed. There has been overbuilding to some extent, and several lessees have forfeited their leases after having made certain payments thereunder. The Parliament Houses are extremely interesting to visitors,, and the accommodation provided at the hotels leaves nothing to be desired."

Protectionist Policy. Mr. Bowden was impressed by the great growth of manufacturing in Australia, which is yearly attaining a greater percentage of the total volume of production. Opinions are divided as to the wisdom of the policy of Protection on which Australia has embarked, he said. There is so much capital invested in industry, and bo great a proportion of the people dependent on a continuance and expansion of operations that it seems that the country is definitely committed to that policy, and can never revert from it. If the resultant level of prices proves unduly burdensome to primary producers, no doubt the position will be met by a system of subsidies on exportable surplus. One hears the same outcry there as here and elsewhere as to the growth of the time payment system, and the system of deposit and spread instalments; and Mr. Bowden was struck by the similiarity of the problems which' confront business men on both sides of the Tasman.

Economic Laws Defied. There is an extraordinary activity in building in both Melbourne and Sydney, and there is evidence of rapid progress on every side. One business man described Australia as "the country which has defied all economic laws." There has been lavish borrowing, and such consistent spending that the people have come to look on it as prosperity. Centralisation of shipping and services—overdevelopment of the cities, under-develop-ment of the country—a primary producing country with a prohibitive tariff; and yet Australia's productive power and her wealth are such that she will yet be one of the great nations of the earth. Mr. Bowden concluded by pointing to the needs of Australia and New Zealand for greater populations.