EMPIRE INDUSTRIES.

Auckland Star, Volume LXIII, Issue 160, 8 July 1932, Page 11

EMPIRE INDUSTRIES.

TIME FOR CO-OPERATION. «STABILITY IS ESSENTIAL" GOVERNMENT ACTION NEEDED. Industrial co-oporation on an Empire basis is advocated by the Imperial Economic Committee, in a report just issued. "The time is ripe," states the committee, "for a sustained effort to promote Imperial co-operation in industry." Agreements readied on a co-operative and equal basis between industries in the different countries of the Empire are regarded by the committee as one important method of widening the bases of industry. Such agreements arc stated to engender among investors generally a greater confidence in industrial enterprises, and to encourage a greater ilow of capital between Empire countries for productive purposes —■ a movement in which not only financial houses would take part, but also private investors. A further point, to which tho committee attaches prime importance is that, if under some scheme of Imperial industrial co-operation Empire capital is to bo readily available for the development of markets hitherto dormant, then adequate guarantees ehould be forthcoming that the policy will be continuously pursued, and is not the result of a passing enthusiasm. Stability, the committee states, is essential to -success. Complete, and guaranteed stability might bo impossible, but if capital is to be attracted from foreign to Empire channels, then the attraction of the Empire field must be solid. How New Industries Are Launched? Co-operation is necessary, adds the report, not only between those engaged in similar industries, but also between those engaged in different industries in different Empire countries. In. many parts of the British Commonwealth, it is considered, increased trade could he secured for Empire industries by such co-operation. Demand is largely determined by suitability of design and by the ready availability of spare parts. The study of consumere' demands and tho best means of ensuring the supply of spare parts would be simplified, it is stated, if co-operation could be secured between the producing industries and tho organisations representing the consuming industries, which, in many parts of the Empire, are the farmers and other primary producers. "Further, it ehould be noted," the committee continues, "that a new industry in a new country frequently has its origin in tho assembling of machines or goods previously imported whole. This stage leads to tho manufacture locally of certain of the parts or accessories, and a 7iew industry is launched. If such a development grows up as a result of, and in connection with, the organised industry in tho exporting country, the two industries, that in the new country and that in the old, are in close relation from the start, and the solution of many questions is simplified." The Uses of Adversity. The committee points out that a frequent stimulus to organised development arises in consequence of the pressure of economic adversity, and states that "It will be for the lasting benefit of tho British Commonwealth if this time of general adversity can bo used to lay the foundations of a long-term policy of co-operation, which should not only help the several parts of the Commonwealth in their present emergencies, but should also bear full fruit over a long period of years."

In a brief synopsis of the most important points raised in the report the committee states that, in promoting industrial co-operation, the countries in the Empire will serve not only a common purpose, but also their national needs. Industrial co-operation between those engaged in the panic or similar industries in different Empire countriee, it is stated, should be based on agreements reached by them in consultation, and for the conclusion of such agreements it is necessary for the representatives to meet in a spirit of co-opera-tion and not of rivalry, and for the industries in different countries to be so organised that agreements can be both negotiated and implemented. " Changes Everywhere Apparent." A further point is that the agreements should have the effect of facilitating the changes everywhere apparent; that is, the growth of industry in less industralised countries and the greater specialisation of industry in the more highly industrialised countriee; and should be subject to periodic revision. The initiative for arranging meetings between representatives of particular industries is stated to rest normally with the industries concerned, but on occasions Governments could with advantage suggeet action. Preliminary exploratory visite would sometimes be advisable. Industrial activities, it is considered, might by agreement be so directed as to leave to the less industrialised Empire countries the market in certain classes of goods, and to the more industrialised Empire countries the market in more specialised goods. In such cases tariffs, where they form a portion of the fiscal policy of a country, could legitimately be used to safeguard the agreement, provided the* Government concerned was satisfied that the agreement was in the economic interests of its own country and was calculated to promote Imperial industrial co-opera-tion. Agreements on these lines, the committee states, would be economically beneficial by increasing the stability of the employment of both labour and capital, and by providing for orderly industrial development and specialisation. High Customs duties for revenue purposes', it is shown, might operate in a protective manner and render the agreements ineffective. Continuity of Policy Essential. Multilateral agreements are considered deeirable, but bilateral discussion will usually be more immediately profitable. Whore discussions are bilateral, associations of similar industries in other Empire countries should be given an opportunity to put forward their views on the proposals under discussion and to have them considered before final agreement is reached. Continuity in pursuit of this policy is regarded as essential to enable industries to plan ahead and to ensure conditions for both labour and capital. Finally, the committee states that the active interest of Governments, in Imperial industrial co-operation, especially as regards the broad economic and political principles involved, is desirable.