TRADE SCHEME.

Auckland Star, Volume LXIV, Issue 137, 13 June 1933, Page 5

TRADE SCHEME.

IMPORTED MATERIAL. BRITAIN AND NEW ZEALAND. SOCIALISING INDUSTRY. When giving evidence before the Tariff Commission last week, Mr. A. Mandcr, secretary of the New Zealand Manufacturers' Association, spoke of the possibility of agreements between British and New Zealand industries in which a British firm, in consideration of a New Zealand firm obtaining from Britain its material (in a partiallymanufactured state), in order to carry out here the actual manufacturing' ot ooods, undertook not to export finished manufactured goods to New Zealand. He asked the commission to consider the whole question, and to recommend a scheme to the Government, adding that it was probable that the two Governments . would be required to confirm whatever agreements were made. Un this point Mr. Mandcr was closely examined yesterday by members of the commission. A member of the commission (Mr. G. A. Pascoe) said that this would mean the socialisation of industry. It meant that industry in New Zealand would have to rationalise itself, and the redundant units would be eliminated. The effect of such agreements would be to plan industry, and there was a tremendous issue at stake. Mr. Mander said that the agreements would be voluntary; he was not advocating compulsory agreements. Mr. J. B. Gow pointed out that if the Government was called in it would place the agreements on the same basis as an Arbitration Court award, and they would be compulsory. | Professor B. E. Murphy: If the agreements arc voluntary you don't want the Government. Mr. Mander said that the Government would see that the public was I safeguarded.

Professor Murphy: What you are involved in is the germ of a number of trusts which should be under social control. He added that the suggestion was a far-reaching one. Marginal producers did not drop out as quickly as was sometimes inferred in economic text books; they sometimes hung on with bad balance-sheets for ten or fifteen years. He did not think the suggestion was within the scope of the order (of reference of the commission. Mr. Mander said that there was no cut and dried scheme, but they wanted the Government to take the agreements into consideration when framing the tariff. Mr. Pascoe said that the proposal involved the planning of industry. That might be done in the future, but it was doubtful whether industry was ready for it. If an American firm wished to build a factory In New Zealand, it might be that it could not do so.

Mr. Mander suggested that the commission should delay consideration of the matter until individual cases were placed before it. Some agreements were being made already. Mr. Pascoe said that voluntary agreements were desirable.

Professor Murphy saicl that one's attitude towards u voluntary agreement and towards a compulsory agreement might be widely different. The matter then closed.