WISDOM DISCUSSED.

Auckland Star, Volume LXV, Issue 162, 11 July 1934, Page 10

WISDOM DISCUSSED.

QUESTION OF WAGE LEVELS,

COMMENT BY MR. SEAMAN. "Comment tliiit I can make is of a general nature only, for to judge the effect of the individual alterations calls for a detailed knowledge of the different trader?," said Mr. A. M. Seaman this morning, when discussing the tariff proposals. "Apart from the extent to which the alterations can be regarded as implementing the Ottawa agreement —and to me they appear to give a fair amount of concession to British manufacturers —the point that will produce the main discussion is the policy outlined in regard to protection of local manufacturing industries," he said. "The attitude of the Government on this question, as outlined by Mr. Coates, seems to be quite in keeping with the policy which ha* been generally adopted by the Chamber of Commerce movement, namely, that those industries which are economically suitable for conduct under our local conditions should be encouraged and supported by a reasonable protective tariff. This protection should be contingent on the efficient conduct of the industry, which must make itself a benefit to, and not a burden on, the community. Our industries have to operate under artificially created conditions, which increase operating costs, and they are therefore entitled to a reasonable margin of protection to offset this, but notto more than a reasonable protection. Unless they operate efficiently the country is better without them. "Mr. Coates suggested that the manufacture of a full range of articles should be a condition of protection. If interpreted reasonably this is fair, but it can be carried to extremes. For example, in footwear probably the cheaper and medium-priced goods can be best manufactured locally, but it would be manifestly unwise to attempt to produce all higher-class grades, for which there is only a limited demand, not sufficient for production on economical lines. "Picking Out the Eyes." "On the other hand, it would be unfair to the community to gjve high protection to an industry which proposed to manufacture only a very limited range which, while enabling it to pick out the eyes from the local trade, would still leave a very considerable demand to be met by imports at a price made higher by the limited demand in individual lines or sizes. Provided the Government interprets this policy with due regard to these considerations, neither the community .nor the local manufacturers should have gust grounds for complaint. "On the subject of wheat and flour ! duties, I can speak only personally, as the Associated Chambers of Commerce Conferences have not given support to an alteration of the existing sliding scale. My feeling right through has been that the present sliding scale duties are essentially wrong, in that they are merely a form of price fixation, and the Chambers of Commerce generally are opposed to price fixation. I think the attitude of the Auckland Chamber in this respect a sound one, and that if protection is given it should be given by a flat rate or specific duty, such as is, in fact, suggested by the majority of the commission. Effect on Wag* Cuts. "I have noted with considerable interest the allegations made by Labour members in the course of the debate that the adoption of the resolutions will result in a serious, diminution of factory employment in New Zealand. It may be that in some instances this will be the effect, but such a happening is not contemplated by proprietors of various manufacturing businesses with whom I am in touch. It is, however, more than likely that, whereas in some industries employers were considering the possibility of restoring the cute made in wages, they will now be obliged to give up any such ideas, as they will have to meet more acute price competition from overseas. This disadvantage to the workers will be to some, extent compensated for by the lower prices that will rule for some essential imported goods.