PROTECTION AND INDUSTRIES.

Press, Volume LVII, Issue 17222, 12 August 1921, Page 8

PROTECTION AND INDUSTRIES.

10 THS SDITOB OP "TUB PRWS." | Sir, —"The truth of the matter is that it is not the vision of a great nation that is guiding the Protectionists. It ia the public's money they want, and the public knows it." Witli these words you concluded one of your leaders on the imacademio Protectionist. How little, Mr Editor, you understand from your editorial armchair the aims and ambitions of those guiding the industrial enterprises of the nation. Man s first incentive is to provide the wherewithal

to live; to live, perhaps, in a little more comfort than his fellow-citizens, but after that to' develop his business, to watch his 'baby" grow into a ''man." Mr Editor, lay aside for a time your study of books, and study for yourself first hand the human e.ement. However, you have asked me two questions. I am not going to twist, back, fall, slide, and evade them by styling them childish, but will answer them to the best of my_ ability. A parasite industry is one whidh, no matter how efficiently managed, can never hope to surmount the difficulties relating to the supply of raw materials, climatic conditions, and other handicaps, and, must therefore always expect to receive artifici.i support if it is to survive. In contradistinction, industries which should be encouraged and assisted in their development are those wihich riatura-ly use New Zealand's raw -products for the purpose of supplying New Zealand's needs.

You ask me whether I am prepared to forfeit a whole year's output if my industry raises prices should increased Srotection be granted. This question oes not even display a theoretical knowledge on your part. Are you aware that a business output in many oases exceeds many times the total capital? You are therefore asking me to enter into a bond which would be worthless. My contention has been that increased protection does not necessarily mean increased prices to the consumer. I am therefore prepared to support this" contention regarding my own particular industry to which you have been good enough to refer by entering into a bond to forfeit an amount equal to the whole of the net profits lor one year of the tanning section ot our business, if it is proved that-1 have taken advantage of the increased protection to pass the amount of the increased tariff or any portion of it on to the consumer. It this answer to your question is too obtuse, I am prepared to submit to the regulation ot prices by the Board of Trade to prevent any possibility of that which you profess zo fear

In conclusion, Mr Editor, I must thank you. for the space and time you have devoted to th : s "controversy," and I hope that if no other purpose has been served, it has aroused a little public interest. 1 trust, however, that you will make a point of examining the various industries of New Zealand from a practical point of view, commencing with my oivn. If you defer your visit until the roses are in bloom, I will throw you a bouquet plucked from the tannery garden.—Yours etc., O. MORTON OLLIVIER.