UNEMPLOYMENT.

Press, Volume LXVI, Issue 19888, 27 March 1930, Page 15

UNEMPLOYMENT.

THE MANUFACTURERS* VIEWPOINT. COMMITTEE'S REPORT CRITICISE®. At the meeting last night of the executive of the Canterbury Manufacturers' Association, the following report was submitted on the findings of the committee which the Government f.'proiAted to investigate the unemployment problem: — "Your sub-conlmittee has looked for any consideration given by the Committee to the development of manufacturing industries as a means of solving the unemployment problem, nod finds that the report passes over theso industries and advocates the development of certain primary industries, vis.: Afforestation, sand-dune reclamat'oa, the fur industry, pig, Paltry> a ' bee-keeping. It is suggested that with . tariffs removed from offals and gram, other than for human consumption, the nig and poultry industry can capture the Home market from Denmark, etc. There is a proposal, in the first report, : to investigate the development of secondary industries, but this is not done, Md the chief cause of unemployment, vii, the displacement of workers ' through importations, is not mentioned. v An Amazing Statement. "IA the second report, under the head- ' W 'The Possibilities for Increased Farm Production,' we find a statement so amazing that we turn to the names of the members of the committee, and wonder what manner of men they are, f and what real qualifications they posseta for dealing with a subject of such , vital importance to the Dominion. After referring to the additional people who Trill be employed directly or indirect- , 'y upon the above-named industries, and the consequent widening of the market for manufactured goods produced upon a o. economic basis with some lines for wport, the report says: 'When this • stige is reached, we will begin laying v foundational -industries other than farming.' • "What efcaefcly is meant by this? Is 't that there are industries other than 1 those already in existence whoße foundations will be laid when pipe 3, poultry, J'te-. have absorbed our surplus population J Or does it mean that some of ; 'he present industries are to be re-lata 04 itesh foundations ? And in the name of commonsense, why is thisiaylnK to be deferred until these problematical primary industries are established? It is nonsense to say that bemuse we cannot manufacture for exPortrwe should not manufacture for out hott© A country's home nS. r t '* a priceless asset to her own Wiple, and to surrender it is » folly. , '}? stoallness of this country's popujrtion does not materially alter this _ ec °Mnlc fact. New Zealand recogthat her primary industries are first importance, but she sees also jnth a growing population her are becoming essential **lfftre. onriiw? appears to put these seeindustries in the background and advocates the develop* * W^» n t on primary lines only, • that the value * j-flJxfi of the » seriously to be questionedtooouaeodationa are: (1) The

setting up of a board to be called the New Zealand Employment Board; (2) the creation of a fund of one million and' fifty thousand pounds sterling per annum for the relief of unemployment. A Permanent Problem. "Unemployment is looked upon as a social problem to be dealt with permanently and continuously and what is practically a dole system would apparently and continuously, and what is tal fault in the committee's view of the unemployment problem. Instead of regarding it as transitory, it is accepted as a standing evil to be dealt with through the Board and the million odd per annum fund. There is a saying that 'prevention is better than cure, and it is obvious that a small portion 'of this money used for developmental measures Would bring unemployment to the irreducible minimum of the unemployable, who aro dealt with by the Charitable Aid Boards. Lack of .Clear Seasoning. "The report shows evidence of very great pains having been taken, and contains much statistical and other information, but there _ is much that might be said about its want of compactness and lack of clear reasoning. Your sub-committee considers that the greatest field for the development of industry, such as the Committee is searching for, lies m the secondary industries at the present moment, and thai a further development of the primary industries will naturally follow and not precede this; and finally—that to prevent the development of the former, through imports which are subject to bounties, or which are produced under cheap labour and living conditions, is suicidal to tfra economic development of the Dominion. These imports are landed at prices below our production costs, and no progress in the secondary industries is? therefore possible until a scientific safe* guarding system is introduced. Practical Men Wanted. "Curiously,' the production of the committee's report on . unemployment coincides with broadcast messages from the ex-Governor-General of the Dominion, the Prime Minister, candidates, for public office, aha prominent citizens voluntarily working on local committees, all in the note of 'Buy Now Zea-land-Made Goods/ which may be interpreted as meaning 'ln our secondary industries is to be found the cure.' The official committee's report does not so much as echo this sentiment. The first measure for carrying this into effect would bo the setting up of an Industries Development Board containing a preponderance of men with manufacturing and business knowledge. The political and theoretical men.seem to have failed, and it is time that practical business men were given a chance to to solve our economic problems." Alleged Ineffective Propaganda. The chairman (Mr F. L. Hutchinson) moved: "That the report be accepted." He thought a copy should be sent to each member of the Commission, who should be asked for their excuse for leaving out consideration of secondary industries; and also to members of Parliament. i Mr H Willis congratulated the subcommittee on its report and suggested that a copy should be sent to the Prinie Minister. He wag of opuiion that people could not be persuaded but must be cofcpelled to buy New Zealand goods. The Association had been trying propaganda for thirty 1 ye*rs and they were fust as far advanced now as when they started. (Pissent.) The only way to prevent unemployment was by a fairly high protective tariff. It was remarkable that no member •£ Parliament

would get on the public platform and announce himself as an out and out protectionist. Mr C. S. McCully: There was a defeated candidate who said so. (Laughter.) Absurd Suggestions. Mr A. M. Hollander said that it was the height of absurdity to suggest that the unemployed in 76 industries should go into bees, poultry, and pig-breeding. The members of the Commission overlooked the personal equation, and that instead of trying to train such men in a new industry, they could be better absorbed by increasing production in the industries in which there was unemployment Local bodies and other organisations were spending at present on unemployment relief a sum as great as that proposed to be placed at the disposal of the Employment Board, and there was still unemployment. The manufacturing industries of the Dominion were capable of greater production if a enrefnily-devised and scientific tariff were in operation. A member: Safeguarding. Mr Hollander: Yes; safeguarding. Comprehensive View Necessary. Mr F. W. J. Belton said that the mistake made in considering the problem was the division of the country into two water-tight compartments. Unemployment was due not only to unemployment in the manufacturing industries but also in the primary industries. Men who had been discharged from work on the land congregated in the cities and added to the ranks of the unemployed. He urged that primary production could be increased by irriga tion and by research reclamation. The problem should be approached from the widest possible point, and any scheme should aim at the development of the country's natural resources. The chairman said that the points raised by Messrs Hollander and Belton were important, but the Association's committee had considered it desirable to concentrate on the point that manufacturing industries had been ignored. At one time, when they were considering the Parliamentary Committee's report they thought it was hardly worth considering at all—except to throw it into the waste paper basket. Mr Mceully referred to the high cost of land in New Zealand, and said it was a most serious question in view of falling markets and the competition of countries that were devoting attention to scientific research in connexion with their industries. Mr J. It. Hayward suggested that the report should be referred back to the committee for reconsideration in view of the remarks of Messrs Hollander and Belton, and an order that some constructive ideas should be incorporated. He moved, as an amendment, "That the committee be thanked for its report, and that the report be referred back for further consideration." Mr Belton seconded. The chairman said that the subject was now hot, but if delayed for a month it would be cold. Mr Hollander said that it had not been within the province of the Association's committee to deal with the question in the comprehensive manner that the Parliamentary Committee had dealt with it. Mr C. H. Burson emphasised the fact that primary production had increased with the employment of fewer men, and the question was how to absorb the men dislodged by tractors. Mr J. W. Thomas urged that instead of "secondary industries" they should .refer to them as "manufacturing industries."

The amendment was negatived, and the motion was agreed to.