BREACH HEALED

Press, Volume LXVI, Issue 20091, 21 November 1930, Page 11

BREACH HEALED

PROTECTION ISSUE. CHAMBER OF COMMERCE AND MANUFACTURERS. THREAT OF SECESSION. Differences have arisen recently between the Canterbury Chamber of Commerce and the Manufacturers' Association over the (Kilicy of the Associated Chambers towards the secondary industries, l>ut at the annual meeting of the Association last evening an assurance was received from the Canterbury Chamber of its readiness to extend its heartiest cooperation whenever opportunity occurs. An apology for absence was> r*cxnved from the president of the Chamber (Mr Norton Francis), who had writteif a personal letter to the president (Mr I. Woolf). "You are aware of my views on secondary industries in this country, which I expressed in my presidential address to the Chaml>er of Commerce a few months ago," Mr Franeis wrote. "Yoa. I think, agree with me that costs of production in both primary and secondary industries must bo reduced. and the difficulty is to find a method which will enable the mnjority of our primary and second ary industries to carry on successfully. "I am distressed to learn of friction between your Association and the Chamber of Commerce, because, in n»y opinion, it is in the interests of each to wiitinuo iho cordial relations which have been in force for several years Wo rannpt aspect every member oi each body to hold exactly tho earn* views, but generally what each dosires is a prosperous New Zealand, with all its people fully employed.

"To attain this we must (ill bs prepared to" work for the common &t.od--1 trust, therefore, that your Association will suggest a resumption of the interesting conferences your delegates recently had with the Chamber Commerce Economics Committee, so that a full discussion of New Zealand s economic position may be Ue;d, and some recommendation arrived at for submission to your Association and the Council oi our Chamber. Air Maehin, as chairman of the .Economics Committee, and a past-president oi both the Associated Chambers of Commerce, and the Canterbury Chamber, is fully conversant with our general opinion, and no one is better able to express our views." The Hennitage Conference. Mr F. L. Hutchinson (vice-president) 3aid Mr Francis had referred iu his letter to friction. There had been friction and trouble, which he thought had now been cleared up. To complete this it was necessary to make a statement in reply to those made at the last two annual conferences of the Associated Chambers of Commerce, the first held in Auckland and the second at the Hermitage. The statements made by tho acting-president last year had been taken up by the Auckland and Canterbury Manufacturers' Associations, and they had been told that his remarks should be taken as his personal view», but they had been telegraphed throughout New Zealand. "When wo looked closely into the position," said Mr Hutchinson, "wc found that there had been 3 misinterpretation of figures.

Manufacturers' Case. "In October, at the Hermitage, the president of the Associated Chambers of Commerce gave expression to very much the samo opinions, and used figures taken from the annual report of the Department of Industries and Commerce relating to the brushware industry. in support of his contention that this industry is not worth tho Customs duties which are imposed by the Government for revenue purposes. The extraordinary statement was made that in the brush and broom industry the sum of & 51,600 is the penalty paid in increased costs by the community in order to support 215 employees. This penalty of £51,600 comprises the duty paid on non-British imports, £7300; on British imports, £16,400, and an estimated sum of £27,900 which it is contended would bo saved if tho goods, representing the factory output of £111,898 per annum, were imported instead of being locally made.

"In answer to these statements the Canterbury Manufacturers' Association replies as follows: — " 'Firstly—That the revenue now obtained on brushware imports would have to be raised in any case, in some other way if not by duties, so that the duties Qn imports, £7300 and £16,400, are ruled out to begin with. A large proportion of these imports are highly specialised lines, which are not made locally, and do not affect the question. " 'Secondly—ln the presidential address 25 per cent, of the £111,898 has been taken instead of 20 per cent-, which represents 25 per cent, upon the amount which is supposedly the landed cost of the goods if they had been imported. The estimated saving of £27,900 therefore comes down to £22.380. Stated briefly, the duty has been estimated on the value plus the duty. " 'Thirdly—The existence of local factories is known to keep down the price of imports. The retail price of brushware in England is much the same as in New Zealand, and should duties be removed and the New Zealand factories be abandoned, there would be a tendency for landed and retail prices of imports to remain at the present rates, despite tho removal of duties. At a moderate estimate there would be a lowering in price of 75 per cent, of the estimated duty of £22,380, so that amount would be reduced to £16,785, and tho original £51,600 comes down by 67 per cent, to £16,785.' "Instead of the extravagant statement that 215 employees cost £sl .<SOO to the community, we find that employment is given to about 267 at the extra cost of £16,785. and that money is paid annually in wages and services amounting to a grand total of £79,000. Help to the Community. "It appears, therefore, that even the relatively smill but well-organised industry of brush and broom-making is a very great help to the community. By the sacrifice of o relatively small sum. a very large one is earned and put into circulation in the Dominion, instead of being sent abroad. Work is given to breadwinners who would otherwise have to go into unemployment and become a burden upon a community already overburdened. "At a time when the country is trying to revive trade and cure unemployment. the president of the Associated Chambers of Commerce puts forward proposals which, if fully carried out, would ruin the country generally and '.< rush primary production under a burden of taxation and unemployment. Fortunately, such a state

of affairs is unthinkable in ■ democratic country, and we can safely leave the matter in the hands of those who do not hold the narrow and extreme opinions voiced in Auckland in 1929 and at the Hermitage in 1930." "Attack on Industries." Mr A. M. Hollander supported th<* statement made by Mr Hutchinson. fiA ri/* made by the president of the Chambers of Co^^lnc^ce| ,, he said, 'is an attack on all secondary industries. He stated definitely that the buraen borno by the community of the brush industries was merely an example of the total burden' that the manufacturing industries were to New Zealand Therefore. I think it is reasonable to assume that if the figures given for the brush industry can bo refuted, then the charge against all industries also fails." Mr Hollander proceeded to quote figures to prove his point. "It is of no usc .'„ le sa "t® talk of a protective tariff when the duty was purely a revenue one, imposed on articles which were not competing with New Zealand goods. Our critic 'a mathematics have been right out," he said. "Is tho t'28,000 which he snirl tho brush industry the Dominion a burden ? It might be from fi fairy story point of view, but actually we find that prices of imported brushes of the same t.vpqs gs those made in New Zealand are as high in the country of origin as iti New Zealand. Here we hove to take our experience from other industries, which have started ill New Zealand, to eompeie with imported goods. As soon na local prices are issued, tho imported prices start to come down, and if the foreign firms are strong enough to choke the local 'ii' l,l . prices go up ajjain. We have absolutely nothing to confirm our critic's implication that-if no brushes ported brushes- would be cheaper. Til fact, they might be a good deal dearer were made in New Zealand the imand in either case the £"23,000 W o had left over completely disappears. So now we have nothing left to argue about "

Wcrker3 In the Brusli Industry. After quoting satistics relating to the industry, Mr Hollander said that the most important part of the figures was the fact that 267 workers were emI ployed and paid good wages. If all the brush factories were closed down what would their critic suggest should be done with those people? There would be no alternative but to export these people because they had been trained to that trade, and would not be suited to any other. With their dependents, there would be a thousand people thrown on to tho street, and in place New Zealand would give work to the employees of foreign countries. "liere is a point which we must not miss," Mr Hollander adJed. "Wearo in the midst of a trade depression, and, every section of the community is feeling the pinch. Farmers, commercial i people, workers, and manufacturers are all up against serious problems in their individual sections. This is the time when constructive criticism is welcomed by us to help overcome some of these difficuhies. But when the president of the Chambers of Commerce, in his official address, ill-uses official figures, then wo have no hesitation in stating that his kind of criticism is a hindrance to the community in genera'. He could have had our answer without rushing into print, and all he has done is to disturb business and make things harder for that important little industry which he so basely attacked." "A Painful Position." Mr Woolf said the differences had placed him in a very painful position. The matter had caused the executive such great concern that it had felt compelled to write to the Canterbury Chamber of Commerce prior to its last Council meeting, enquiring as to it# view of the matter. In reply, the Chamber j asked the Association to hold tho matter over. At the last executive meeting Mr A. O. Wilkinson, acting-president of I tho Chamber of Commerce, and Mr W. Machin, chairman of the Economics Committee, attended and expressed strongly their individual opinions in favour of secondary industries. On November 15th the executive again wrote to the Chamber fully explaining its attitude, and asking whether the Chamber would endorse the individual opinions of its representatives, which had been expressed in terms to the effect that the whole Chamber was behind the development of secondary industries.

"I am delighted to say," Mr Woolf added, "that to-day we have rceeived an official communication from the Chamber indicating that the views expressed by Messrs Wilkinson and Machin may be accepted as the Chamber's views.

"As -we wore smarting somewhat under the at'tack referred to by Mr Hutchinson and published in the newspapers, we felt that as subscribing members of the Chamber, we were en- , titled, and in want of an assurance from that quarter, that the Chamber at all events had a good word for the (secondary industries. It is a pleasure to announce that we have them behind us. Were it otherwise, our affiliation with the Chamber would, of' course, be "impossible." ♦'Peace With Honour." He had been their delegate on the Council of the' Chamber of Commerce for about eighteen months; and he had always found its members gentlemen. Their views could not be reconciled with those expressed in another quarter. The letter received from the Chamber .that day would give the two bodies peace with honour. It. was aa follows:—"On behalf of this I am instructed to acknowledge £n<T thank your Association for your letter of the 15th instant. It is regretted that the shortness of time before your annual meeting this evening has mnde it impossible for a meetma of our Council to be called to consider your Association's letter. In the- meantime, however, your Association is assured that Mr A. O. Wilkinson, our acting-president and Mr W. Machin. chairman of our Economics Committee, enjoy a complete understanding of this Chamber's attitude towards the manufacturing industries of this Dominion and that their remarks at your Association.'® executive meeting on the 12th instant may therefore be looked upon as authoritative. Tho Canterbury Chamber of Commerce recognises that the prosperity of this Dominion is bound up in the development of both primary and secondary industries along sound and profitable lines, and heartiest co-operntion will •je extended to your Association whenever opportunity occurs for collaboration with this object in view." (Signed) J. Hoy Smith (secretary).

Mr H. Willi's said he was an out-ai.d-out protectionist, and he resented the assumption that the imposition of a certain duty on imports added a similar percentage to the cost of raannfactures of the saAie kind in the Dominion. It was a fallacy. Difficult Time Ahead. Mr W Machin said it was not his quarrel. He was rather sorry that he had to Keep off the grass, as they might have had a good debate. He was a member of the Association, and proud to belong to it It was exceedingly regrettable that there should have been any fnotion between the Chamber and the Association. The two bodies should learn to work together. Then thev could meet the difficulties of the present, which would recur at intervals in the future. There was no reason to tbinfc that the good feelimr existing among members of the Association towards the Chamber was not reciprocated. There bad been a marked improvement in the quality and suitability of New Zealand mad* goods. If it oon-