A FEELING OF CONFIDENCE.

Press, Volume LXVIII, Issue 20637, 29 August 1932, Page 9

A FEELING OF CONFIDENCE.

MR WILL APPLETON'S VIEWS. DOMINION-MADE GOODS CRITICISED. The opinion that there was & strong feeling ol' confidence all over the Dominion as a result of the Ottawa Conference, but that the return, to a normal condition of trade must be a matter of gradual process, was expressed yesterday by Mr' Will Appleton, of Wellington. Mr Appleton declared that certain New Zealand-made goods were inferior to the English article and said that one way to assist trade was to rationalise industry, with particular ap-' plication to manufacturers of woollen goods. "Iu my opinion there is every indication that we have turned the corner,'* said Mr Appleton. "There is a stronger feeling of confidence from Auckland to Dunedin. and it is reflected in tho prices of all stocks and shares. Industrials particularly have advanced during the last two months. The primary reason is the wonderful success of the British eonversion loan which, in some degree, has raised the price of primary produce. While the Ottawa Conference has been eminently successful, the return to prosperity must be gradual. I feel that it is having and will have a stimulating effect on primary production, and the time is over-ripe for an adjustment of tariffs. In far too many cases Customs duties have been levied not so much for protection but for revenue purposes, and all this has added to the cost of live ing. Preference to British GOods. "It was inevitable that greater preference should bo given to British goods, but it should be a real preference—not an artificial one. A' preference of 10 to 15 per cent, on British goods is of little use if the tariff against British goods is too high,' * said Mr Appleton. "I expect a storm of protest froin local manufacturers, but any unbiased man must admit that many"? of our local industries are uneconomic. In many cases a lowering of-..the tariff against British goods can be effected without injuring local industries* "I noticed a discussion in the newspapers on comments by Dr. C» 33. Beeby and I agree with him to a very large extent. Becently, for instance, my own wife who, like most other women, is & firm believer in buying New Zealand products whenever possible, endeavoured to purchase a singlet for my small son.. Sho tried several shops and finally located a garment which was very much inferior to the English article, Whieih, ulthougli there was a heavy - tariff against it, could be purchased at half the price. Unless local manufacturers are prepared fto give quality and fit Which is in accordance*"with the dictates of fashion, they cannot hope to make progress. l - .

Need for Specialisation. "While some woollen firms specialise in trying to make goods equal to the world's best, they will find it impossible to progress unless the woollen industry as a-whole is rationalised. The tendency is for tho woollen companies to make far too many lines. They should specialise more and limit the range, making the best possible use of the machinery atvtiieir command, for the reason that the population is limited. Although I believe that the corner has been turned in regard to New -Zealand business conditions, there is a. grave danger of being too optimistic. Just as it, has been necessary to apply the pruning knife to commercial and industrial concerns and cut out the dead wood, so is it necessary to prune mora keenly in regard to Government and local body expenditure. Local Body Expenditure. "In regard to local bodies there is far too much overlapping and needless overhead expense. To illustrate my point I may mention that the Wellington City Council has cut down its controllable expenditure by £96,000 in the last two years. I am glad to observe that Christchurch is trying to do something along similar lines. I am satisfied that the cost of living in New Zealand could be reduced by another five per cent, if wo got the taxation —national and local—under proper control. In the final analysis it is the working man who has to pay the piper and if the average man realised that he eould save 4s to 5s a week, by cutting • out unnecessary luxuries, he would then realise the" necessity for economies. "The incidence of the wage tax has brought this question of taxation homo to thousands. But unfortunately the average individual does not realise how much of his weekly wage goes to the Government and local bodies in various guises. Take gas—the coal-miner has to make allowance for taxation and e the charges for cartage, freight, etc.-, and the Gas Company must talte it all into account. If taxation was reduced all along the line gas could bo sold at 10 to 15 per cent, cheaper. The same thing, of course, applies to practically all industries," Mr Appleton added.