THE WOOLLEN INDUSTRY.

Press, Volume LXVIII, Issue 20736, 22 December 1932, Page 12

THE WOOLLEN INDUSTRY.

j REPLY TO MR COATES. STATEMENT BY MANUFACTURERS' ASSOCIATION. Arguing that the woollen mills <>i New Zealand have constantly paid the highest prices for wool at the local sales, and that if they were able, by an extension of their local market, to use more wool, the woolgrower would benefit considerably, the Canterbury Manufucturers' Association has prepared a reply to the Temarks made by the Bt. Hon. J. G. Coates on Monday concerning an earlier statement of the Association on the subject. The statement, which reviews the position of the woollen industry in the Dominion, particularly in relation to competition and tariffs, is as follows: — "At the recent wool sales held in Christchurch the high prices paid by the New Zealand mills provided the Canterbury Manufacturers' Association with a valuable argument in showing how farmers were assisted by the woollen manufacturers. This aspect has been overlooked in the criticism to which the woollen industry is subject, and it was felt that the rank and file of sheep-farmers especially should have this pointed out to them, in view of Mr Coates's statement that "it is about time we took this thing by the throat, and said they must-reduce prices.", "Further, the clip of wool bought by the New Zealand mills was also mentioned as being proof positive of the high standard of the goods made in New Zealand. These two points cannot be stressed too strongly at the present juncture, because they are of educational value to many sections of the community. Importance of Local Buying. "The value of the wool bought tor local production is sufficiently high to prevent exploitation of the market by overseas interests. Were this local competition absent, the growers would very soon realise the difference in price. On the other hand, were the local mills able to use a greater proportion of the clip than at present, it is only fair to assume that prices would improve still further. "The references made by Mr Coated to the Ottawa agreement are outside the scope of the first statement made by the Manufacturers' Association. For many years before the Ottawa Conference was held, the same critical statements were made, although the local mills were always paying the highest prices and producing high-grade goods. It was quite time that a pointed public reference was made to these facts, and this the Canterbury Manufacturers'.Association took it upon itself to do, in justice to the industries concerned. "To keep the statements made in Mr Coates'a reply strictly to - the subject under discussion, namely the woollen industry, it is felt that when jipxt be makes sneh a remark he - shoipd alsoimake a definite charge against this in--1 dustry in straight out terms, and then a detailed reply can be given. Investigations of important industries in New Zealand in the past have proved them to be economical and efficient, and it was only fair that the information available to'Mr Coateb about the woollen industry should have been analysed carefully by him prior to the statement ■which he made in the House. Question of Tariffs. x "Reverting to his reply, the lag between wholesale and retail prices is a matter that is engaging the attention of Governments and economists in all countries, and is not peculiar to New Zealand in-general or to the'woollen industry in particular. "Recent New Zealand visitors to England are all bringing back glowing reports of the wonderful change in many industries there since England discarded her traditional free trade policy. To-day in New Zealand, as in other countries, it is not a question of theorising about protection or free trade. It is rather a question of the degree of protection which an industry is entitled to in the national interests which should weigh the conditions of every thinker. this respect it has been stated by a Cabinet Minister that tariffs in New Zealand.have teen devised for revenue producing purposes only. ~ Their protee-' tive qualities are purely incidental. Imports and Competition. "In the woollen trade, there are certain classes of goods which are not made in New Zealand, but on which duties are imposed just the same. These goods are used by other industries which are penalised accordingly. There is ample scope here for scientifically conducted enquiries.' On the other hand, New Zealand woollen manufacturers have to compete with imported lines o£ inferior quality Which can come in quite easily with the low tariff in existence. TSese low grade goods are used as a basis of comparison whenever criticism is levelled at our own manufacturers. New Zealand tariffs in relation to the woollen trade are unscientific and illogical, and therefore harmful to industrialists both here and in Great Britain. "The,influence of tariffs on unemployment must* also be taken into consideration. If it could be shown that a 20 per cent, tariff increase on certain classes of woollen goods would increase employment in that industry by 1000 workers, increase local purchases of better wool, and decrease the price to the consumer on account of greater turnover,'would Mr Coates be prepared to vote for such a 20 per cent, increase? /In conclusion, we repeat that no member of Parliament is entitled to make such damaging statements as Mr Coates made in the House on November Bth, without complete and accurate information on the subject under discussion." PROPOSED CONTROL OF TRADE. REPORT TO BE PRESENTED TO BRITISH GOVERNMENT. (fifITED ' PEES 3 ASSOCIATION— BJ BLB3IKXO TBLEOEAPH— COPTJHGHT.) (Received December 21st, -5t5 p.m.) LONDON, December 20. In the House of Commons Mr J. H. Thomas (Secretary of State for the Dominions), replying to Mr W. R. D. Perkins (Cons., Stroud), said that he understood that the proposed control of the wool trade was now being discussed by the Commonwealth Government with the interests concerned. The British Trade Commissioner had been asked to present a report on the subject. ♦h