CAPITAL FROM OVERSEAS

Press, Volume LXXII, Issue 21974, 24 December 1936, Page 10

CAPITAL FROM OVERSEAS

LARGE SUMS WAITING INTEREST IN DOMINION INDUSTRIES OFFERS FROM BRITAIN AND AUSTRALIA Large quantities of British and Australian capital are seeking admission to New Zealand for the development of the country's natural resources. The enquiries come chiefly from firms equipped with facilities and organisation for the rapid development of any project they may undertake and most are interested in industries not yet established or those in which very little development has taken place The Minister for Industries and Commerce, the Hon. D. G. Sullivan said yesterday that he had received numerous enquiries from Britain and Australia. To the firms interested the provisions of the Industrial Efficiency Act had proved an encouragement. Among them were interests already conducting a considerable export trade with New, Zealand, and they were keen to establish factories here. Much would, of course, depend on the result of the visit of the Minister for Finance, ! the Hon. Walter Nash, to England, 'and any bartering he might be able to do there. New Fields Most of (he enquiries were concerned, Mr Sullivan said, with industries not yet established or spheres in which only miniature industries existed. There were cases, too, where the market was not large enough fo" several units in one industry and could draw on the products of only one or perhaps two units. One of the questions raised was whether these overseas interests could be given some protection, not by means of tariffs in the interests of products manufactured in New Zealand, but by restriction of licenses. "There is no need for small units already operating to be \ alarmed over the future," the Minister said. "Every care will be taken to see that they get a fair deal if larger concerns come in. There have been tentative discussions on that aspect of the matter with those seeking to establish larger and better equipped industries. My indication to them that I do not propose to allow our own small industries to be ruined has been received in a spirit which is most helpful. Part of Small Units "The administrators of the National Recovery Act in America have definitely proved that the smaller units of industry would not be overwhelmed by the principle of co-ordination," the Minister said later, discussing co-ordination proposals within New Zealand-owned industries. "A far-reaching examination was undertaken by the National Recovery Act administration, and it was proved that the small industries had qualities which enabled them to live provided they were efficiently managed. They have their part to play. Given efficiency, which we have a right to require, there is nothing in the suggestion that they have anything to fear." The Minister said that the overseas capital was interested in a great number of industries here, but there was no need to imagine the country's industries being run largely by outside interests. A number of New Zealand's larger industries were remarkably well equipped with up-to-date machinery and excellent organisation for efficient production. Some of the more advanced concerns were members of research associations in Great Britain, and

so were keeping abreast with British and European developments.