The Press FRIDAY, JUNE 4, 1937. Organisation of Industry

Press, Volume LXXIII, Issue 22110, 4 June 1937, Page 10

The Press FRIDAY, JUNE 4, 1937. Organisation of Industry

A new advance in industrial organisation was the subject of discussion at a meeting of the Canterbury Manufacturers' Association, reported in " The Press " yesterday morning; and it is encouraging to learn that the manufacturing industries are preparing to form trade group? which will facilitate co-operation with the Government. In all matters of common interest, the advantages of having the units of an industry organised for effective consultation, negotiation, and action are so obvious - that it is strange they have not been wholeheartedly pursued before. That the pursuit has now been taken up appears to be the result of statements by the Minister for Industries and Commerce that the Government wishes to deal with those who can speak with the "representative and " authoritative voice" of an industry, and not with individuals; and upon this strong hint, if it was no more, the Bureau of Industry has moved the New Zealand Manufacturers' Federation to act. The movement is to be viewed, certainly not with the apprehensions that once were felt in the face of industrial and commercial consolidations, but with a lively hope. But it may be felt, on reading the statement issued by the Canterbury association, that a considerably wider conception of the need and function of trade groups could be indicated. It is quite true that such organisation is desirable to enable an industry to prevent the particular kind of inconvenience, at best, or real injury which is described in the statement. Any member of the public can allege that certain conditions exist in an industry and an investigation will be made along the lines of the allegation and thus along purely erroneous lines. This contingency presents grave difficulties to the Bureau of Industries and Commerce, when situations arising from allegations are being reviewed, as it has only one angle. Unless there is a trade • group which the bureau can approach to obtain either counteracting advice or a truer perspective it might result in its having no alternative but to subscribe to a plan which might not meet the best interests of the public or the industry. No doubt the Minister had as much in mind when he indicated his desire; but it would be surprising to learn that he had no more. He must surely have been thinking of many other possibilities: for example, of changes in the tariff, which concern him as much as the Minister for Customs and the Minister for Finance, of the establishment of new industries or new units, of questions of subsidy or other concessions, of standardisation, quota production, horizontal and vertical combination, reorganisation, re-equipment, research, and so on. In all such matters the function of trade groups cannot be small; and it is impossible, indeed, for maximum progress in industrial rationalisation to be made unless the driving force is that of intelligent, far-seeing, and energetic trade groups. It may be that the manufacturers' thoughts on the question reach further than the quoted passage suggests. There is a later reference to "an intensive plan ... to ensure that " all spheres of industrial activity will be care- " fully watched to serve the best interests of "all concerned"; and that undoubtedly is a bag big enough to hold anything. But it is sufficient to add that "watching" will not do by itself. If the trade groups are to fulfil themselves, they will have to do much more than guard the house against trouble; they will have to be prepared to rebuild it, if necessary.