HOPES OF MORE EMPLOYMENT

Press, Volume LXXIV, Issue 22339, 1 March 1938, Page 10

HOPES OF MORE EMPLOYMENT

MINISTER’S CASE FOR protection OPPORTUNITY FOR YOUTH . emphasised * APPEAL FOR EFFICIENCY IN INDUSTRY fXHE PRESS Special Service.] AUCKLAND, February 28. The Hon. D. G. Sullivan, Minister for Industries and Commerce, has issued the following statement on the additional protection afforded to manufacturers by tariff changes announced to-day, which become operative on March 1, 1938: “It is with a feeling of satisfaction that we are able to announce the completion of trade negotiations which have resulted in the Government taking yet another step towards the implementing of its policy. As Minister for Industries and Commerce, it has been my particular responsibility to ascertain the needs of industry and to advise my colleagues in the Cabinet of the action necessary to give effect to the Government’s programme of extending manufacturing production in this country.

“There is still a school of thought in New Zealand which maintains that the country’s destiny is for it to remain almost exclusively a primaryproducing country, but this policy is out of touch with things practical. [ personally have seen for many years that if New Zealand is to develop to her full stature, she must gradually expand her secondary industries and, having this firm belief, which is also that of the Government, it has been our earnest desire to give industry the wherewithal to achieve this objective. “The case for the protection of New Zealand’s Industries from, the fierce competition of older and larger countries is so well known that it should not need elaboration on my part, but it may be well to point out that New Zealand is relatively young in comparison with other countries with which it has to compete and that our industries find themselves handicapped by serving a much smaller and scattered market, at the same time being called upon to maintain a much higher standard of living for the employees. Many Industries Affected

“By reference to the schedule,- it will be seen that the increase in projection to many industries and on many items is substantial, and as the items cover many of our major industries, I am confident that the results will mean increased activity on the part of our manufacturers, with corresponding additional production and employment. By the capturing of a greater proportion of the domestic market, manufacturers’ production costs should tend to decrease, and the competition between domestic units will help to keep prices at a reasonable level, just as has happened in Australia, where the tariff has been high. “The Government’s policy of encouraging employment In secondary industries ana the utilisation of the country’s raw material to the fullest extent economically possible will be of great value nationally. “The most important phase of these tariff alterations is that they will provide the youth of this country with renewed hope and a wider opportunity to secure work of a valuable and interesting nature. We must provide the young people with opportunities to produce something of intrinsic value. These opportunities cannot be confined to production from the land alone. “It will be noticed that the Government has Increased the duties on the items listed against all countries other than the United Kingdom. There is bne Item to which I would specially refer—namely, the footwear industry, which in recent months has suffered a falling-off in activity. The tariff alteration on boots and slices and slippers applies to the products of the United Kingdom, as well as of other countries. This should be of great assistance in restoring the prosperity of the footwear manufacturing industry. Appeal to Manufacturers

“For months past representations have been made to me by manufacturers that competition from overseas was felt very adversely and to an increasing degree, and was preventing the expansion of New Zealand industries. I want to assure all such manufacturers that their representations have been given full consideration in the negotiations which have resulted in these tariff changes. I trust that with this evidence of the Government’s Intentions manufacturers will honour their side of the bargain and carry out the promises they have made to me from time to time, that if they were given greater security in the domestic market they would expand their businesses to the fullest extent; incur any necessary capital expenditure to bring their plant up to date, adopt methods for improving the efficiency of their businesses, and keep prices down to a reasonable level. “I am issuing instructions to my departmental officers to make prompt contact with all industries likely to benefit by these additional safeguards, so that the manufacturers concerned Will act promptly by increasing their output, improving their plant, and by meeting the anticipated increase in the demand from the public. “Very happy relations were maintained with all the countries throughout the negotiations. My personal contact with Mr White, the leader of the Australian delegation, was most happy; and it gives me great pleasure to pay a tribute to the fairness and consideration extended to my colleague, Mr Nash, and myself in negotiating these tariff changes.”