ONEKAKA STEEL INDUSTRY

Press, Volume LXXIV, Issue 22347, 10 March 1938, Page 9

ONEKAKA STEEL INDUSTRY

TO TUB EDITOR Of THE PRESS. Sir, —What justification has the Government for working the iron ore deposits at Onekaka? In the first place such a step is directly contrary to Mr Nash's reciprocal trade policy. The international trade of this country consists mainly in an exchange of primary products for manufactured goods. We already have difficulty in balancing our exports with imports. If we manufacture our heavy iron and steel requirements we are reducing by so much our market for our primary products. The end of the long controversy on free trade and protection, internationalism and nationalism, appears to be this: if you want to produce goods at home, put a sufficient duty on the importation of these goods, or even an embargo; if it is considered desirable to import certain goods, admit them as nearly as possible duty-free, or even do not manufacture them at home at all. The latter appears to be the wisest course in respect to the goods proposed to be manufactured at Onekaka It is said thpt there is a shortage ot iron and steel for building purposes, but it is only temporary, owing to well-known causes, and is already passing. In addition, the demand is largely artificial, inasmuch as the activity on public works is of the nature of relief work, and the housing scheme is financed by our inflationary issue ot Then how are these works to produce economically. With Mr Savages theory of prosperity through high wages and short hours, how could they compete with the large and highlyorganised Broken Hill works or with the British manufacturer? Duties would have to be imposed, and the consumer would pay. Now is the time for the Farmers' Union to protest, and loudly, too. The Government asks power to doirow up to £5,000.000. From the Reserve Bank? Iniquitous! From the British investor? Almost as bad The* only fair way would be as an external A very objectionable feature of the proposed State iroiv works is that a new body would be created of State employees, using their voting power to extract from the Government privileges to be paid for by the rest of the community.—Yours, etc., j M w March 8, 1938.