FARM IMPLEMENT MAKERS

Press, Volume LXXIV, Issue 22465, 28 July 1938, Page 12

FARM IMPLEMENT MAKERS

LACK OF EFFICIENCY ALLEGED A CASE FOR STATE CONTROL SEEN (.From Our Parliamentary Reporter.! WELLINGTON, July 27. The opinion that with proper organisation and management New Zealand manufacturers of farm implements could reduce the cost of these articles by as much as 25 per cent, was expressed by Mr C. A. Barrell (Government, Hamilton) uring the financial debate in the House of Representatives to-night. “I am an advocate of support for the secondary industries of this country,” said Mr Barrell. “I know that some of them have had a particularly bad run.” Mr S. G. Holland (National, Christchurch North): They are getting it now. “A good deal of the trouble in the secondary industries is their own fault,” Mr Barrell continued. “I have been associated with an industry engaged in the production of farm implements, and I think one of the faults in that industry is lack of efficiency in the industry itself. We have five big companies manufacturing machinery for use in primary production, and any one of those companies could make all the agricultural machinery required in New Zealand. I think the member for Christchurch North will agree with me in that statement. Mr Holland: No. One firm could not manufacture it all. One of the factories, said Mr Barrell. could concentrate on the manufacture of road-making machinery. The five companies periodically got together, and fixed the prices of farm implements to bolster up poor organisation. The majority of the companies were over capitalised, and some were badly managed. Prices were fixed to enable them to carry on with their bad management. Later they would drift away from the fixed price scheme, and again the manufacturers were in the same state of chaos as before. That had been going on for the last 25 to 30 years. . “This is an example of private enterprise,” said Mr Barrell. “What nonsense is talked by members of the Opposition about the Government interfering in business. _ I would like to see an arrangement in the farm implement business so that, with propei organisation and management, we could produce implements at a cost 20 to 25 per cent, below the cost to-day. The member for Christchurch North knows too well that what I have said is true." . , Mr Holland: He does not know anything of the kind.