MANUFACTURING IN N.Z.

Press, Volume XCVII, Issue 28690, 13 September 1958, Page 4

MANUFACTURING IN N.Z.

Conservation Of Overseas Funds "The Press” Special Service AUCKLAND, September 12. If New Zealand’s living standards are to be maintained when overseas funds are short, capital investment must be carefully watched, Dr. W. B. Sutch, newly-apppmted secretary of Industries and Commerce said in a paper read on his behalf. Every £lOO spent by New Zealanders on consumer goods and services meant £27 being spent on imports, but for every £lOO spent on capital development £4O was spent on imports, he said, in an address to the Auckland branch of the New Zealand Geographical Society. These conclusions are drawn by Dr. Sutch after a survey of some recent developments in manufacturing in the Dominion, particularly in the six years to 1957. The volume of production manufacturing in New Zealand in that period increased at no greater annual rate than it had over the last 70 years. However, if the processing of farm products was excluded, the other secondary industries showed a greater increase in production in the last six years. Manufacturing had been absorbing labour at a progressively slower rate in the last 18 years and this trend had continued over the last six years. Labour productivity was rising and mechanisation increasing in most branches of industry. Export Prices Fluctuations in export prices for New Zealand’s produce, mostly primary products, and in the terms of trade, balance of payments, and fiscal and credit policy had all resulted in changes in the volume of manufacturing over the last six years, said Dr. Sutch. These were causes largely beyond the control of manufacturers.

“If manufacturing and economic development is to proceed steadily, fiscal policy, credit policy and 'physical controls must all be related to the availability of overseas funds,” he said. “During the period from 195051 to 1956-57 the transition from import control to free importing may, in a world of fluctuating prices, have been too rapid for adequate economic techniques to be worked out to maintain living standards and steady development.”

There was not sufficient evidence to show to what extent New Zealand industries depended upon import licensing for protection.

“Overseas funds can be saved by producing more capital goods, such as transport equipment, in New Zealand and using imported materials much nearer to the •raw’ stage. “Part of the solution to saving overseas funds is in the hands of those who write and determine specifications architects, engineers and research workers. “There is room in New Zealand for discussion and agreement on long-term development, otherwise public debate of the country’s economy can become aimless and economic decisions of a policy nature, both in the private and public sectors, can be unrelated to broad but necessary objectives,” said Dr. Sutch.

Chinese Earth-moving.—Farm-ers of Anhwei province, China, have dug about 88,200.000.000 cubic feet of earth in the last four months—l2 times as much as the amount of earth shifted by the builders of the Panama Canal in a decade, reports the New China News Agency. Figures released by the Water Conservancy Department showed that nearly 2,000,000 canals, ditches and other small irrigation works have been built in this period and that 43,000 others are being completed.—(Reuter) .