DISTRIBUTION OF INDUSTRY

Press, Volume XCIX, Issue 29130, 16 February 1960, Page 18

DISTRIBUTION OF INDUSTRY

Attraction To South Advocated

If the population drift from the South Island to the Nci'th continued, the position would arise where the North Island would be subsidising the South, said Mr E. G. Beckett, the Canterbury Public Relations Officer, at a conference of the South Island Publicity Association. In Britain, the Government was redistributing industry to undeveloped areas and it appeared that if the present trend continued the New Zealand Government would have to take action to direct industries to the South Island, Mr Beckett said. In 1957-58, the South Island railway system lost £2,000,000, where as the North Island railways made a profit of £700,000. A better planned economy between the islands would result in greater productivity, he continued.

Markets and population were involved, said Mr T. K. S. Sidey, the Mayor of Dunedin. If industry went to the North Island then its population would grow. The Minister of Defence (Mr Connolly), who was attending the conference as a South Island member of Parliament, said he supported the proposal. The Government recognisod the need to have a better balance in .New Zealand economy. The reason industry preferred the North Island was that because of its greater population, distribution costs were far lower, the Minister said. “The Government cannot make new industries go to the South Island; it can only make recommendations,” he said. “The aim of all commercial enterprises -is to make profits and if they felt that higher profits can be made by being situated in the North Island, then industries will go there.”