INDUSTRY IN S.I.

Press, Volume XCIX, Issue 29316, 22 September 1960, Page 8

INDUSTRY IN S.I.

Economist Urges Development

(New Zealand Press Association) GREYMOUTH, September 21. “Don’t wait for opportunities to expand—make them,” Mr C. R. Larsen, a member of the Board of Trade and a well-known economist, told the South Island Local Bodies’ Association at Greymouth today. Mr Larsen said the difficulties of South Island industrial development were challenging, but far from insuperable.

Christchurch was “on the move” and was stimulating growth in such places as Rangiora and Ashburton. “You have another nucleus of growth in Invercargill and a third developing in Nelson.” he said.

“If you push these places above the average rate and bring other parts of the South Island up to average growth, you will change the current trend and your future standard of living significantly.” he said. “The South Island now has 30 per cent, of the total population of New Zealand. In the next 10 years, the North Island is expected to gain 400,000 persons while the South Island gains only about 120,000. “These predictions are, of course, based cn current trends and can be altered if determined efforts are made to speed up industrialisation in the south.' “Comfortable Rut”

“I have heard it said,” he added, “that New Zealand might be better to stay in -a comfortable rut, relying on primary production and not striving for industrial expansion. But the rut is only comfortable when export prices are rising. It becomes uncomfortable when terms of trade move against us. “There is a limited amount of good farm land available. More intensive farming could yield more in total production, but market prices are uncertain and, if individual farms are reduced in size, the standard of living for individual fanners will fan.”

Mr Larsen said: “The advantages of the South Island included cheaper industrial land, easier construction sites and cheaper building costs. It is the highly capitalised industries you are lacking in the south. The north has been lucky to obtain some very highly-capitalised industries since the war. These not only boosted output per man, but also give prosperity to servicing industries around them.

“You will, of course, catch up in one stride if the huge aluminium plant comes here,” said Mr Larsen. “In fact, this enterprise could have such widespread influence that it will change the pace of industrial development almost overnight.”