Mr O’Shea Says He Is “Not Against Industry”

Press, Volume CII, Issue 30145, 31 May 1963, Page 13

Mr O’Shea Says He Is “Not Against Industry”

NELSON, May 30.

“It has been continuously represented that I am ’anti’ as far as manufacturing is concerned: that is entirely wrong,” said Mr A. P. O’Shea, general secretary of Federated Farmers today.

Mr O’Shea told the Nelson provincial conference of the federation that he had received a rather abusive letter from a manufacturer “who had the idea that I was suggesting that we could get along without manufacturing in this country. “That is absurd,” said Mr O’Shea. “The biggest single group of manufacturers in New Zealand are those who process farm produce. Of course, we need secondary industries in New Zealand, but we need industries of the right type.” The right of an industry to develop should be decided on its merits, not on the ability of its promoters to persuade the government to afford special privileges at the expense of other industries and the New Zealand consumer, he said.

"Government action should not make it possible for any industry to be placed in a more favourable position to bid for labour and capital than any other industry,” Mr O’Shea said.

“If these two principles are observed, then we shall not have the spectacle of the New Zealand worker, for example being called upon to pay twice what he should be paying for any article such as is the case with television sets.

“I do not believe that all New Zealand industry is inefficient. I do believe, how-

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ever, that some industries have neither the need nor the desire to be efficient, because Government action prevents the results of inefficiency being sheeted home to them.

“I do not think that it is a good thing either morally or economically for the country as a whole. Cottage Industries

“Our natural policies have been directed towards contracting all our markets. We have set up a great number of ’cottage industries’ which have been able to charge what prices they like for their products. In turn, they have been able to pay continually increasing wage rates in order to attract labour.

"This has had the effect of increasing wages in other industries, and making it necessary for prices to be raised This, in turn, cuts down the market in New Zealand, and makes it difficult if not impossible to sell our manufacured products abroad at payable prices," Mr O’Shea said "As individuals we don’t buy things that are too dear As individuals we try to live within our incomes. I suggest it is the same with a country.” Mr O’Shea said he was certain New Zealand needed manufacturing and, as time went on, he hoped there would be more of it. “But what I want to see is that out effort in this direction increases the sum total of possible wealth we can have for distribution rather than decrease it.” he said.