Manufacturers Criticise Comments On Industry

Press, Volume CVI, Issue 31124, 29 July 1966, Page 5

Manufacturers Criticise Comments On Industry

“The two major producing sectors in the economy, farming and manufacturing, are complementary, and acceptance of this fact, has been the basis of a productive relationship with Mr E. W. McCallum in his long and useful term of office as president of Federated Farmers,” said Mr J R. Maddren, president of the New Zealand Manufacturers’ Federation. “As Mr McCallum said In his final presidential address, has not been opposed to manufacturing. This very fact adds to my disappointment at some of his statements in it.

“Mr McCallum expressed strong views about New Zealand aid to under-developed countries and recommended that this country could step up its aid, and yet reduce expenditure of scarce overseas funds by providing more aid in the form of donations of our own produce. “Manufacturers endorse this view but cannot see any logic in Mr McCallum’s suggestion that we should extend aid to the value of the foreign exchange we have mis-spent on importing machinery for industries that are of doubtful value to New Zealand.’ These issues are not related. We all want to help improve conditions in the underdeveloped countries but surely this should be done by listing their standards and not by reducing our own productive capacity.

“Mr McCallum’s suggestion was part of the theme that New Zealand has industrialised too rapidly but perhaps the answer to our problem—and those of under-developed countries too—is that we have not industrialised rapidly enough. “A suggestion which has been revised by a spokesman for the E.E.C. Commission in Europe In the last few days is that ‘there has been some thinking in the community along the lines of helping New Zealand to shift the main structure of its economy from agricultural to industrial during a long transitional period.’

“Financial aid from Europe to help this has been suggested and the objective is to make New Zealand less dependant on European markets for our produce and thus facilitate British entry into the Common Market. This is only an idea, but it is consistent with the general pattern of development of world trade and the increasing difficulties being encountered by exporters of agricultural products. “The manufacturing industries add greatly to New Zealand’s wealth through the process of import replacement and also through their growing volume of exports. Without this consistent progress, New Zealand would have run out of overseas funds long ago and would be putting up with standards much lower than we enjoy today.”