More Use Of Plant Urged

Press, Volume CVI, Issue 31223, 22 November 1966, Page 18

More Use Of Plant Urged

Manufacturer s’ plant in New Zealand was working twoninths of the time, unless the manufacturers were paying penal rates, said the president of the Otago-Sputhland Manufacturers’ Association (Mr W. S. Davies) last evening.

“That to my mind is absurd,” said Mr Dawes to a meeting of the council of the Canterbury Manufacturers’ Association. The council discussed the Monetary and Economic Council’s report on increased immigration and the New Zealand economy. “It was absurd for an expensive factory to be lying idle or to be paying penal rates beeause of a shortage of labour,” said Mr Dawes. Mr Dawes said that he had worked out the time manufacturers’ plant was idle by adding up Saturdays, Sundays, annual holidays and statutory holidays. He had found that factories were working only two days out of three.

Unless manufacturers were prepared to pay penal rates for excessive hours their factories were only working eight hours out of 24. “That makes one-third of two-thirds, which means our plant is only working twoninths of the time.” The answer was obvious, said Mr Dawes. We had to work the plant longer. “But where are we going to get the people to work,” he said. “Then they tell us it is inflationary (to have addition-

al assisted immigrants. I am not an economist but that does not make sense to me.” If New Zealand could not afford to have more immigrants because they had to be fed, clothed and housed before starting to earn money, then it was obvious we could not afford any more children, said Mr Dawes. “They have to be clothed and housed for many years before they become productive.”

Mr J. K. Dobson said that the report held that there was

a shortage of skilled labour and semi-skilled labour. “We also know there is a labour shortage, full stop,” said Mr Dobson. “It is not only in skilled and semiskilled.” Mr Dobson said manufacturers had been asked to increase production, particularly for export. The report had referred to the cost of production capital and the cost of housing for additional immigration. “Surely we have a lot of production

(Capital invested today that is (not fully productive because of labour shortage. “Most of our industries, or all of our industries, are working eight to 12 hours a day. The productive capacity of capital invested in our plants is 24 hours a day,” he said. Mr' Dobson said that one of the major objections to additional assisted immigration in the report was the cost of housing. It had been said that the cost of housing for a married man was £3200 and for a single man, £1250. In other words, according to the report, every immigrant brought to New Zealand was “stone, motherless broke.” He did not believe this. How much of the housing cost of £3200 was New Zealand raw materials? What was the imported content? “I am sure it is a lot less than the full price of a house. ‘"rhe immigrant is probably bringing in the imported content of the house. Anyway, at least he is bringing in overseas exchange.” The former president of the N.Z. Manufacturers’ Federation (Mr J. R. Maddren) said that the council’s report was a very good one but the interpretation of the facts would not stand up. “I cannot believe that immigrants coming in will absorb more in capital expenditure than they would produce,” said Mr Maddren. “It is crazy.” Mr Maddren made a plea for more labour to make greater use of existing plant, particularly in the textile industry, which he said had tremendous unused capacity.

The council adopted a resolution recommending to the Manufacturers’ Federation that it take urgent action to review the Monetary and Economic Council’s report and to bring down an answer along the lines of the way the association had discussed the matter.

Crs. T. C. Cross and J. A. McKenzie, elected recently to fill vacancies, took their seats on the Kaiapoi Borough Council last evening.