NEW INDUSTRIES

Dominion, Volume 26, Issue 67, 12 December 1932, Page 11

NEW INDUSTRIES

Monopolies & Private Enterprise 1 VALUE RECOGNISED flic possibility of the establishment of certain secondary industries uot seeking tariff protection and dealing with raw materials produced in the Dominion was mentioned in a report presented to the House last week by the Hou. A. D. McLeod (Govt., Wairarapa), on behalf of the Industries aud Commerce Committee. The committee reported that it had' considered and heard evidence upon the proposals referred to it relating to the sardine canning industry, manufacture of nitrogen, of cellulose and other products from pbormium tenax, of rubber products qud of motor benzole at gasworks. Granting of Mouoiwiies. The committee, while drawing the Government’s attention to the grave danger associated with the granting of monopolies to private companies, even if only for ,-t short period of years, was of the opinion that with adequate safeguards such action might be justified iu special circumstances, particularly in view of the amount of unemployment at present in the Dominion, and the possibilities of establishing in the Dominion secondary industries not seeking tariff protection and dealing with raw materials produced in the Dominion. In the opinion of the committee, exclusive rights of manufacture should be granted only iu cases where large financial commitments were called for, and where the circumstances were of exceptional character. Reasonable Prospects. .Subject to these conditions and to reasonable prospects of marketing, the committee recommended that favourable consideration be given by the Government to such applications as were supported by adequate and satisfactory financial and technical backing and subject to satisfactory safeguards against exploitation or detriment to public interest. In the special case of the manufacture of nitrates the committee recommended that no grant of a monopoly to any company be made until It had had an opportunity of reporting further. The committee recommended that the manufacture .of motor benzole at gasworks be encouraged by granting some concession of excise duty, subject to the use of no other coal than New Zealand in. the manufacture of this commodity.