PROTECTION FOR MANUFACTURING

Dominion, Volume 29, Issue 185, 4 May 1936, Page 8

PROTECTION FOR MANUFACTURING

The country would be glad of an early statement of the Government’s intentions regarding the manufacturing industries. An Or er-in-Council gazetted last week prohibits the importation of woolpac s and wool-nockets without the consent of the Minister of Customs, and the Minister of Industries and Commerce, in an explanation published on Saturday, said this was in line with the Governmen s policy of assisting the flaxmilling industry. It is probab.y in line a.so with the Government’s policy of assisting the secondary industries. If so, New Zealand manufacturers, their workpeople and their customers would be grateful for an outline of the methods to be Woolpacks are being- made in New Zealand from New Zealand Hax fibre, and presumably the Government’s intention is to reserve for this industry as much of the market as it can supplv at teasonab.e prices. “The arrangement that has been made bv the Government with regard to woolpacks,” said Mr. Sullivan, “allows of a low pr price for this season to farmers and other users than that which obtained last year.” Price will be a vital factor, if not, in all he Government’s protectionist actions, at any rate in the pubbe s reception of them; and. if the Minister is ready to speak of his wider plans, he has an opportunity here of creating consumer interest and goodwill for the genera! industrial policy of the Government. Time was when many people refused to buy, and many shopkeepers hesitated to offer. New Zealanri-made goods. That imtial nreiudice has been broken down completely by the enterprise of New Zealand manufacturers. Curiously enough.,some few manufacturers themselves are among the last to realise this, and continue to brand their wares “British made” —a true and honoured mark., but no longer a better business-getter than “Made in New Zealand. To-day a.I the main lines of merchandise produced, in New Zealand command a ready and growing sale: quality and price considered, they compare favourably with the best imports. In most cases, of course t ev enjoy tariff protection; and with some commodities of late tan.t protection has been proved inadequate to withstand the assaults of low-cost producers. Presently, tinder the legislation now before Parliament, manufacturing costs in New Zealand will rise sharp.v. Then the Government will be presented with a ticklish problem • mat of holding the balances justly between our own secondary industries (which must be expanded if we arc to absorb our unemployed and go on to encourage immigration) and those of the overseas countries in which we seek to sell more of our primary products Lhe indications are that it will seek a way out through further control of trade, making agreements to take fixed quantities of imports, in return for fixed quantities of exports, and where possible reserving to New Zealand manufacturers an agreed share of the domestic market. It will be essential to the success of every such scheme a q this that the position of the public, as buyer, be taken into account at every stage of the negotiations. Industry, in return for a guaranteed market, would probably be found willing to produce its products at a guaranteed price if only the Government could promise guaiantced costs!