COSTS IN LOCAL INDUSTRY

Dominion, Volume 30, Issue 173, 19 April 1937, Page 8

COSTS IN LOCAL INDUSTRY

The Government is evidently beginning to realise that a brake must be applied to the. rising costs of local industries. It was reported some days ago that the Minister of Industries and Commerce is investigating the claims of a number of industries that as the result of the Government’s industrial legislation and increased costs, are no longer able to sustain their position in competition with goods from overseas. Mr. Sullivan mentioned this in reply to a suggestion at the Easter Labour Conference that a fortnight’s holiday, on full pay, for all workers, should be made mandatory. “We must take care,” he said, “not to do anything that will make it impossible for a local industry to carry on. If a surn of £lOO,OOO or £-00,000 in costs were added to industry by enforcing extra holidays the effect might be disastrous.” The Minister admitted that costs of production had been increased by the 40-hour week and the. restoration of and increases in wages. He is less inclined to admit that this has resu.ted in higher prices. It is at least something gained, however,. that he recognises the need for putting a brake on costs. What industry requires is a margin for expansion, otherwise stagnation will result. This margin has been considerably cut down by increased operating costs and heavier taxation. The danger is that . industry may lose its resiliency. It is a fact, admitted by Mr.. Sullivan, that in certain instances importations of articles competing with local industry have increased. That is so much to the bad for the local manufacturer, and he has no margin with which to adjust the balance.