How Legislation Hampers Industry

Dominion, Volume 30, Issue 261, 31 July 1937, Page 13

How Legislation Hampers Industry

Sir, —The Labour Barty and_its propagandists have assured ug both in the Press and over the air that New Zealand can be run independently of the rest of the world. Since the Government introduced its own particular brand of economics into our political and industrial life many proofs have been forthcoming to show that this is not so. Now we find a number of New Zealand manufacturers faced with the drastic necessity of closing down their places and throwing their employees out of work. And this terrible state of affairs occurs not in a time of depression, but in a boom period. This is simply because the Government lias ignored sound principles, and brought into being legislation which has caused the cost of production in New Zealand to soar to undreamed of heights. , Manufacturers in other countries have not been burdened with a Government of experimenting theorists like we have, and tlij■ result is that, despite our already high tariff protection, they have beeu able to undersell us in our own country. There is an indifferent market for our excellent New Zealand-made goods, simply because people cannot afford to buy them, and the trades unions are already demanding increased wages to meet the increased cost of _ living. The unions have spoken, and it is a safe bet that their demands will be granted. Probably- having got itself and the country into such difficulties, the Government will next further increase the tariff barriers against imported goods so that New Zealand manufacturers may obtain increased prices to offset their increased costs. The whole thing, will then start all over again just as it has done before, and inside 12 months we will find the prices for New Zealandmade articles so high that imported goods will be cheaper, notwithstanding the higher tariffs. And what about the farming industry? Already the farmers cannot meet their increased costs, and as a result are compelled to buy less. If the Government is going to ignore world conditions for the benefit of city trades unionists, it must also mete out to the farmers the same treatment.

The dairy-farmer requires at least 3d. per pound increase on present-day butterfat prices in order to meet existing costs. How much will he need if those costs are further increased? It is not a case to-day of farmer against manufacturer. Both are in the same box, and are demanding relief from high costs brought about directly by the Government’s action. It is not the wages increases only that have caused the state of affairs. I maintain that wages could have been raised without increasing costs unduly, but when industry is hampered by reduced

hours of work and other restrictions, to say nothing of enormously increased taxation, trouble is bound to ensue. However, there is a remedy, and no doubt the electors will apply it next year.—l am, etc.,

FARMERS’ UNION MEMBER. Wellington, July 29.