PROTECTION SOUGHT FOR INDUSTRIES

Dominion, Volume 31, Issue 72, 18 December 1937, Page 10

PROTECTION SOUGHT FOR INDUSTRIES

Manufacturers Explain Their Policy REPLY TO BUREAU OF IMPORTERS “We cannot understand why the Bureau of Importers should take the stand that it is our wish that it is mainly imports from the United Kingdom that should be attacked,” says a statement regarding the formation of the Bureau of Importers in Auckland made by the New Zealand Manufacturers’ Federation. "We would point out that there are millions of pounds worth of foreign goods imported annually that could be manufactured in New Zealand,” the federation says.

Reviewing and replying to the statement of the Bureau of Importers, the Manufacturers’ Federation says: “The statement issued by the bureau says that it was formed following 'the recent agitation of the local manufacturers for increased tariff protection or other forms of trade restriction and because of statements that had been made by Ministers of the Crown that it is the intention of the Government to give added protection to New Zealand secondary industries. The action taken over past months by the federation on behalf of local manufacturing industries hag been to ask the Government to take the necessary steps in the way of remedial measures in order to offset the higher costs placed upon industry by Government legislation, in the shape of shorter working hours and higher wages. - . “When any question of tariff arises everyone must admit that the tariff protects wages and labour conditions from the competition of low-wage countries. Before the increased costs, New Zealand industry was catering efficiently and well for a definite proportion of the requirements of the country. That proportion is steadily growing smaller and smaller. Loyalty To Home Country. “The statement goes on to say: ‘lt is felt that local manufacturers will not be content until they have shut out all British manufactured goods from this market.’ This statement is as ridiculous as it would be impracticable. The loyalty of New Zealand and New Zealand manufacturers to the Home Country is absolutely unquestioned. It is the hope of everyone that the United Kingdom shall be given as large a share of our trade as is humanly possible to arrange. All we ask is the right to manufacture on equivalent terms. In regard to the Ottawa Agreement, (there is not the slightest doubt that New Zealand has, in the opinion of the United Kingdom, the highest standing of any of the Dominions. The basic idea of the Ottawa Agreement was an endeavour to arrange parity of intra-Imperial exchange of goods. In the case of New Zealand the Hon. Mr. Downie Stewart, some years ago, referred to a visit paid to him by Sir Horace Wilson, one of the most prominent of the British economic experts at Ottawa. He had said, ‘We can never approach New' Zealand in these matters without first saking “Thank you for all you have done.’ ” This was later confirmed by the British Ministers, who had said that New Zealand had already gone so far that they could not expect the Dominion to give away much more.

“Under the Ottawa Agreement it is expected that the Government should protect every efficient industry to such an extent as to compensate the local industry for the higher cost of New Zealand labour, and to offset the higher costs of raw materials and overhead charges. Other countries within the Empire go much further than this in their interpretation, rejecting the idea that duty should be merely equalising. Parity Destroyed.

“The parity which was established in New Zealand, in conformity with the Ottarva Agreement has now been destroyed by the higher costs placed on local industry in New Zealand by Government legislation. What New Zealand industry asks is the restoration of this parity. The Tariff Commission in 1934 effectively dispelled the illusion that exchange, except within a short period of its being raised, acts as protection. New Zealand industry imports its raw material and supplies under exactly the same freight and landing charges as are incurred by tlie manufactured article brought in by importers. The level of imports will always bo determined in the long run by the level of exports after allowance is made for interest payments. The federation maintains that, wherever possible, these imports should be in a form as near as possible to raw materials and manufacturers’ supplies, in order to allow us to add to the national wealth of the Dominion by as great an addition in the way of added value through New Zealand workmanship as it is possible to achieve.”