BALANCED ECONOMY

Dominion, Volume 31, Issue 252, 21 July 1938, Page 6

BALANCED ECONOMY

Extension Of Secondary Industries

MR. NASH’S REFERENCE

If this Dominion is to possess a. properly balanced economy it is essential that adequate attention should be given to the extension of secondary industries, said the Minister of Finance, Hon. W. Nash, in his Budget speech in the House of Representatives last night. Considerable progress has already been made In this connection, and every encouragement is given to the establishment of new industries and to the extension of existing ones, provided that on investigation they appear to be economically justifiable. Basic industries naturally receive pride of place, as it is upon their success that the prosperity of so many others depends. A matter of farreaching importance in this connection was the recent decision of the Government, after the most exhaustive consideration of authoritative reports, to establish an iron and steel works in the Dominion. The establishment of an industry of the magnitude required, involves a large amount of investigational work on the ore bodies, coal supplies, and other, minerals before the exact type of plant required and many other factors vital to the success of the Industry can be determined with certainty. This preliminary work is now being pushed forward as quickly as possible. A glance at other countries will show that steelworks give rise to numerous other industries manufacturing a wide variety of articles in which iron or steel is the raw material. In fact, it is not too much to say that iron and steel works are essential if our secondary industries are to be developed to a stage required to give us a properly balanced economy. \ Manufacturing Industries.

During the year it was ascertained that a number of the local manufacturing industries, particularly footwear, were experiencing difficulties in continuing to compete with the products of overseas countries, Mr. Nash said. Exhaustive inquiries and investigations were conducted and the fullest consideration given to the claims of these industries for some form of protection. In consultation with the Governments of Australia, the United Kingdom, and Canada, adjustments were made in the rates of duty levied on importations of a number of commodities. Reports received since the adjustments were made indicate that manufacturing industries received great benefit from the added protection afforded them. Many have taken steps to expand their productive activities by engaging more workers, installing additional plant and machinery, and erecting new premises. In addition, a number of overseas manufacturers have taken steps for the manufacture of their products in New Zealand. The added protection granted has been a material factor in the encouragement of manufacturing activity in the Dominion to the advantage of both manufacturers and their employees. A further important matter to which reference should be made is the activity resulting from the passing of the Petroleum Act last session. Consequent upon this legislation large sums have already been expended by private firms in prospecting for oil in the Dominion, and if these tests are successful—and .there is every indication that the possibilities will be thoroughly investigated—the resulting industries will be of great economic importance to New Zealand.