INDUSTRIAL NEEDS

Dominion, Volume 35, Issue 47, 19 November 1941, Page 9

INDUSTRIAL NEEDS

Essentiality A Major Issue

N.Z.’S WAR ECONOMY Minister’s Address To Manufacturers Dominion Special Service. WAIRAKEI, November 18. Features of the address given by the Minister of Industries and Commerce, Mr. Sullivan, at the opening of the annual conference of the New Zealand Manufacturers’ Federation today were statements that the skill of this Dominion was equal to any in the world in fabricating or processing, that import control had little or nothing to do with shortages these days, and that priority and essentiality for war were major issues in securing supplies, but sacrifices for domestic needs must not be carried out too ruthlessly. New Zealand, he said, had undertaken commitments in the field of heavy production, and the best use of manpower consistent with war economy had to be faced. Plans were being framed for a change-over from war economy to peace economy when hostilities were ended, and to increase industrial status in New Zealand.

“While we must operate under a war economy, thanks are due to our manufacturers,” said Mr. Sullivan, “that we are able to do so much .in our production for defence and offence —so much to help the Empire. Industry now is harnessed to a war economy and must operate with it. Changes in Production. “War economy demands quick changes in the proportions in which various commodities are produced. These changes require the quick transfer of productive factors from the production for an effective consumer demand to production for a Government demand designed to assist the armed forces achieve victory. Ruthlessly to prune civilian consumer goods might be justifiably done on economic grounds but its reaction might actually spell failure. Nor can welfare be neglected. The needs of children, for instance, must be considered. They are consumers and not producers. They can make no contribution to the conduct of the war in a material sense, but their essential needs must be met “We can make goods well in this country, but we do lack a number of essential war materials. Import control has little or nothing to do with shortages these days. Difficulties of supply are being experienced in practically every part of the world. Ever and anon someone in this country rushes into print or makes representations that if only an import licence is granted at once supplies of this, that, or the other commodity will be available. Some manufacturer somewhere has advised, that he is able to supply. Yet, investigation invariably brings us face to face with the unassailable fact that while the .manufacturer may be able to supply there are such _ things as essentiality certificates, priorities, export controls. "There is at this date no .dear,.determination of policy bn the question of what goods may or may not be procured Lend-Lease. This may be attributed to the urgent and heavy calls by Great Britain and allied countries; to pre determined Lend-Lease appropriations; and, of course, limited physical supplies of materials. Nevertheless, very important assistance has already been rendered to New Zealand in terms of Lend-Lease, particularly in the provision of warlike stores and materials directly associated with our war effort. In this connexion, I would strongly advise manufacturers to continue to work in very close co-opera-tion with the Ministry of Supply. Concentration of Effort. “Much of our productive capacity and much of our available labour have been diverted to the furnishing of materials needed for war. The withdrawal of almost 100,000 men has lessened civilian consumer demand and has replaced it with a call for production of munitions, equipment, foodstuffs, clothing and footwear. We are doing a good job in that direction. Our engineering establishments are producing much of our war supplies; our biscuit factories have sacrificed domestic needs to the production of service biscuits; our woollen mills have worked the clock round to produce blankets, uniform cloth, greatcoating, and so on; our canister-making industry has worked wonders in producing containers for the shipment of foodstuffs overseas; clothing factories have risen splendidly to an insatiable demand for more and still more production; output in the footwear industry has soared to meet our own and the Empire demand. Industry has certainly made a magnificent effort in the face of difficulty and trial. “Concentration of industry; diversion or curtailment of activity are things we must face —not with feelings of umbrage or discontent, but with the will to succeed, the desire to co-operate. Defence needs are predominant.

“The difficulty of securing supplies compels a search for substitutes, and while this may alter the relative importance of the demand of certain industries it may not involve a geographical shift. If the substitute or alternative is of domestic origin so much the better and here in New Zealand industry and the Department of Scientific and Industrial Research have done and are doing much in that direction. Malting Adjustments. “I think we will, before the war ends, be called on to make many more adjustments. Still more of our productive capacity may be involved in production directly associated with war. The question of the best use of manpower consistent with a war economy has to be faced. We have undertaken commitments In the fields of heavy production. It will, I believe, become more intense. As Britain and America divert supplies to Russia we will doubtless have to go without some materials and supply more of the goods we can produce from domestic raw materials—clothing, foodstuffs and so on. “We are already preparing for the days of peace by taking wbat steps are possible for the changeover from a war economy to a peace economy. Plans are being framed : activities for rehabilitation considered. ... I { >m sure that in the new economy, or in whatever situation arises from the war, New Zealand will maintain her industrial status and will increase it. _ To replenish the depleted stocks of civilian consumer goods and to meet the intensified demand that will arise: to. ensure adequacy of supplies of essential raw materials; to develop still further our natural resources; to launch out into extended activity in linen flax, sugar beet, flax textiles from phormium tenax; to establish our iron and steel industry; to build ships for coastwise trade and trawlers where we are. now fog ii ding minesweepers; ip investigate

and develop new nses for our own products; to increase our cultivation of tobacco; extend our manufacture of paper; produce cellulose products from our forests; adapt our engineering advances from munitions to oilier avenues of production—these are but a few of the activities being considered and planned. Industrial development looms large in our rehabilitation programme for New Zealand,”