N.Z. INDUSTRIES

Evening Post, Volume CV, Issue 109, 9 May 1923, Page 9

N.Z. INDUSTRIES

COMPARATIVE BASIS RETURNS

"AN APPARENT DECREASE"

NEW SYSTEM OF COMPILATION.

The statistics of industrial manufacture kir New Zealand were placed before a meeting of the Wellington Industrial Association yesterday afternoon.

The chairman (Mr. L. T. Watkins) laid that, as explained by the Government Statistician, a different system of ;ompilafion had been adopted on this ccasion, which did not show' the position as well as previously. He thought the association should gather the particulars which had been omitted, and add them to the returns.

The following table sets out the comparative statistics over a period of years. The Secretary of the Department of Industries and Commerce states that the totals differ somewhat from those previously supplied, for the reason that tße Government Statistician has made certain adjustments of the figures with the object of eliminating from the totals for previous years the figures on industries not included in later compilations. The table given is therefore on a better comparative basis than could be secured by adhering to figures previously published tor earlier years: A.—Number of establishments B;—Number of employees C—Amount of wages paid 3,3 D. —Value of materials used or operated upon 6,6 E.—Value of products '. 12,2 F.—Approx. value of land, buildings, machinery, and plant 7,9 i By way of explanation the Government Statistician states: "Under the regulations authorising the collection of statistics of industrial manufacture a ' factory ' is defined as an establishment engaged in manufacture, repair, or preparation of articles for wholesale or retail trade, or for export which employs at least two hands or uses motive power, with the exception of the following, which are expressly excluded: — Bakeries, butcheries, laundries, smithies, waterworks, shops engaged in retail trade only, and farmers or others using motive power for their own individual and private use. The following are, however, required to furnish returns even although employing less than two hands and not using motive power: Tanneries, bacon, butter, cheese, soap, or candle factories, brickyards, and limeworkß. In former years the number of small establishments engaged in such industries as jewellery and wataih repairing, boot, shoe, and saddlery repairing, and similar industries, were included in the statistics, but it has now been/decided to exclude such unless also engaged in actual manufacture employing at least two hands. It has also been decided, for this year at least, to exclude establishments engaged in dressmaking and millinery (unless manufacturing wholesale for resale in retail shops), bespoke tailors, and establishments engaged in tea blending and packing, bottling j liquor, stone quarrying and crushing, asphalting, or monumental masonry. These latter industries were excluded to bring the statistics into line with other parts of the Empire. The information which is collected from these concerns is in any case, for obvious reasons, unsatisfactory. In addition, returns are not pressed for from plumbers or from builder* who make joinery only for their own building contracts. This has had the effect of showing an apparent decrease in the number of establishments in some industries, and also in the total of all industries; but in other respects the effect on the statistics is negligible, the number of employees, materials used, products, etc., thus included in the trades concerned being comparatively imall. Summed up, th» statistics do not purport to cover all establishments registered as factories in the Dominion, ' One-man ' businesses

are, with a faw exceptions, excluded, and in some cases where a factory has two or more branches, it has been found impracticable to obtain separate returns, and all branches have been treated as one establishment. It is clear, therefore, that, while the basis of the statistics has to some extent been modified, comparisons with earlier years are not seriously affected except in so far as the number of establishments is concerned 1."

Dealing specifically with item "B" (employees), in the table, the Government Statistician comments as follows: "When comparing figures for 1921-22, with 1920-21, it should be borne in mind that 'those for 1921-22 do not include tailoring (bespoke), dressmaking, and millinery, kauri-gum refining, tea blending, and packing, bottling liquor, stone quarrying and crushing, asphalt-making, or monumental masonry, which industries in 1920-21 employed 6336 productive employees. The general unemployment prevalent is, however, clearly reflected, the only industry to show a substantial incrase in the number of employees being butter, cheese, - and condensed-milk manufacture, while the majority show substantial decreases."

C, Amount of Wages Paid.—The Government Statistician explains in respect of 1922 that on account of the exclusion of certain minoj industries from this collection and on account of the general unemployment prevailing, the total productive wages paid shows a decrease of £1,049,929, as compared with 1920-21. The average wage paid during 1921-22 shows, however, an increase of £8.3 over the average for 1920-21.

D—Value of Materials used or Operated Upon.—The decline from 534 millions in 1920-21 approximately 40 mil-

.900-1. 1910-11. 1920-21. 1921-22. , — . 4,670 4,804 4,180 41,257 47,631 63,616 61,068 £ £ £ £ 502,647 5,572,270 12,569,904 11,519,795 192,727 20,089,178 53,425,649 39,909,824 227,864 30,083,484 78,473,569 66,847,837 J59.631 14,430,355 39,564,937 41,384,219 lions in 1921-22 is accounted for partly by the elimination of small workshops, but mainly no doubt by the general decline in value and priqes of raw materials, and goods used in manufacture. The decrease, therefore lacks the serious significance which might otherwise be given to it.

E—Value of Products: Here again the decrease in the figures is due probably entirely to the two factors mentioned above—(a) the omission of figures for tailoring, dressmaking, bottling, etc., etc., and (c) the general decline in prices of all goods.

The first-mentioned cause is responsible for a considerable sum, the value of the products of the industries mentioned representing in the year 1920-21 £3,347,250. ' The decrease in the general price level has probably accounted for at least the whole of the remaining portion of the difference between the figures of 1920-21 and those of 1921-22, and the evidence points to an actual increase in 1922 in the volume of goods produced. If a comparison is made of the difference between the cost of raw material and products in 1920-21, and the similar difference in 1921-22, it will be seen^hat manufacture was in the earlier year reponsible for an increase in value of approximately £25,000,000, while, in the later year the-increase in value was approximately £27,000,000.

F—Value of Land, Buildings, Machinery, and Plant; Fixed (real) Assets: It should be understood that the figures quoted are of necessity only approximate, the principal reason for this being that where one building contains two or more factories carrying on different industries., an apportionment has to be made between the industries, and this cannot be done with absolute accuracy. Furthermore, in many instances fixed assets are stated at their book value, and this may be an understatement owing to appreciated site value, or an overstatement owing to insufficient allowance being made for depreciation, obsolescence, etc. Where premises occupied are rented or leased (particularly if only a portion) it has been impossible to arrive at the correct value; in the latter case it must obviously be so. In such circumstances the practice has been to ascertain the annual rental value and capitalise this."