RELATION TO UNEMPLOYMENT

Evening Post, Volume CXII, Issue 91, 14 October 1926, Page 15

RELATION TO UNEMPLOYMENT

INDUSTRIALISTS CONFERENCE

STATEMENT BY MINISTER. ,

(By Telegraph.—Press Association.) ' CHRISTCHtTECH, This Day. The annbal conference of the Industrial Corporation of Ne'.f Zealand was opened yesterday morning by the Mayor (Mr. J-. K. Archer). Among visitors were the Acting-Prime Minister (the Hon. "W. Downie Stewart), Mr. D. G. Sullivan, M.P., and Messrs. 6. W. Clinkard, secretary, and D. Colquhoun (local officer of the Department of Industries and Commerce). The president of the corporation (Mr. E. H. Marriner) presided. ■■;'•:"" In declaring the conference open, the "Mayor gave a dissertation on the value of free trade as against protection, a question which, he said, \ the conference, would, doubtless be discussing. In closing his address of welcome, Mr. Archer, spoke upon the commercial Views of-Mr. Henry Ford.

The welcome to the delegates was seconded by Mr. D: G. Sullivan, M.P.,, and was responded to by Messrs. J, Hogg (Duriedin), H. Dearsley (Auckland), and F..Campbell (Wellington). The president, in his address, urged the necessity for a strong central executive of the corporation with its headquarters either in Wellington or in Christchurch. Ho said that the Department of Industries and Commerce was understaffed, and compared the expenditure, oh that Department with that on the Agricultural Department. He found that ;the amount voted by the House to the primary industries worked out at one shilling for every forty-two, persons supported by that industry) while the votes to secondary industries worked out at only one shilling for every. 124 persons. "If we take from that the amount expended on mail subsidies, exhibitions, etc!,' which, should not bo charged to this account,, the amount "works out at Is for every 2000 people supported by the manufacturing industries.' Why this difference?" he asked. "The primary industry must not forget that its best market is the local market, and by helping the manufacturers it is helping to increase the population of this country. The farmer is hot in a position to take all the immigrants , that .come into the country, but the manufacturing industry, with protection, could increase the number of its employees and absorb all the immigrants that are coming into New. Zealand. Australia 'haft found that her local market is 224 • per' cent, better than her export. The New Zealand farmer, if he goes into details, will find that his local market is the best. Therefore, he should do all he can to cultivate) that market.'' A LITTLE HISTORY. The1 Hon. Downie Stewart, ActingPrime Minister, in replying to criticism that the Industries and Commerce Department had been neglected by the .Government, said that in the 1921 slump time the Government ; determined to economise and .not to-Callow.any de; partment to'e'xpand unless;ia Minister could show -the necessity. Ho hoped it would be possible to develop the Industries and .•.Commerce Department, increase the staff, and devote it more directly to the problems of manufacturers. . Imports from Great Britain, he said, were diminishing, in spite! of tho preferential: tariff. It was partly the fault of .the manufacturers in the Old Country and partly because a gooTT deal of the lost trade was' going to Canada and America. A most peculiar difficulty to be dealf with was due to the position t>f Gtufeda, which was heavily: capitalised* by American industry, and used by it: as an assembly ground for the purpose of reaping the benefit of the British preferential tariff. . . • The Minister reviewed the past revisions of the tariff, and said that the heavy tariff in Australia on agricultural machinery had enabled thorn to sell their own machinery at a price bolow that imported. AGRICULTURAL MACHINERY. The chief difficulty in 1921 was to provide more protection for manufacturers of agricultural implements in New Zealand. He had always admired • the methods in making machinery adapted to New Zealand requirements. It had been copied by American manufacturers, who had flooded the markot with machinery which .they had not dosignod nor produced in tho first place. Regarding churns, said to havo been imported from Germany, it was not correct to say they had beon coming in, although- perhaps correct to say they threatened to come in. The Government policy had always been to keep agricultural and dairying machinery free of duty for the purpose of assisting those industries in every way possible, and the matter should be considered in the next tariff revision. He did not altogether agree that further tariffs would get rid of unemployment, for experience showed that the more highly industrial a country was the moro unemployment manifested itself. llulhp Snowdcn had said that the nvenue with the highest tariff walls V> a<! tho blS6ost unemployment problem. Before, the, war. statements were frequently made in Australia that, notwithstanding, the high tariff, imported goods were flowing in freely over the tariff walls, and unemployment was more manifest there than in Now Zealand. Hero unemployment did not ■manifest.itself in the country districts at all. His impression was that it was ,an erroneous, deduction that an increase in the tariff would absorb men. THE TARIFF BOARD SYSTEM. In certain industries it was advisable to intake *a,long view and be careful thatVthere-was; not a general increase of duties :on tie general principlo that they would reduce or abolish unemployment! There was danger in tampering with, tariffs from year to year owing to the uncertainty it created iri.-tntde..ln reference to tho Australian Tariff Board;1 he. asked their Minister why it;was introduced. The' reply >as that the' Minister; agreed that the 'Department 'and experts: could do thd.: work: better, but the board was a political buffer between Parliament and tho manufacturer. In New Zoaland the officers of the Department had an extraordinary knowledge of the position of industries, the sources of raw materials, and.the number employed. It was'not desirable that New Zealand should have a board with contending factions. It would mean getting a minority -report. HOME CONSUMPTION OF PRODUCE. Reference, had been made to the Now Zealand market for the con-, sumption of primary products. Of the butter output 22.23, per cent, was' Consumed in Now Zealand, but if the present production was maintained it would require" 4J times the population to consume: it all New Zealand only consumed 4.99 per cent, of cheese and needed over twenty times tho population to use it all. Tho lamb consumed was 4.17 and mutton 49.21 per cent. For statistical purposes the primary industries, freezing, dairying, etc*, should be separated from manufactures to state the position clearly, and ho had asked for the statistics to, beseparated. The Department had grbup; ed them under five headings—(l) dairy producq and meat for export; (3) elec-

tricity and tramways; (3) preparations and materials manufactured for home consumption, such as boiling down and manure manufacture; (4) manufacture of liquors, wines, etc.; (5) industries in which manufacturers were interested, such as furniture, paper, engineering, wire work, electro-plating, of which there were 62.

The Minister expressed admiration for the energy and enterprise shown in developing industries. Personally he thought if they went ont in full armour with flags flying they would not get all they hoped for. They should proceed cautiously. He instanced the protection given on the motor-body building industry, which he believed would have good results. He was told a largo British firm intended to have bodies built in New Zealand. He hoped that all parts of the Dominion would get a share of that business.

Eeplying to questions, the Minister said what he had in mind was the tariff board association of 1921 with an officer from the Industries Department. He would be content -with the Controller of Customs, one or two technical experts in handling tariff classification, and a representative from the Industries Department. The delegates agreed that such a board would meet with their approval. Mr. Campbell asked the Minister if he advised going for a revision of specific instances in the 'tariff or a general revision.

The Minister advised a general revision in order to give all an opportunity of expressing their views before the tariff was revised.