TO BE PROTECTED

Evening Post, Volume CXXI, Issue 107, 7 May 1936, Page 10

TO BE PROTECTED

SECONDARY INDUSTRIES

BIG DEPUTATION

GOVERNMENT'S ASSURANCE

*'WILL NEVER LET YOU DOWN"

An: assurance that whatever remedies were necessary to protect the interests of the secondary industries of New Zealand would be applied was given to a deputation representing, the New Zealand Manufacturers' Federation by the Prime Minister (the Rt. Hon. M. J. Savage) this afternoon. The deputation, which numbered about seventy, consisted of manufacturers from all parts of the Dominion, and was one of the most influential that has ever presented a case for the secondary industries. "The. Customs may have to be revised, agreements arranged, or definite licensing of imports adopted," said Mr. Savage, "but whatever steps are necessary to be taken are going to be taken to protect you, those in your employ, and the interests of the people generally. I ask1 you to have a little patience and accept my word for it that we are never going to let you down."

The Minister of Finance (the Hon. W. Nash) and the Minister of Industries and Commerce (the Hon. D. G. Sullivan) were also present. Mr. Nash reminded the deputation of New Zealand's obligation to the United Kingdom, and Mr. Sullivan said that he had given attention to the reactions the Government's industrial legislation might have on the secondary industries. The-deputation was headed by Mr. D. Henry, president of the federation. "ROCKS LOOMING UP." Mr. Henry said that manufacturers throughout the Dominion had become somewhat uneasy about what the future held for them. They were looking for some changes that they did not consider it necessary to look for before. They felt that the structure they had built up was likely to be affected in some way that would affect their service to the community. He likened the position to a shipmaster who had been given charge of a ship, filled with goods that the people had been waiting to get. It seemed to him that the shipmaster had in his way a certain number of rocks that were looming up. "We have every confidence in the pilot steering us past the rocks," said Mr. Henry, "but we would be grateful if you could show us the course. If you can tell-us that the manufacturers have nothing to wc\ry about our uneasiness will be fully allayed and we can go ahead with perfect assurance." He pointed out that the manufacturers .were faced with the possibility of a shorter working week and higher wages, and they had to compete with companies that operated in New Zealand from overseas and were not faced with those costs. They were wondering how they were going to get business if their prices were too high to ■ prevent traders from placing orders with them and placed them overseas instead. Orders were going overseas at present. Also many manufacturers were being pressed to take forward orders. Traders said that if prices were going up, let them protect the future as much as possible. The manufacturers realised their responsibilities to their staffs and were loath to lose the orders. They were being faced with the difficulty of being unable to quote firm prices, and they did not. know what steps were being taken by the Government to protect them, with the higher wages and shorter hours. "We do not find fault with those," he said; "but we want some means of knowing how to conduct; our businesses with the handicap of competing with overseas costs. We are genuinely concerned about the future of, our responsibilities, which we have carried on without question lor years past, and we want some reassurance from you." " 40-HOUR "WEEK, PRODUCTION DROPPED. Other speakers, representing certain industries and also outside centres, emphasised the fact that orders were going overseas because manufacturers here could nol quote firm prices owing •to the uncertainty of the future. They wanted to stop those orders from going overseas. One speaker said that they had tried Wnt the 40-hour week and as a result production had dropped 15 per cent. Other speakers asked for further protection to become operative simultaneously with the new legislation, and expressed.their disquietude at the difficulties that became inseparable from any change in the status quo. The question of increasing the Customs taxation should be fully investigated, so that there would be no setback to industry, it was urged. Manufacturers in certain industries were particularly anxious : about Australian competition. It was urged also that there should be some control over the one-man factories. It was finally urged that unless there was some compensating pro- . lection for the new industrial conditions the burden might be too heavy lor the industry to bear. GOVERNMENT INQUIRING. Mr., Sullivan pointed out that the /Government realised the tremendous import of the question, and stressed the need for the Government having .all the information that was required. As Minister of Industries and Commerce he had given attention to the 'reaction of the Government's legislation on the manufacturers, and had a committee working with him giving particular study to this question. He felt that as a result of the Govern.ment's' policy the turnover of- industry should-be increased and the economic life of the country stimulated. If must have some definite effect on the purchasing power. A voice: Importers of overseas goods will .get it. Mr. Sullivan: I cannot speak for the Government, but the importers will not get it if I have my way. Mr. Nash said that it was necessary to, extend the secondary industries. The Government was out to help industry get an adequate return. New Zealand was hot exclusively dependent on the. United Kingdom for its standard of living, but it could be conditioned by that fact. He warned them of the danger of 3i^n^ teing the Dominion's £40,000,000 market in Great Britain. The Government would not allow in goods that could be manufactured here, but the country still must take goods from Great Britain in exchange for credits there. They, had to determine what goods those were to be, and they would be :goods that would be least harmful to the manufacturing industries of New Zealand. "We are not going to see our industries smashed," added Mr. Nash. The Prime Minister said, he never

felt more confident about the future of New Zealand. "KOCKS WELL KNOWN." Mr. Savage said he was out to assist those who were-giving a lead in the building of the country. The rocks Mr. Henry referred. to were well known. Everything that could be done to protect New' Zealand would be done. If the Government raised the standard of life it would need protection from lower standards outside. "You can take my word for it," said Mr. Savage, "that1 New Zealand industries are going to live. We should do the fair thing by our kinsmen overseas, but we are going to protect you against the sweater in your own household, and we will do whatever is necessary to protect you from the lower standards of other lands. "We have to decide what methods we shall adopt to protect you, and we are going to see that you are not exploited by the men nvho find the money. We | have to decide quickly whether we are to increase our tariffs, what trade agreements are to be made, and how much we can control exchanges. We are not going to allow, anyone to dictate our standard of living. That is a philosophy that any nation can accept. Whatever remedies may be necessary ■ for protection will •'. be applied. We i can only build New Zealand when we lay the foundation coiirectly. We have done things that other Governments have not cared to face, and we arc | going to do still bigger things, bearing |in mind th'e-rocks ahead."