INDUSTRY HELPED

Evening Post, Volume CXXIV, Issue 96, 20 October 1937, Page 10

INDUSTRY HELPED

ACT DEFENDED ' CHAIN STORES-—A DENIAL Replying to criticism directed at his Department by Opposition speakers, the Minister of Industries and Commerce 1 (the Hon. D. G. Sullivan) said there : was no foundation for the suggestion made by the member for New Plymouth (Mr. S. G. Smith) that the Government intended to enter the chain store business with the object of controlling prices. "There is no intention on my part or on the part of the Government to establish chain stores," said Mr. Sullivan, who went on to refer to the suggestion that the Government was contemplating taking steps to control the retail trade in chemistry. The Minister added that as a result of conferences between the Bureau of Industry and a big overseas firm it was possible that ultimately something beneficial, to the public generally would , be brought about together with a compromise satisfactory to overseas interests and the interests of chemists within New Zealand. Meantime, the relationship , between the Government and the retail chemists was of the friendliest order. Continuing, the Minister said the member for Qroua (the Hon. J. G. Cobbe) had appeared to be worried over the operation of the Industrial Efficiency Act, and had tried to create tho impression that the' farming industry was about to be brought within the scope of this legislation. Mr. Cobbe: The Government has the power to do it. Mr. Sullivan: That is a very different matter. Mr. W. J. Poison (National, Stratford): Why take the power if you don't wish to apply it? APPLICATIONS MADE. Mr. Sullivan: Would it surprise the honourable member to learn that quite a number of primary producers have made application to be brought within the provision of the Act? I would like to ask whether the Opposition, providing it got the opportunity, would repeal this measure. As an example of the successful administration of the Industrial -Efficiency Act, mejnbers had only to look at the advantage it had been in sheltering a North Island rennet factory from competition from powerful overseas financial interests. Because of the operation of the Act this factory had been able to establish itself, and was now supplying New Zealand cheese factories with supplies of high quality rennet at a cheaper price than they could be obtained for from any other country.' Had'it not been for the operation of the. Act the New Zealand factory would haVe been'-undermined by competition from overseas. Mr. Cobbe: Why threaten the farmers? [■ Mr. Sullivan: I believe the honourable gentleman has been thinking about this so much that he can't sleep. He has my assurance that the Act is being administered with the wisdom of Solomon himself. (Laughter.) Mr. Sullivan added that the measures taken to ascertain the position of the fishing grounds of New Zealand •had ibeen, fully justified. There had been an impression that New Zealand had unlimited supplies of fish to ■draw upon, but this was not the case. It was possible that the steps taken to conserve the supply of fish would have to be continued for a further period. "FLOUR NOT POOR. . The Minister then made a strong denial of the statement of Mr. S. G. Holland (National, Christchurch, North) that New Zealand flour was of very poor, quality. Government's plan for the conmfl of the wheat iand" flour industry had proved a great success. Growers, millers, and bakers willingly agreed with the Minister that the scheme was one of the most successful of its kind in the whole world. The Government had- been criticised for the assistance it had given "tne industry, but the previous Government had itself spent a great deal of money on this industry. In 1920 it had made a subsidy to the ( millers of £358,000, following this up In the next year with a subsidy of ; £489,000. In 1922 the subsidy dropped j to £182,000, but the figures spoke for themselves and answered any criticism that had; been levelled at the" present : Government under this heading. i, COST OF LIVING. . Discussing the cost of living, thp Minister said official figures showed that in 1937, after the Government had been in office for two years, the cost was lower than it had been for 12 years before 1931. The cost of living was -higher than during the depression years, but it was lower than any normal year when the Opposition was in office, 1 In addition to that, said the Minis- • ter, retail prices had increased by 6.8 per cent., compared with 6.2 per cent, j in Britain, but in Britain the real , wages had dropped 2 per cent., com- ; pared with an increase of 9 per cent. ' in New Zealand. In Australia the ] workers were down 1 per cent. That : was an answer to the propaganda of ! the Opposition. In. other countries wages and salaries had lagged behind , the cost of living, but in New Zea- \ land the reverse had been the case. The workers had not suffered because of increasing costs; on the contrary, the position of the workers had been improved. Claims for the family allowance showed that many workers had advanced beyond the £4 a week mark, and the Post Office Savings Bank deposits and insurance policies in force showed how workers were 1 able to save. c ; * : - ' - ! The majority of the secondary industries in New Zealand were in a ; healthy condition, Mr. Sullivan said, and the few that were suffering be- ' cause of overseas competition would ! receive attention. From the remarks of the Opposition it might be thought that every factory in the country was in a bad way, but only a few were in difficulties. Even if the position i was as bad as the Opposition tried to make out, the Opposition members : had proved that they could not help the secondary industries. In no coun- ; try in the world where there were 1

established industries had they _ been helped less than New Zealand industries had been by the late Government. Mr. Poison: They had the advantage of the exchange. Mr. Sullivan: Yes. Mr. Poison: You opposed that. Mr. Sullivan said he would give the Opposition the exchange in and still say that they had done less than any other Government for secondary industries. Discussing railways, Mr. Sullivan said the cost of operating today compared very well with the cost during previous normal years. In reply to a question he said the Railways Statement was in print and would be presented to the House in the near future. Mr. Holland denied that he had condemned either New Zealand vvheat or (lour, and quoted from his Hansard proof to show that he had referred to the quality of bread in tho North Island.