NO GOLDEN EGGS

Evening Post, Volume CXXVI, Issue 102, 27 October 1938, Page 10

NO GOLDEN EGGS

IF GOOSE IS KILLED

RISING COSTS

EMPLOYERS ALARMED

The only practical method of solving unemployment was the encourage-j merit of riianufacturirig industries, not by employing men on undertakings financed by the Government from moneys collected by excessive taxation, said Mr. A. C. Mitchell, president of the New Zealand Employers' Federation, .addressing the annual meeting of the federation today. On the completion of the big Government Works the unemployment would remain; he said. An indication of the effect on costs of the Government's own legislation might be gained from the State housing scheme. This showed that the cost was substantially higher than the original estimate, thus compelling a revision of the originally proposed rentals. Every other industry's costs were practically similarly affected. The cost of production under present conditions made it impossible to compete successfully with countries in which restrictive legislation such as they had in New Zealand did not apply, said Mr. Mitchell. He referred to the orders placed in Great Britain for railway locomotives (£400,000), and . more recently for rail-cars. It was well the order was placed where it was, but could they not have been made here? It seemed that not even State socialisation of- , production could achieve the claims made for the system. NEW ZEALAND LOCOMOTIVES. "There can be no question," he continued, "as to whether these engines and rail-cars could have been manufactured in the Dominion by New Zealand craftsmen, nor any doubt as to the beneficial effects which would have accrued from the wonderful stimulus which their manufacture here would have given to a languishing New Zealand industry. Quite a large percentage of the railway locomotives in use on our railways today have been built in the Dominion, and there can be no question as to the excellence of the workmanship of the New Zealand craftsman as reflected, in the finished product. In years gone by at least one New Zealand engineering house specialising in the manufacture of locomotives for the New Zealand Government railways employed a very large staff of skilled tradesmen on that work; but today that establishment is reduced to very much smaller proportions with a mere skeleton of its original staff, whilst large orders, for equipment are sent out of the country. - ' -■■■ Surely if the capacity of the railway workshops is overtaxed, the manufacturers of this Dominion were justified in expecting that the Government would have called upon them to assist. "There may of course be a satisfactory, explanation of a policy which is apparently in direct conflict with the expressed desire of the Government to assist the manufacturing industries of the Dominion, but I am not aware of it!" " - ; .The effect of the present policy of handling the unemployment problem was strikingly illustrated by the report of the activities of his Department which was tabled in the House of Representatives by the Minister-in-Charge of Public Works during the last session of Parliament, together with his proposals for the coming year on which it was proposed to expend no less a sum than £19,644,700, the expenditure for the previous year having^been £11,868,931. EMPLOYERS' ANXIETY. "Having regard tc the extra company taxation, also the additional individual taxation imposed during the last session of Parliament, to say nothing of the present undisclosed liability which is inevitable to meet the commitments which have been imposed upon the country by the Government policy, to the substantially Increased cost of all commodities and services, to the serious shringage in overseas trade returns and huge increase in value of imports as disclosed by the return of the Customs Department, to the difficulties experienced by many manufacturing concerns today with the additional restrictive provisions to face recently, imposed by awards of the Arbitration Court, employers have cause for serious anxiety as to the future in store for the capital invested in their undertakings, on the return from which, after all, the employment, welfare, and social security of their workpeople so largely depend," said Mr. Mitchell. "Industry in New Zealand today is rapidly reaching the stage where the old story of 'the killing of the goose that laid the golden eggs' may have a special significance. "It must be distinctly understood," concluded Mr. Mitchell, "that the sentiments expressed in this address are not necessarily the opinions held by a majority of the members of this federation, which comprises men of all shades of political opinion, and for that reason we do. not permit discussion on purely political questions. Neither is it a criticism of the Labour Government as such. . . "It is, however, my duty as president of this federation to voice my •personal criticism of any legislation affecting the welfare of employers and the industrial relationships of employers and workers as I see it, and in doing.so to assure the Government in.vpower—quite irrespective of our strong disapproval of some of their proposals—that they may rely upon the fullest co-operation of our organisation should such co-operation be called for in drafting legislation so as to avoid pitfalls prejudical to the interests concerned, and in doing everything in our power to ensure a successful result from any legislation which may be written into the statutes of the country."