N.Z. MANUFACTURES

Evening Post, Volume CXXX, Issue 99, 23 October 1940, Page 15

N.Z. MANUFACTURES

QUALITY AND COST

PROBLEM OF DISTRIBUTION

Though manufacturing industries in New Zealand operated under handicaps of small population and of distribution over two narrow islands separated by Cook Strait, said Mr. C. M. Bowden, F.P.A^N.Z., in an address to members of the Economic Society of Australia and New Zealand, in the lecture hall of the Central Library last night, nevertheless the considerable expansion of those industries was the sound method of. assuring the future prosperity of the Dominion. Mr. G. Lawn presided. "Speaking in general terms, I would say that manufacturers in New Zealand are efficient," Mr. Bowden said. "Alertness to scientific and technical advance and the stress of competition from overseas markets in the past haveuinduced them or forced them, as tfljpcase may be, to acquire up-to-date machinery. One need only look at the figures of imported machinery over a period of years to be satisfied on that score. And they have the advantage that our workers are second to none in intelligence and possess plenty of initiative and resource." It did not follow, he said, that prices of locally-made goods must necessarily be higher; instances could be cited where establishment of local works had reduced prices, but even if prices of some commodities were a little higher it might nevertheless be of economic advantage to have those works. One of the biggest handicaps was that the small-population did not justify really large-scale works. Distribution charges were high in that New Zealand's small population was scattered over 1000 miles. TREND TOWARDS SMALLER FACTORIES. "But," said Mr. Bowden, "just in passing let me say that size alone does not necessarily promote economic wel- j fare and I believe less faith is now held in either the benefits or efficiency j of that production. There is a trend in some countries away from the establishment of enormous factories." He cited recent developments in American industry in that regard. It could not be denied that unit costs in New Zealand tended to be high; landed cost of machinery, restrictions on hours of work, limited output from whatever reason, must cost more per unit. Such charges as rent, interest, licence fees, insurance, land tax, were paid irrespective of hours worked, and other expenses, management charges, and salaries, lighting and power, delivery charges, etc, did not increase pro rata to output.