EXPANSION AHEAD

Evening Post, Volume CXXX, Issue 99, 23 October 1940, Page 11

EXPANSION AHEAD

LOCAL MANUFACTURE

GROWTH OF INDUSTRY

LIMIT NOT NEARLY REACHED

The paramount duty today was to help win the war, said Mr. C. M. Bowden, F.P.A.N.Z., in an address last evening to members of the Economic Society of Australia and New Zealand in the lecture hall of the Central Library. Mr. Bowden's subject was "The Place of Manufacturing Industries in New Zealand Economy." Both primary and factory production must be maintained and increased if possible, he said.

In the face of the withdrawal of 50,000 or 60,000 men who would nevertheless still be consumers, each must work harder and produce more. Closer co-operation between employers and workers, research into most efficient methods, standardisation, and the use! of substitute material should be given their due weight. It might be necessary to provide for the more intense utilisation of plant, materials, and labour by a review of overtime provi- j sions, limits within which work might be performed, relaxation on restrictions of hours for female workers, and widening of provisions regarding shift work. TAXATION AND PRODUCTION. "Close investigation should be made into the impact of taxation on industry and its effect on production," said Mr. Sowden.

"To my mind the Government will ere long find it necessary and advisable to extend sympathetic consideration to applications from many young and growing businesses for exemption from liability to contribute to the compulsory loan, for instance.

"In other words, that in cases the best national interest will be served by allowing such companies to retain the funds in the business to maintain and expand production. Again, I believe it is not too early to consider what part industry shall play in the employment of the men we hope soon to have back from overseas."

In the earlier part of his address, Mr. Bowden.outlined the development "and change in the nature of secondary Industries,, commencing with such first industries as sawmilling, grain milling, and flax works. By 1880 fifty different industries employed 12,247 male and 483 female workers. With the rapid development of sheep farming, allied industries soon came and the most important milestone in the Dominion's progress was the application of refrigeration in 1882. The next few years saw industries, engaged in processing farm products take pride of "place; these were "secondary" industries in the true sense. By 1906 56,359 persons were engaged. "Jumping ahead another 15 years one : saw great changes in some industries. Motor engineering and clothing factories increased phenomenally. la 1932 the number of persons .engaged was 82,861, :and jn^sa - employees. .reached the six-figure mark, 102,334, in 5924 factories; salaries and wages totalled £20,981,000, and there was ah output of £113,691,000. Women comprised just over one-fourth of. the total number of employees. EFFECT OF IMPORT CONTROL. "The impact of import control saw a very material advance in manufacturing," Mr. Bowden said, "and not a few overseas concerns immediately established manufacturing units, some 80 in all, but in addition to these industries there was great expansion in a number of those already in existence, radio, clothing, hosiery, motor-car, agricultural implements, boots, and shoes." Industries provided employment for many thousands who could not find it on the land, but who were also consumers of the produce of the land; nearly one-third of the gross farming income was derived from sales within New Zealand; Australia absorbed nearly three-quarters of the total farming production. The harmonious development of primary and secondary industries • would make a well-balanced economy on broad and stable foundations. Agricultural and pastoral industries were not likely to show uninterrupted future expansion, and if they had a restricted future New Zealand could not look to the land for the assured future unless it was prepared to remain static.

SMOOTHING BOOMS AND SLUMPS

r "What then, is the alternative?" Mr. Bowden asked, "Surely only industrial development offers an agreeable j substitute to the expansion of primary industries, and, provided development is made in harmony with primary industries, I venture to say that the Dominion would be rendered less vulnerable to violent fluctuations in national income than if it depends on a narrow range of primary products. Development of industry would tend to flatten the curves of alternate booms and slumps." Two avenues of future development were open: expansion of established industries and establishment of new industries, . and Mr. Bowden detailed various possibilities under these two headings. That there would be some measure of planned development he had no doubt. Nor did he feel that New Zealand had nearly reached the limits .. of industrial expansion. The progress of manufacturers would bring added prosperity to the Dominion without prejudicing the interests of primary producers.