GAINFUL EMPLOYMENT

Evening Star, Issue 21960, 21 February 1935, Page 13

GAINFUL EMPLOYMENT

LOCAL MANUFACTURES PROVIDE OUTLET NEW LINES DESIRABLE A paper dealing in a comprehensive manner with aspects of New Zealand manufacturing industries was read yesterday at the third convention at Auckland of the New Zealand Society of Accountants by Dr E. Marsden, secretary of the Department of Scientific and Industrial Research. Special reference was made in the paper to the problem of finding work for the unemployed, and Dr Marsden dealt at some length with the possibilities in the direction offered by existing industries. “ Taking a broad view of the whole situation,” it was stated. “ and assuming the continuance of world-wide nationalism involving the difficulty of further expansion of markets for our agricultural produce, it does not appear probable that we shall be able to employ with advantage many more persons in agriculture for the next few years. We are, therefore, forced to the conclusion (particularly in view of our increasing population) that it is desirable that our present unemployed should be absorbed in manufacturing industries or mining or in the further processing of many of the products of our primary industries. Only in this way shall we at the same time increase the amount of goods to go round and increase purchasing power and more nearly equalise it among our people. This .leads ns to a discussion of the types of industries in. which it may be possible to absorb this surplus labour, although in passing it is perhaps desirable to refer to the suggestion that in part the situation may be met by a lowering of the number of working hours. This probably might have the effect of, distributing available employment on a wider basis, but it is not desirable on this account alone. It is only desirable provided it does not result in a decreased standard of life measured by worth rather than by price, and this condition would involve more and more mechanisation and better and better organisation. It would be difficult to adopt quickly a much decreased general number of working hours per week in New Zealand, owing to the nature of many of our industries. The five-day week has, however, been successful in certain of the newer overseas industries where large scale efficient production or monopolies are a factor, including one or two examples in New Zealand.

“ There are three other ways in which existing income is being redistributed in the direction of equalisation. The first is the effect oh the wages fixation by the Arbitration Court; second, the unemployment tax; third, steeply graduated income tax and death duties which provide money for social services whose chief beneficiaries are the poorest paid section of the Community, ‘‘Over.and above these methods, however, is the desirability of increasing purchasing power through gainful employment. Taking the approximate figure of, say, £25,000,000 available for imported goods it should be noticed that this amount, less costs of raw material used in local industry, etc., will be available whatever the type of goods manufactured in the dominion, except in so far as these react on the attitude of customer countries to our exports; and, with an increase in manufacture of suitable lines in the dominion, it merely shifts the incidence of imports into more specialised lines. It should also be noticed that this is true, apart from the costs of imported raw materials and machinery, whatever, the “ magnitude ” of local manufactures. It would appear, therefore, that we can increase local manufactures without seriously affecting the total import position. There might, it is true, be a shift in the sources of imports to those countries with a higher standard _ of living—i.e., those countries producing desired specialities, such as motor cars, refrigerators, or electric carpet sweepers, or to countries producing raw materials required in our own industries. The distribution of sources of imports is, however, beside the argument and can be adjusted by trade agreements or preferential tariffs. It is perhaps unfortunate that we take only half of our imports from Great Britain. If we examine our present imports, however, of such goods as are produced in present New Zealand manufacturing establishments, we find that there is probably less than, say, £3,000,000 of import trade which present manufacturers could readily capture. Now, roughly, the average worker employed in New Zealand manufacturing industry produces about £6OO worth of finished goods. The capture of the trade would employ in production a further 5,000 hands, of whom 4,000 would be males. (Approximately 50 per cent, is added value, and, say, half the _ raw materials would have to be imported.) Perhaps accountants will be shocked at these approximate guesses instead of accurate figures—possibly someone will correct them. My point, however, is that this would not sufficiently meet the unemployment situation, particularly as with increased' output the production per head may be expected to increase and we are forced to the argument that new lines of manufacture are desirable in the national interest of employment, even allowing for the ‘ larger ’ factor of the increased manufacture caused by, the possible better distribution and exchange within our own borders —i.e., independently of curtailment of imports of the same manufacturing lines.”