PRIVATE BUSINESS EXPANSION

Evening Star, Issue 22191, 20 November 1935, Page 15

PRIVATE BUSINESS EXPANSION

government affording FACILITIES HELP FOR STEEL INDUSTRY [Per United Press Association.) BLENHEIM, November 19. In the course of a speech at Blenheim yesterday the Minister of Finance (Mr Coates) said that important progressive moves had been made by the Government in the direction of facilitating private business expansion. Some nine months ago the Unemployment Board took the initial steps towards development of the steel industry in New Zealand by arranging, in co-oper-ation with a company holding options, for a comprehensive survey ot the Onakaka iron deposits, and an examination of the prospects of successfully establishing the steel industry in New Zealand. A full report had been received from Messrs Brassert and Co., consulting engineers and advisers, which stated that the prospects were very favourable provided some assistance could be given by the Government in the early years of the undertaking. For some time officers of the various Government departments had been collaborating with the Unemployment Board in making a careful examination of the report, and had now presented a recommendation defining the terms under which assistance could be given from the unemployment funds for the erection of plant and providing assistance during the early years. These proposals were an important step forward in the direction of co-operation between the Government and private enterprise, while at the same time safeguarding the funds of tlm State and ensuring a permanent basis of coordination and collaboration. A detailed pronouncement would be made as soon as the negotiations with the company holding the options were completed. There was every prospect of establishing the industry which would provide direct employment for 1,700 men, and at the same time be of great value to the industries using steel in New Zealand.

The Government, through the Unemployment Board and in other ways, was prepared to investigate other specific projects in the same way with a view to assisting developmental action through private enterprise, hut in addition a method and procedure had been devised whereby continuous co-opera-tion could be effected betweenthe Government and private enterprise. The intention was to facilitate investigation and apply the most appropriate form of assistance, whether by a partial guarantee of a subsidy or in other ways, to enterprises which showed prospects of developing into profitable concerns within a reasonable period. The first step would be an invitation to responsible and representative groups interested in industrial development to have associate members attached to the Unemployment Board. As experience was gained and the unemployment aspect of problems became less important, this method of collaboration might be modified. It was hoped that local groups throughout New Zealand would provide valuable assistance in drawing attention to the possibilities of development and advising on local conditions.

The report of the Companies’ Promotion Commission presented last year drew attention to the existence of_ an important group of companies organised for the purpose of promoting industrial development. Following on the discussions extending over a lengthy period with the Unemployment Board, a representative of the group had been appointed as an associate member of the hoard. Similar facilities would be offered to other groups possessing satisfactory credentials. The policy of the Government had first been to re-establish equilibrium so as to provide a stable foundation for prosperity. The second feature of its policy had been to provide important facilities for action. The process now well under way was the utilisation of these facilities with a view to stimulating the development of private enterprise. Unemployment figures had already been reduced to about 40,000. The proposals to which he referred, together with a carefully planned expansion of public works, would bring about a further substantial reduction, and in addition would strengthen the prospect of an early reduction in taxation and lead to a more balanced distribution of the national resources and an increase in the wealth of the community.