SECONDARY INDUSTRIES.

Evening Star, Issue 22193, 22 November 1935, Page 10

SECONDARY INDUSTRIES.

Speaking on matters connected with New Zealand’s secondary industries, Mr James Hogg, in his presidential address to the annual conference at Wellington of the Manufacturers’ Federation, raised issues that are entitled to the closest study. It cannot be denied that the Dominion’s prosperity depends to a very large extent on the sale of its primary products in the markets overseas, but as the country has progressed from the pioneer stage the manufacturing industries have "developed remarkably. To-day goods of fine quality and finish are turned out in variety by a large number of industrial concerns, absorbing our raw material and'employingl many hands who consume much that is produced in town and country. There is no need for any controversy regarding the relative merits of the two branches of industry. Both are highly important, and successive Governments have recognised this by the measures they have taken to stimulate the primary exports and to help the secondary industries. Mr Hogg quotes figures to show that of our total national income in 1933-34 amounting to £100,000,000 the value of our exports was £46,000,000, which ‘‘was only 46 per cent, of our total national income.” Even accepting the position in. the way stated by Mr Hogg—we are not challenging the accuracy of his figures—the vital importance of our primary production must be evident to everyone Without the sum quoted by him coming into the country, the manufacturing industries, in tne absence of any. outside demand for our goods, would be in a bad way. Mr Hogg’s real point is that with the trend in all countries in the world to economic nationalism and the curtailment of the overseas market New Zealand will have to • rely more and more on the domestic market io absorb its own. products.

Mr Hogg’s contention is that the secondary industries will play an increasing part in providing ‘ goods for the farming community. The question of population enters very largely into the question, and till that expands consumption of local goods in the Dominion must find a limited market. Mr Hogg appeals for a sane and practical State plan to foster our own manufactures. There is much to be said in support of the advocacy of a policy which would urge the public of the Dominion to purchase their goods in the following order: —New Zealand first, United Kingdom (our most important customer) second, other Empire countries third, and foreign last. In this connection our trade balance with Australia is definitely against us, and Mr Hogg urges that New Zealand should place a sufficient tariff on Australian manufactured goods for the purposes of preventing them operating to the disadvantage of Great Britain, and providing protection to New Zealand goods high enough to secure them from competition from the Commonwealth that would be disadvantageous to their interests. Mr Hogg’s plan, which has much to commend it, would be to grant free admission to Australian citrus fruits, that are so much in demand in the Dominion, and at the same time place on imports of manufactured goods a scale of duties higher than that imposed on corresponding imports from the United Kingdom. “In this way we could assist Australia with imports which we require and protect Great Britain with her trade in this market.”

Dir Coates in the election campaign has been making reference to the secondary industries, and has discussed important points. He puts the onus on. ijb© jasnufactwars of doing thei?

part, pointing out that certain branches of industry are not in a thoroughly satisfactory condition. He calls for organisation, co-ordination, and efficiency. After all, the amount of tariff protection that can be imposed is limited, or there would be a danger of unduly heavy costs to the consumer in town and country. There are many matters in Mr Hogg’s address that call for careful consideration. One thing stands out clearly, and that is that in these days of intense competition good organisation, efficiency in production, and high quality arc essential to success.