TRUE EXPANSION

Evening Star, Issue 22711, 27 July 1937, Page 3

TRUE EXPANSION

ONLY BY POPULATION VIEWS OF MANUFACTURERS PROTECTION AGAINST IMPORTS FLOOD Declaring that tho true .expansion of New Zealand could only be brought about by the development of the secondary industries and a, growth of population, Mr H. L. Longbottom, in an address to the Expansion League last, night, appealed for .Government intervention to protect local manufacturers from the present flood of imports.

“ 1 think the true expansion of our city and province can result only from an increase in the permanent population, _ with a greater number of people happily and usefully employed and contributing to the national welfare and income,” Mr Longbottom said. “We in Dunedin and Otago have permitted other centres to forge a long way ahead of us in this respect, and it would be well for us all to do whatever wo can to advan.ee at the .same proportional rate as some of, tho now- more populous centres. We should try at least .to keep pace with them, if not to make up some of the leeway.” The initial rapid development of Otago was directly from gold mining, followed or accompanied by land settlement, Mr Longbottom continued. Mining was not likely to give suitable employment to 'any greatly-increased number of people, and although agriculture might absorb more, lie thought it had very definite limitations. Recently the Minister of Labour and Industry in New- South Wales had released an .interesting survey on tho prospects of employment. J.t showed that while, during about 11 years, flocks had increased by 16,700,000, crops by 1,800,000 acres, and butter production l)y 44,600,0001 b, the number of people permanently employed in these rural pursuits had actually decreased by 8,200. This very striking diminution in rural employment was general throughout Australia, due, of course, to tho rapid increase of mechanisation. He had not. seen the corresponding figures for New-Zealand, but'had little doubt that they must be of the same trend if not the same amounts.

“ Consequently I think it reasonable, to conclude that if we are to look for expansion in Otago we must look to the manufacturing industries,” Mr Longbottom said. “In older countries it is an established fact that as manpfactures increase so does trade or business complexity increase. The result is that there is not only the anticipated proportional increase of people directly engaged in industry, but also a larger proportional increase employed indirectly iu services . such as transport, distribution, finance, etc., which are necessary to place the goods in the hands of the consumer. Census figures show that till now- this has also been the case in New Zealand. Consequently profitable manufactured , production provides opportunities for an expand-, mg population. “ Jn 1910 the total value of New Zealand factory production was £30,000,000, and by 1925 it had grown to £90,000,000. Thus it had trebled in a space of 25 years. Jf in the ensuing quarter of a century the 1935 figure could be doubled it would be a splendid achievement, and would solve a number of our pressing problems, not the least of which is unemployment.” NOT AN EASY TASK.

Mr Longbottom said he knew well that industries did not grow- like mushrooms, but required capital, initiative, enterprise, knowledge, skilled workers, and frequently, many years of hard and patient work on tho part of all those engaged. To develop new industries was, therefore, not an easy t-ask, and every effort should be made to encourage them and not to eliminate the incentive of gain or to put obstacles in tho way. In Dunedin there were some well-established and highly-effi-cient factories whose products were well-known and sought after throughout the Dominion. They should bo encouraged to expand by an assurance of future stability. At present many of the industries throughout New Zealand were facing a very uncertain future, and when expansion was being anxiously sought any setback would be most unfortunate. Imports had been literally pouring into New Zealand in recent months, with the result that, to his own knowledge, many warehouses and retailers wore so stocked with goods that there would ho no need to reorder for some considerable time. Unless something was done by the Government, one must expect that when tho time to’ reorder came then tho business would again go overseas. Prompt action was necessary. “ Jf this citv and province and, in fact, New Zealand, is to expand and flourish, as we all tcrveutly hope,” Air Longbottom concluded, “it must largely be through the rapid and efficient expansion of our manufactures.” THE GOVERNMENT’S DESIRES. Later. MV J. \V. Monro. ALP., cornmen led that a new era was opening

out for- the secondary industries, for which there was room for development. The Government, he was sure, would foster the industries as far as it was possible. ' Over-importation of goods had to be -watched very carefully, and the Government was alive to the men. ace. which was not from England hut from Australia. The position arose from Australia having parity of exchange.