The Evening Star WEDNESDAY, NOVEMBER 10. 1937. INDUSTRIAL TRENDS.

Evening Star, Issue 22802, 10 November 1937, Page 8

The Evening Star WEDNESDAY, NOVEMBER 10. 1937. INDUSTRIAL TRENDS.

It is to be hoped that careful study will be given to the reports of the proceedings of the annual meeting of the Dunedin Manufacturers’ Association held last night. The various speeches showed an absence of political bias, the quiet and well-reasoned arguments that were put forward being directed to newly-arisen factors that are proving a direct hindrance to trade. It was stressed by the retiring president that as a non-political body his association was concerned only with legislation and regulations affecting the manufacturing industries. Mr Evans indicated some of the difficulties that existed to-day, and which may become more acute to-mor-row. His tale is not new. It has been told many times. The excuse, if one were needed, for repeating it, is that it bears directly on the fortunes of the whole of’the people of New Zealand Legislation, devised in haste and overconfidence, is bringing results that were not foreseen. Speaking of the heavy burdens imposed on the manufacturing industries by increased taxation, higher wages, shorter hours, and payment for extra holidays, Mr Evans pointed out that up to the present these had been largely offset by the prosperous conditions that prevail generally, and the satisfactory prices that are being received from the sale of our primary products overseas. Another factor, it might be added, is that the full effects of the new industrial legislation have not become apparent, for the Government has been in office for scarcely two years. Yet embarrassing developments have appeared. Higher costs of production in the local factories, Mr Evans asserts, have been followed by a striking increase in the volume of imports of competitive lines from abroad. When the possibility of this occurring was first mentioned an assurance was given by the Government that in such case prompt action would be taken to counteract any threatened dislocation of manufacturing business resulting from the altered industrial conditions. Import figures quoted by Mr Evans reveal that for the first eight months of the current year the total showed an increase of £9,141,823 compared with the same period in 1936. It is only fair to ascribe a portion of this to the greater spending power of the people as the result of prosperous times, but, allowing for that, it is evident that a considerable amount of money is being spent on imported goods that .previously went for tho purchase of manufactures produced in New Zealand. It is claimed that almost every secondary industry in the Dominion is affected by the greatly-increased flow of goods from overseas. This is natural enough, for in the end it is the customer who determines the position. When qualities of goods are equal he naturally chooses the cheaper article. In the circumstances it may reasonably be asked why the Government has not taken action to end the unsatisfactory development. It is not because Ministers are indifferent or insincere in the matter. The truth is they find themselves confronted with complications that they had not expected. For one thing, trade treaties obtrude themselves—Ottawa, for instance. At this conference, in return for preferences on her produce, New Zealand gave an undertaking that protection by tariffs should be afforded against United Kingdom products “ only to those industries which are reasonably assured of sound opportunities for success.” The implications hero are obvious, and they are sufficient to show the danger of interfering with the tariff against British goods. Mr Evans put forward suggestions last night for overcoming the difficulty that has arisen, They include negotiations with the British, Australian, and Canadian Governments. Such a plan would take time, when the matter is urgent. Another proposal was that the Government should consider an alteration in the incidence of taxation so far as manufacturing businesses are concerned. There is no doubt that effective relief could be given in this way that would have a favourable effect on our secondary industries, but in that case also no quick decision is likely to be made. In tho meantime the manufacturers of New Zealand and those whom they employ are awaiting anxiously for a definite announcement from the Government on the position. The chief lesson to be learnt from tho present development is that to shackle industry is not to achieve prosperity.