The Evening Star WEDNESDAY, NOVEMBER 30, 1938. NEW ZEALAND’S INDUSTRIES.

Evening Star, Issue 23128, 30 November 1938, Page 10

The Evening Star WEDNESDAY, NOVEMBER 30, 1938. NEW ZEALAND’S INDUSTRIES.

There is no doubt a sincere desire on the part of Ministers to see the industries of this country expand and flourish. Mr Savage and Mr Sullivan have said so on many occasions. Unfortunately, they are not proceeding in the right way to bring about such a desirable result. This is illustrated in a statement made yesterday at Wellington by the president of the New Zealand Manufacturers’ Federation. It is wrapped up in a question of political expediency and principle. Mr Spears said that private enterprise in this country has to do its work in the teeth of sectional endeavours to make tho country a Socialistic State. “ It cannot be controverted,” he remarked, “ that private enterprise and Socialism are like oil and water—they will not mix.” The speaker pointed to influences, as a result of the Labour Government’s legislation, that are preventing industry functioning at its full productive capacity. They are the cumulative effect of high tvages, fewer hours worked per week, lessened production per man-hour, interference with the labour market consequent on the Government’s public works policy, and crippling company taxation. This statement cannot be refuted, and behind it lies the mistaken idea of the Government that it can hasten along the road to Socialism as if New Zealand was a self-contained and independent State, when, as a matter of

fact, our financial and economic system is intimately related to those of countries overseas. With the burdens imposed on industry after tho advent of Labour to power, goods imported from abroad produced at lower costs had a marked advantage over many of our own manufactures. After much pressure tho Government gave a measure of further tariff protection on certain lines. ’ '

Speaking at the Manufacturers’ Federation Conference yesterday the Hon. Mr Sullivan said the added tariff protection afforded earlier in tho year had been of very great benefit to many manufacturers. The position as a consequence is no doubt relieved to some extent, but the address given by the chairman at tho annual meeting of the Mosgicl AVoollen Factory Company yesterday was not reassuring. It was stated that the company was still faced with increasing costs, and the heavy importations from Great Britain and Australia made tho selling of the firm’s goods more difficult. The difficulties that tho New Zealand woollen mills had to contend with wore illustrated by the remark that for the months January to August, 1937, there were 4,626,000 square yards of woollen and piece goods imported into New Zealand, as against 1,319,000 square yards imported into the whole of Australia. When the relative populations of the two dominions aro considered, further emphasis is given to the way in which this, country’s manufacturers have been disadvantaged. Mr Sullivan points to tho marked industrial expansion in Canada and Australia, and says it is New Zealand’s turn to proceed along the same lines. This is not a happy illustration, for tho secondary industries of Canada and the Commonwealth have been developed under private enterprise with conditions freed from many of tho handicaps that are restricting operations in this country. The problem of industrial expansion, now so ardently desired by Ministers, is no easy matter. Obstacles exist that are largely of the Government’s own creation, and it is obvious that success cannot be achieved unless some of them are removed. If, as is asserted, there is a' Right wing and a Left wing in the Government party in the House of Representatives an adjustment of the present unsatisfactory position will not be easy, but it can be said without hesitation that an attempt by the State to conduct the country’s industries would inevitably end in disaster.