OVERSEAS IMPORTATIONS

Evening Star, Issue 23129, 1 December 1938, Page 10

OVERSEAS IMPORTATIONS

COMPETING WITH WOOLLEN MILLS HANDICAP OF INCREASED COSTS PRACTICABILITY OF INSULATION QUESTIONED “ I am not an_ advocate for high tariffs, but with increased wages and the curtailment of the hours of labour, it is becoming increasingly difficult to compete with imported goods," said Mr Peter M'Skimming, chairman of directors of the Bruce Woollen Manufacturing Company Ltd., at the annual meeting at Milton yesterday afternoon. Emphasising the difficulties facing the industry in the Dominion, the chairman’s considered opinion was that nothing had hit secondary industries in New Zealand which were competing with overseas importations as hard as the 40-hour week. “ There is no doubt,” said Mr M'Skimming, “ that the mills in New Zealand have suffered a good deal from overseas competition, as both Europe and Australia have been exporting large quantities of woollen and worsted piece goods and knitted wear to New Zealand. During the year the Government increased the tariff on some lines, which will no doubt assist the local mills to a certain extent.’’ With regard to secondary industries which were producing _ goods in competition with importations from overseas, he said, it was his considered opinion that nothing had hit them as hard as the 40-hour week. It was not reasonable to suppose that New Zealand could increase wages and shorten hours and successfully compete against the imported article. The Prime Minister had consistently maintained that he could insulate New Zealand; if he could do it successfully he would earn the gratitude of all manufacturing companies. Insulation, however, might be all right in theory, but he had his doubts about the practical side of it. “ Reasonable competition is the life of trade, and if New Zealand manufacturers were competing amongst themselves only, the 40-hour week would not have the same drastic effects,” said the speaker, “ but when our secondary industries have to face high wages, short hours, heavy taxation and overseas competition there can eventually be only one end to the business unless some remedy can be found.”