GOVT. AND BUSINESS

Greymouth Evening Star, 14 November 1934, Page 7

GOVT. AND BUSINESS

MR. COATES’S CLAIMS | ADDRESS TO MANUFACTURERS [per press association.] WELLINGTON, November 14. Mr Coates, in an address to the conference of the New Zealand Manufacturers’ Federation, this morning, referred to the criticism levelled against the Government as the result of the Ottawa agreement, but said he thought that the criticism from both sides cancelled each other out. He quoted the Railways and Post Office Savings Bank figures to show that conditions in New Zealand were improving. The recent increase in spending power had shown itself in almost phenomenal figures for the registration of new motor vehicles. The unemployment figures also showed a substantial improvement in the September quarter, giving a drop of nearly 14,000 compared with 1933. Both exports and imports had shown an increase. Imports exceeded exports for July, August and September’ of the present year, which -was significant of the return to normal. The banking turnover for the first ten months of of 1934 was £563,000,000, compared with £466,000,000 in 1933. That indicated greater business activity. The bank advances since August had also increased.

In spite of the improvement in the unemployment position, continued Mr Coates, there was still every reason for concern. That affected the manufacturers very directly. Already, he had suggested in a tentative way that the manufacturers should examine the bearing of the length of working time on the problem. He realised that many difficulties were involved, but it deserved patient examination, to see whether and how far they could be overcome. New Zealand had no reason to be ashamed of the steps that had been taken towards economic adjustment. Nowadays, from all sides, they heard'-complaint of too much Government in business, as though the Government desired to extend its activities. He therefore wished to emphasise that the Government did not desire to extend its activities, but that any Government intervention in business life was brought about by the pressure of circumstances. Referring to the statement that New Zealand should insist on a higher standard of general education for children, Mr Coates said that if a higher age for entry into industrial employment would help to’ cure unemployment, and if the manufacturers could agree among themselves as to the necessity for the step, they could rest assured that every consideration would be given in cases, where assistance was necessary against the competition of goods produced unles less favourable labour conditions. In New Zealand, there were many manufacturing lines which they should be able to produce as cheaply and efficiently as other manufacturing countries. The New Zealand manufacturer had at hand a market of at least 1,500,000 people, all consumers, but had to guard against over-dfevelopment of productive capacity. The moral for New Zealand was that over-capitalisation must be avoided. New Zealand had over-capitalised by multiplying the number of small factories, so that many were not running to their full capacity. The Government should not be asked to protect those. It was the duty of industry itself to eliminate high cost. Producers should give consumers the benefit of lowered overhead costs, in lower prices. There were many concerns in New Zealand which were individually efficient, yet industry as a whole could be regarded as uneconomic, because larger units were possible and necessary. The Government was willing to meet the manufacturers, when it could be shown that their proposals would not only assist themselves, but conduce to the material welfare of New Zealand.