MANUFACTURING COSTS

Greymouth Evening Star, 12 August 1936, Page 3

MANUFACTURING COSTS

MORE PROTECTION URGED

[PEB PBESS ASSOCIATION.]

DUNEDIN, August 11

The desire that the Government should give an indication whetliei it intended to protect manufacturing industries against loss of business through increased costs, was expressed by members of the committee of the Dunedin Manufacturers Association at a meeting to-day. The matter was raised during discussion of the Government’s attitude towards manufacturing industries.

The chairman, Mr. J. Sutherland Ross, said that the question had been under discussion by the council of the New Zealand Manufacturers’ Federation ever since the Government’s new labour legislation had been first mooted. It. was realised that the inevitable effect of legislation proyiding for increased wages and shorter hours of work was to add appreciably to manufacturing costs. Many manufacturers had to face competition from imported goods, and very often the securing of business to keep local factories busy was a question of price. There was a danger that business would go past the local manufacturer, when he found himself compelled to increase his prices to cover the higher costs now to be met. The aim of the Government was to absorb labour into productive work, and if industries were to absorb an increasing volume of labour they must be assured of an increasing volume of business, and not be exposed to prospective loss of business from overseas countries. The Government had expressed high hopes, the chairman added, that the increased purchasing power of the public would bring about an acceleration of business, but the important point was to ensure that there would be a corresponding stimulation of local industries. The Government had given general assurance that the encouragement of local industries was part of its policy. Up to the present, however, the continued efforts of manufacturers had failed to obtain from the Government any indication of the steps it proposed taking to make that policy effective. It was decided to support the New Zealand Federation in its efforts to obtain a definite statement from the Government of its intentions.

GRADUATED LAND TAX

PALMERSTON N., August 11

The Chamber of Commerce hus pasetf a resolution asking the Government to review the graduated land tax proposals and to arrange to modify “the undoubted inequalities' and oppressive demands, especially as far as .commercial and business houses are concerned.’’

ft was explained that a person owning land worth £20,000 would be called on to pay three times as much tax as previously. Beneficiaries under estates not saleable at present would be severely taxed/ the holding being rated as a unit. Business firms owning land in various parts of the country either have to pass on the increases or go out of business. Land was held by firms in cities for business, and not speculation, it was said

that the lax as applied tp ui;ban land was nothing j.eps than a super income tax, and would have drastic effects on enterprise, unless modified.