N.Z. INDUSTRY

Grey River Argus, 1 December 1938, Page 8

N.Z. INDUSTRY

NEW DEVELOPMENT

Minister’s Statement

[Per Press Association.] WELLINGTON, November 30. Hon. D. G.Sullivan, at the opening of the Manufacturers’ Federation Conference said: “One of the questions to be answered is. would there be a market in New Zealand for a greater volume of manufactured goods, the produce of our own factories?” "The import figures supply the answer. Taking the years ended September 30, imports from all countries increased from £43,000,000 in 1935, to nearly £60,000,000 in 19398, an advance of £16,166,881. This advance in imports was due to the fact that the purchasing power of the people was raised partly by the direct action of the Government, and partly through higher prices for our exports. The raising of the people’s buying power benefited manufacturers also, as the figures show. The figures for 1938 are not compiled yet; but comparing 193637 with 1933-34 there is a substantial increase to be seen of more than £8,000,000. This, however, is only half the increase recorded for imports during the four-yearly period, and indicates that of the extra £24,000,000 spent on goods in New Zealand, only one-third went into our own factories. The obvious fact is that this extra £16,000,000 worth of goods could have been made by our own oeople. and there we come to some problems. “The shortage of skilled labour at the present time can largely be attributed to the fact, that $o a P" prentices were trained during the depression. This is a question to be faced, and a solution found. With the active co-operation of the workers and manufacturers, and sympathetic assistance of the Government, the problem should be solved.” Mr Sullivan said it was °nly reasonable that existing manufacturers, who by their pioneering efforts had built up sound enterprises, and provided good employment for many New Zealanders, should have an opportunity of participating in any expansion. It would be unreasonable If newcomers into any industry were permitted t 0 roan all the fruits of industrial expansion. Thus It would he the Government’s aim to make it possible for present plants to be expanded. “Or the other hand we are not going to build your extensions for you, or put in more ..plants,” the'Minister said. “Existing manufacturers must exercise their own judgment and initiative If the Government can assist In any plans of expansion, I hope manufacturers wijl let us know their needs. I have been very pleased to note the number of overseas concerns which think it worth while to commence the manufacture of their products’ here. Some have come without direct encouragement from us. Others whom we needed in New Zealand have required some inducement.” Encouragement was given in the motor-car industry, where there was a lower rate of duty on vehicles imported “completely knocked down,” Mr Sullivan said.* There was scope for expansion in this direction, and he would like to’see manufacturers in the United Kingdom take greater interest in this question. There was also tariff protection. The added protection given earlier in the year had been of very great benefit to many manufacturers, and all members, of the Government were very gratified at the remarkable response manufacturers made to their new opportunities. "Prices are an important factor to any' government,” Mr Sullivan said "Anything which can be done to make goods cheaper, wtihout sacrificing quality or wages, is to be commended Increased efficiency is the key. In spite of the enormous strides made in production technique in recent years, I feel there are still many improvements which are possible.”

Tariff Board

AUCKLAND PROPOSAL. REJECTED BY MANUFACTURERS. / WELLINGTON, November 30. The principle of a moretflexible and scientific system of tariff adjustment was endorsed by the annual conference of the New Zealand Manufacturers’ Federation, in preference to the Auckland remit that the Government be urged to set-up a Tariff Board. , “ • Mr F. N. Ambler, the mover of the Auckland remit, said that tariff boards were favoured by Australia, England, and Canada, and worked satisfactorily in practice, the Government en unciate'd its policy while the board gave expression to it. The amendment was moved by Mr H. Higgins (Wellington), with the addition that the question J>e referred to the Council of the Federation foi consideration and development. . He said that' the Wellington Association was not fully convinced that a tariff board was the correct method of securing tariff adjustment. The machinery existed in the Bureau of Industry for the settling of the question of tariff movements, and it was quite possible that something might be done along the lines suggested. Mr R. G. Buckleton, the seconder of the amendment, said that the manufacturers would probably be in a minority on any tariff board that might be established. The question required much more investigation than it had been given. The amendment gave effect to the Federation’s general ideas without jrunning into undue risk.

The Federation resolved to commend the enlargement of the scope of the Department of Scientific and Industrial Research, and offered to cooperate in scientific research for industry. It was also decided that the Federation urge the Government to give immediate effect to a promise to give adequate protection to industry where required. An Auckland remit that the Govei/i--mfe|rit be requested to increase to £lO,OOO the amount of £3OOO allocated for publicity for New Zealand-made goods, was referred to the Council for action at'the appropriate time. Farmers’ .Union Leader ON SECONDARY INDUSTRIES. WELLINGTON, November 29. “It is a unique occasion,” said the

Dominion president of the New Zealand Farmers’ Union (Mr. W. W. Mulholland), speaking at the opening of the annual conference of the New land Manufacturers’ Federation in Wellington to-day. Mr. Mulholland said the attendance of the president of the Farmers’ Union at a meeting of the Manufacturers’ Federation did not represent a change of policy; but it did represent a change of emphas-

“We have looked at the position together and found that matters in which our interests were common greatly over-weighted matters in which our interests were divergent,” Mr. Mulholland said. He quoted American writing on the relatiohship of primary and secondary industries, and emphasised the necessity to agriculture of a sufficient production in other industries.

“We talk about primary and secondary industries,” he said; “but when you try to figure it out, you find that about half of what we call secondary industries are primary, and that not a few called primary are secondary. Let us think about industry in this country as a whole, for the material welfare of New Zealand as a whole depends on its industry. ’

Mr. Mulholland said a great many problems were identical throughout industry. One ,to-day was the relationship between the costs of production and returns. It was important for farmers, producing' most of the export wealth of the country, to have a healthy secondary industry. If they did anything that was going to injure secondary industry they would injure themselves. The same could be said of secondary industry in its relationship to industries producing for export. New Zealand to-day faced the problem of. keeping production at a high level. There were lands going out of production because of high costs, and machines in factories standing idle because of high costs. It was the same problem, and they should get together and deal with it.