GREAT CHANGE PENDING.

Hawera Star, Volume XLVIII, 5 January 1929, Page 6

GREAT CHANGE PENDING.

AFFAIRS IN ENGLAND.”

IN D USTRIAL PROBLEMS DTSOUSSED. Commercial and economic conditions in the United Kingdom were- discussed by the Hon. Sir Thomas Mackenzie, during an interview with a representative of the “Dominion.” Sir Thomas, who returned to- Wellington by the Itemuora on New Year’s Day, spent nine months in the Old Country, during which time his observations led him to believe that a great change- is pending in Britain in the immediate luture. Speahing generally of British industry, he said it was struggling hard!, in face of many drawbacks, to maintain its local and overseas trade, and that the leading active commercial minds realised that an entire change- of method in production, and in disposing of products was essential if Britain was to iio-id her own.

Referring to the need for a transition in the methods of industrial production, he mentioned 1 a recent statement by .Lord Molcliott, a leading authority on national industry, that if Britain continued to conduct her industries in the present antiquated manner, she wou'id fall still further behind in the race of industrial efficiency. Industry I to-day, lie had pointed out, was no longer merely one company versus another company, l't was iroally nation, versus nation. The markets of the world to-day had become one unit. Another authority with whom Sir Thomas Mackenzie came frequently into close contact —Colonel Vernon Willey, who was particularly wedl qualified to speak concerning the woollen manufacturing industry—had also emphasised l the need for a reorganisation ot industry and for adaptation to modem requirements. He declared that the British manufacturer had not modernised his plant and Acs methods, while others had done so. The central idea said Colonel Willey, was that big combinations must be brought together, not for the purpose of aeducI! iug wages and depending on that, but to minimise overhead costs by producing large quantities and adopting tibor-,-ough methods of marketing throughout I the countries of the world.

FALLLNG OFF IN TRADE

Sir Thomas said that there could be no doubt that Britain wu,s very, very far behind other countries in manufacI tu-ring and methods of developing overseas trade. While the United States i bad managed to increase its trade in Europe the trade of Britain had fallen off. In South America' tine Unitedi States had increased its trade from 16 per cent, to 29 per cent, while the United Kingdom had receded from 28 per cent, to 20 per cent. Again, in China and Japan the United Kingdom had 'lost ground. Indeed, it was only in her overseas possessions that Britain’s trade had increased, and tihat had been largely the result of preferential! tariffs. Apart from the fact that in many eases modernisation had not been adopted, the increased posts in manufacturing had caused the importation into the United Kingdom of enor-

nious quantities of materials which -were made at Home. PRIME -MINISTER AND INDUSTRIAL PROBLEMS. Continuing, oir xhomaa said that a. good uoaii of attention was being devoted to tlie industrial problem by tne Prime Minister (.tire Rt. Hon. Stanley Laid winj, who had expressed Ike _ opinion that British industry was justifying itself. and 1 that Britain would soon emerge an efficient industrial nation. ton- Thomas McKenzie went on to isay that many people- in England looked to the safeguarding policy of tffe McKenna duties as a. means or improving industrial conditions in Britain, and in certain industries which had been wisely selected for safeguarding,, much good had resulted. The motor manufacturing industry, the lace industry, the pottery industry, and the piano trade, tor instance, had bean enormously benefited. Sir Herbert Austin, chairman of the Austin Motor Company, declared that the increase in the -business of his firm was directly traceable to the safeguarding of the industry -by the McKenna duties. Under tffat policy his production had increased six times ; the workers’ earnings Aad increased, on an average from £IOO to £247the number ol ; employees had increased 4.', times; tlie-profit volume had increased times; the selling price to tlie, consumer had decreased 62 per cent., and export sales had increased l five times. Furthermore, it was safe to say that \vliioroars before the institution of the duties tb© number -of employees in the industry did not exceed 15,000. the employees directly and indirectly associated with the industry to-day numbered between 50,000 and 60,000. Whereas Germany’s export of pianos to the United Kingdom in the year before the war was about 22,000 instruments, since the introduction of the McKenna duties the annual piano export to England had dropped to about 2000.