POST-WAR TRADE.

Lyttelton Times, Volume CXVII, Issue 17982, 26 December 1918, Page 6

POST-WAR TRADE.

INDUSTRIAL OHGANISATION,

POSSIBILITIES OF DOMINION. The cessation of hostilities and the prospect of an early peace has aroused considerable interest in the question of post-war trade and industrial organisation. It is conceded that few countriea aro so well placed as New Zealand in regard to tbo matter of initiating a comprehensive scheme of industrial organisation. Tho natural resources of the Dominion aro immense, aim it is considered generally that, provided the correct impetus from the right quarter is given, there is no reason why. the industries of Now Zealand should not develop along lines that will make for the abundant and permanent prosperity of the country. Discussing tho matter with a representative of' the "New Zealand Herald," tho president of the Auckland Industrial Association, Mr S. J. Harbutt, placed emphasis on the fact that at the outbreak of the war effort* had been made to induce tho authorities to prepare for post-war contingencies, but unfortunately the Government, instead of setting up a. Department of Industries, as was urged by the New Zealand Industrial Corporation, took little or no action. The consequence was that instead of having a live Department of Industries, prepared for tho conditions which wore now arising, New Zealand was in practically the same position as during tho first'year of the war, except that a number of manufacturers had secured much machinery and plant and were thus prepared for the anticipated increase in trade. MANUFACTURING DIFFICULTIES. Tho manufacturers of Now Zealand were to-day labouring under difficulties in the 'matter of securing ra.w materials, but there was a prospect that tho position would improve _ shortly, when extra vessels became available for ordinary trading. One of the groat difficulties which New Zealand manufacturers and producers had to face was the absence of cheap motive power. For four years tho Government_ had been continuously urged to provide hydroelectric power lor the North_ Island, the resources of which were so immense in this respect. Onlv recently, however, had the Government taken action, and during the session just,closed a vote of £lso,offl) had been placed on the Estimates for tho establishment of a scheme, in tho North Island. The Government was now proposing to carry out tho preliminary work, such as surveying and the testing of country at Arapnni. The provision of cheap hydroelectric power was one of the first essentials to meet post-war problems, but four valuable vears had been lost. Mr Harbutt said that New Zealand was fortunately placed fox the establishment of great manufacturing industries. For instance, in the North of Auckland there wer-e vast deposits of sand of the most suitable character for the manufacture of glass. This was an industry which would require Government assistance to place it on a sound footing. In regard to the growing of wool, it was ilkvrical that New Zealand should export the raw material and import the manufactured article. The Pnrapnra iron deposits in _ Now Zealand were very conveniently situated for the establishment of n large iron and steel works. Some time ago a proposal was made to the Government to grant concessions to a company prepared to invest £1.000.000 in.pacing the iron and steel industry in New Zealand on a satisfactory footing, but the Government did nothing to beln. The hills containing the iron deposits were still in their virgin state, and tho want of sympathy on the part of tho Government had resulted in nothing being done. - TARIFF BOARD ADVOCATED. The Government had failed to appreciate the necessity for having a scienti-fically-arranged tariff prepared_ by a hoard composed of men closely identified with manufacture, who could, after taking evidence, lav before the Government'mature derisions in favour of fostering and developing industry. Manufacturers did not want a tariff which would give them assistance with ono hand and take away the, advantage with the other bv the imposition of -small irritatinp- charges on many, subsidiary articles which wore necessary in the manufacture of goods _in certain industries. For instance, internal combustion enstines were manufactured in New Zealand, but the makers were compelled to import carburettors and magnetos, upon which a duty was charged. Likewise in the saddlerr trade the hnooi'tation of raw material was facilit'*ted to a. certain extent, but many of tho requisites* such as webbing, were liable to duty. _ Another ndraut'icro in bavin" a tariff board was in tho case of new industries stnrtin; If, after tnki"2 evidence, the herd was sSati=fied that a prospective- industry was likolv to dcvolpTi into a nroftablo concern for the Dominion, it could make a recommonrlation to Cabinet and under an Ordc'-ln-Oouncil immediate protection could he guaranteed, with tho result that mnnv new industries could be established, instead of dviti? of limio deferred, as was the under the present system. Mr Robert- Burns, ivredr'«*nt of tbo {■?ivirv>Vv of Commerce, '"'dd that ho " 1 '- bnsv tfm«, fn the industrial life of the Dominion. for the next two or three years, hv which time, nrovidod the Governmont gave the assistance that was oxnectc l cf it. the mnnutec+urine: industries of New Znolonrl would he placed on a SOW 1 fn'd.innr.

DEVELOPMENT OF LOCAL INDUSTRIES.

In support of this view, Mr Burns efiid that it had to be remembered that during "the war period it was not possible to launch any new industry of .inv size, owing to the shortage of labour and material, and the difficulty of obtaining the necessary machinery, while latterly the starting of new companies was not permitted. Ho mentioned that the shortage of imported articles had helped local manufacturers to put their enterprises on n sounder footing, and, in addition, had shown that the looally-inadte article was. in many cases, equal to imported goods. Great numbers of men were now being released from war and the return of the great engineering firms of Great Britain to normal activities would soon make avflilnhlo the machinery no badly needed for the buildup up of manv New Zealand industries, while the provision of cheaper power bv the development or the proposed hydro-electric schemes would have no small bearing on our industrial advancement. Mr Burns was of the opinion that, in addition to the many Turndreds of our own men who would return to New Zealand, we could look' forward to numbers of the best men in the British Army emigrating; to the Dominion. The men who would thus seek advancement would bo those with

the moat Initiative, find l a lnrgo porcontnge of them tvould be highly skilled in various trades. It was imperative, however, that the Government encourage and ns:si.<t these desirable immigrants properly. Mr Burns did not hold out much hope that prices of imported manufactured goods would drop very materially for some time. The reduction of twenty-five cent in freights and the removal of tine five per cent war risk would certainly have a bearing on the landed cost, but a reduction in the manufactured cost was not expected for some time. He mentioned that itj many lines stocks were at a very low level, and merchants were not importing largely, ns they desired to see the. market reach n steady level before placing larnre as had been the practice, prior to 1914. Much of tho future success of the farming and manufacturing industries depended on the attitude of the Government, said Mr Burns, but if the Government adopted the prorrc-sivo policy which would bo demanded of it, all branches of industry must eo ahead. In conclusion, Mr Burns expressed confidence in the future development of New Zealand.