ARMS PROGRAMME

Manawatu Standard, Volume LVII, Issue 71, 23 February 1937, Page 2

ARMS PROGRAMME

EFFECT ON INDUSTRY. Per Press Association. WELLINGTON, Feb. 22. The effect on industry of Britain’s rearmament programme was referred to by Lord McGowan, chairman and managing director of Imperial Chemical Industries, who arrived to-day from Sydney. in an interview, Lord McGowan said that his company was very busy on the manufacturing of munitions of various kinds and would continue to be busy for some time to come. Almost every large industry in Britain was affected in some way or other as a result of the Government’s defence policy, and to-day there was a shortage of skilled workers in England. The defence programme had come on. top of a return to prosperity of the ordinary kind, and there had been a heavy demand on skilled labour. Pri-mary-producing countries like Is'ew Zealand would feel the beneficial effect of the present good economic conditions in Britain as the purchasing power of the people was increased, and in this way a country like New Zealand would feel the effect of the defence works in Britain. Apart from the use of extra raw materials there was sure to be an increased demand for foodstuffs on the part of the British people. Unemployment in Britain had been reduced from 3,000,000 to 1,500,000, but the defence programme alone was not responsible for that decrease. Referring to the production of oil from coal by the hydrogenation process, Lord McGowan said that his company was successfully operating a plant on the north-east const of England, but he could not say whether the same economic conditions applied in New Zealand ns applied in England. From the point of view of expenditure he did not think so. The capital outlay for such an undertaking was big and he did not think it would be economic. In any case, it would be necessary to make a thorough test of New Zealand coal.

, Lord McGowan is accompanied by Lady McGowan, Hon. W. J. McGowan, Sir Lennon Raws (chairman of the Australian and New Zealand company), Mr and Mrs Todhunter, and Dr. W. H. Strong, a scientist.