DETRIMENTAL EFFECT.

Manawatu Standard, Volume LVII, Issue 303, 22 November 1937, Page 7

DETRIMENTAL EFFECT.

EXPERIMENTAL LEGISLATION. POSITION OF WOOLLEN COMPANY Per Press Association. • DUNEDIN, Nov 19. The contention that the Government had introduced experimental legislation last year without giving proper consideration to the sateguaiding of* industry was made by Mr 1. MeSkimming chairman or, directors or the Bruce Woollen Manufacturing Company, Ltd., at the annual meeting of shareholders on IV ednesday. Local manufactures had been placed in sueli a position, lie said, that oveiseas operators could compete .with unfair advantage, and the time was more than due for the Government to take steps to remedy the position. “When we met shareholders a year ago,” Mr McSkimming said, “we stated that we were unable to indicate the effect that recent legislation would have upon the company. This year, however, with a full year’s experience of this legislation, we regret to have to say that it has had a very detrimental effect on the business of the company. Not only have our costs been increased, as was only to be expected, but they have been-increased to such ail extent that our competitors from overseas have been able to quote prices which have secured ior them much of the business which noimally would have been handled by New' Zealand manufacturers.” Nothing had damaged secondary industries so much as the 40-hour week, Mr McSkimming said. It Had an effect which the Government surely could not have anticipated. . Referring to importations, Mr MeSkimming said that every £IOOO that went out of the country was a definite los to local mills, for if they had a larger turnover they could produce at a reduced cost. If' the wheels were kept running costs were less and conditions were more favourable for meeting outside competition. The froollen industry was not the only one to be affected, for the newspapers showed that others had been hit badly. He did not know if the Government was going to take action, but allowing money to go out of the country as. it was going, while people were being maintained on sustenance, certainly was not in the best interests of the Dominion.