PRICES FOR WOOLLEN GOODS

Northern Advocate, 21 December 1932, Page 10

PRICES FOR WOOLLEN GOODS

MA XU FAC’TriiKRS ’ PLAIXT. REPLY BY MR COATES. (Per Press Association.—Copyright.) WELLIXGTOX, Tnescliiy. • ; I do not grudge any company its reasonable profits, but J believe by avoiding- excessive production and by cot reel in" any undue margin in costs and prices we are helping if, restore industry to a normal profitable basis .‘team,” said the lit. Hon. J. 0. Coates, replying - to the statement of: the Canterbury Manufacturers’ Association rc- • garding - the prices of woollen goods. The association’s statement, was in reply to remarks made in the House of Representatives by Mr Coates to the effect that the prices of woollen goods ! made in New Zealand were excessive. I ft was stated in reply, on behalf of the manufacturers, that they were not afraid of Competition from abroad, qualify for quality. After- referring - to objections raised to Xew Zealand ratifying the Ottawa agreement, Mr Coates said: “T. do not believe, and it is certainly not shown, that the existence of any Xew Zealand industry was menaced by the tariff changes that were agreed to. .1 believe that a far greater menace to all industries arises from a general blockade of trade, and Ottawa represented a welcome move towards the removal or lowering of obstructions to trade. That is my general reason for insisting that fhe Ottawa agreement marks a forward move and for my looking with some impatience on the petty objections that were raised against its ratification. ! “Reasonable Competition.” j ”We agreed at Ottawa that Xew j Zealand’s protective tar ill* against j I nited Kingdom goods should bo enn- ! fined to those industries which were I reasonably assured /Of sound opportunities for success, and United Kingdom producers are to Tie given the opportunity for ‘reasonable competition on the basis of relative cost, economical and efficient production. ’ ‘‘ln my view, it is in onr own interests that such a test should bo applied and that we should avoid drifting into the position of having such ridiculous burdensome tariffs as those which some dominions and many countries in the- world have built up. Here in Xew Zealand and elsewhere there is the clearest evidence that wholesale prices have fallen to a much greater extent than retail prices. A move towards closing that abnormal, gap is necessary if we are to adjust ourselves to the changed conditions. I have always held that manufacturing within our own country should be encouraged but in the interests of producers and consumers. alike this shonb.l he on a sound economic basis. Ftlicient ly-condncl ed industries and businesses have nothing to tear from the Ottawa agreement or from any action that'inight be taken. 1 o implement it. ”