ONAKAKA IRON

Nelson Evening Mail, Volume LXI, 7 August 1926, Page 5

ONAKAKA IRON

THE recent debate in the House of Representatives' l places the position of the Onakaka Iron Works fairly and squarely before the people of New Zealand. This promising and important industry is being squeezed to death by an imported,- product which is being dumped on New Zealand shores by an Anglo-Indian company which, besides working under a subsidy from the Indian Government, produces its iron under a wage-scale-of about l/b per diem and a working day of twelve hours. In regard to freight, too, it has the advantage of trans-oceanic rates, which arc actually less than the coastal rates ruling in New Zealand. It is quite evident that the Onakaka industry cannot, stand up against competition of that kind, and that unless it is'given adequate protection it must go out of business. That would he a national calamity, because the iron industry is basic; no nation can live a full and complete industrial life unless it produces its own iron, and if New Zealand is to- become a manufacturing country it must produce both power and iron at such rates as to foster secondary industries. To-dnv the raison d’etre of the Onakaka Works may not appear to he very convincing to those who consider merely the requirements of the moment, but to those who look abend' it is clear that if New Zealand is to reach its full state of industrial development it must aim at becoming a manufacturing country, which means that it must produce its own iron.

What, then, is to be done to protect this infant industry from being smothered almost as soon as it has been born? ITow can the Onakaka. Company be assisted without undue burden to the country and in such a manner as to enable it to lay the foundations of New Zealand’s future manufacturing industries which will require to use iron in large quantities? The solution seems to lie in the Government enforcing a. restrictive duty on imported iron and ar-

ranging with tlio Onakaka Company the price to bo charged for its iron vended in New Zealand. This price should be fixed on the basis o t a. reasonable percentage of profit on the capital invested, but should exclude anything in the nature of excess profit. This would enable the consumer to ho supplied with the best possible iron at a fair rate, and should eventually relieve the Government of all serious responsibility as regards the use of the State's funds for the purpose of fostering the industry. Though the wisdom of continuing the. payment of the subsidy of 30/- per ton is obvious while the new-horn industry is gaining strength to stand on its own feet, the object in view should be its maintenance without Government financial support; and that could be best effected by the means indicated—a heavy protective duty and the regulation of price with the aid of the Government. In that way the interests of the consumer, of the reproducer, and of the country would be conserved.