INDUSTRIALISTS IN CONFERENCE

Nelson Evening Mail, Volume LXI, 15 October 1926, Page 6

INDUSTRIALISTS IN CONFERENCE

TARW PROBLEMS £fT MINISTER (United Pre»» Association.) CHR.TSTCHURCII, Mtli Oct. The annual conference of the Indus trial Corporation of New Zealand was opened yesterday morning by the Mayor (Mr J. K. Archer). Among visitors were the Acting-Prime .Minister (the jlon. W. Downie Stewart), Mr D. U. Sullivan, M.P.. and -Messrs G. W. ClinItard, secretory., and D. Colquhoun (local oflicer o'f the Department of Industries' and Commerce). 'Hie president Of the corporation (Mr E. If. Marriner) presided. ; 'ln declaring the conference open, the Mayor gave a dissertation on tin* value of free'trade as against protection, a question which, he said, the conference Would doubtless lie discussing. In closing his address of welcome, MY Archer spoke upon the commercial views of Mr Henry Ford. The welcome In I lie delegates was seconded by Mr I). 0. Sullivan. M.J'., and was responded U> by Messrs .1. 'Hogg (Dunedin), H. Dearsley (Auckland), and F. Campbell (Wellington).

LOCAL MARKET THE BES'I

The president, in his address, urged the necessity for a. strong central executive of 'the corporation with its headquarters 'either in ' Wellington or in Christchurcn. He said that the Department of Industries and Commerce was understaffed, and compared the. expendi tpre on that Departmeut with that, on Hie Agricultural Department, lie found that the amount, voted by the House lo the primary industries worked out at one shilling for every forty-two persons supported by that industry, while, tho votes to secondary industries worked out at only one shilling for every 124 persons. "If we lake from that the amount, expended'on mail subsidies, exhibitions, etc., which should not bo charged to this account, t\e amount works out at Is for every 2000 people supported by the manufacturing industries. Why this difference?" he asked. "The primary industry must not forget that its best market is tiTe local market, and by helping the manufacturers it is helping to increase the population of this country. The farmer is not in a position to take all the immigrants that coma into the country, but the manufacturing industry, with protection, could increase the number of its employees and absorb all the immigrants that are coining into New Zealand. Australia has found that her local market is 224 per cent, better than her export. The .Now Zealand farmer, if he goes inlo details, will ftud that his local market is the best. There lore, he should do all he can to cultivate that market."

REPLY TO CRITICISM

The Hon. Downie Stewart, ActingPrime Minister," in replying to criticism that the Industries and Commerce Department had been neglected by the Government, said that in the 1921 slump time the Government determined to economise and not to allow any department to expand unless a Minister could show the necessity. He hoped it would be possible to develop the Industries and Commerce Department, increase, the staff, and devote it more directly to the problems of manufacturers. Imports from Great Britain, he said, were diminishing, in spite of the preferential tariff. It was partly the fault of the manufacturers in (he Old Country and partly because a good deal of the lost tltide was going to Canada and America. A most peculiar difficulty to be dealt with was due to the position of Canada, which was heavily capitalised by American industry, and used by it as an assembly ground for the purpose of leaping the benefit of the British preferential tariff.

AGRICULTURAL MACHINERY

The Minister reviewed (lie past revisions of the tariff, and said that the heavy tariff in Australia on agricultural machinery had enabled them lo sell their own 'machinery at a price below thai im ported. The chief difficulty in 1921 was. In provide more protection for manufacturers of agricultural implements in New Zealand. He had always admired the methods in making machinery adapted to New Zealand requirements. tt had been copied by American manufacturers, who had Hooded the market. with machinery which they had not designed nor produced in the first place. Regarding churns, said lo have been imported from Germany, it was not. correct to say they had been coming in, although perhaps correct to say (hoy threatened to come in. The Government policy had always been to keep agricultural and dairying machinery free of duty for the purpose of assisting those industries in every way possible, and the matter should be considered in the. next tariff revision, lie did not altogether agree that, further tariffs would get rid of unemployment, for experience showed that the more, highly industrial a country was the more unemployment manifested itself. l'hillip Snowdeu had said that the avenue with the highest tariff walls had the biggest unemployment problem. Before the war statements were frequently made in Australia that, notwithstanding (Iks high tariff, imported goods were, (lowing in freely over the tariff walls, and unemployment was more manifest there. than in New Zealand. Here unemployment did not manifest itself in the country districts at all. His impression was that it was an erroneous deduction that an increaso in the. tariff would absorb men.

TAMPERING VVITTI TARIFFS

In certain industries it was advisable to take a long view and bo careful thai there was not a general increase of duties on the general principle (hat I hey would reduce or abolish unemployment. There was danger in tampering with tariffs from year lo year owing lo the uncertainty if created in trade. In reference to the Australian Tariff Board, lie asked their Minister why if was introduced. Thi! reply was Unit the Minister agreed that the. Department officers and experts could do the work better, but the board was a. political buffer between Parliament and the manufacturer. In New Zealand (lie officers of the Department had an extraordinary knowledge of the position of industries, the sources of raw materials, and I lie number employed. Tt was not desirable that New Zealand should have a board with contending factions. Tt would mean getting a minority report. Reference had been made lo I he New Zealand market for (he consumption of primary products. Of the butter output 22.23 per cent, was consumed in New Zealand, but if tint present production was maintained it would require A!, times the population to consume it, all. New Zealand only consume!! 4.99 per cent, of cheese and needed over twenty times the population to use it all. The lamb consumed was 4.17 and mutton 19.21 per cent. For statistical purposes the primary industries, freezing, dairying, etc., should lie separated from manufactures to slate the position clearly, and he had asked for-the statistics

lo be separated. The I leparl nieiil had grouped them under live headings (I) dairy produce and meal for export; (2) electricity and tramways; (3) prepara lions anil materials manufactured folic,me n-iisiiinplii.il, sin li as boiling dnv n ind manure maiiuf.iel me ; ('i manulai I HIT of liquors, wines, etc; ( ,) tndlisl' r

in which iHiiiuftifuivi.. m eve lui.T.'.a e.i, :vi'ji is friruit'ire, paper, i.'ngui.eering, wii'o work, eJnctro-plating, »rf v-hib (hoi.*, vara G'i

DEVELOPING INDUSTRIES

The Minister expressed admiral inn for I lie energy and enterprise shown ill developing industries. Personally he thought if they went mil in full armour willi'Hags flying Ihev would nol gel all they In.ped for! They should proceed cautiously. He instanced Ihe protect ion given on Ihe motor body building industry, which he believed would have good'results, lie was lold a large Rri lisli firm intended lo have bodies buill in New Zealand. He hoped Ihal all parts of Ihe Dominion would gel a share (if Ihal business.

Replying lo questions. Ihe Minister said what'lie bad in mind was Ihe I a riff board association of 1021 with an i»r lii-er from the Industries Department, lie would be eoiilrnl wilb the Controller of Cusloins, one or two lechnical ex perls in handling tariff classifical ion, and a representative li'mn Ihe Industries De pari meul.

The delegates agreed ill; ch a board would meel wilb Iheir approval. Mr Campbell asked Ihe Miuisler if he advised going for a revision of specific instances in Ihe laril'F or a geneial re

The Minisier advised a general re vision in older lo give all ail opporlllli lly of expressing Iheir views liefon'o the tariff was revised.