OTTAWA AGREEMENT

Nelson Evening Mail, Volume LXVI, 14 November 1934, Page 5

OTTAWA AGREEMENT

CRITICISM REPLIED TO HON. J. G. COATES AND MANUFACTURERS IMPROVING CONDITIONS IN DOMINION (By Telegraph—Press Association) WELLINGTON, This Day. The Rt. Hon. J. G. Cbates, in an address to the conference of the New Zealand Manufacturers’ Federation this morning referred to criticism levelled against the Government, as the result of the Ottawa Agreement, but he thought the criticism from both sides cancelled each other out. Ho quoted Railway and Post Office Savings Hank figures to show the conditions of New Zealand were improving. The recent increase in spending power had shown itself in almost phenomenal figures for registration of new motor vehicles. Unemployment figures also showed substantial improvement in the September quarter, giving a drop of nearly 14,000 compared with 193 d. Both exports and imports had shown increase. Imports exceeded exports for July, August and September ol the present year, which was a significant return to normal. The "banking turnover for the first ten months of 1934 was £563,000,000 compared with £466,000,000 in 1933. That indicated greater business activity. Bank advances since August also increased. . In spite of the improvement in the unemployment position, continued Mi Coates, there was still every reason for concern. That affected the manufacturers very directly. Already he had suggested in a tentative way that manufacturers should examine the bearing of tlie length of working time on the problem. He realised the many difficulties involved, but it deserved patient examination to see whether and how far they could be overcome. New Zealand had no reason to be ashamed of the steps that had been taken towards economic adjustment. Nowadays from all sides they heard complaints of too much Government in business, as though the Government desired to extend its activities. He therefore wished to emphasise that the Government did not desire to extend its activities, but that any Government intervention in business life was -brought about by pressure of circumstances. Referring to the statement that New Zealand should insist on a higher standard of general education for the children, Mr Coates said if a higher age for entry into industrial employment would help cure unemployment, and if manufacturers could agree among themselves as to the necessity for the step, they could rest assured every consideration would he given to cases where assistance was necessary against 'competition of goods produced under ■ less favourable labour conditions. • In New Zealand there were many manufacturing lines which they should be able to produce as cheaply and efficiently as other manufacturing countries. The New Zealand manufacturer had at hand a market of at least 1,500,000 people, all consumers, but liad to guard against over-development of the productive capacity." The moral for New Zealand was that over-capitalisation must be avoided. New Zealand had over-capitalised by multiplying the number of small factories so that many were not running to full capacity. 'The Government should not be asked to protect these; it was the duty of the industry itself to eliminate the high cost. Producers should give consumers the. benefit, of the lowered overhead costs in lowerprices. There were many concerns in New Zealand which individually were efficient, yet the industry ,as a whole could be regarded as-an uneconomic one because a larger unit was possible and necessary. The Government was willing to meet the manufacturers when it could be shown that their proposals not only assist themselves but were conducive to the material welfare of New Zealand.