LOCAL INDUSTRIES

New Zealand Herald, Volume LXXI, Issue 21983, 14 December 1934, Page 15

LOCAL INDUSTRIES

VALUE TO DOMINION extending Employment ORGANISATION ESSENTIAL HELP FROM GOVERNMENT [by telegraph—own cor rest ox dent] DUXEDIN, Thursday The importance of industrial development on sound lines was emphasised by the Prime Minister, Mr. Forbes, in a speech at the annual meeting of the Duncdin Manufacturers' Association to-day. "Since the deliberations of the Tariff Commission and the publicity associated with its sittings, and the subsequent discussion in Parliament," said jlr. Forbes, "it is obvious that the importance of the secondary industries in the national economy is much more appreciated by tho general community than in the past, and this is particularly so in view of the unemployment situation. Consequently the Government is,* very anxious that secondary industries shall show a proper development so that more people may be employed in such a way as to contribute to the wealth of tho country and tho standard of living of its people Concentration on Problems •'I welcome tho recent disposition on the part of your association and federation to lay aside for the time being direct tariff arguments and concentrate on problems of organisation for more economic production and on distribution, with the possibilities of extended employment." Continuing, the Prime Minister said he had recently, obtained returns relating to various branches of manufacturing industries to see whether there were any indications as to which industries were ' now employing more operatives than four years ago, and in which industries the employment and production was decreasing. From a general study of the figures supplied it was pleasing to note that in spite of the continuing slump in the number of persons engaged in secondary industries the value of the raw material used and also the value of the finished product all showed a small' but definite increase between the years 1932 and 1933 and s further increa:-* seemed forecast for 1933-34 But compared with other manufacturing countries, such as Britain, the United States of America and Australia, the numbers of persons employed in the newer technical industries had not, increased in New Zealand to anything like the same relative extent. It would appear, therefore, that from the point of view of increased employment in the immediate future we wanted not only an expansion of the present industries, but new ones. Possibilities of Mining

it seemed desirable also that the possibilities of sound largo-scale goldmining should be thoroughly explored and encouragement given to proper undertakings. An increased employment of several thousand men in mining, which might not be beyond the bounds of possibility, would react also by producing more employment in the engineering and' timber industries and manufacturing production generally. referring to rapid changes in industry since, the war, Mr. Forbes said that one of the problems in industrial development was that of increased flexibility to manufacture good? more in line with modern demands and of types of goods with a better appeal to the consumer. He did not underestimate the great efforts of the. wool len and boot manufacturers and other? to keep up-to-date with fashion changes However, these conditions, together with the tendency toward replacement of rule of thumb methods by more exact scientific control in industrial processes, undoubtedly pointed the way to some organisation by which industry could be kept up-to-date in its knowledge of technical problems of produc- % tion and also that the structure or organisation of industries should be Buch as to tend to the most economical production and distribution. There was now evident a growing realisation and an increased willingness on the part of individual manufacturers to give greater consideration to the question and needs of the community as a whole and to study its general interests. Co-ordination Proposals Mr. Forbes then discussed a report of a special committee of the Manufacturers' Federation on industrial coordination. "The proposals made are many, novel, radical and far-reaching," lie said, "and naturally I shall be interested to learn how far manufacturers as a whole give their full backing to each or all of the proposals. Apparently the suggestion is to set up an industrial commission with functions somewhat alpng the lines of the Agricultural Commission, which was the subject of recent legislation. "The proposals would involve a certain amount of regimentation of secondary industries and discipline, backed by Government regulation. Naturally the proposals will need very careful consideration by the Government and by yourselves to make sure that any steps taken may be in the right direction as a foundation for the future. Jn the scheme proposed, the Prime Minister said,, there were, however, two interesting problems raised co-ordina-tion of industries for the elimination of wasteful forms of competition and the licensing of new units of industry. These proposals struck directly at the freedom of units of industry in questions of production and distribution. Value of Co-operation Naturally everybody could see advantage in voluntary co-ordination of the units of industry where the conBurner was likely to benefit and employment also increased The delicate point was reached when the co-ordina-tion was to be implemented by compulsion backed bj r Government authority. Experience had shown it was a very difficult matter to get the units of industry to pull together and unitedly on problems of production and marketing, but it was precisely in this "direction in which cooperation in the special conditions in New Zealand was obviously likely to be of most advantage to co-operating manufacturers and to the public alike. "Compared with other countries, wo have, 1 think, been somewhat backward in developing this co-operation," added Mr. Forbes, "and it was not a matter on which the Government itself could talce the whole of the initiative. But the Government lias always been willing to co-operate with manufacturers in this regard, and I am glad to note that your federation is bringing up this matter. This is apart from the great necessity of'an increased scientific and technical foundation for industry, so that it may be more flexible to meet changing products and conditions." In conclusion, Mr. Forbes said the Government- was very much alive to the necessity for encouragement of the development of industry, and would he pleased to 'give evcrv consideration to constructive proposals and co-operate in every way possible. It was for those reasons' that the Hon. I?. Masters was now freed to devote more personal attention to tin's important question. 1 lie Government invited the manufacturers' direct help and co-operation.