COSTS IN INDUSTRY

New Zealand Herald, Volume LXXIII, Issue 22318, 16 January 1936, Page 11

COSTS IN INDUSTRY

MANUFACTURERS' CONCERN SAFEGUARDING THE MARKET APPROACH TO GOVERNMENT [by telkgraph—own con respondent] WELLINGTON, AVeilnesduy Important questions affecting the immediate future of Xew Zealand industries will be the subject of representations to-morrow by a deputation from the New Zealand Manufacturers' Federation to the Prime Minister, Mr. Savage, the Minister of Finance, Hon. \Y. Nash, and the Minister of Industries and Commerce, Hon. 1). G. Sullivan. The subjects to be discussed include primage on goods from the United Kingdom, trade agreements with Australia and Canada and the exchange rate on State departments' purchases. Referring particularly to imports of women's clothing from Japan, representatives of the federation state that leaders of the Labour Government, even before assuming office, announced in unequivocal terms that it was one of their major purposes to foster the development of the manufacturing industry. That declaration was naturally welcomed by manufacturers. Expansion of existing industries, together with the establishment of new industries, offered to-day the most hopeful means of* increasing New Zealand's national wealth and welfare.

" That the Government itself recognises this fact is most heartening," the federation's statement continues. "However, there are one or two general considerations which we desire to place before tlip Government at the outset. Presumably the Government's chief aim will be to raise the standard of living of the mass of the people and some of its steps in this direction are bound to be of such a nature that they will result in raising production costs in New Zealand industry.

"Manufacturers as a body certainly do not subscribe to the theory of low wages. Apart from all other considerations it is obviously contrary to the interests of an industry to have its potential customers without adequate spending power. At the same time it is necessary to realise that New Zealand industries are obliged to compete in this market w'ith the products of overseas factories and if our production costs are raised without some compensating safeguard the result must be to increase the prices of New Zealand goods in comparison with those for imported goods. Sales of New Zealand goods will drop and consequently New Zealand industries will be unable to keep so many workers in employment. It is not necessary to press this point further, but we do ask that the Government will recognise the position in which our industries are placed. "If our costs are raised without some compensating safeguard the number of workers who can be employed in industry is bound to decline. We believe the Government will agree that this must at all costs be avoided. Instead of a decrease we all want to see a large and rapid increase of employment." AMENDING LABOUR LAWS ATTITUDE OF EMPLOYERS [by tklkcraph—OWN correspondent] WELLINGTON, "Wednesday "If we receive an invitation we will be pleased to participate with a view to ascertaining what is practicable," said the secretary of the New Zealand Employers' Federation, Mr. T. 0. Bishop, who was asked to-day what would bo the attitude of the federation toward the proposal of the Minister of Labour, Hon. H. T. Armstrong, to call a conference of employers and workers' representatives for the purpose of discussing the Government's prospective changes in the labour laws. One of the principal proposals is for a shorter working week in industry. Mr. Bishop added that the federation had not yet received an invitation to attend the conference, but 110 doubt it would shortly receive one.