DOMINION GOODS

New Zealand Herald, Volume LXXIV, Issue 22621, 8 January 1937, Page 10

DOMINION GOODS

'COMPETING IMPORTS QUESTION OF PROTECTION MUST BE PROVED NECESSARY REASSERTION BY MINISTER [j)V TELEGR APT! —OWN WELL tNG TON, Th 11 rsd ay "It would appear necessary again to state tho Government's position in regard to representations made by the .Manufacturers' Association, tliat the effect of recent industrial legislation would lie to make it virtually impossible for New Zealand manufacturers to compete with overseas manufacturers in the domestic market," said the Minister of Industries and Commerce, the Hon. D. G. Sullivan, to-day. "The Prime Minister has repeatedly informed manufacturers that the Government will not permit the product of efficient New Zealand manufacturers to he displaced by goods produced in countries with a lower standard of labour payment.

"To this end, negotiations have been conducted with other countries with tho object of paving the way for Government action, if it is found to be vitally necessary to the efficient New Zealand manufacturer to grant further protection against importations of over-seas-made goods than ho has through the present tariff and exchange. The Government must, however, have evidence of tho necessity for such action before it can place a definite proposition in front of an overseas Government. Allegations Examined "I should have thought this would be apparent without further reiteration by me," added Mr. Sullivan. "But it seems that a certain section of the press is of opinion that repeated statements of loss of trade take the place of evidence. Officers of my department and the Customs Department have been continually examining allegations of loss of trade to overseas manufacturers, and the reports I have received, far from showing that the New Zealand manufacturer is on the verge of closing his doors, indicate exceptional activity in our factores, with evidence, in some cases, of retailers being unable to obtain prompt deliveries.

"To quote some instances which show that individual manufacturers have permitted their fear of loss of tr.ide to convince them that it has actually occurred, investigat ing officers h a v.;: been told in several instances, when they have called for figures to establish statements that have been made, that the manufacturer was too busy to supply them, and that he did not wish to go on with the matter. "Not Isolated Instances"

"Again, another manufacturer., who was prominent in the original representations made to the Prime Minister and myself, stated that he had experimented with a 40-hour week and proved that he. could not meet overseas competition. When called upon to produce evidence that his orders had been diverted overseas, he replied that lie was still receiving orders and was veru busy. He said he would think over bis previous representations and advise the department in a few days whether or not he wished to go on with the matter. Since then, several months ago. nothing has been heard from this particular manufacturer. "These are not isolated instances. They serve to show that not all the statements made of loss of trade to New Zealand manufacturers ar> based on evidence. T am fully aware that importations into New Zealand are increasing, but so also are New Zealand manufactures. There may be efficient industries which may find it very difficult to retain their domestic market, because of increased costs of manufacture. and, as soon as there is evidence of this state of affairs, the Government is prepared to redeem its promise; but the Government has a duty to the public as well as to the manufacturers and obviously it cannot take precipitous action without its being clearly necessary."