"SERIOUS SLUMP"

New Zealand Herald, Volume LXXIV, Issue 22860, 15 October 1937, Page 14

"SERIOUS SLUMP"

EEPLY TO STATEMENT VIEW OF MANUFACTURERS CHANGES IN PAST YEAR "Irt giving publicity to the serious position facing the footwear industry, manufacturers aro not 'squealing' as Mr. Armstrong suggests," said Mr. H. W. Shove, chairman of tho Auckland group of the New Zealand Footwear Manufacturers' -Association in tho course of a reply to a statement mado by tho Minister. Mr. Shore added that any comments made by manufacturers had been provoked by mis-statements from Parliament which it had been impossible to leavo unchallenged. Mr. Shove said tho Minister apparently had not taken the trouble to make himself aware of tho true position. If ho had said that tho industry reached a stage some time prior to June that should have been its normal productions Jig would have beon nearer the truth. Since then there had been a serious slump in the principal centres of tho Dominion. Mr. Armstrong referred to the conditions existing in 1926, when hojshould know that the whole industrial life of New Zealand had changed since that time, the shoo industry, among others, making great strides in efficiency and in the quality of its products. Early Warning to Government "A year ago, however, it became apparent to those in the industry that if matters wero allowed to develop without some action being taken, a serious slump would occur in the footwear manufacturing- industry," continued Mr. Shove. "This conclusion was eet out carefully and communicated in a letter to the Government by one of the directors of the company I with which I am connected. Although there was a tremendous rush of orders at that time, which carried us on uutil about the middle of this year, tho writing was on the wall." Mr. Shovo said ho had carefully refrained from attributing tlie serious position of the industry to any results of Government legislation, but that did not prevent manufacturers generally from having their own opinions about the effects of shorter hours and higher wages upon the ability of the local industry to compete with overseas importations. Mr. Armstrong had stated that the Government did not think it could be said that men employed in the boot and shoe industry were "too well paid."

Competition Aspect That statement would be poor consolation to the boot operatives who were now either completely out of work or working short time. No boot manufacturer objected to paying a high wage, but he always kept in mind what the Minister apparently forgot—that if wages were forced beyond a certain limit the local manufacturer simply could not compete with the overseas article; "In conclusion," he said, "I might state that we are not 'squealing'; we are .simply presenting a careful statement on the position ai-d incidentally by our action apparently showing more concern for the welfare of the workers than the Minister of Labour himself. The two hardest 'squealers'—to use Mr. Armstrong's delightful expression—have been the president of the New Zealand Footwear Manufacturers' Association and myself; but the factories with which we are connected have never imported shoes from overseas."