FACTORY CLOSES

New Zealand Herald, Volume LXXV, Issue 22970, 23 February 1938, Page 15

FACTORY CLOSES

LABOUR LAWS' EFFECTS DUNEDIN HOSIERY FIRM COMMENT MADE BY DIRECTOR [BY TELEGRAPH —PRESS association] DUNEDIN 1 , Tuesday Established 11 years ago, a hosiery manufacturing business rau through boom time and depression with marked success, and finally it has been compelled to cease because of reduced working hours, higher wages, increased wool prices and heavy overseas imports. This is the history of the Dunedin factory of Godwin Hosiery, Limited, which on Friday went out of business. This information, together with comments on the hosiery trade in the Dominion at tho present time, was conveyed by the managing director of the firm, Mr. C. Godwin. Eighteen Hands Dismissed

" For 11 years," Mr. Godwin said, " I have carried on business in Dunedin manufacturing men's hose, and I have put all the skill and knowledge I possess into the business. From a small beginning the factory expanded until I was employing up to 21 hands, and even during tho depression years I was able to show a profit. " Then camo the Labour Government, and with it the 40-hour week and increased wages. For the first time since I started business I have found it impossible to make it pay, and I have had no alternative but to close the factory and dismiss the 18 hands I employed. " For months," he continued, " I have made representations to members of the Cabinet for assistance for the trade, but I have met with no success. Mr. Savage replied to my requests that there was no room in New Zealand for inefficient business, but surely a firm that could show profits during the depression cannot be described as inefficient. Government Unmoved "If it is the intention of the Government to put all ' small men ' out of business, I think it is only fair for it to make provision for them. I asked the Government to buy my plant, which is of a replacement value of over £4OOO, but no notice was taken of the request. Then I asked for a job and I was offered pick and shovel work with the Public Works Department, after all my experience in the hosiery trade." This state of Mr. Godwin said, was a true indication of the plight in which small manufacturers were at present. Representations continued to be made to the Government, but there seemed little it could do to offset the machinery of increased costs it had itself set in motion. The outlook for the hosiery industry was black unless something were done very soon.