THE New Zealand Herald AND DAILY SOUTHERN CROSS FRIDAY, FEBRUARY 17, 1939. EXPANSION OF INDUSTRY

New Zealand Herald, Volume LXXVI, Issue 23274, 17 February 1939, Page 10

THE New Zealand Herald AND DAILY SOUTHERN CROSS FRIDAY, FEBRUARY 17, 1939. EXPANSION OF INDUSTRY

Much can be said for the desire of the Prime Minister, the Minister of Industries and Commerce and other Government leaders to organise industrial expansion in New Zealand. As a matter of fact, much is being said but, judging from results, comparatively little is being done. Propaganda may be all very well in its place; industrial surveys also may be useful in an effort to determine New Zealand's requirements in manufactured goods and the proportion of them that can be produced locally; but the main task requiring the attention of the Government is th~ solution of problems arising from the supply of raw materials and labour. These problems are not being squarely faced. New Zealand has progressed so far on the road to nationhood that a considerable measure of industrial expansion is both necessary and inevitable, although one cannot foresee the time when we will cease to regard our farmlands as the main source of our national wealth. The recent overweighting of the economic balance, necessitating complete control of overseas trade, has not only given local industry an opportunity to expand, but has made expansion in certain directions almost imperative. This is all the more reason why root problems should be studied and removed, so that growing secondary industries will have a reasonable hope of permanency.

There is more than a suspicion at present that Mr. Sullivan is regarding the whole situation through rose-coloured glasses. He is receiving reports from his officers regarding the proposals of manufacturers to produce in New Zealand everything from drinking straws to Ijawnmowers, from malted milk to gin, and he is delighted with the news. He is inclined to forget, however, that the appeal for industrial expansion is not new. It preceded import restrictions by many months. Even under normal conditions, without the abnormal promise of an internal market protected by selective importing, industry must grow and evidence is not lacking that many of the new developments for which Mr. Sullivan is willing to take the credit were planned some time ago. Other manufacturers, apparently, are prepared to widen the scope of their activities, but their plans are contingent on the adequate supply of raw material and labour. Still others seem to be toying with the idea of "mushroom" industries and it is here that a brake should be applied to excessive enthusiasm. Local industries attempting to cater for a limited luxury market may well find that their prices are uneconomic, in which case they will not be slow to turn to the Government for Further assistance. Added to this, there is no guarantee of the permanency of import restrictions. Fresh industrial enterprise is to be welcomed, but the Government has a responsibility to see that the path of its economic development is not obstructed. Even the most sheltered market is of little value to a manufacturer unless he can be certain of regular supplies of raw materials, adequate labour and conditions which will enable him to operate his plant with the maximum degree of efficiency. These, then, are the problems which the Government is called on to solve. Access to raw materials should not involve any great difficulties. The Government . has absolute power in the matter of importations and its duty is to give local manufacturers, actual and potential, a clearer assurance than has yet been forthcoming that their requirements will, be met in full. It should even be- possible to grant some relief from the vexatious procedure of licensing. When it comes to the matter of trained labour, it is obvious that the Government must insiitt on the aid of its most active supporters, the trade unions. Youths and girls are needed to take their place in industry. They should be encouraged to undergo training and acquire the skill that will make them useful and assure their future. Employers! should be encouraged to train, not hampered by conditions which make the training too costly. There must be a broader outlook. Unionists must realise that industrial methods have been largely influenced by the modern urge for specialisation and that the long and tedious task formerly carried out by an individual tradesman is now performed at express speed by two or three men manipulating machines. The adult apprenticeship system offers reasonable encouragement for the training of young people who during the depression missed their opportunity to learn a trade, and it should be welcomed by the unions. In the same way, organised labour must be prepared to play its part in seeing that labour conditions are not restrictive ; a more generous attitude toward sihift-work, for instance, would probably enable many existing factories to increase their output without further capital expenditure. Local manufactures, it must be remembered, will be absorbed almost exclusivel;' by the local market. It is not a market which requires the full extent of mass production methods and therefore it is essential that the basic planning of industry should have due regard to the question of costs, so that goods can be produced at prices which the people can afford to pay..