ARMS PRODUCTION

New Zealand Herald, Volume LXXVI, Issue 23355, 25 May 1939, Page 8

ARMS PRODUCTION

"——~* SOUTH AFEICAN FIBMS ■

DOUBTS AS TO PROPOS Al LACK OF GUARANTEES^ [from OUR OWN CORRESPOSDEXTI JOHANNESBURG, April M Any idea that South Africa is ' 1 within sight of producing a proportion of its own quirements is. extremely premati according to Witwatersrand engine/' ing firms, which maintain that in event of an emergency it would be m than a year before the Union could start to produce arms in any quantit" At the present it i s held • will be many years co-ordination will be" achieved betwes the- War Supplies Board and" the engi? eering industry as a whole. Firms ca able and genuinely desirous of operating in the-plans announced t the board complain that the Govern* ment's "lack of confidence" has mad' the business either impossible or n 0 ! worth while. This view is expressed by firms that have actually obtained contracts, % well as those that have not. One of the main difficulties is that to produce armaments, special tools and equipment required to suppfe. ment the facilities of a well-equipped engineering shop". The extra cost in. volved may run into several' thousand pounds. In England, firms purchasing special plant to manufacture for the Government are guaranteed the sale of their full output for the first two years, and the maintenance and depreciation of the machinery for the following four years. No such guarantees are offered bt the Union Government. Any private firm purchasing special equipment does so at its own risk. After an initial order, local manufacture may be discontinued, or the contracts may be pat out for tender.