SIR THOMAS MACKENZIE

Otago Daily Times, Issue 20645, 18 February 1929, Page 8

SIR THOMAS MACKENZIE

VISIT TO THE HOME COUNTRY. NEW ZEALAND PRODUCE. Sir Thomas Mackenzie, M.L.C., makes visits to the Old Country at intervals. Early last year he left New Zealand for England, and he returned a few weeks ago. While on the other side of the world Sir Thomas gave close attention to the position of trade at Home, and it was with a view to learning some of his ideas on the subject that an Otago Daily Times reporter called upon him on Saturday, when he was courteously afforded the opportunity of an interview. “ My trips to the Old Country," said Sir Thomas, “ are not purely for pleasure. I venture to think they may be of some advantage to New Zealand, because I am constantly in touch with the sale of the Dominion’s produce—wool, meat, dairy produce, etc. —and obtain an inside view of conditions which is very'different from that of people appointed to positions that may not have anything to do with the actual buying or selling of articles. I see the benefits and the weaknesses of Government control in a way that is not seen often by others. My previous three years’ trading has qualified me for work of that kind.

“I am keenly interested in Britain’s trade, because if that is seriously affected the market for our produce will go, and as all other nations have tariff walls against our produce—and we see that America is proposing high tariff restric tions on our wool and even Canada on our butter—it can be easily understood how much we are concerned in Britain’s permanency as the leading trading country of the world.

“ There is no doubt that Britain is losing her trade generally in all overseas countries, except in her own Empire—• India and the colonies—and we see other countries stealing steadily into the trade of foreigners. This is due to several causes. First, because Britain is not, in many respects, up to, date in her methods. Successful industries that were established by the enterprise, economy, and knowledge of individuals or partners, have beep changed, many of them into limited liability companies. The sons of successful manufacturers are, in many instances, sent to public schools and universities, and are thereby diverted from the intentions and undertakings of the founders. In the limited liability companies some of the sons are probably put on as directors; businesses are over-capitalised; and as time goes on directors are appointed who were not capable, until to-day we read of Mr Baldwin saying that legislation must be passed in respect to these parasitical directors who are simply battening on the funds of companies. Owing to _ these and other causes, therefore, Britain has been falling back, or perhaps I should say she has not been keeping pace with other nations in the trade of the world. Here are some figures in that connection, showing the value of manufactured goods from these countries:—

1880. 1927. f United Kingdom £197,000,000 £564,000,000 Germany .. ~ 82,000,000 371.000,000 United States .. 25,000,000 556,000,000

These are significant figures. They are issued by the Board of Trade in England. “On the other hand, Britain has enormously increased her imports of produce from foreign countries without these countries taking from her anything like an equal value in manufactured goods. In 1913 the Argentine sent £42,000,000 worth of produce to Britain; in 1927 she sent £76,000,000, or an increase of £34,000,000, but she took only £3,000,000 worth more from Britain in that period. The difference of £31,000,000 of British money she spent chiefly in the United States and Germany. As showing what Australia does in contrast, she increased her importations from the United Kingdom by £27,000,000 in the period in which the ' Argentine increased hers bv onlv £3,000,000. y

I regret that ■ Britain’s methods of overseas trade are much behind those of other countries. Her representatives abroad are, no doubt, doing much to improve this state of affairs. At present however, Britain is behind in her salesmen s methods, so I am assured. Many of her commercial travellers are not familmr with the language of the counties they visit, and 1 am told they are not as quick at adopting methods of m ting up the goods, either in respect of weights and measures or of the coinage of the countries they are dealing with. I should like to say that all’ these matters and others are being recognised by many enterprising men in Great Britain. No doubt we have the ability and the energy, if it were used, to more than hold qur own, and there is a great struggle going on to get away from old conditions, both by individuals and by associations. The Empire Industries Associations, together with the marketing boards, are working to improve conditions the greatest individual efforts have been put forth by Lord Melchett, formerly Sir Alfred Mond. I have sat on commissions with this gentleman, and I know something of his capacity and enterprise. He speaks very plainly on the point of Britain s trade. I quote from a valuable paper he has published in the Statist: ‘ [f this country continues to conduct its industries in the antiquated manner I have indicated, then Britain will fall still further back in the race of industrial efficiency, To-day in industry, in reality, it is no longer just one company'which speaks to another; it is really nation which speaks to nation. The markets of the world to-day have become one unit. We must have cheaper production, more concentrated management, lower overhead greater financial strength, more power in negotiation, more power in sales, and the possibility of a combined development in research fields. All these things are not °S Iy . P° ssl ble, but they are frequently effected with the rationalisation of industry.’

There is now an important movement which is attracting much notice and discuasion at Home —the safeguarding of industnes. Some people may call it protection, but all-round protection of industries is _ unthinkable, and before an industry is safeguarded it must undergo investigation, and it is only certain industries that can be safeguarded. The effect of the safeguarding that has been adopted is wonderful Take, first, the general effect of it. I quote from the Board of irade Journal: ‘The following extraordinary results of safeguarding after six months operation are well worthy of note: Imports of safeguarded goods, increase 3 per cent.; imports of non-safe-guarded goods, increase 52 per cent.; exports of safeguarded goods, increase sii per cent.; exports of Don-safeguarded goods, increase 6 per cent. / “ With regard to individual industries the most remarkable of all is the motor industry. Sir Herbert Austin, chairman of the Austin Motor Company, gave the following statistical results of safeguarding:—lncrease in the works of turnover, six times; increase in workers’ earnings, every employee who earned £IOO under previous conditions now earns £247 in the same time (average figures); increase in employees, four times and a-quarter; increase in profit volume, five times ami aquarter; decrease in selling price to the consumer, 62 per cent.; increase in export sales, five times. Then, Mr W. R. Morris, who_ is behind the Wolsoley concern, gave the following figures; _ 1028. 1920. ReducCar. model, model, tion. £ £ £ Wolseley 16-45 h.p. six-cylinder saloon 405 375 ]2O Rover, two-litre saloon 425 395 30 h.p., six-cylinder fabric saloon .. .. 400 360 40 Not only is that the case with British firms, but jVTr l*ord is now opening in Essex and building.a factory covering 30 acres of land at Dagenham, which will bo a replica of the great Detroit plant in America.

I might add that I have faith in the great benefits that will arise to Britain in the first instance by a carefully thought out process of safeguarding of industries there, _ and what is of vital importance to us is the fact that it will increase the employment of people to consume what we produce in New Zealand and keep a market going in the Old Country for our people.”

Asked with regard to the pulverising of coal for use on steamers, Sir Thomas Mackenzie referred to an article on the subject in the Statist—a paper written by Mr W. B. Lee, C.8.E., secretary of the_ Mining Association of Britain, who said: “The chief example of recent advances in this respect is the use of

pulverised fuel, which has made great strides in the United Kingdom, will undoubtedly extend rapidly elsewhere. To an important extent the economies in coal consumption which it will effect will be counter-balanced by its displacement of oil fuel in land installations as well as for marine purposes.” Speaking of wool. Sir Thomas drew attention to some remarks made by Mr Harry Dawson tp a conference between manufacturers and" woolgrowers. After appealing to the Dominion growers to produce a rich, soft wool, he said: “More wool is wanted. There is not enough wool in the world to-day to feed 75 per cent, of the machines, and artificial silk is a godsend to keep some of the machinery running. The biggest revolution we have ever seen in the textile world is coming in the next decade in women’s dress wear. Artificial silk is hard, and people cannot bear it next to their skin. It is going to be softened by soft fine wool, and artificial silk will only be an auxiliary to wool. During the next decade you will get the most gorgeous materials made from a mixture of fine wool and artificial silk.”

Kcuavdinc lamb 1 . Sir Thomas remarked: ' Little need be said beyond tbe fact that the producer in New Zealand is now getting the full value from buyers, The article is well established in the British market, and so lone as the standard is maintained it will outstrip nil other lamb from abroad in price.” “New Zealand butter,” said Sir Thomas, “ has a wide reputation in the Old Country, though there are some parts yet where it is not well established. Our representatives, however, are doing their best to overcome any prejudices that may exist against it. There is a difficulty on the part of the grocers to get genuine New Zealand butter. Over and over again I have heard the complaint, and it seems to me the difficulty will not be satisfactorily adjusted until there is a recognised New Zealand brand on boxes and packages. There is a lot of blending going on, and butter is sold in shops as Empire butter, or under the Empire brand, which may or may not be Empire butter, and if the public gets an article that is not so good as New Zealand butter it is dissatisfied.”