"GROSSLY UNFAIR"

Otago Daily Times, Issue 23333, 27 October 1937, Page 10

"GROSSLY UNFAIR"

FOOTWEAR MANUFACTURERS MINISTER'S VIEW OF SITUATION PROMISE OF ASSISTANCE REPEATED (From Our Parliamentary Reporter' WELLINGTON, Oct. 26. The intention of the Government to protect secondary industries was re-emphasised by the Minister of Finance (Mr W Nash) during his reply to the financial debate in the House of Representatives to-night. The Minister contended that the boot manufacturers had been grossly unfair to the Government, but he said that, despite that, the Government would do all it could to help them Members of the Opposition Mr Nash said were suggesting th-it there were three ways bv which the secondary industries could be assisted—the raising of tariffs, the control of exchange, and the lowering of costs. They were suggesting that the policy of the Government was responsible for the position of secondary industries i Production Figures The Minister said that production figures were the best test of the prosperity of a country if produc-. tion were distributed. Some of the figures he had examined were amazing. Those relating to the production of woollen mills showed increases during the past three years in the production of tweeds and cloths, blankets, shawls and rugs and yarn. During the year ended on March 31 1935. boot and shoe manufacturers had produced 1,548,475 pairs of adult boots and shoes, while for the 1935-36 period the number was 1,642,731, and for the 1936-37 period 1,760,253 pairs. The production of children's boots and shoes had increased from 149,933 pairs in 1934-35 to 169,930 in 1935-36 and 241,212 pairs in 1936-37 Last year 1,208.648 pairs >of slippers had been manufactured, compared with 988,605 in the previous year and 833,341 pairs in the year before that. * Retailers' Position

The opinion was expressed by the Minister that the boot and shoe manufacturers had been grossly unfair to the Government. Some time ago he had been told by one of the largest retailers in Palmerston North that there would be trouble ir the boot and shoe industry later on. because manufacturers were urging retailers to buy all they could as prices were going up. Representatives of the manufacturers had gone around to all retailers for orders, and in some cases so many had been obtained that they had advised the retailers that they could not supply them for three months. When a retailer could not obtain' his supplies from the home manufacturer, he had sent to England and Australia for supplies, and as stocks Had mounted up orders had declined. , .

Mr S. G. Holland (Opposition, Christchurch North): Hundreds of men will lose their jobs in a few " One wise man informed me that the boot manufacturers sold themselves out of a job," Mr Nash said. "They oersuaded the retailers to stock up so much that the time came when they could not take any more. That is not to say that the Government will not do all it can to help the hoot and shoe manufacturers as well as any other manufacturers." . . Mr Holland: That is the opinion of one man. ...... The Government, the Minister concluded, could not avoid the situation that had developed. Mr Holland had criticised the Government for it, but the circumstances he (the Minister) had detailed were correct.