OVERSEAS COMPETITION

Otago Daily Times, Issue 23671, 1 December 1938, Page 18

OVERSEAS COMPETITION

EFFECT ON WOOLLEN MILLS FORTY-HOUR WEEK A HANDICAP PRACTICABILITY OF INSULATION QUESTIONED " It is my considered opinion that nothing has hit secondary industries in New Zealand which are competing with overseas importations as hard as the 40-hour week," said Mr Peter McSkimming (chairman of directors) at the annual meeting of shareholders of the Bruce Woollen Manufacturing Company, Ltd., at Milton yesterday afternoon. The speaker emphasised the difficulties facing the woollen manufacturing industry in the Dominion, and said that, although he was not an advocate of high tariffs, it was becoming increasingly difficult, with higher wages and curtailed working hours, to compete with imported goods. Serious Competition "There is no doubt," said Mr McSkimming, " that the mills in New Zealand have suffered a good deal from overseas competition, as both Europe and Australia have been exporting large quantities of woollen and worsted piece goods and knitted wear to New Zealand. During the year the Government increased the tariff on some lines, which will no doubt assist the local mills to a certain extent. " Personally, I am not an advocate for high tariffs, but with increased wages and the curtailment of the hours of labour, it is becoming increasingly difficult to compete with imported goods." Effect of Forty-hour Week With regard to secondary industries which were producing goods in competition with importations from overseas, he said, it was his considered opinion that nothing had hit them as hard as the 40-hour week. It was not reasonable to suppose that New Zealand could increase wages and shorten hours and successfully compete against the imported article. The Prime Minister had consistently maintained that he could insulate New Zealand; if he could do |t successfully he would earn the'gratitude of all manufacturing companies. Insulation, however, might be all right in theory, but he had his doubts about the practical side of it. "Reasonable competition is the life of trade, and if New Zealand manufacturers were competing amongst themselves only, the 40hour week would not have the same drastic effects," said the speaker, " but when our secondary industries have to face high wages, short hours, heavy taxation and overseas competition there can eventually be only one end to the business unless some remedy can be found."