PLANS CANCELLED

Otago Daily Times, Issue 27345, 22 March 1950, Page 6

PLANS CANCELLED

Proposed Steel Tubing Factory s SHORTAGE OF LABOUR PA CHRISTCHURCH, Mar. 21. Because of the labour shortage, Tube Investments, Ltd., a large English manufacturing company, has cancelled its plans for the erection of a large factory in Christchurch. The chairman and managing director of the organisation, which is the controlling body for about 40 manufacturing concerns in the United Kingdom, Mr I. A. R. Stedeford, who is visiting Christchurch, made this announcement today. “ The Government will have to consider the employment of the labour which is not closely associated with your basic materials, food and wool,” he said. “The more labour that is attracted away from these industries the more difficult will their economy become. “ The stupid position arises in this country in that you export your wool and import blankets,” he continued. “You are allowing bicycles to be made in this country when the value of raw materials to be imported are not far off the value of the finished product when sold.” The company had decided to abandon its plan to start qperations .in Christchurch because “it is not in New Zealand’s interests to go making worse what is already an extremely serious position.” By starting the factory here the company would rob other industries of labour and upset the country’s economy. Those organisations under the control of Tube Investments, manufacture steel tubing for the manufacture of bicycles, electrical goods and other items.