THE IRON INDUSTRY.

Otago Witness, Issue 3002, 27 September 1911, Page 5

THE IRON INDUSTRY.

DEPUTATION TO THE PRIME MINISTER. INCREASED TARIFF WANTED. (From Oub Own Cobbespondent.) WELLINGTON, September 19. A deputation representing practically the whole iron industry of the Dominion waited upon the Prime Minister to-night to ask that it should be given increased tariff protection. The Hon. R. M'Kenzie was present. Mr D. M'Laren, M.P., in introducing the deputation, stated that it included representatives of both workers and employers. The position of the iron industry was regarded as serious. Shops that years ago employed 300 hands were now employing only 120, and foreign goods in great quantities were dumped upon New Zealand wharves. An unfortunate feature was that" boys were being trained at technical schools and in' engineering schools for whom ho employment was to be found. Mr D. G. Sullivan, president of the Canterbury Trades and Labour Council, stated that the Trades Councils' Federation and its affiliated unions were unanimous in asking the Government, to impose a per cent, tariff on imported ironwork. Ample evidence was available to show that any amount of stuff was being dumped into this country at a price that would scarcely cover the cost of production. As showing how the local industry had fallen away, . Mr Sullivan mentioned that in 1001 Messrs Anderson, of Christchurch, paid £22,083, mostly in general engineering work. In 1910 the same firm paid £11,367 in wages, and Ju-actically half that amount was spent n the production of gas and oil engines. During the period for which the present Government had been in office ironwork to the value of about £1,000,000 per annum had been imported. It was considered that if the protective duty were imposed the working of the factories up to the full measure of their capacity would enable them to produce much more cheaply than at present. Mr J. B. Laurenson (Christchurch) stated that a list of articles which could be made in the Dominion had been prepared, and it was upon these that a doity of 33£ per cent, was suggested. It was not proposed that the duty should apply to all imported machinery. The engineering shops of the Dominion were well equipped, and the drop in engineering was not to be explained by any absence of efficiency. Mr Laurenson mentioned that of 13 stundents tiained at the School of Engineering in Canterbury, only one was in regular employment. One he had himself employed practically at labourer's wages, and the others had gone to foreign countries. This was a very serious position. Messrs Sullivan and Young represented 40,000 votes, which showed that great interest was taken in this matter. Mr J. Young said that he believed that those interested in the iron industry would consent to the establishment of a j board to control the tariff. The man I who bought the goods might thus be protected. Organised labour, which was 60,000 strong, was wholly united in this matter, and demanding protection so that the industry might not be annihilated. Mr B. Robertson (Wellington) declared that the engineering industry of New Zealand was going to collapse unless the Government took it in hand and did something for it. We should keep our own work for our own men. Already local firms were almost restricted to small repair work. Last time he had addressed the Prime Minister the latter had promised to do something for the industry, and they desired that the promise should be made good. Mr H. G. EH, M.P., said he had no doubt that all the member* present were in favour of increasing the protection of the engineering industry { but the trouble #aa that strong apposition would be en- :

countered in the House from representatives of the farming interest. Sir J. G. Ward, in repyling, eaid he fully Tecognised the importance of the matter raised by. the deputation, and the great value to different sections of the Dominion of the engineering industry. He. recognised the benefit,' too, of keeping the industrial world as actively employed as possible. Iu dealing with tariff matters in this country they had to recognise that conditions of a very material difference existed in different parts of New Zealand. Speaking frankly, he thought there was no hope of getting the tariff adjusted that session. It was impossible to put through, a single item, and leave it ; at that. The moment one item was adjusted every other item was open to attack. Thousands of communications came ; n from, all parts of the country demanding tariff changes, and it was a matter of extreme difficulty to separate legitimate demands from illegitimate. If tariff revision were attempted this session it would keep Parliament occupied until April or May of next year. Eight or . 10 weeks would have to be spent upon the tariff alone. He hoped they would realise that this was practically impossible. Having said this, he wanted to state that he was quite prepared to assist this industry in any way in his power and to protect it in various directions. Possibly the problem in hand- was broader at the base than the members of the deputation realised, much as they were interested. It was very desirable that we should have our own raw material produced in our own country in order to compete successfully with foreign products. . Even an adjustment of the tariff might not enable a local industry to compete successfully with those of countries where the rate of wages was very much lower than here. It would be better to produce locally the raw material required for 'carrying on the great secondary industries of this country. He proposed this session to make provision for the development of the iron industry. He hoped to. have legislation put through this session which would leave two courses open to the Government. They had in hand at that moment an offer to establish the iron industry in this country. To do this half a million of money would be required. The Government considered that the term of years asked for was longer than it was prepared to hand over an important industry of the kind to anybody. Possibly as much as £600,000 would be required before very long to do what was necessary. The Government would ask Parliament to leave a double course open to it. It should have the power either to let the industry be carried out by private people for a limited period of years, v.ith a provision for ultimate acquisition by the Government or to nationalise the ir.dustry and provide its own works The Government was asked to do all sorts of things that could not be put into operation in a month or in two or three months. He was favourable to nationalisation of the ironworks, and he was open to consider whether the Government could do it as the interests of the country required, or whether it could be done more quickly by the Government standing aside for 10 or 15 years and acquiring it at the end of that period. Mr Young: What about the Midland railway ? The Prime Minister said that many people in New Zealand were complaining of the increased indebtedness of the country. He did nob know which to attempt. Further loan operations, judging by the expressions used by some people, sincerely or otherwise, would kill a few of them. What the Government would ask Parliament to do was to give it power to take one or other of the courses he had indicated in a limited time. The industry, in conjunction with the great natural sources of water-power now in the possession of the Government, would place it in the strongest position of any country in the world as a manufacturing country before very long. A commission would be set up to inquire into the increasing cost of living in this country. He would be, quite prepared to have that commission inquiry

into the causes of the troubles. in connection with the iron industry and other industries in this country in order that the information might be laid before Parliament during next- session. No doubt dumping was one cause of trouble, and he considered that it could be overcome by a tariff framed on scientific principles. It was certainly undesirable that lade trained in our technical schools and schools of engineering should bo compelled to go abroad. The question of retaining as many as possible was worth inquiring Into, but a number would always go abroad. Distant fields were green. Ho had stated upon the last occasion when an iron trade deputation waited upon him that he wisliea to know what it .wanted. He only now had this information in practical form. Mr Fisher expressed an apprehension that while the doctors were diagnosing the ease the patient might die. In view of the critical .state of the engineering industry, he would suggest that the leaders of both parties iii the House might arrive at an agreement on behalf of their respective folio-wings to amend the tariff •this session in reference to that industry only. The Prime Minister said he would be veiy glad to do anything in his power, but he was quite certain that the House would not consent to act as suggested by Mr Fisher. / The Hon. R. M'Kenzie and Mr Ell remarked that the town v. country question wonid be instantly raised if the tariff amendment suggested, were attempted. Mr M'Laren remarked that the Government was lending a considerable amount of money to local bodies in this country. These bodies were in the habit of buying engineering articles outside the country, even when the margin of difference was email. The Prime Minister replied that if the Government once started passing laws of a coercive character, we might say goodbye to our freedom. 'Mr M'Laren said he had not suggested coercion, but there was such a thing as inducement. Mr Robertson said he could see that they were not going to get anything that session. The Prime Minister was likely to be "back again." When he came back, would he be prepared to give them- a revision of the tafia ? He wanted a straightout answer to that. The Prime Minister said he was prepared to put a straight-out revision of the tariff on the table of the House next se&sion. "And," he added, "I am coming back all right." The deputation thanked the Prime Minister, and withdrew.