THE IRON INDUSTRY

Otago Witness, Issue 3006, 25 October 1911, Page 13

THE IRON INDUSTRY

HIGH PEOTECTIVE DUTIES. MR CAMERON'S REPORT. WHAT "WILL THE FARMERS SAY? (Feom Otra Own Correspondent.) WELLINGTON, October 19. A long typewritten report by Mr P. Cameron on the condition of the engineering and kindred industries was presented to Parliament to-d&y. He says the evidence he has acquired goea to show that the older established engineering works are suffering a decided depression in trade, brought about in several /ways. For instance, eight or 10 years ago the southern foundries were exceedingly busy with orders for dredging machinery. They also exported to Australia in three years dredging plant to the value of £25,23*. This, however, lasted only a few years, as New South Wales had in the meantime become part of the Commonwealth, ajid, having built up foundries under a protectionist tariff of 25 per cent., these exports scon ceased. The Commonwealth is cow exporting into New Zealand dredging plant airnd matarial which only carries a 5 per pent. duty. The ma>king of steam engines and boilers is an industry that is fast passing out, a fact contributing in no small degree to the depression. These are being superceded by suction gas plants, oil and gas engines, and electricity. Stationary oil and gas engines are mostly imported from Britain duty free, so New Zealand engineers have not been able to compete in this line; but they have manufactured a large number of first-class oil engines of the. marine type, being able to do this because the imported American engines carry a2O per cent, preferential duty. The local manufacturers, however, complain very much about the inferior quality of the. American especially the cheaper class which they are asked to compete against. They thiutk that Government inspection would bar the use of such engines. Mr Cameron advises the Government :.o encourage this industry to the fullest extent.. He quotes figures to show the im-

portance of the industry, and expresses the opinion that if what he terms a fair measure of protection were given, say, ,to the extent of 33 per" cent, on British and 15 per cent, preferential on foreign, that very soon the £92,000 annually sent out of the Dominion- would (less ■ the materials) be all expended amon.g9t New Zealand workmen extra cost to the consumer. Bitter complaint was ■ made that local bodies sent abroad for their requirements,, even though New Zealand prices were about equal to the imported. He suggests that when the Government grants assistance. to local bodies a clause giving preference to Dominion manufacturers should be insisted upon. In bridge and structural work the engineers ask' for a higher tariff than 2Q per cent. Workmen here get Is 4>ftJ per hour, as against 72d in England and less still on the continent. A 30 per oent. and a 15 per cent, preferential foreign tariff only one or _two blacksmiths' fires going and boilerrhakcrs- are all complaining of the want of trade. Many of the foundries have only one or two blacksmiths' fires going out of from four to seven, and their steam and' electric hammers are only occasionally used. Big companies now nave their own works. In' New Zealand boilermaking: is languishing. Agricultural implements and machinery manufacturers have the hardest road of all to hoe. as there is a free tariff. Against this the Commonwealth, under a protective tariff, is able to export to New Zealand.. The New Zealand manufacturer,

he says, makes a study, of local conditions, soiland requirements, and his implements are copied abroad for manufacture and' exported to New Zealand. . In ,10 years under this heading British imports were £533,905 and foreign £526,635. This refers to agricultural machinery and . implements. In the same time .ploughs and harrows to the! value '.of; £1,155(575 were imported. Local manufacturers want a duty of 30 per cent, and 15. per cent, preferential. He, however, advises that reapers and binders should come in free of duty. He says they have not so far been manufactured in the Dominion, but in this he surely is in error. The International Harvester Company -and the Massey-Harris Company have introduced the very costly principle of sending out agents to scour the country for .orders, which has compelled the local manufacturers in self-defence to' do likewise. This has increased the cost to the farmer frcm 15 to 20 per cent., which prior to the advent of the two companies named was saved to the farmer, as he used to send his order direct to the New Zealand manufacturer. As cream separators will not in the near future be made in New Zealand they should be admitted free. Milking machines patented in New Zealand are being imitated abroad and imported to New Zealand duty free, - underselling the local article. Protection to the extent of 30 per cent, and 15 per cent, preferential is therefore asked for. The cooking range industry has successfully established itself under the 20 per cent, tariff, and employs a large number of hands, none but American stoves being now imported. A further increase of duty on these goods is not being asked for. The industry of malleable steel and crucible castings is making headway, and is almost the sole support of one Dunedin foundry, where the ordinary engineering trade has so fallen off that £II,OOO worth of machinery "was standing idle. The industry should have further protection, as it has no advantage in freights, the weight of the raw material and the manufactured article being about equal. British malleable castings are landed at 37s 4d per owt and American at 32s Bd, while the New Zealand price is 435. A duty of 30 per cent, and 15 per cent, preferential is suggested. Shipbuilding has been revived to a considerable extent, especially in Dunedin. and as it is an industry employing a large amount of labour, protection to the extent of 30 per cent, and 15 per cent, or more preferential is suggested. At present steamers and their furnishings are free of "duty. The shipbuilding industry is of great importance to a country like. New Zealand, and to encourage it in its 'infancy by means of a tariff is a reasonable proposition. Mr Can-eron has been much impressed by the progress in the manufacturing of locomotives and by the good and reliable which he saw. There is no reason why every railway engine should not be made in New Zealand. As the_ Government is the only user of the engines, h further duty should not be imposed. The ohas3is of motor cars is now free of duty,

while the body is dutiable at 20 per cent. This was done to assist carriage builders in New Zealand, but has not been taken advantage of, as not a single body has been built in New Zealand for an imported chassis. It would be better to declare the cars entirely free or dutiable, and in the latter case the manufacture of. them woultf soon be established in the Dominion.

Mr Cameron notes evidences of falling off in the brass foundry industry, and states that one firm is prepared to double its plant and building if a. protection of 30 per' cent and 15 per cent, preferential is guaranteed. The galvanised sheet iron industry requires attention. There is only one maker, of corrugated iron in the Dominion, and he only uses one "pot." He asks not for further tariff protection, but that the Government should continue to specify Dominion made galvanised iron in all contracts Barbed wire and staple and standard manufacturing would be taken up if there .was a tariff protection; 3s per cwt. and Is 6d preferential for staples would be sufficient, and 30 per cent, and 15 per oent, preferential for barbed wire. The industry was formerly carried on, but ceased after the removal of the duty. "Wire nail manufacturing would also be restarted if protected by a duty of, say, 3s and Is 6d preferential. Iron bedstead manufacturing is a creditable industry, and is holding its own, but if freights are reduced it will .require protection. In conclusion, Mr Cameron urges upon the Government the great national importance, of assisting in every way possible the development of the iron and steel ore deposits of the Dominion. Upon no account whatever should . the Government allow these ores "to be exported, but every inducement should be offered to work them within the Dominion, with outside capital if, reoessary. He suggests a system of bonuses for this purpose. He considers! that imports ore the real cause of the stagnation of the iron industry, and the remedy should be amendments of the tariff, without unduly increasing the cost to the consumer.