MANUFACTURERS’ ASSOCIATION.

Otago Witness, Issue 3885, 28 August 1928, Page 15

MANUFACTURERS’ ASSOCIATION.

ANNUAL MEETING. A SUCCESSFUL YEAR The eleventh annual meeting of the Dunedin Manufacturers’ Association was held in the Somerset Lounge, Savoy buildings, last night. The president (Mr T. Somerville) occupied the chair, and there were about '6O members present. CHAIRMAN’S ADDRESS. The Chairman, in moving the adoption of the report and balance sheet, said lie did not intend to refer to the many matters that had come before the executive during the past year, as these had all been dealt with in the report. Hu desired, however, to refer to a number of matters which would be of general interest to members of the association. It was very gratifying to note from the opening speech _ delivered by the Minister of Industries and Commerce (Mr A. D. M’Leod) at the Christchurch Winter Show on Saturday, August 11, 1928, that he made reference to the fact “ that New Zealand could not live by bread alone, by which he meant that the future of the Dominion did not depend on primary industries alone, but also on the development of manufacturing Industries.” Under the above heading, Mr M’Leod went on to say that “in this respect he deprecated any feeling of town versus country, believing that it was not in the best interests of the Dominion for primary and manufacturing industries to work against each other.” These views had been expressed by Mr M’Leod on more than one occasion, and at Hawera two years ago he stated that “ personally he was not. and never had been, an advocate of high protection, but neither was he a Freetrader. In his opinion this country had gone so far along the road ‘ Protection ’ during the past 40 years that a reversal to Freetrade would bring disaster to thousands of homes.” At a farmers’ meeting 20 years ago, when a remit urging Freetrade' as a farmers’ policy was being discussed, Mr M’Leod remarked: “If New Zealand will be content to crawl along during the next century towards a maximum population goal of two or three millions, then such a remit as this might be worthy of serious consideration. But I do not believe that that is the limit of our future as a nation in the Pacific. I can conceive a time when this fair land of ours will be truly the Britain of the South. Certainly' it will not be accomplished on primary production alone. Further, it was somewhat remarkable that in their messages to the Christchurch Winter Show not only did Mr M’Leod but the Prime Minister (Mr J. G. Coates) and the Minister of Agriculture (Mr O. J. Hawken) emphasise the fact that the primary producer and the manufacturers’ interests -were closely allied and largely interdependent, and pointed out that the prosperity of the one was closely allied with the prosperity of the other, and it was essential that a spirit of goodwill and co-operation should prevail between the two. He had quoted these remarks at some length in view of the statements made by the president of the New Zealand Farmers’ Union (Mr W. J. Polson). From the remarks made at the last annual conference it could be presumed that the manufacturing industries were maintaining their existence at the expense of the farming community, so much so that the Farmers’ Union passed several resolutions which, if carried into effect, would effectively stagnate the manufacturing industries, if not entirely put many of them out of business. As representatives of manufacturing industries, the association made no apology for its existence, but, on the other hand, considered that it formed a very important part in the development and economic life of the Dominion and maintained that any attempt to separate primary from manufacturing industries was mischievous and dangerous. In the words of Mr W. M. Hughes, “The division of industries into primary and secondary is illogical, and the terminology is, to say the least. distinctly unfortunate.” Exponents of freetrade always presumed that in the absence of protective - duties and local industries the producer in other parts of the world would supply goods on the same basis as he was -compelled to do when in competition in the importing country, and they failed to realise that in many instances the existence of a local industry regulated to a large extent the price of its particular products. He would draw the attention of those holding freetrade views to the changing methods of production in different parts of the world, resulting in the formation of trusts, combines, and cartels, which were succeed-

ing m grouping industries into sections which would in future dictate over the whole of their particular industry, the prices and quality of their products. In a country which had no local industry competing by means of protective tariffs and where foreign trade had been eliminated by trust methods he was safe in predicting that that country would pay a high price for commodities and the consideration a comparatively small country like New Zealand would receive at the, hands of those combines whose trade with New Zealand would form a very small portion. In this connection it was interesting to note that for some years past the agriculture! and pastoral associations, with the mam facturers’ associations in Auckland and Wellington, had combined in staging a winter show exhibiting products of both industries. The great success achieved by these exhibitions was well known, and he was informed that a better understanding and a greater spirit of co-operation had been the outcome. At the present moment the Christchurch Winter Show and Exhibition was being held, and bid well to be an unqualified success. In the south they are not so idealy placed in the matter of accommodation for holding such winter shows, the present building being hardly adequate to furnish an exhibition of primary products alone. Conferences with the Otago Agricultural and Pastoral Association had been held, and that night a proposal to build a hall sufficiently large to accommodate a winter I show and exhibition which would adcquotely display primary products, to-

gether with the products of their fa tories, would, be placed before the met ’ ing. He believed that the "time was op portune not only to discuss but to assis in every possible way any proposal tha. such a building should be proceeded witl The closer co-operation of the farmin;, and manufacturing industries would lea to a more mutual understanding and tfriendly and constructive co-operation For some time past the committee of th executive had been considering a new ha proposal, and had had conferences wit the executive of the Agricultural an Pastoral Association, and Mr James Hog would make a report on this importar matter.

The success of the New Zealand Mad Week brought him to the point whethe the time was not now opportune for thii association to give close attention to th problems of marketing its goods. It wa generally conceded that goods made ii New Zealand had reached a high stan dard in quality, and, indeed, in many line.' the Dominion product was preferred b\ the discriminating buyer because of th quality aspect. Whilst he believed tha in recent years there was an undoubted sentiment in favour of a buying prefer ence for locally-made goods, he urged tha. there was much to do in still furthe fostering this sentiment. They must no be content to merely show their goods ii shop, windows, exhibitions, and shows a: varying intervals, oftentimes montiif apart. Manufacturers must get into moredirect touch with distributors and witl the public. In a report recently issued by the Im perial Economic Committee, and laid before Parliament in January last, by the Secretary of State for the Colonies, it was shown that to ponder Imperial preference effective three things were necessary: 1. That the consumer should be induced to select Empire goods; 2. That he should be able to recognise Empire goods; 3. That Empire goods should be adequate in supply and quality and reasonable in price. He suggested that this advice was worthy of adoption in New Zealand. They should effectively educate the buyers by up-to-date publicity methods as to the need for giving preference to New Zea-land-made goods. They should so market their goods as to leave no doubt as to their origin, and they should, above all. see to it —and tliis was largely an individual responsibility—that the quality and price were right. So far as domestic supplies were concerned, there are few of. the well-estab-lished industries in the Dominion that could meet all reasonable demands. Indeed, most of the plant and equipment was capable of giving very much larger outputs, but it was, and had been, running at a restricted pace because of the lack of orders.

He did not merely wish to speak in platitudes, and to set the case out and then leave it without providing some practical suggestion. He recognised that the problem of marketing was a Dominion one, and one in which all manufacturers would have to co-operate. Government assistance might be rendered in registering a common trade mark—“ Made in New Zealand ” —and in ensuring that Government departments should of themselves give undoubted preference to the purfliase of New Zealand-made goods, and should in no unmistakable way make public the fact that that preference was given because of the ability of the local goods to compete in quality and in price with like goods from overseas. Further, members would remember tin suggestion made at the last annual meet;, ing by Mr J. W. Collins, that the Govern ment, through its Department of Industries and Commerce, could assist in meeting collectively the wholesalers and retailers who already marketed local goods and those who did not stock the goods, ano point out to them the economic necessity of giving- all assistance possible. Then must be more general recognition by Unpeople of New Zealand of the economic importance of themselves supporting firstly, the productions of their own country; and secondly, the products of the Empire.

Machinery could, he believed, be devised for bringing “about better marketing conditions, and” he thought that what he had said on this subject would merit the serious consideration of the manufacturers ol Dunedin, and that they would agree with him that it was one of the most important subjects that could be dealt with b? the association. The subject was, indeed, worthy of investigation by a special committee to be set up for the purpose, which should be charged with the duty o.' devising practical methods for bringing about the scientific distribution and marketing of New Zealand-made goods. Much has been published in the ’local press and in other ways on this subject, and he did not propose to deal witn it at any length, but, rather, to report that it was placed before the Prime Minister at a conference in Wellington some months ago, and the commercial community was hopeful that the Government would take the necessary steps to have the system altered. One could not but be struck by the tremendous annual increase in inportr.tions under this system, and it seemed to him that unless it was stopped it would soon become evident that the increase in the annual expenditure of the Postal Department caused by this system would not have a commensurate increase in revenue, and, moreover, it was also evident that the Government would be a further loser in the fact that the development of this system must mean reduced payments of income tax from the traders in New Zealand, who were adversely affected by this system, for one must realise that when turnover fell it was impossible to bring down overhead expenses in the same proportion, but rather the reverse, and this must of necessity mean reduced profits with reduced income tax. In conclusion, he desired to thank the worthy secretary (Mr G. W. Reid) for all the help and consideration he has given him as president; also to the vicepresident and members of the executive he tendered his grateful thanks for their valuable co-operation and help. The thanks of the association were due to Mr J W. Collins, secretary to the Department of Industries and Commerce, for interest shown and information given, also to Mr F.. Johnson, the local officer for the keen interest he had taken m the association’s affairs, and especially for the arduous and successful work he

did in assisting with the arranging of the window displays this year. The only regret he had was that he had not been able to render the amount of service as president that he should have liked.— (Applause.) The motion was seconded by Mr J. The motion, which was seconded by Mr J. Sutherland Ross, was carried. ELECTION OF OFFICERS. The president nominated Mr J. Sutherland Rcss as president for the ensuing year. He spoke of Mr Ross’s capabilities for the office, as shown by the masterly manner in which he had filled the position of president of the Exhibition and carried on the management of one of the city’s most prosperous businesses.— (Applause.) The motion was adopted with unanimity, and Mr Rcss returned thanks for his election. The following officers were also elected: —Vice-president. Mr J. H. Stewart; committee—Messrs C. Baker, VV. R. Brinsley, Alex. Burt, F. W. Cleavin, R. Cuddie, J. S. Faulkner. W. R. Hayward. James Hogg. J. J. Jeffery, J. Y. Love, William M’Kinlay, B. H. Nees. Norton Oram, D. Phillips. H. E. Skinner, A. Smellie, T. Somerville, J. Stark, A. H. Templeton. Thomas Tomkins, J. E. Wheeler, and C. Wilson; treasurer, Mr R. J. Hudson (re-elected); auditor, Mr W. G. Kindley. During the evening a song was conrributed by Mr J. Sutherland Ross and a recitation by Mr G. Z. Lindley.