MANUFACTURERS’ FEDERATION

Otago Witness, Issue 4041, 25 August 1931, Page 26

MANUFACTURERS’ FEDERATION

ESTABLISHMENT OF BOARD.

STATEMENT BY MINISTER. WELLINGTON, August 20.

Reference to the proposed Development of Industries Board was made by the Minister of Industries and Commerce (Mr P. A. de la Perrelle) when opening the conference of the New Zealand Manufacturers’ Federation to-day. The Minister said that for some years there had been an agitation for some organisation which might investigate the industries in New Zealand, inquire into their betterment and consider projects for the increased sale of New Zealand products. He was pleased to be able to tell the delegates that in the next fortnight he hoped to see a development of industries board established in New Zealand. The Minister said that he could not announce the personnel yet. He himself and the Prime Minister (Mr G. W. Forbes), Mr G. W. Clinkard' (secretary of the Department of Industries and Commerce), and Dr Marsden (secretary of the Department of Industrial and Scientific Research) were still discussing the formation and the personnel of the board. It was desired to make the board comprehensive in industry the scientific side as well as the industrial side had to be taken into consideration. It was hoped to set up a board which would be of great advantage to the manufacturers of the country. The board would really be an advisory board, and would go carefully into the proposals made by the people of New Zealand in the matter of the creation of an industries policy and the possible assistance to the existing industries, and would then be able to deal with the proposals in such a way that if national or other assistance were required the Government would be in possession of all the facts. At present a number of men might ask the Government for assistance and the Government had to accept their word. The new board would be composed of men apart from Government officials. It would take evidence, investigate the projects carefully’’, and make recommendations. Co-operation between board, manufacturers, and the Government should safeguard new industries and see that they 7 secured a proper start and that they’ had a prospect of success.

LOCAL INDUSTRIES

Matters of interest to manufacturers were referred to by’ Mr G. Finn, of Az. kland, in his presidential addrses.

Mr Finn said that about one-third of the population of the Dominion at the present time was entirely dependent for a living- o the maufacturing industries which had a very important bearing on the general welfare of the Dominion. The past year had been one of the most difli? cult and most momentous in the history of the country. “ I am hoping,” continued the speaker, “that when the request for the setting up of a development of industries board is given effect to some of the handicaps under which we have laboured in the past will disappear and that the new industries for which the Dominion is languishing will be encouraged. New Zealand cannot be allowed to become a dumping ground for the surplus products of other countries when we have the labour and the means of producing them ourselves. “ The only sure and certain market for our primary products,” proceeded Mr Finn, “is our local market. This must be protected by’ ensuring to New Zealand the manufacture as far as possible of the goods it requires to satisfy our own needs. This does not mean the total cessation of imports. On the contrary, the more we progress and the more people we can employ the greater becomes our need of machinery, raw materials, other goods for which the older countries have established a partial monopoly. The fostering of local industry does not only mean more employment for our people, which is badly needed, but means keeping money in circulation in the country and the gradual building up of our financial resources.”

AUSTRALIAN TRADE AGREEMENT. A suggestion to ask the Government what was the position of the trade agreement with Australia with a view to its cancellation and revision was made. It was urged that in the interests of New Zealand and the United Kingdom manufacturers’ Federation to-day. It was urged that in the interests of New Zealand and the United Kingdom manufacturers the incidence of preference to Australian manufacturers as compared with United Kingdom manufacturers should be adjusted to the same comparative basis as existed prior to the tariff revision operative from July 23, 1930. It was pointed out that the exchange between New Zealand and Australia and New Zealand and London had a good deal to do with the matter. Mr Jeffery’ (Dunedin) urged that the manufacturers of New Zealand had the right to enjoy the protection laid down in the Customs tariff.

On the motion of Mr Jeffery, seconded by Mr F. L. Hutchinson (Christchurch) it was resolved that it would be in the best interests of the Dominion were the Customs Department to impose on goods received from the Australian Commonwealth, with the exception of those goods which are not produced in New Zealand, a dumping duty equal to the amount of exchange premium obtained.

A sub-committee is further to consider the matter and report to the executive after the conference.

DUMPING OF FOREIGN GOODS. During the discussion of the proposal to amend the Customs Act, it was stated that 75 per cent, of women’s garments which name into New Zealand were dumped, bought at jobbing price, and sold at prices with which the New Zealand manufacturers could not possibly compete. The debate arose on a Wellington remit that the Government be requested so to amend the Customs Act that it would be obligatory* on the part of every importer of apparel to indicate in each invoice the ordinary or original selling price of goods; further, that the Government be requested that a duty be levied on the purchase price, plus a dumping duty of two-thirds of the difference between the price actually’ charged and the original price indicated.

Mr J. Lewis said, in regard to women's garments, 85 per cent, of the spending power was spent on dumped goods, and New Zealand manufacturers could not produce garments to compete with them. The retailers had been making 100 to 300 per cent profit, and even at the end of the season were able almost to give things away and still make a profit. Mr Lewis suggested that the price should be placed on each garment and then the duty ad valorem. In Australia that svstem had been very effective. New Zealand manufacturers w’ent to the trouble of getting new models, new machinery and designers, but received little encouragement. The only way’ "was to put a duty on each garment. The clothing industry employed about 8000 people in the Dominion, but the. total could be largely increased if action along the lines suggested were taken.

It was decided to refer the remit back to the Wellington Association for revision.

EMPLOYMENT FOR BOYS

A remit was passed urging a review of the Apprenticeship Act with a view to removing the restrictions and .anomalies which interfere with the employment of apprentices “ and facilitating the employment of young people.” Mr J. G. Jeffery (Dunedin) spoke of the propaganda being carried on to increase industry in the Dominion so that they could employ^the youth of the country. Parents were’suffering great anxiety at the present time, as during last year practically no boys had been absorbed into industry, largely due to the restrictions imposed by the Act. Employers were loth to accept the responsibility of taking on apprentices, especially in view

of the liability upon them in the event of not being able to retain the apprentice for the full period. If the restrictions were eased more apprentices would be employed.

Mr F. Campbell suggested that the matter was one for employers. It was agreed to forward a copy of the remit to the New Zealand Employers’ Federation. DUTIES ON WHEAT. A motion supporting the sliding scale of wheat duties was favourably discussed by some of the delegates. It was then pointed out that no motion could be submitted unless by unanimous consent as due notice had not been given prior to the conference. The president (Mr G. Finn, Auckland) agreed that such vyas the case and, while not putting the motion, said that had it been in order it would have been carried by a large majority of delegates. The motion submitted by Mr I. Woolf (Canterbury) was “That this conference supports the sliding scale of wheat duties and considers that the wheat industry should receive such protection as is necessary to maintain the welfare of an essential industry vital to the welfare of the Dominion; that a copy of this resolution be forwarded to the Prime Minister and to the associated press of New Zealand.”

Mr-Woolf read a lengthy extract from the evidence given before the Wheat Commission, showing the importance of the industry to Canterbury and Otago and the amount of labour engaged by the industry. He realised, he.said, that there was some opposition from the poultry industry, but there were over GOOO wheatgrowers while there were only about 130 individuals affected who made a living entirely by poultry farming. If the wheat industry was not carried on it would mean ruin to Canterbury and Otago for some years to come. He appealed to the delegates to look at the matter from a national aspect. If they could not help the wheatgrower, then they should let all foreign wheat come in, and also Russian butter. Through Russian dumping, wheat was at the lowest price for 150 years. Mr F. L. Hutchinson (Christchurch)seconded the motion, saying that an economist had worked out what was gained

by having a cheap loaf and had found that the gain to the Dominion was about £250,000. He then worked out the other side and found that the loss to the Dominion by allowing cheap stuff to come in was £500,000. They should maintain wheatgrowing as. a matter of principle. The president said that many people in the North Island were opposed to the wheat duty, but he was not. He knew the price had been on the high side, but that had now been rectified. Wheatgrowing was essential to Canterbury, for no other crop could take its place and it was a crop which enabled the farmer to use his time throughout the year. Could they imagine what it would mean to the manufacturers of the Dominion if the duties were removed.

Mr S. Takle (Auckland) : This motion has been sprung on the conference and I am not prepared to vote on it. The secretary (Mr J. Findlay, Auckland) drew attention to the rules, which provide that no question shall be decided or voted upon unless communicated as a remit to all associations one month before the conference. Questions not covered by remits could be discussed, but no resolution put unless with the unanimous consent of all affiliated associations, whether represented at the conference or not. Mr Woolf: We should show the farmers of New Zealand that we are sincere in our goodwill towards any New Zealand industry.

Mr F. Campbell (Wellington) moved that a vote should be taken and suggested that Mr Takle should refrain from voting.

Mr Findlay said the Government had already reached a decision in the matter. There was no need for the federation to pass a remit. Further, they had no instructions from the Auckland branch and could not commit that association. Mr Woolf suggest’d that the motion be put and a majority vote taken, any objection being noted. The president ruled that the motion could not be put, but had it been sent forward in time as a remit, he thought it would have been carried by an overwhelming majority.

ELECTION OF OFFICERS. Mr J. T. Spears (Wellington) was unanimously elected president for the ensuing year. Mr F. Campbell was elected vicepresident, Mr R. T. M. Edmonds secretary, Mr E. R. Render treasurer, Mr F W. Voseller auditor. The executive will be in Wellington for the ensuing year. CO-OPERATION IN INDUSTRY. WELLINGTON, August 21. Endorsing the appeal of Mr W. J. Polson, president of the New Zealand Farmers’ Union, for combination, unanimity, and national understanding, the president (Mr J. T. Spears), submitted a motion commending the constructive proposals advanced by Air Polson. Mr Spears referred to an address given at the Farmers’ LTnion Conference, and urged that it was a gesture which should be accepted by the federation, as it would tend towards co-operation and unanimity between the primary and the secondary industries. The motion, which was seconded by Air W. G. Kindley (Dunedin) and carried was as follows: —“This conference highly commends the constructive proposals advinced by Air Polson in his presidential address to the New Zealand Fanners’ Union —(1) National understanding. (2) the subordinating of all other issues to this one, (3) the assent of all sections to the adoption of a definite object, and hereby resolves to lend all possible aid in creating and maintaining a national understanding and a general appreciation of ■the problems of all sections of the community, and in the formation of a definite process of uplift for all industries.” DOMINION TRADE AIARK. The question of a New Zealand trade mark was referred to the Wellington Manufacturers’ Association. The following resolution was carried:—

“ That in view of the considerable time that has elapsed since this matter was first seriously discussed and the fact that the competition for designs has been completed and awards made a decision should be come to immediately so that the scheme might be put into operation.” It was also resolved—“ That the Government be asked to insist that all goods be branded plainly with the country of manufacture, with penalties against agents or vendors in this country for default or wrongful brandings.”