The Pahiatua Herald PUBLISHED EVERY EVENING SATURDAY, FEBRUARY 11, 1939 INDUSTRIAL, EXPANSION

Pahiatua Herald, Volume XLVIII, Issue 14065, 11 February 1939, Page 4

The Pahiatua Herald PUBLISHED EVERY EVENING SATURDAY, FEBRUARY 11, 1939 INDUSTRIAL, EXPANSION

One argument in favour of import control advanced by the Prime Min ister and the Minister of Customs is that industrial expansion can be fostered in the shelter of the scheme thus opening new avenues of employment. While many may question the method, few would deny thatthe objective is desirable. Unfortunltely, as an article published recently shows, uncertainty as to the future has so far checked any marked development. Some existing industries are hampered by the wit’, holding of licenses to import sufficient raw materials. New enterprises, before they lease factory space or erect new buildings, wish to be assured at least that they will be able to. import plant and iaw materials. And before they sink their capital, they would also wish to be assured ot the future of the local market; whether as Mr. Savage says import control lias come to stay, being part of a long range plan; or whether as Mr. Nash suggests the scheme has been imposed to nicety a financial emergency and the benefits to local industry are only incidental and may be temporary. The latter interpretation is favoured by Mr. J. G. Barclay in a speech at Whangarei. While tfie Government’s policy remains undefined, industrial expansion on any large scale is unlikely to eventuate. Manufacturers will hesitate to setup in a country of high production costs at the risk of having to face the competition of, imports’ from some low-cost countries. For that reason alone, Mr. Barclay's expectation, that workers losing jobs with importers will ‘‘be readily absorbed in local industries,” may not be realised. He should also, along with the Government, consider the difficulty of qualifying salesmen and typ-ist-es for factory work at short notice. In fact, if serious dislocation in New Zealand’s economy is to be avoided, the Government will have to show a much more active appreciation of the implications of its policy than it has done since the controls were applied on December 5.