INDUSTRIAL PROBLEMS

Poverty Bay Herald, Volume LXI, Issue 18580, 14 December 1934, Page 5

INDUSTRIAL PROBLEMS

NEED FOR CO-OPERATION LESSONS FROM BRITAIN PRIME MINISTER’S ADVICE (Special to tho Herald.) DUNEDIN, this day. An appeal to industries to co-operate in a scientific effort to overcome their problems was made by the Prime Minister, the Rt. lion. G. W. Forbes, in an address to the annual meeting of the Dunedin Manufacturers’ Association last evening. Mr Forbes quoted extensively from comments of British industrial leaders, and assured manufacturers that any action taken by them oil the lines indicated, would have the support of the Government. '“'Co-operation by., your industries would go a long way to solve industries’, problems >by making .sure that the Government regulations impinging on industry, such as tariffs, machinery regulations, and questions connected with labor would receive sympathetic treatment,” said Mr Forbes, “for the community would be assured that your industries are making bvery endeavor to .procure efficiency in tho interests of the consumer, and it would tend to make such co-operation more of a peaceful,'voluntary nature than one of regulation, argument and interference, but such co-operation will undoubtedly require a greater measure of unanimity in various units of industry on com.mon problems, and a willingness to contribute in some way.

LICENSING OF INDUSTRIES “We come now to an important question raised in your federation’s proposals: that is the licensing of industries. In regard to new industries not competing directly with existing industries, and where large capital cost is involved in development, and where tariff .protection is not required so that the consumer’s interest is not detrimentally affected, there is, I think, a case to be made for a limited number of licenses for a period sufficient to allow a new industry to get on its feet. Examples of such industries may possibly be found in such undertakings as hydrogenation of coal, production of nitrogenous fertilisers, certain chemicals, etc. “In regard to existing industries, in my opinion, there would be almost insurmountable difficulties unless we could obviate the danger of eliminating healthy competition anti discouraging those individual efforts towards improvements which have, such an important bearing on progress.

MUST 'PROCEED SLOWLY “The problem is very difficult and ve must proceed slowly and surely towards a solution in the interests of manufacturers and public alike. In all national organisations'of industry, we must watch that the spirit of progress ,and individual initiative is given free play. We are, herhaps, apt to lag in this regard at present, due to lack of contact 'with ’the latest, development of technical improvements. The Government is,, however, very much alive to the necessity for the encouragement of development of industry, and we shall be pleased to give every consideration to constructive proposals and to co'-operate in every way possible. _ “It is for those reasons that Mr Masters is now freed to devote more personal attention to this .important question, and he will himself act as chairman of the Industries Committee so that he can not .only give the matters raised his personal attention, but can interpret them directly to the Cabinet. We invite your direct help and co-operation, and I wish vour association every success in its efforts.”.

RESEARCH OVERSEAS. Mr. Forbes said lie had before him an interesting account of a conference of industrialists in Groat Britain representing 21 different co-operative research associations, and an industrial effort providing .over £(>00,(100,000 of net output and including such leaders of industry as Sir Kenneth Lee (cotton), Mr. McKenna. Mr. Samuel Oourtauid, Lord Barn by (wool), Mr. Rostock (boots), Mr. B. S. Rowntrec, Sir William Larke (iron and steel), Mr. Thorneycroft, and Mr. Siddelev (motors), Lord Rutherford, etc. This gathering, he said, went on records based on actual experience in favor of such co-operation. The coordination which those present had in mind was in regard to research and technical problems and the trade statistics of their industries, leaving the selling and distribution to private agreements. “At the meeting, Mr. Walter Runciman, on behalf of the Government, staled: “With regard to the attitude of the Government towards this movement I can assure you that we are watching it with great interest and hope to see it develop to a very much greater extent than at present. 1 look forward with confidence t,o the industrialists of this country mending matters in this respect, especially now that.the prospects of trade look more promising. If they do, you may rely on the Government on iis side being prepared to play some part in the forward movement and t,o help to extend the scale of oeprations. ”

OPINIONS IN ENGLAND. Mr. Forbes quoted from the speeches of those mentioned as®follows: — Lord Rutherford: “The Government is prepared, as we have seen, to do something, but inevitably on the basis that God helps those who help themselves. The help of the Government is very largely dependent on how far an industry is prepared to help itself. We have now reached a stage in industry in this country where each individual industry has got to pull itself together and consider itself as a unit in dealing with its affairs, and this should be the case with regard to its association. 1 think that psychologically it is a matter of great importance that each industry should have a sense of pride and solidarity in- its business, and feel that the members of it are doing their best to promote efficiency and to give the public good value for their money.” The chairman of the Non-Ferrous Metals Association: “I think we may take it that industry has now definitely appreciated the necessity for the linking up of science in dealing with its problems, and I think we can also take it as quite definite that it has recognised the advantage of co-opera-tive work through a research association. The advantages are so obvious. ' ’

The chairman of the Linen Association: “The question of research has become very dear t.o us in the linen industry, and is now reckoned of prime importance to the linen industry, in the North of Ireland and in Scotland.”

The chairman of the Paint Association: “May I say, first of all. that there is not the slightest doubt as. to the beneficial effect our association has had upon our trade. It has been in existence now for about, seven years, and everv year I think we have realised more ‘ fully that beneficial effect. ”

.. moving with the times Mr. Thorneycroft: “I am convinced that there are quite as many slums in the mentality of the people in our works as there are slums in houses. You cannot, possibly afford to pay for those new houses if our industry does not go ahead to make the money. Therefore. let us have many millions given for research and I am quite convinced it will be well spent.” Lord Hamby: “We, in our particular industry take considerable pride that we have- evolved a very well worked out levy scheme on a voluntary basis for raising some money, though not sufficient. 1 would like to support the view that is developing steadily in the minds of industrialists throughout the country: that some method should be provided of ensuring that the requirements of fhe majority of interests in an industry can ho made good if voluntary methods prove insufficient. If we can achieve ‘collective rnindedness and secure Hie enabling power which has been suggested, it would bring home to every individual in an industry that membership of nil industry curries with it responsibilities of this character.”

Sir Kenneth T.ee: ‘‘We see what is happening in other countries and the rapidity of the changes, bolh political and industrial, and 1 think wo must recognise that we have in some way got to .move with the times. But mere movement, is not enough. We want to move in the right direction.”

BENEFITS TO INDUSTRY “1 can assure you that these sentiments are shared by myself, ’ said the Prime Minister. “Industries are so specialised that to be effective any cooperation in these regards must be by individual industries or groups of industries, working more or less autonomously themselves, but with general coordinated laison services for all industries.

“As to the benefits of such co-opera-tion, we have already tried it in many of our primary industries, such as wheat, fruit and dairying and in two of our secondary industries, and the results have shown that the principles are sound and that benefit lias accrued to the industry as a whole. It means, however, a general willingness to contribute for all services, in which case the Government will be willing to contribute in every possibe way without undue interference in the management.

“Action must., however, he taken cooperatively under the conditions of the size of our manufacturing units. It would in many cases be impossible for each individual concern to run such an investigation service in connection with its work, and, indeed, if they tried to do it, it would Ik? a very wasteful performance.

"Co-operative activities in Great Britain, already on a large scale, are increasing and I quote from a letter received to-day from Lord Rutherford : ‘Some of the bigger associations like cotton, iron and steel, etc., have responded nobly, and as a result a number of them‘will, in the next year or two, he on a considerably increased scale, and big enough to act as real centres for the industries iconeerned. On the whole, we are fairly well satisfied. but it is obvious that, there is a lot to do to got the whole of our industries scientifically minded. This‘will be largely accelerated when the younger generation gets into power.’ ”