The Southland Times. PUBLISHED EVERY MORNING, "Luceo Non Uro.” FRIDAY, JANUARY 5, 1934. SECONDARY INDUSTRIES

Southland Times, Issue 22214, 5 January 1934, Page 4

The Southland Times. PUBLISHED EVERY MORNING, "Luceo Non Uro.” FRIDAY, JANUARY 5, 1934. SECONDARY INDUSTRIES

In a letter appearing in to-day’s issue a correspondent chides us for suggesting in our leading article of December 29 that the time had come for those at the head of Dominion affairs to take stock of the position and decide whether more attention should not be paid to the development of secondary industries. It is not our intention to deal with the wide issues raised by our correspondent but there are points which call for a reply. He fears that assistance to secondary industries will disturb Empire unity and will retard the day of Britain’s economic recovery. He can see little that is praiseworthy in the efforts of New Zealand industrialists, but by way of contrast he speaks of the romance of the farming industry of New Zealand as one of the outstanding features of modern industry. No one will deny the truth of the last assertion, In the article to which he takes exception there was no belittling of the work of the men on the land. “There is of course no argument about the dependence of New Zealand on her primary industries” were the words which prefaced our remarks regarding secondary industries. This journal has always been ready . to recognize the claims of the primary producer and to urge assistance for him when the deflation

of prices in the world’s markets threatened his ruin. But we submit with equal conviction that the judicious development of secondary industries is important to the welfare of the State. New Zealand has been a country of dual specialization — specialization of markets and of products. There is an obvious danger in this, as recent happenings have shown. On broad economic principles a plea for greater self-sufficiency, a warning against placing all our eggs in one basket, seems as necessary as it is sound. And there is a more domestic aspect which must not be overlooked. At present there are approximately 60,000 men and women waiting to be re-absorbed into regular employment. Can the primary industries, even allowing for a rise in the price of butter and cheese along with wool and meat, find work for these unemployed? Our plea for the encouragement of secondary industries is based principally on the ground that by this means only will the workless be given employment. The primary industries have both in the Dominion and abroad been substantially assisted; and rightly so, for they are of paramount importance to New Zealand’s well-being. But can they to-day play a major part in providing work for the workless? We fear not. Therefore we urge that attention be paid to the development of secondary industries, which does not necessarily mean the “bolstering up” (to use our correspondent’s expression) of these industries. In the main New Zealand has a revenue-producing tariff, not a protective tariff as has Australia. The Commonwealth, adopting a vigorous policy of industrial development, has imposed stiff protective tariffs, and according to common report is making a more rapid recovery than New Zealand. We might ask our correspondent whether he would condemn our sister Dominion, but we have not urged the erection of high tariff barriers such as those of the United States and Australia, though we realize the folly of free trade to this country, since the dumping of surplus products from overseas can only cause further unemployment and a decreased purchasing power which will react to the disadvantage of the primary producer. The measure of protection afforded should be such as will at least ensure that the present standard of living among the Dominion’s operatives will be maintained, for who is there who desires to see a lowering of this standard? Furthermore, if it be accepted that the land cannot absorb the army of unemployed should not the' help of secondary industries be invoked? The development of these industries need not be at the expense of the primary producer: rather should it assist him, particularly if the British market grows more restricted. Noi\ as our correspondent fears, need a policy of selfreliance be inimical to Imperial unity. ' Did not Lord Bledisloe, among others, make use of the slogan “Buy New Zealand goods first, then British”? Never have we failed to recognize the importance of farming to this Dominion, never have we departed from the principle of Empire preference; but charity does begin at home and the first duty of the Government is surely to see that as many as possible of the unemployed are again given regular and productive work. May we, therefore, with all due deference to our correspondent, repeat our plea for the development of the Dominion’s secondary industries?