Industrial Expansion In Southland

Southland Times, Issue 23767, 15 March 1939, Page 4

Industrial Expansion In Southland

ipHE efforts that are being made to facilitate the development of local industries in Southland deserve the fullest support. Opinions may differ on the soundness and practicability of any large-scale expansion of manufacturing under the labour, monetary and economic conditions which the Government has brought about; but there can be no question that if the Dominion is to be encouraged to enter a period of industrial growth Southland should not be backward in pressing its claims for the establishment of suitable industries locally. At the present time an officer of the Department of Industries and Commerce is investigating the prospects of expansion in Invercargill and is conferring with representatives of the Southland Progress League and the Invercargill Chamber of Commerce, and with the local member of Parliament. The potentialities of Gore, Mataura and other towns and districts are to be considered later. How far the investigation will lead remains to be seen, but the project should not be permitted to fail through lack of interest and support. Invercargill and Southland are industrially under-developed. In the value of its factory production in 1937-38 the province held only sixth place in New Zealand, substantially behind Taranaki; and the meat, dairy and saw-milling industries accounted for more than 70 per cent, of its total. Apart from the freezing works, butter and cheese factories and saw mills Southland’s local industries are comparatively few. There is ample scope for the expansion of existing industries and the development of new ones.

The problem which confronts Invercargill and the provincial townships is to show that they can offer as good facilities for industrial development as the main centres. The Prime Minister has expressed himself in favour of the decentralization of industries, but he has recognized the difficulties that such a policy involves. “We do not want to have people huddled together in a few of the main centres,” said Mr Savage in a recent interview; “but just how those industries which are established in the smaller towns can be put on a competitive basis with those alongside the main ports is a matter that will have to be considered.” Manufacturers will look for sites which fulfil as many as possible of the conditions on which economic production depends. Cheap, flat land, low rates and a plentiful supply of cheap power are three important factors; others are accessibility of raw materials, road, rail and shipping charges, and adequate labour. Flat land is desirable not only because it ensures that freight charges can be kept at their lowest level but because it usually enables employees to live close to their work. . Some of these advantages Invercargill and the principal towns can offer; in other respects they are handicapped by comparison with cities and towns in the north. The advantages, however, may be found, or made, to outweigh some of the disadvantages. Mr Savage has indicated that the Government may be prepared to offer concessions which would enable factoi'ies in provincial districts to compete with those in the main centres; and it is possible that local authorities will be able to provide assistance in the same direction. Here again there are difficulties, mainly questions of equity. But no difficulty should be beyond the efforts of local authorities and organizations where a development of as much importance for Southland is involved as the expansion of manufacturing industries.