INDUSTRIAL EXPANSION

Southland Times, Issue 23769, 17 March 1939, Page 8

INDUSTRIAL EXPANSION

PROPOSALS FOR SOUTHLAND Exploitation Of The Coalfields PRODUCTION OF OIL AND PETROL LAMP SHADES AND WIRE UTILITIES The need for spreading industries throughout the country rather than confining them to two or three of the bigger centres of population was emphasized yesterday by men interested in the development of industries when invited by The Southland Times to express their views on the prospects of expansion in Southland. It was contended that Southland was handicapped through not having enough manufacturing industries, and suggestions were made for the establishment of new ones. New companies were being formed, it was stated, and the opinion was expressed that facilities for industrial expansion were available in Southland. The Mayor, Mr J. R. Hanan, outlined what the City Council could do to assist new industries, and suggested that a plant be established on the coal fields for the production of petrol and oil: Mr W. M. C. Denham, M.P., mentioned that one or two companies had decided to begin operations at once; Mr G. M. Broughton, president of the Southland Progress League expressed the opinion that private enterprise would start industries if they were likely to be profitable; and Mr William Grieve, president of the Invercargill Chamber of Commerce, said that if the population were increased suitable industries would follow. NOMINAL RENTALS The main help the City Council would probably be prepared to give any new industry in Invercargill would be in the nature of making land available at nominal rentals, said the Mayor. Applications for special electric power and gas contracts would be favourably considered, and as far as the use of the night load of electricity was concerned, the council would be in the position, if it thdught fit, to offer extremely attractive rates. Another possible field where the council might be able to help would be in the direction of assisting in providing housing for employees. “I believe that Southland will never come fully into its own until our vast coal deposits are fully utilized,” said the Mayor. “The obvious method of doing so is by the establishment of a plant on the coalfields for the production of oil and petrol. Many precesses are operating successfully in various parts of the world, and any wide generalization that such an industry would not pay in Southland would be worthless. The question is so big and so important to the Dominion that it warrants the setting up of a royal commission capable of weighing expert evidence. At the outset it may seem a doubtful economic proposition, but having regard to its importance in defence and the functioning of motor transport in the event of New Zealand being isolated, the possibility of producing benzine and fuel oil, apart ' from by-products, would justify the ' exploitation of the coalfields for the ! purpose. It would be of great import- ( ance as affecting our national economy. ' It may well be that the arguments used , by the Government concerning the ( establishment of the iron and steel in- | dustry in the Dominion apply with , even stronger force to the development of our coal resources.” I Mr Hanan said that New Zealand ( bought millions of pounds worth of ( petrol, oil and by-products outside the ( Empire, but should the Dominion be j in the position where it did not need to ( import petrol and oil, it would j be better able to maintain its , London credits. The effect of that would be that New Zea- f land would be able to buy more goods , from Britain and Britain would be able to take more produce from New Zealand, with a consequent rise in our standard of living as well as promotion of trade within the Empire. The production of petrol from coal would also go a long way towards solving the problem of unemployment. t

NEW COMPANIES “The visit to Invercargill of Mr H. F. Larsen, district officer of the Department of Industries and Commerce at Dunedin, has been most helpful,” said Mr Denham. “The investigations he has made, together with the subsequent report he will make to the department, will, I think, be fruitful in paving the way to the development and expansion of industries in Southland. “In our province we are suffering a decided drawback through not having sufficient manufacturing industries. New Zealand must not make the serious mistake of centralizing industry, and I cannot over-emphasize the necessity of decentralization. The import restrictions have given a decided impetus to our local manufacturers, which is expressed in the factories running at full capacity and in some cases increasing the number of employees.” Already there were new companies being formed, and in one or two instances decisions had been made to begin operations right away—the manufacture of lamp-shades, for instance. Premises were being prepared in Invercargill and work had begun, and it was expected that in the near future 30 or 40 employees would be required for that industry. Permission to import raw materials was necessary. The manufacture of wire utilities was also another industry that was on the way,; and there was every prospect of a factory being erected in the city. It was estimated that a dozen men would be employed. There were other indications that new companies would be formed and the establishment of. industries particularly suited to Southland was likely. It was gratifying to know that the Southland Progress League was taking an interest in this important matter and was willing to assist in exploiting the possibilities of Southland’s potentialities. FACTORS TO BE CONSIDERED “If primary production does not increase or increases at a slower rate the development of the towns will slow up unless secondary industries are to be developed,” said Mr Broughton. “I am glad to note that the Government is aware of the dangers of centralization of industries in the four main centres and we must all do what we can to ensure that industries suitable to our district receive every encouragement to start in the towns of Southland. Private enterprise will start industries

if they are likely to be profitable. Possibility of profit is dependent on many factors, some of which are common to all parts of the Dominion. There are many factors of local significance or factors which we can make more attractive. Such matters as the provision of cheap land and cheap power and coal, the supply of raw materials, the development of loyalty by Southlanders to existing and new Southland industries are suggested as factors which can be influenced by the efforts of Southland people. We must never forget a ‘secondary industry’ of the greatest importance—tourist traffic. Southland should do all it can to develop facilities to enable tourists to visit and to see Southland.” Referring to the development of New Zealand in the years since the war, Mr Broughton said that features had been the growth of the four centres and the secondary towns, and the relatively slow increase in the population of rural areas and country townships. From 1921 to 1938 the population of Southland increased by 11,053 at a rate of 17.7 per cent. That increase had been distributed as follows: —

The Invercargill urban area, in accordance with the practice of the Government Statistician, included South Invercargill and part of the Southland county. Counties above included Southland and Wallace counties, excluding the Invercargill urban area and the boroughs an dtown districts not forming parts of counties. Southland production had been mainly based on the sheep and the cow. Mining, saw milling, seeds, fishing and other primary industries had played an important part in the development of Southland, but sheep farming and dairying had been the main sources of our wealth. With a practically stationary rural population there had been a rapid increase since the war in the primary production of Southland. The farmer had done his part. Increased production, however, appeared to have resulted in the rapid growth of the towns. Was primary production to continue to increase? The following figures were of interest: —

In the years 1934-38 dairy cows in Southland decreased by more than 17,000 (19.8 per cent.), cattle other than dairy cows, by more than 18,000 (18.5 per cent.), and pigs by more than 4000 (25.6 per cent.). Sheep increased by 262,000 (9.6 per cent.). The dramatic development of the frozen lamb and mutton trade might now be checked by the quota restriction. Farming in Southland had in the past exhibited a flexibility, an ability to meet changing needs and altering markets. They all hoped it could again respond to changing conditions. “The Southland Progress League will collect information required by prospective manufacturers and will assist the Department of Industries and Commerce in the inquiries now being made,” said Mr Broughton. “The action of Mr W. M. C. Denham, member for Invercargill, in obtaining the services of an officer of the department to make an investigation into the potentialities of Southland is greatly appreciated by the Southland Progress League.”

CHEAP LIVING

“Southland is well adapted for the establishment of industries because of the cheap living conditions here,” said Mr Grieve. “Ground can be obtained close to the city at a low rental, there is plenty of room for housing expansion, and railway sidings could easily be put in to factories.” In most manufacturing countries a process of decentralization was being followed. Small factories working to full capacity all the time were better than big factories working with broken time. It was doubtful whether the concentration of big populations in one or two cities was in the best interests of the country, and it was therefore desirable to spread industries as far as possible throughout the country. As New Zealand had to look to her own defence it was important that it should not have all its industries grouped in one or two areas, in which case their destruction by an invading force would be easier than if factories were more widespread. “However, a note of warning must be sounded,” said Mr Grieve. “An industry should not be started unless it could prove that it would be an economically sound proposition. We must remember that in comparison with other manufacturing countries we have a very small population. Our chief aim should be to increase the present population or New Zealand; suitable manufacturing industries would follow that increase.”

Inc. Population at 1/4/38 Inc. p.c. Invercargill (Urban area) 6990 26,200 36.4 Gore 1021 4,700 27.7 Counties 2054 33,850 6.4 Bluff 459 2,060 28.6 Other 529 —