EXPANSION OF FACTORIES

Southland Times, Issue 25335, 11 April 1944, Page 4

EXPANSION OF FACTORIES

Move To Provincial Centres WELLINGTON FIRMS (Special) WELLINGTON, April 10. Forced by the conditions ruling in the capital city to adopt a policy of decentralization, 14 Wellington manufacturing firms are reported to be establishing branch factories in provincial centres in the North Island, notably Wanganui, where sufficient labour and suitable buildings are immediately available to meet their requirements. The shortage of labour, one of the two primary factors responsible for this development, is considered largely to have its origin in the lack of accommodation in Wellington for workers who could otherwise be drafted to the existing factories. This position is stated to be militating very definitely against the commercial interests of Wellington. Potentially the establishment of these branches in other centres means the loss of hundreds of thousands of pounds in both earning and spending power annually. Unless there is a marked change in the prevailing conditions concerning accommodation for workers, it would appear that the policy now being followed by manufacturers is likely to be continued. It is no secret that Wellington has already lost the establishment of new commercial enterprises in the city through this state of affairs. LACK OF FLOORAGE Another factor with an important bearing on the situation is the lack of suitable existing factory accommodation or floorage in Wellington. This is aggravated by inability.to have constructed within a reasonably short period this type of building. Factories are hard put to it to secure sufficient space for businesses expanded by war-time demands, and some have had to accept somewhat makeshift facilities for storage purposes. Centres like Wanganui, and to a lesser degree other places, have readily adaptable accommodation for auxiliary factories, and Wellington firms are now compelled to extend their activities in this direction. The factories which have sought this expansion are concerned in the production of footwear, underwear and industrial garments. One of these auxiliary factories will have a staff shortly of 80 employees. This is good business for the provincial centres, but manufacturers regard it as being to the detriment of Wellington. Palmerston North, it is considered, offers limited opportunities for the establishment of branches. The labour available for these purposes is stated to be in moderate supply only and suitable accommodation insufficient.