DOMINION INDUSTRIES

Stratford Evening Post, Volume II, Issue 89, 8 November 1932, Page 5

DOMINION INDUSTRIES

PRIMARY AND SECONDARY CO-OPERATION DEVELOPMENT OF OVERSEAS TRADE NECESSITY FOR NEW MARKETS Mr S. Takle, president of the Auckland Manufacturers' Association, who proposed the toast of "Industries jmd Commerce*' at last night's banquet, paid a tribute to the work of Mr Masters and referred to the quotation, "Art thrives most where commerce has enriched the busy coast," He said h e believed it to be very true. "Secondary indus. tries come first. manufacturing industries next and then come all the business and associated callings,*' he said. Mr Takle sketched the advantages that would accrue to Taranakf from # the new railway in the way of ad. ditional produce and traffic. Sec. ondary and other industries in a country like New Zealand were, he said, interdependent upon the primary industries.

In responding to the toast the Hon R. Masters,, Minister of Industries and Commerce said that he regarded it as a compliment that recognition should be given on such an occasion to the Government's interest in and assistance to industry. "Possibly the chambers of com. merce might ostracise me for interference in business, but the Govern, ment. realises its responsibilities, which begin in giving every help posl sible to industry," said the Minister. "I should like to correct the impression which some people have that the Prime Minister and Mr Coates are merely farmers. As a matter of fact, they take a very keen interest in every phase of industry, and are anxious to assist in any direction possible. "There also seems fo be a wrong idea as to the place of secondary industries in the life of the Dominion The interests of both primary and secondary industries are the same and there should be a greater co. operation and better understanding between them. Tn this connection it is pleasing to note the combined effects which both branches of Indus. trv have made at various shows which I have attended, nn.melv at Stratford, Palmerston North. Christchurch, and elsewhere. There has been a spirit of co-operation at exhi. bifions of various kinds, and in other efforts to increase the'sale of New Zealand made goods.

"After all there is a very real joint interest, as the utilisation of raw material by manufacturing industries is a most important Question. For instance. New Zealand wool i K utilised in the manufacture o[ rugs. clothing, carpets, etc. Hides and skins in the manufacture of leather, boots belting, etc., flax in the nrodnction of artificaf silk and cellulose tin connection with which the Department of Scientific and Industrial Research has done such valuable work), fruits, tobacco, veils (from which rennet is madei, kauri gum fused in (he recently discovered nitro cellulose varnishes and lacfluers) were other instances of prim. ary products being necessary for manufacturing industries. Raw Material for Industries "Our first concern should be the use of 100 per cent, of New Zealand raw material by our secondary indus-* tries, and if that is not possible, then the utilisation of British raw material. This will stimulate the establishment of new industries that are economically sound, and will be a means of creating' employment for our people. There are, of course, in. dustries which require a certain amount of raw material which can only be obtained from foreign countries, but in this connection every care should be exercised to see that an industry which is using all foreign material should be able to compete with the imported manufactured article without recourse to excessively high tariff protection. "In the past an inferiority complex has existed in connection with New Zealand made goods, and it is obvious that people generally do not realise the value of our secondary industries to the Dominion! I should like to mention the official statistics relating to these industries for the year ended March 31, 1931. Persons engaged ...... 61 973 £ ' Salaries and wages paid 11 643,514 Cost of materials used.. 16,989,309 Added value 22,25'/2(17 Value of products .. .. 3!),245,'60G Value of land, buildings, plant and machinery . . 20.260,7:>0 ''These figures do not include those relating to factories connected with primary industries, such as butt eland cheese factories, meat freezing works, gas making and the genera, tion of electricity.

! "The excellence of Ihe products of our factories is beyond question i both I so far as workmanship, quality of the j material, and the finish of the article j ai'e concerned, and 1 am pleased to { say that there is definite evidence ! that the prejudice which ha s existed j against them is gradually disappear. iugi. This is largely thj result of propaganda in the form of advertising campaigns, shows, exhibitions and radio talks, but by far the greatest factor i.s the quality of the goods themselves. "I should now like to deal for a few moments with the question of the extension of our markets over, seas, but i do not propose to enlarge upon the matter on this occasion. In my speech on the occasion of the opening of the Stratford Winter Show | a few months ago I urged that every ; effort should be made to develop our j trade overseas, ami 1 am very pleas. j ed to slate that considerable progress j has been made since (hen. One very j important step was the holding of a conference just recently between rep. ! roseiitatives of the Dairy Board, Meat Hoard, Fruit Hoard and Honey Hoard, ami the Prime Minister, Mr Coates and myself. Naturally the Produce boards were keenly interested as the marketing of the goods for which they are responsible is the most important phase of their activities. The conference was very satis, factory and the boards have now set up a special committee to go into the matter and report to the Government ro that further consideration can he -;ivcu as to U'e best method, of proce.

dure. The Department of Industries and Commerce is co-operating with the boards, and inquiries are now being made bv the department to ascer tain to what extent exporters are interested in Eastern markets, and the Possibilities of increased ' trade if direct shipping is arranged. The result of these investigations will Rive us something definite to go to the shipping companies with, and T sincerely trust that business firms and others will co-operate with th" Government and the boards in thf inquiries which ai> now beins; made

An Obvious Necessity "The necessity of new markets is obvious—even more obvious now than when I spoke in Stratford a few months ago. Production is increasing not only in New Zealand but in other parts of the world and it is folly to think we and the rest of the world can continue to pour steadily increasing calamities of primary Produce into the United Kingdom market and expect a payable return. It is therefore essential that we look elsewhere to absorb some of our produce, and it. is equallv essential that we should have an efficient selling organisation, as no matter how good our nroduce is it will not sell itself particularly in the face of competition. 'A great, deal of preliminary work has already been done by the department, but. the actual development of the trade must be left to private enterprise, whose co.operation is essential if success is to attend the efforts which are being made. "I admit that there are difficulties to be faced, and it is not going to be easy to gain a footing hut if is easier today than it will be in 10 years' time. Other countries have nlreadv established themselves in Eastern countries and are sparing no pains to consolidate their positrons because they realise the value of those mar. kets.

"Some risks must, be taken, and this is another instance where' confi. deuce is necessary. Unfortunately. we are looking at matters generally today with a good deal of pessimism, ond it !<■ necessary that we shake off that attitude. "For instance, the National Expenditure Commission has recommended that there should be a reduction in our overseas representation. The value of these offices cannot be gauged in pounds, shillings and pence. They are of great national importance and I am definitely of the opinion that it is in times of depression that we should strive to the utmost l to help ourselves back to prosperity by extending our present markets, and by developing new ones. Surely it would be a drastic step in (he wrong direction if at a time like this, and particularly after the Ottawa agreements which are based on an extension of Empire trade, we were to withdraw our representatives overseas, and thus lose touch with markets which have meant so much to us in the past. We have a representative in Canada and Canada has a representative in New Zealand. Canada's exports to New Zeland have fallen from £4,_ 792,000 in 1929 to £1,224,000 in 1931, but' Canada has not withdrawn 'her representation here. As a matter of fact the tendency all over the world is (o extend rather than to restrict, overseas representation, and 1 feel that New Zealand would be taking an unwise step if she acted in the direction suggested. "In this connection I would mention that New Zealand has no less than 13 honorary agents in different, parts of the world, who have given their services because they believe from their knowledge of local affairs that there are definite opportunities for New Zealand goods in the countries in which they live. Functions of New Committee "i siiotuu also like to say a few worus Ui connection with uie L>e\'elopiuciit of industries Committee, wmcii as you know, was recently set up uy me uoveninieiu. Its amis ana oujecis are tne development oi industries on sound tecniuuai aim line lines; Uie association of science witn an industrial processes; utt, guidance ot estaulisneu inuustries uioiig unproved lines; uie introduction oi appropriate new industries ana spousing them whilst uiey are in mi iiitant state; uie examination oi relations uetsvecu uie Uoveninieiu and industry in order to provide ioi sound industrial development on national lines, and tne creation of a sound industrial viewpoint compatible with national and imperial development.

•'The committee is composed of men. witn special qualifications ami il lias dealt with many matters of a general nature aiieoung ail industries, liecommeuuaUons liave been conveyed to the Government so tnai necessary steps to moduy legislation wnich acts in restrictive maimer on iiiuustrial progress may be enacted, or that new legislation to facilitate pi'Ogress of inuiistry ni desirable directions may be passed. Investigations have been made of. new industries which might be commenced with ad. vantage to the Dominion, and guid aiice has been ottered to promoters to ensure that they will have all coudi. lions, both scientific and technical properly arranged, so that the pro. posed new industries will have a reasonable chance of success. ••A new system of helping present industries, and establishing new ones in which effect is being given to recent developments of applied science lias been adopted, by means of grant. ing licenses, or by granting protection against internal competition for a period. "Summed up, the function of the committee and the desire of the Government is to be as helpful as Possible to industry generally. "I am convinced that the greatest

needs today are for the display of more optimism and confidence 011 tha pari of industrialists, investors, and luueeti by all sections of the community. There is no uouht tnat want r of confidence in ourselves and our resources hampers and restricts industry to a dangerous degree. "To a certain extent capital lias; been frozen, as is evidenced by increased banK deposits, tbe numoer of Government bonds pureUased, and. Uie fail in shares on the stock exchange. This may be a natural result of the present but I am of the opinion that the time has arrived when there should be a loosening of Uie purse strings and of judicious spending. "I know officially of one concern which desires to invest half a million Pounds in New Zealand, it needs nq emphasising by me to show you what a benefit it would be to have an additional half a million of capital spent here, buying our electricity, giving wont to our unemployed, and producing' at a cheap rate an article that is greatly needed. Such a concern needs encouragement, and if necessary slioulu be given a concession, i mention this to show that capital outside* New Zealand apparently has conuueiice in us. '•More enterprise is needed in New Zealand today. There is a real call tor development in both primary and secondary industries, "We have just about reached the limit so far as depression and pessimism are concerned, and I think we can definitely look torward to betted umes. There is a limit to taxation, as it is possible to tax beyond taxable value, which has been proved in regard to racing, postage and customs duties, etc. There is also a limit to economy. An excess in either taxation or economy creates hardsiiip, which in turn may create unemployment. "These points which I have juso outlined are to my mind definite steps towards our economic recovery,, which we all so much desire, and; with that recovery will come employment for our men and women and young folk leaving school, "1 thank you very sincerely for the opportunity you have given me of' speaking this evening, ami for the manner in which the toast was received."