SIX BAD YEARS

Sun (Auckland), Volume 1, Issue 13, 6 April 1927, Page 1

SIX BAD YEARS

ENGLAND’S INDUSTRIES NEW ZEALAND PROSPECTS MANUFACTURER INTERESTED The recent doleful history of English industry does not shake the belief of Sir Amos Nelson, a Lancashire cotton spinner now visiting Auckland, that in New Zealand there is a bright future for industrial enterprises. •‘But they cannot be developed without adequate tariff protection,” he declares. His extensive interests in the North of England cotton industry—he is a member of a firm controlling a dozen subsidiary concerns—qualify Sir Amos Nelson to speak with the weight of authority on this particular business. “Things are in a shocking state at Home,” he said, “and in consequence of the bad time industry has had, even people with money to spare are now shy of putting capital into manufacturing concerns.” REDUCING THEIR CAPITAL The plight of such organisations as Sir VV\ Armstrong. Whitworth, Ltd., and Horrocks, Crewdsons Ltd., both of which had been forced to reduce their capital heavily, furnished evidence of the misfortunes suffered by many well-established concerns. After six bad years they had just been pulling round when along came the coal strike, making them worse off than ever. Asked if English manufacturers would be prepared to set up branch concerns in New Zealand if protection was given, he replied that few of them had any money to spare, but he was convinced that prospects in the Dominion would be encouraging. Conditions in New Zealand, and particularly round Auckland, were ideal lor cotton manufacturing, for which such factors as abundant water, a warm climate, and power resources were desirable. Steam power would be required for heating, but hydroelectric power could be employed to turn the wheels of the mWs. Not until tariff protection was y n, however, would the industr. .uive a chance. POINTS FOR PROTECTION ‘‘l am a protectionist,” declared Sir Amos, “and I believe every industry should have tariff support. The primary producers, who advocate free trade, should take a broad view, population cannot increase until industries are developed, and when Uo population is doubled or trebled the farmers will not have to pay the same rates and taxes as they do now. Tariff protection, he claimed, would cheapen prices to the home buyer, as it had done in the case of the English motor-car. the manufacture of which was now protected under the McKenna tariff. Moreover if tariff protection gave any one manufacturer big profits he would riot be left alone long, and competitors would soon bring the price down. Enlarging on the advantages of protection. Sir Amos said that if protection had been instituted in Englnnd twenty years ago the industries of the country would not now be in difficulties. In Australia the authorities were doing all they could to help the foundation of local industries. Quite recently a cotton spinning concern, backed by €400.000 in capital, had been formed. The subscribers were principally Australians, but English capital, including some of his own, was represented. In this the point chiefly to be noted was that the Federal Government was giving tariff concessions to assist the company to start. Without these the enterprise would never ha \ »■ am tm-ia lisod.