The Daily News. FRIDAY, DECEMBER 19, 1924. SECONDARY INDUSTRIES.

Taranaki Daily News, 19 December 1924, Page 6

The Daily News. FRIDAY, DECEMBER 19, 1924. SECONDARY INDUSTRIES.

It is quite possible that the interesting discussion on secondary industries which took place at the recent annual meeting of the Canterbury Industrial Association will arouse the attention of the public to a subject that is of some importance to the welfare of the Dominion. Although New Zealand is essentially a producing country and almost entirely dependent upon its primary industries, there is plenty of room for such secondary industries as can successfully compete with imported articles without the assistance of a protective tariff. It is.that point which has to be seriously considered in relation to the establishment of any manufacturing venture that has to compete with overseas’ imports on level terms. In view of the high cost of living it is essential that the price of all commodities shall be reduced to the lowest possible cost. There are, however, many articles which are constantly required that could be made locally, but the chief barrifer to lb-? success of secondary industries in the Dominion has been the high cost of production consequent upon the rate of wagSs that rules in comparison to that in force in several overseas countries.' This remark does not imply that the wages scale in the Dominion is too high, for such is not the ease, but it stresses the fact that the competition of goods produced where wages are lower militates against the success of local industries where the wages more nearly approach to the requirements of a reasonably comfortable existence. If manufacturers can educate the people of New Zealand in the direction of purchasing goods made in the country, .so much the beter, for the general principle involved is sound and patriotic. The plan which has the best chance of success is to induct industrialists at Home to establish factories in this country, especially such as can be supplied with raw material available here. The argument advanced by the retiring president of the association (Mr. H. R. Best), that secondary industrialists must ' necessarily share in the general prosperity of the country, is theoretically sound, inasmuch as it is based upon an economic Jaw. Not so his contention that the' large exports must be balanced by imports. Such an argument implies that the primary producers are bound to spend all they make out of their produce, whereas it is essential for the prosperity of a country like New Zealand that there should be a wide margin in favour of exports in order that capital shall be available for improvements and the creation of a reasonable reserve to enable bad times to be faced with confidence. The tendency of high prices for primary ' products has been to encourage indulgence in luxuries, a course that is to be avoided as much as possible. It is well to know that the association desires to discourage, as far as possible, the importation of goods that can be made satisfactorily in this country. It is not, however, so much the question of making such goods, but of the price at which they can be sold as compared with imported goods. * M». Best admitted that, without doubt, large quantities of goods would find their way to this country from Europe, and that local manufacturers would

‘.‘find competition keen and almost unsurpassable,’’ therefore it behoved manufacturers here to bring about improved means for eliminating waste and for lessening the cost of their output, possibly by recourse to mass production. ■ One of his contentious can certainly be commended, namely, to utilise some of the large credit balances in London for the purchase of the machinery and material necessary to develop the natural resources of the Dominion. That would certainly be a fitting method of adding to the prosperity of the country, and it is one that has been deplorably neglected in the past. Apparently the time is ripe for undertaking a systematic endeavour to ascertain the nature and extent of these undeveloped resources which are generally considered to 'be extensive and of great value, while it is possible that electric power, when fully developed throughout the .country, may play an important part in bringing to light the as yet' hidden wealth which is waiting to be utilised.