REASON FOR CONCERN

Taranaki Daily News, 15 November 1934, Page 5

REASON FOR CONCERN

PROBLEM FOR MANUFACTURERS. ADDRESS BY FINANCE MINISTER. By Telegraph—Press Association. Wellington, Nov. 14. The Rt. Hon. J. G. Coates, Minister of Finance and Customs, in an address to the New Zealand Manufacturers’ Federation conference this morning referred to the criticism levelled against the Government as the result of the Ottawa agreement and said he thought the criticisms from both sides cancelled each other out.

In spite of the improvement in the unemployment positiofi, continued. Mr. Coates, there was still every reason for concern, for the situation affected manufacturers very directly. Already he had suggested in a tentative way that manufacturers should examine the bearing of the length of working time on the problem. He realised that many difficulties were involved, but it deserved patient examination to see whether and how far they could be overcome. In New Zealand were many manufacturing lines which should be produced as cheaply and efficiently as in other manufacturing countries. The New Zealand manufacturer had at hand the market of at least 1,500,000 people, all consumers, but he had to guard against over development of productive capacity. The moral for New Zealand was that overcapitalisation must be avoided,. New Zealand had over-capitalised by multiplying the number of small factories, so that many were not running to full capacity. The Government should not be ssked to protect those. It was the duty of the industry itself to eliminate high cost producers and give consumers the benefit of lowered overhead costs in lower prices. There were many concerns in New Zealand which individually were efficient, yet the industry as a whole could be regarded as uneconomic because larger units were possible and necessary. The Government, he said, was willing to meet manufacturers when it could be shown that their proposals would not only assist themselves but conduce to the material welfare of New Zealand. Referring to the statement that New Zealand should insist on a higher standard of general education for children. Mr. Coates said that if a higher age for the entry into industrial employment would help to cure unemployment, and if manufacturers could agree among themselves as to the necessity for the step, they could rest assured that every consideration would be given cases where assistance was necessary against the competi - tion of goods produced under less favourable labour conditions.