PRODUCTION COSTS

Timaru Herald, Volume CXXXVIII, Issue 19941, 27 October 1934, Page 18

PRODUCTION COSTS

VIEWS OF INDUSTRIALISTS Special to “The Timaru Herald ” WELLINGTON, October 24. *‘Our costs of production of export commodities are much too high by comparison with our export values, but it is difficult to find practical remedies for this state of affairs/’ the annual report of the New Zealand Employers Federation, presented to the annual meeting to-day, stated. The report reviewed internal and external trade at length.

After noting that the higher exchange rate operated throughout the whole of the year and for only half of the previous year, the report said there was still a definite enlargement in the total value of external trade. “This enlargement is gratifying and encouraging, but in considering its importance it should not be lost sight of that the increase in the total value of exports is largely due, except in the case of wool, to an increased production which has assisted' the gross income in spite of lower prices,” the report said. “The cost of increased production cannot be overlooked. While it is essential to dispose of vast surplus quantities of farm products overseas at prices fixed in the world markets, it is essential that our costs be at least competitive with those of other suppliers of the same markets. Statistics of the manufacturing industries are not so up-to-date as those for the export industries, but the report gave a table, which is the latest available. The report remarked that it was interesting as showing two things—first, the importance of those industries as providing employment, and second, that for the period covered there had been a slight falling-off in the value of their production except in industries preparing farm products for market. That the falling-off has been so slight under the existing circumstances must be regarded as satisfactory. “While New Zealand is subject to the effect of the decline of international trade, the effect is more indirect than direct because our trade is mainly with Great Britain,” the report said. “Any adverse effect upon the trade of Great Britain reacts upon us, but our chief concern at present, whatever it may be in ’the future, is our British market. It is, therefore, most important and encouraging for us that the improvement in Great Britain’s trade which we noted in our last report has been continued. During the past year there has been a notable reduction of unemployment and a substantial expansion of the volume of trade, mainly due to the conclusion of a number of trade agreements with other countries.

“In view of the efforts of certain British statesmen to restrict the imports into England of produce from the Dominions, it is encouraging to hear the hope expressed that progress may be made in Imperial economic cooperation.”