MENACE TO SECONDARY INDUSTRIES

Timaru Herald, Volume CXLIII, Issue 20893, 24 November 1937, Page 8

MENACE TO SECONDARY INDUSTRIES

Australian official trade returns, indicating that the Commonwealth’s imports of New Zealand goods were valued at £1,542,831 in the trade year of 1936-37, and that New Zealand, in the same period imported Australian goods valued at £4,539,915, ought to prompt the people of New Zealand to look more closely into these figures for the purpose of redressing the unfavourable trade balance in the interest of the workers of New Zealand. Months ago the Prime Minister wisely remarked that he saw no sense in New Zealand importing anything that could be manufactured in this country with our own labour. Manifestly the time is here for prompt action. No one would think for a moment of accusing the Government of lack of capacity to legislate, because it is only too clear that nearly every Minister of the Crown has presented to the House of Representatives sweeping changes in exisiting legislation and proposed new acts that in the main bear the hall mark of careful preparation. Important and widereaching changes embodied in legislation have been capably piloted through the House and the implementation of the Government’s policy proceeds apace, save only in at least one sphere of the country’s activities. We refer to the long delay in tackling the problem of the increased flood of importations of manufactured goods in relation to employment. Day by day reports are being issued by the manufacturers of boots, which seem to suggest that any further delay in dealing with this rather ticklish problem may result in loss of employment by many workers who are now only partially engaged. The Australian trade ligures ought to stir the whole country to the danger that confronts the industries in the continuance of conditions which are tending to divert the prosperity that improved overseas prices have showered upon New Zealand into Australian channels trade to assist the Commonwealth to solve its unemployment problems. It is pertinent to point out in this connection that the latest official ligures show that for the first five months in 1936 New Zealand imported £171,000 worth of footwear, and for the same period this year the importations totalled £287,000, an increase of 70 per cent., which will inevitably be reflected in loss of employment. These ligures ought to awaken the public conscience to the danger that a return of more prosperous conditions and higher spending power are really benefiting other manufacturing countries; indeed, the phenomenal increase in important footwear for the first five months of the year, compared with the previous year, is but one item in the flood of importations pouring into this country. It is not suggested, of course, that increased importations are coming solely from Australia. On the contrary the imports of all descriptions from the Homeland are growing rapidly. It is known, however, that the exchange favours Australian manufacturers as against the British exporters. For the moment, however, these figures speak for themselves.

It is generally recognised that the problem of increasing importations of manufactured goods, because of the ever increasing cost of production in New Zealand, is a most difficult one. But because the welfare of so many workers and others directly and indirectly interested in the secondary industries is involved, the menace' reposing in such an unhealthy trend must be faced and overcome if any sound solution of the unemployment problem in New Zealand is to be found.

1936 £ 1937 £ Footwear . .. 171,000 Hats, caps and millinery .. , .. 55,379 74,382 Hosiery > .. 73,082 Ready-made clothing .. .. 552,431 907,325 Woollen piece-goods .. 302,434 555,777