INCREASED IMPORTS

Wanganui Chronicle, Volume 80, Issue 247, 18 October 1937, Page 6

INCREASED IMPORTS

MORE PROTECTION FOR N.Z. INDUSTRIES THE PRIME MINISTER'S EXPLANATION [ Per Pre.-$ Association.’ ] WELLINGTON, Oct. 15. Speaking to-night on safeguarding the Dominion’s secondary industries the Prime Minister, the Rt. Hon. M. J. Savage, said that in casese where efficient, New Zealand industries were imperilled through excessive importations and their normal ability to employ New Zealand workers thereby reduced, the Government is taking the steps necessary to conserve the market which is legitimately held by New Zealand manufacturers. He was In communication with the Government of the United Kingdom with regard to the general policy in connection with particular industries. When the replies were to hand the policy would be announced. “I would like to say a word on the causes of immediate difficulties faced by some manufacturers in the Dominion,” Mr Savage said. "The evidence available proves that steps :aken by the Government, last year to increase wages gave rise to a demand for consumers’ goods with which the local industries were, in certain instances, unable immediately to cope. In such cases this led to the placing of orders overseas, mainly in the United Kingdom. At the same time local industries expanded production to an unprecedented level. It would appear that the unusual demand has now been satisfied and, in fact, in many cases retailers who bought in excess of immediate re-

quirements are now overstocked. As a result orders have been reduced and iome manufacturers are not at the moment working to capacity. This is a temporary phase. There is reason to expect the position will soon be adjusted. The Government is satisfied that any local industries likely to be permanently adversely affected by excesive imports should be safeguarded, ind is taking such steps as are necessary and practicable to adjust their position.'