INCREASED COSTS

Wanganui Chronicle, Volume 80, Issue 276, 20 November 1937, Page 7

INCREASED COSTS

EXPERIMENTAL LAWS CRITICISM OF GOVERNMENT [ Per Preus Association. ] DUNEDIN, Nov. 17. The contention that tne Government had introduced experimental legislation last year without giving proper consideration to the safeguarding of industry was made oy Mr. P. McSkimming, chairman of directors ol the Bruce Woollen Manufacturing Company, Ltd., at the annual meeting of shareholders on Wednesday. Local manufacturers had been placed in such a position, he Said, that overseas operators could compete with unfair advantage, and the time was more than due for the Government to take steps to remedy the position. “When we met shareholders a year ago,” Mr. McSkimming said, “we stated that we were unable to indicate the effect that recent legislation would have upon the company. This year, however, with a full year’s experience of this legislation, we regret to have to say that it has had a very detrimental effect on the business of the company. Not only have our costs been increased, as was only to be expected, but they have been increased to such an extent that our competitors from overseas have been able to quote prices which have secured for them much of the business which normally would have been handled by New Zealand manufacturers.” Nothing had damaged secondary industries so much as the 4u-hour week, Mr. McSkimming said. It nad an effect which the Government surely could not have anticipated. Referring to importations, Mr. McSkimming said that every £lOOO that went out of the country was a definite , loss to local mills, for if they had a larger turnover they could produce at a reduced cost. If the wheels were kept running costs were less and conditions were more favourable for meeting outside competition. The woollen industry was not the only one to be affected, for the newspapers showed that others had been hit badly. He did not know if the Government was going to take action, but allowing money to go out of the country as it was going, while people were being maintained on sustenance, certainly was not in the best interests of the Dominion.