New Zealand Industry

Waikato Times, Volume 116, Issue 19450, 14 December 1934, Page 7

New Zealand Industry

STATEMENT BY PREMIER. IMPORTANCE OF DEVELOPMENT. THE GOVERNMENT'S INTENTIONS. DUNEDIN, Thursday. The .importance of Industrial development on sound lines was emphasised by tlie Prime Minister, Mr Forbes, in a speech at the annual meeting of the Dunedin Manufacturers’ Association today. “Since the deliberations of xhe Tariff Commission and the publicity associated with its sittings, and the subsequent discussion in Parliament,” said Mr Forbes, "it is obvious that the importance of the secondary industries in the national economy is much more appreciated by the general community than In the past, and this is particularly so In view of the unemployment situation. Consequently the , Government is very anxious that secondary industries shall show a proper .development so that more people may employed in such a way as to conUYribute to the wealth of the country and the 'Standard of living of its people. “I welcome the recent disposition on the part of your association and federation to lay aside for the time being direct tariff arguments and concentrate on problems of organisation for more economic production and on distribution, with the possibilities of extended employment."

Increase In Value. Continuing,; the 'Prime Minister said he had recently obtained returns relating to various branches of manufacturing industries to see whether there were any.indications as to which industries were now. employing more operatives than four years ago, and in which industries the. employment and production .was . decreasing. From a general study of the figures supplied It was pleasing to note that in spite of the continuing slump in the number of persons engaged in secondary industries 'the value of the raw material used and also the value of the finished product all showed a small but definite increase between the years 1932 and 1933 and a further increase seemed forecast for 1933-34. But compared with other manufacturing countries, such as Britain, the United States of America and Australia, the numbers of persons employed in ■the newer technical industries had not increased in New Zealand to anything like the same relative extent. It would appear, therefore, that from the point of view of Increased employment in the immediate future we wanted not only an expansion of the present Industries, but new ones. It .seemed. desirable also that the possibilities of sound large-scale gold-mining should toe thoroughly explored and encouragement given to ■ proper undertakings. An increased employment of several thousand men iln mining, which might not be beyond V the bounds of possibility, would re- \ act also by producing more employment in the engineering and timber industries and manufacturing production generally. After referring to rapid changes In Industry since the war, Mr Forbes said that one of the problems in Industrial development was that of increased flexibility to manufacture goods more In line with modern demands and of types of goods with a better appeal to the consumer. He did not underestimate the great efforts of the woollen and boot manufacturers and others to' keep up-to-date with fashion changes.

Kept Up-to-Dato.

However, these 'conditions, together with the tendency toward replacement of rule of thumb methods by more extot scientific control in Industrial processes, 'undoubtedly pointed the way to some organisation by which industry could be kept up-to-date in' its knowledge of technical problems of production and also that the structure or organisation of industries should be euch as to tend to the most economical production and distribution. There was now evident a growing realisation and an increased willingness on th© part of individual manufacturers to give greater consideration to the question and needs of the community as a whole and to study its general interests. Mr Forbes then discussed a report of a special committee of the Manufacturers’ Federation on industrial coordination. “The proposals made are many, novel, radical and far-reaching,” he said, , “and naturally I shall he interested to learn how far manufacturers as a whole give their full backing to each or all of the proposals. Apparently the suggestion Is to set up an industrial commission with functions somewhat along the lines of the Agricultural Commission, which was ihe subject of recent legislation. “iphe proposals would Involve a certain amount of regimentation of secondary industries and discipline, backed hy Government regulation. Naturally the proposals will need very careful consideration by the Government and jjv yourselves to make sure that any steps taken may be in ,the right direction as a foundation for the future.”

Interesting Problems,

In I lie scheme proposed, the Prime Minister said, there were, however, two interesting problems raised—coordination of industries for the elimination of wasteful forms of competition and the licensing of new-units of industry. These proposals struck directly at Die freedom of units of industry'in questions of production and distribution. Naturally everybody could sec advantage in voluntary co-ordination of Hio units of Industry where tiie consumer was likely to benefit and employment also increased. The delicate point’ was reached when Llio co-ordin-ation was to be implemented by compulsion backed by Government authority Experience had shown it was ft very difficult matter to get Ihe units Of industry lo pull together and united!' - on problems of production d marketing, but it was precisely dtf this direction in which co-operalion in the special conditions in New Zealand was obviously likely to be of most, advantage to co-operating manufacturers and to (lie public alike. “Compared with other -countries, wc have I 'think, been somewhat backward’ in developing Ibis co-operation." added Mr Forbes, “and it was not a matter on which Die Government itself could take the whole of the initiative. But the Government has always been willing to co-operate with mamifac-f.n-ers In this regard, and I am glad ' note that vour federation is bringing up this matter. This is apart from Die , /erreaf. necessity of an increased selenand technical foundation for inthat it may be more flexible. (.Continued In next column.)

to meet changing products and coiuliI ions.” Necossity for Encouragoment. In conclusion, Mr Forbes said Die Government was very much alive to the nc'CC'ssily for encouragement of Die development of industry, and would lie pleased to give every consideration to constructive proposals and co-operate in every way possible. II was for those reasons that.lhe Hon. R. Masters was now freed to devote more personal attention lo this importnnt question. The Government invited the manufacturers’ direct help and co-operation