H.-44

Table showing Manufacturing Activities by Provinces for the Year ended 31st March, 1925.

The progress of the manufacturing industries of the Dominion, as indicated by the statistical reports, has in general been appreciable, and in certain industries a marked advance in production is recorded. There is, however, a wide field for development, and it is much to be regretted that in some instances the year 1924-25 was distinctly unsatisfactory. This applies more particularly to the footwear, woollen, and clothing industries. In those industries a very heavy importation has been the refl(jx of falling local production. The footwear industry continues in a state of depression which at the present time is acute. Competition from imported goods often of low quality cannot satisfactorily be met, and part time is being worked by a number of factories. The woollen and clothing factories are also meeting very keen competition in certain lines. In each of these industries low import prices, often based upon inferior quality, are a source of constant difficulty for focal manufacturers, who have no opportunity of meeting such competition by the production of low-grade or shoddy goods. The matter of increased tariff protection is one to which attention is usually directed in times of industrial depression, and no doubt industrialists will make representations in that connection. Apart from that question, however, there is the wider and more fundamental matter of encouraging a national preference for goods of local manufacture. A great measure of support is justly given by all sections of the community to the principle of Empire trade, and the beneficial effects of maintaining this doctrine are widely known and accepted. It is perhaps not generally recognized that the advocacy of trading within the Empire logically involves an acceptance of the principle of trading within the Dominion, and all the benefits which can be claimed for the wider doctrine apply in equal or greater degree to the proposition of supporting local industry. An inter-Imperial preference tariff is merely an attempt to effect by Customs law a development of Empire trade, in the same way as a protective tariff in this Dominion seeks to develop New Zealand manufacture and internal trade. While there must be exceptions in relation to many products, consistency appears to demand that supporters of Empire trade and Empire preference tariffs will also support the working-out of the principle in relation to the development of production and trade within the Dominion. Local manufacturers continue to give their attention to the maintenance of quality and the mprovement of packing and display. With increasing output made possible by a development of public support for local industry, price-reductions can be made effective and industries be built up which will provide employment under satisfactory conditions for many thousands of people who can otherwise never enter the productive life of the Dominion. More detailed information in relation to some of the industries is given in the appendix to this report. New and Prospective Industries. During the past year a number of new industries have commenced the construction of factories in the Dominion. In Wellington, General Motors (New Zealand), Limited, and the Standard Porcelain Company (Limited), have under construction in the industrial area two large factories, the former for the partial manufacture and assembling of motors, and the latter for the manufacture of porcelain enamelled goods. It is confidently expected that within a few months both industries will be in running-order. In Auckland, preparations are being made by Builders Composite (Limited) for the manufacture of wall-board. During the past year the Onakaka Ironworks produced a considerable quantity of pig iron, and the competition afforded by the New-Zealand-made iron is reported to have resulted in a reduction in the price of imported pig. During the past year the manufacture of motor number-plates was undertaken by a New Zealand firm; and, while the laying-down of special plant —itself of New Zealand manufacture—caused some delay in delivery, the plates have been well made, and represent an advance in New Zealand manufacturers' ability to supply Dominion needs. Advice has been received by the Department that a number of Australian firms are contemplating the establishment of works in New Zealand. Factories to cost hundreds of thousands of pounds are to be erected by some of the best-known confectionery, jam, and fruit-preserving manufacturers of the Commonwealth. Smaller factories for the manufacture of other lines are contemplated, and the Department has assisted by the collection of information on a number of subjects.

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Niimhfr ! Value of Factory Production. Province Number of Wages and Value of i Factories, ' Salaries paid. Material used. ! /<i I Lmpioyee8| Meat! 0th er Product,. Total. £ £ £ I £ £ Auckland .. .. 1,339 . 26,411 ! 5,232,278 16,792,206 11,222,739 16,912,822 28,135,561 Wellington, Hawke's Bay, j 1,644 24,069 ! 4,859,007 18,713,867 15,614,872 j 13,081,259 28,696,131 Taranaki, Marlborough, Nelson Canterbury, Westland .. 821 15,910 j 3,067,156 9,863,012 5,437,359 10,196,066 15,633,425 Otago, Southland .. ; 743 13,937 j 2,531,761 6,792,335 3,574,081 : 8,062,115 11,636,196 1925 totals .. j 4,547 80,327 J 15,690,202 52,161,420 35,849,051 I 48,252,262 j 84,101,313 1924 totals .. j 4,461 77,661114,573,441 47,027,033 32,188,908 44,807,489:76,996,397 1 »—I