"Industry Handicapped In Christchurch”

Press, Volume CV, Issue 31007, 12 March 1966, Page 19

"Industry Handicapped In Christchurch”

The expansion of industrial activity in Christchurch is handicapped by its southern location and high freight costs between it and the more populous North Island, according to the latest issue of the “Labour and Employment Gazette,” published by the Department of Labour. “Understandably, those manufacturers likely to be supplying the national market are reluctant to set up new enterprises in the South Island. But fortunately the future looks a little brighter, for the likely spread of rollon. roll-off ferry services, with more efficient methods of

packaging goods for transport, may cut such costs increasingly.” The gazette says Christchurch is a city of untapped labour reserves. Over the last five years its employment growth has been comparatively slow when measured against the rate for New Zealand as a whole. The trend, which is even more marked for females alone, occurs although the population growth is higher than the national average. In the five years March 31, 1965, population increase of the Christchurch urban area (13.5 per cent) was significantly above the rate for New Zealand as a whole (11.4 per cent). Nevertheless, employment growth lagged: the male labour force grew by 13.9 per cent, compared with 15.2 per cent for New Zealand, while the female labour force increased by 15.5 per cent, as against 23.3 per cent for the whole country. “Significantly Slower”

“Admittedly, a fast-growing population has stimulated much building and commercial activity: but Christchurch ■ has for many years had a I more than normal proportion of its workers in manufacturing, and in this sector the rates of employment growth over the last five years (both for males and, in particular, females) have been significantly lower than rates of growth in manufacturing industries throughout New Zealand.” For males, manufacturing

employment has grown 14.3 per cent in the period, compared with 21.3 per cent for New Zealand; for females, the manufacturing growth figures are 9.1 per cent for Christchurch and 22.3 per cent for New Zealand. In no major industry group did Christchurch’s rate of growth exceed the national average. The administration and professional group came closest, largely because of substantial increases in the numbers of schoolteachers and nurses. Commerce also approached the rate for the whole of New Zealand as a result of gains in the numbers of employed in shops and commercial offices.

Employment growth in Christchurch has lagged mainly because established industries have not been expanding, nor new ones starting up, at the rapid rate experienced in some large North Island centres, says the gazette. “Labour Reserves”

One result of this slow rate of industrial growth in an area of rapid population increase is that “reserves” of labour such as married women and retired persons remain untapped.

“Married women in Christchurch are not being attracted into the labour force at the rapid rate experienced by such areas as Auckland, Hutt and Wellington where the growth of economic activity is much higher.” As might be expected in an area where there is a comparatively rapid population increase and a comparatively slow labour force increase, the shortage of labour in Christchurch has not been quite as acute a problem as it has been in other large urban areas.

“That is not to say that problems do not exist, for like most other centres Christchurch experiences difficulty in obtaining skilled workers in the building and metal trades and in some jobs which require higher levels of education and training. But these shortages are not creating the same production delays as they are in areas such as Wellington and Hutt.” Wages Lower

One result of this is that ruling rates of wages have tended to be lower in Christchurch. In April, 1965, the average ordinary time hourly rate for all employees in the Christchurch employment district was 2jd an hour lower than the average for all New Zealand. Manufacturing workers were receiving approximately 4d an hour less. Compared with centres of high labour demand the differences were greater still. The lower labour costs in Christchurch should tend to offset higher freight costs and other disadvantages arising from its location. Noting that the Christchurch City Council has set up a committee to look into ways and means of encouraging industry to Christchurch, the gazette says: “It would appear that one of the needs is for more light industry of the type which usually employs female labour.”