DOMINION'S INDUSTRIES AT CROSSROADS

Chronicle (Levin), 28 May 1946, Page 8

DOMINION'S INDUSTRIES AT CROSSROADS

^ ■ - - SHOULD NOT FEAR OVERSEAS' COMPETITION ! "Industry in New Zealand is at the crossroads. Througiiout the country we are heai'ing criticisni of Ihe manufaeturing indiistrv and of the New Zea-htnd-niade articlo," said Mr. J. J t. Salimmd, vice-president of the Wellington Manufacturers 1 Association, when addressing the .Manawatu braneh of the association in Palmerston North last evening. " We should not fear overseas competition, " Mr. Bainton continned. " We should adopt a tradition of New Zealand manufacture. That we have difHculties as individuals and as a body is undoubted, but we are not the only ones who are having diffirulty. Ttie t'armers are also manufacturers, tne ■ only difference betvveen the two of us beiug tliat the farmer has no bru-K walls arouud his factory. : " In 1939 Mr. Nash assured the Brit,ish (roveniment that import restrictions would not be used to-foster unocQtiomic 1 industry. 'What is economic mdustn'?" .Mr. Salmon asked. ''In the Domin'ion we have several kinds of industry. There is the industry required for strategical purposes. There are many 'industries in this class, and they are still necessarv at the present time. • Again there is the industry which uses New Zealand- raw materials. These have a tralural place in the country. Then there is that carried on with imported materials because there is not Ihe raw material in the Domiuipn to use. Are we now to tuni round and abandon these industries because of import restrictions?" Anv measure of control of industry must be oue of complex proportions, Mr Halmon added. Deeisions as to the support necessarv for industries should be in the hands of a non-political body. In the opinion of the Manufacturers' Federation the wliole question of import control as practised today should be done away with, and the matter should be vested in a governing body above politics, and on which should be representatives of farmcrs and manufacturers. "If you take away the burden of non-incontive taxation you will remove the necessity of protection of industry by import control," Mr. Salmon concluded. ' ' Given the proper ineentive the manufacturing industries' would meet. anv competition. The whole storv of manufacturers today in all parts oi the Domiinon is that they 'don't see why they should turn out the articles when thev are taxed .15 shillihgs in tne pound and make no profit, whereas thev could. be making" a profit by working for someone else. ' Allow the cement foundations of industry to set and vou can take away any outside props. "By keeping tlie taxation at such a liigli percentage you are only adding water to the cement and weakening the foundation. Private t ' terprise is leading the wav to maintaining the standard of living.- In 1935 ppivate enterprise built -3415 houses. 'The Governmeiit built 2583."