Manufacturers Warned To Limit Expansion

Chronicle (Levin), 10 February 1948, Page 2

Manufacturers Warned To Limit Expansion

• ' AUCKLAND, Feb. 9. A noto of warning to New Zealand manufacturers that industrial expansion slimild noir be earried beyond tlie capaoity of the existing population, wa* struck* by the Mavor, Mr. J. A. C Alluni, wlieu bpeakiug at the opening of the New Zealand Vtanufacturers ' Federation conference. Agreeiuent with many of Mr. AlluniV remar'ks, was expressed later iit tlm eonference by the Minister of Industries and C'omiheree, Mr. Nordmeyer. Mr. Alluni said he could'not eseape the- conviction that the available iabour was alreadv insufficient to mee.t Ihe reasonable needs of the eoinmunity. The, remedy, of course, was to iuerease ihe population by invmigration but there would have to 1m a great iuerease in ■ liousirig faeilities. AT r. Nordmeyer, referring to Mr. Allum 's address,. said industry had to some extent outstripped the eajiacity of the manpOwcr resourees. The present immigration seheme Avas ' 'taking up the slaek " to some extent but it would not be until about 1932 when the efl'eci of the higher birthrate after the depre.ssion, would be felt, that manpowe.r could return to normal. It might be wise to eonsolidatc the advanees whieh. had been made and plan future ad \ances rather than go ahead withoux thought of present eonditions. ' lt might be in the interestfl o'f many businessmon to iuerease their own capital rather than rely on bank aci'ommodation, " added the Minister when referring to a eonference renvit. Tradiug bank aceonnuodation was not intended for eapit.^1 or long-term purposes — for such purposes .the public should be ealled • on. When bank advam es were high, as at present, to allow theni 1o go still higher by making allowam-es for capital purposes. woulu not only be dangerous " but perhap.disastrous.