THE IRON INDUSTRY.

Dominion, Volume 4, Issue 1237, 20 September 1911, Page 6

THE IRON INDUSTRY.

A DEPUTATION. STATEMENT BY THE PREMIER. TARIFF REVISION NEXT SESSION. A deputation representing practically the wholo iron industry of tho Dominion wailed upon the Prime Minister last evening to ask that it should bo given increased tariff protection. The Hon. 11. M'Kenzio was present. Among those- who attended with the deputation were Messrs. Luke, Herdmau, Fisher, Wright, M'Laren, Laureuson, Clover, Ell, Witty, and oilier members of Parliament. Jlr. D. M'iaren, M.P., in introducing the deputation, stated that it included ropresenutivos of both workers and employers. Tho position of Iho iron industry was regarded us terious. Firms that years ago employed HOO hands were now omployiug only 120,, and foreign goods in great quantities were dumped upon New Zealand wharves. An unfortunate feature was that boys were being trained at technical schools and in engineering schools for whom no employment was to bo found in New Zealand. Jlr. i). G. Sullivan, president of the Canterbury Trades and Labour Council, stated that the Trades' Councils' Federation and its affiliated unions were unanimous in asking the Government to impose a 33 1-3 per cent, tariff on imported ironwork. Ample evidence was available to show that any amount of stuff was being dumped into this country at a price that would scarcely coyer cost of production. During the period for which the present Uovorunient had been in office ironwork to tho value of about .£1,000,1)110 per annum had been imported. Mr. .1. ii. Laureuson (Chmtchurch) slated that a list ol articles which could bo made in the Dominion had been prepared, and it was upon Uiceo that a duty of 33 l-3rd psr cent, was suggested. It was not proposed that (ho duty should apply to all imported machinery. The engineering shops of the Dominion were well equipped, and the drop in engineering was not to bo explained by any absence ot' elliciency. Mr. Laurensou mentioned that of thirteen students trained at tho School of Engineering in Canterbury one only was in regular employment, one ho had himself '.Muployed, practically at labourer's wage=, mid iJm others had gone to foreign countries. Mr. J. loung (secretary of the Cantorbury Trades Council) said that lie believed that those interested in tho iron industry would consent to tho establishment of a board to control the tariff. Tho man who bought the goods would thus bo protected. Organised labour, which was 50,000 strong in this matter, was wholly at one in demanding protection, so that tho industry might not bo annihilated.

Mr. D. Kobertson (Wellington) declared that the engineering industry of New Zealand was going to collapse unless the Government took it in hand ami did something for it. We should keep all our work for our own men. Already local firms were almost restricted to small repair work. Last time he had addressed the l'riino Minister the latter had promised to do something for the industry, and they desired that the- promise should be made good.'

Mr. 11. G. Ell, M.P., said he had no doubt that all the members present wero in favour of increasing the protection of the- engineering industry, but tho trouble was that strong opposition would bo encountered in the Hoiieo from represcuta* tives of tho forming interest.

The Primo Minister's Reply, Sir Joseph Ward said he fully recognised the importance of the matter raised by tho deputation, and the great value to differont sections of.- tho community of the engineering industry. Ho recognised the benefit, too, of keening tho industrial world as actively employed as possible, In dealing with tarili matters in this country, they had to recognise that conditions of a very material difference existed in different parts of New Zealand. •Speaking frankly, lie thought there was no hope of getting the tariff adjusted tiisS session. Even an adjustment of tho tariff might not enable a lecal industry to compete successfully with those of countries where the rate of wages was very much lower than hero. It would bo better to produce locally Iho raw material required for carrying on tho great secondary industries of this country. Ho proposed, this session, to make provision for the development of the iron industry. Hβ hoped to have . legislation put through this session which would leave two causes open to the Government. They had in hand at that moment, an offer to establish the iron industry in this country. To do this, half a million of monoy would bo required. The Government considered that the term of years asked for was longer than they wero prepared to hand over an important industry of the kind to anybody. Possibly as much as ,£600,000 \yould bo required before very long to do what was necessary.

The Government would ask Parliament to leave a double course open to it. It should hnvo power cither to let tho undertaking be carried, out by private people for a limited period of years with a provision for ultimate acquisition by tho Government, or to nationalise the industry and provide its owu works. The Government was asked to do all sorts of things that could not be put into operation in n month or in two or three. He wns favourable to nationalisation of tho ironworks, and he was open to consider whether the Government could do it as the interests of the country ro-' quired, or whether it could be done more ?uickly by the Government standing aside or ten or fifteen years and acquiring it at the end of that period. What tho Government would ask Parliament' to do was to givo it power to take one or other of tho courses he had indicated. In a limited time tho industry, in conjunction, with the great natural sources o£ water-power, now in the possession of tho Government, would place it in the strongest position of any country in the world as a manufacturing country. Before very long a Commission would bo E3t up to inquire into the increasing cost of living in this country. Ho would Iμ quite prepared to have that Commission inquire into the causes of the troubles in connection with the iron industry and other industries in this country in older that the information might bo laid before Parliament during next session. No doubt dumping was one causi: of Iruub'e. and he considered that it could bo overcome by a tariff framed on scicntiho principles. It was certainly undesirable that lads trained in our technical schools and schools of engineering should bo compelled to go abroad. Mr. Fisher Makes a Suggestion. Mr. Fisher expressed an apprehension (lint, while the doctors were diagnosing the case, (lie patient might die. hi view of tho critical state of (he engineering industry h« would suggest that tho loaders* of both parties in the llouso might arrive a', an agreement on behalf of their respective fallowings to amend the tariff this wssion, in reference to that industry only. The I , rime Minister said he would be very glad to <lo anything in his power, but he was quite certain that the House would.not consent to act as suggested by air. Fisher. Tho Hon. K. M'Kcnzie and Mr. Ell each remarked that the town y, country question would bo instanflj raised if (he tariff amendment suggested were attempted. Mr. M'Laren remarked that tho Government was lending a considerable amount of money to local bodies in this country. These Wlics were in. the habit of buying engineering articles outside tho country even when the margin ot differonce was small. The Prime Minister replied that if the Government ence started passing laws of a coercive character, we might say gofxlbyo to our freedom. 'Mr. M'Laren said he had not Miggeskd coercion, but there was such a thing as inducement. Mr D. Ktfborlain kiM h< 1 could see that they were not '-"'i\<! In get anytUiner Hint Fr«ion. '•"»'.■ ''''V" Minister «-as'likely to bn. ■•'•■'- :'."ii. \\ h.-n

lie camci back \v--\:!'I ■ >■. ; .'■ P l ' ,, !'' , '.';' , ' '" fjivo them a royi^ : "ii .i' m.' l.iriii' lie wanted a '•'raigiiU ".it anM\r" <<• i:iflt. The I'riiiK- MinWir ■<■'■'■■' !l ° '-vas |r> pared to jinl a «-trnif;M-oi:t revision nt I he. tariff '•» the 'able ol the House nut session. "Am!." 'i'" added, "1 am comins back all rißlit." 'j'ho tlppiiini.'.ii UMifkcd tlic l'niiie Minister ami withdrew.