DOMINION'S INDUSTRIES

Dominion, Volume 12, Issue 287, 30 August 1919, Page 9

DOMINION'S INDUSTRIES

Parliamentary committee reports ■ INCREASED PRODUCTION

SOME VALUABLE SUGGESTIONS

The report of the Industries Committee of the House of' (Representatives, £ Mch has been taking evidence all Over ivfew Zealand in recent months, was pre\s.jited to . the House yesterday by the chairman of the committee, Mr. C. A. Wilkinson. There was no discussion on the, report, because the request was made, and at once conceded, by the Prime Minister, that later in the session . a day should be set apart for discussion of the report. A complimentary report, expressing appreciation of the good work of the chairman of the committee, was presented on behalf of the committee by Mr. J. T. M. Hornsby.

Mr. Williamson, in presenting his report, said that'although all members of the committee ■ had signed the report this did not mean that they all supported every recommendation. He thought it but fair to mention two exceptions— Dr. Newman dissented from the finding >v Sf the committee regarding; New Zealand wine, and Mr. G.';V. Pearce- disagreed with the recommendation in fcivoiir of Mho nationalisation of the coal-milling industry.!. At the very outset -Hio • committee . makes these declarations:— The committee desires; to draw special attention to the ff(ct that in whatever direction its investigations led, proof >• was given of the general . aijd genuine scarcity, of labour.. Many industries as , a consequence are in a languishing state, and new enterprises are being delayed. In offering possible solutions' of this problem the cotamittee would solicit' tho v careful (consideration of its proposals.

It should be the aim of tho Government to impress upon' the people that in all future efforts at development of the country's resources the policy of selfreliance cannot be too strongly fostered. The demands made upon lis by the great war have surely taught us many useful lessons. ' Our people . were self-reliant during the greatest crisis the world has' ever, passed through, and they haveproved their ability to provide funds tho magnitude of which'would have staggered us in the years .that are past. In asking that' its 'proposals should be. adopted, the committed urges the people of the country to assume in peace the attitude .they ass.um'ed in war.

The question to be decided is not one for to-day. only, but for the-future, and it resolves itself into this: Whether or' not the should enter upon the course of action .outlined in the recommendations which, follow in this comnrittee's report; or whether we should' renise as a people to .take advantage .of our great opportunities, nnd merely continue to aimlessly muddle along in the old, old way, trusting to. Providence t» pull us through. I Increased Production and Cost of •v Living. ' 'The committee wishes to impress upon the public the necessity of increased proV ; yction, and strongly dissents from the doitrine of those who insist that one ■way to cure the ills they find in life is by curtailing output. Tliere is no greater fallaoy, no more harmful- practice. ■ It is the very negation of till economio teaching; and, what is more, reduction in production ultimately casts its whole weight upon the shoulders of those least able to bear it—namely, the working class.

The question .of the people's food and its cost the committee's attention; and proposals are herein made whioh. if adopted, will tend in the direction of that goal so earnestly sought nnd yet so difficult to attain. It is quite ,vain to hope that the conditions of life and cost of living will ever again closely approximate to those of pre-war times. The world-wide tendency to-day is to- • wards increased cost of production, even in countries where, labour conditions have always been, deplorable. Increased cost of production spells increased cost .of living. And the following are otheT extracts from the Teport;— The Customs Tariff.

considers that these will provide the bulk of the added revenue required to meet .the war obligations of the country. The committee urges quicker land settlement, and more full use of lands, better transport, homes for married ' workers on farms, and the establishment of a dairy school, assisted; by the people interested in the industry as well as by the Government. ' ■ The Fruit Industry. Geographically, New Zealand is particularly well snua.ed as a fruitgrowing country (says the report), in mmig approximately seven days' transit nearer to the great North and South American markets than the other huge fruiv-pro-dui;ins centres ol Austraiiisia. South America is a proved outlet, and considerable quantities of apples were exported to that country under favourable conditions and ai good prices" until shipments wore out oli' owing to the war. It is of the utmost importance that .provi-. sion should be made i for at least one 6teamer per month during the months of' March, April, and May of next year to take the Cape Horn route to Europe, and cail at South American ports with shipments ot apples and other produce for - which cool storage would not bo a necessity, • This market would probably supply sufficient outlet for the next few years, whilo developments in other directions are being fostered. Some years back a few shipments of .apples were sent to London, but so long ago that a renewal of shipments to ihis market might be looked upon as practically a pioneer effort, and as such the committee .recommends that where shipping is available Government should offer _ a guarantee of Id. per pound on fruit shipped. as was done in former years.

The. question of local transit calls for serious consideration, as the industry is heavily handicapped in this direction. Continued efforts on thj part of fruitgrowers to secure a proper system of through booking have failed, there being no apparent co-ordination between the Railway Department and • the different steamer eervices, except where the fruit is ..consigned from a railway-station. This considerably militates against trade where transhipment is necessary, and your mittee recommends that the Railway Department should come to an arrange-, ment with the shipping companies to ensure the through booking and proper forwarding of frait consigned from a shipping port to e, destination to reach which railage is necessary., Again, the time occupied in transit by rail from the fruitgrowing centres to large towns in the .Nortlr Island is in some cases so great as. to prohibit trade altogether. For instance it was stated to the committee that .fruit by rail from Hastings take's from four to five days to reach the Auckland market, a period out of all proportion to' the distance travelled. The railway) trucks are quite unsuitable, and the committee recommends that specially-de-signed trucks should as soon as possible be made available. Your committee is of opinion that the lack of transport facilities is to a great extent responsible for the' difference between the price at which the fruit can bn grown and that at which it is available to the public. ■ The committee urges the establishment of an experimental statioa for the fruit industry in the Nelson district, in connection, with the Cawthron Trust.

Tour committee, was favoured with voluminous evidence : in. connection with the secondary industries, and found that, the welfare of almost the whole is threatened by competition from abroad, especially Eastern oountries. In the case of machinery, the threatened competition is mostly fronb the United States of Amerioa. In the opinion of the committee the question of secondary industries is largely bound up with the Cus- ■ toms tariff-; and notwithstanding that in many cases protection is now given,' un- , less further assistance by duties or bonus is extended (always, having in view the necessity/of keeping down- the cost of living), it is certain that some very desirable industries are in danger of languishing and- possibly perishing. New Zealand has for yeaiß adopted the policy of protecting the welfare of its workers by insisting upon a good standard of living, ana it naturally follows that if this policy is to be pursued (and the com- . mitfee agrees that it should continue) it, i ' obvious that the community must be p .'epared to protect the product of the . fwtory and workshop. • It has further) " ': 'be considered that in most competcoiintries labour conditions are more y fiw and the standard of living is. ■10 high as in this country. r j'ppence is made to : the fact that "fetorns rates Australia treats New >l'ind as. a foreign country, whereas v'f Zealand gives certain preferences . i Australia. Far from showing grati-i-ivae', Australia takes advantage, of her o.wn protective tariff to "dump" certain ' goods in New, Zealand. (Instances of this process are given in tho r.eport.) The committee goes on. to discuss tariff inequalities. It' recommends tljat machinery required . for' special ''industries i.ould be admitted free of duty in cases lere it cannot be made locally, that a fciprocal agreement be made, with Aus- ,. alia, that the South African Tariff ..'i'reaty, .being of doubtful advantage .to New Zealand, be revised," that the proposed Board of Industries and Commerce (referred to elsewhere), 1m a tariff board, that a 50 per cent, surtax be imposed,on enemy goods,'-and that prices be subject to control by the said board. Summary of Tariff Recommendations. The recommendations re-' garding tho tariff'may be summarised as follow:— (1) The gemoral tariff should bo revised by Parliament without delay. The present tariff, whioh was framed ' in 1907, is ■ unsniited to the needs of tho country, ajid oftem unfair in its incidence. 4 (2) Before increased, promotion on looally manufactured 'goods is given it should be the duty of the Board of Industries and Commerce lo ascertain that such protection will not result in prices being unfairly raised against the general public. (3) A further measure of preference should be given on goods imported from 'the United Kingdom; but no preference should be granted unless at least 50' per cent, of the va.luo of ■ such goods is of British manufacture, production, or origin. The present regulations should be amended ac- , cordingly, (4) In the case of imported machinery whioh cannot be made in tho Dominion, or in the case of new or patented, machinery, such machinery should, for the encouragement of local industries, be admitted free. (5) An "anti-dumping" law should be passed, on similar lines to the Canadian Act. (6) The proposed Board of Industries and Commerce should be a Tariff Board, with advisory powers. (7) Steps should be taken to enter \ into reciprocal agreements vnth the several British Dominions. Primary Industries. ■Recommendations are made regarding the primary industries. The oommittee

Wheat-Growing. . The committee states:— 1 . There should be no difference of opinions as to the wisdom of 'New Zealand growing sufficient wheat for its own requirements, or of the folly of depending on, importations from other countries, with all the uncertainties of shipping, droughts, labour disputes, quarantine embargoes, etc. The question of the regular and certain supply of the peoplo's daily bread is too serious a .witter to permit of the entry of any element of doubt, and compels the adoption of a polioy that will hot admit of any risk of shortage. The maintenance of tho wheat-growing industry in this country, whilst allimportant from a reliable and certain biead-supply standpoint, has another aspect—namely, the supply of bran and ■ pollard. These by-products aro a necessity for the raising of stock, and tho I bulky nature of the offal would make im-, portation almost prohibitive. In view of these facts your committeo is of opinion that the present system of encouragement ; to the wheat-growing industry cannot be avoided, and must be maintained until normal conditions return. Arrangements should cover two years' operations ahead, ,fnd should be announced early in each season so as to allow wheat-growers to lay their plana accordingly.' Board,of Science and Industry. The committeo recommends:— (1) That a Board of Science' and Industry be established .for theVdevolopment of national resources. * __ ' ; (2) That the board be given an insured flnanoe for five years; it is recommended that it should receive not less than JGSOOO for the first year and ,£20,000 foi; each of tho four following years. (3) That tho board Bhall be representative of the various sections of science and industry. (i) That tho board shall, as on© of its chief functions, consider all proposals for specific scientific researches, and shall allot to tho proper person or persons the duty, yf conducting : bucL specific researches as it. may', approve. ' , 5. That in order to avoid central- . isation, and in the interest of ecoi nomy, tho. board in tho carrying out of investigations shall wherever possible co-operate with tho university college authorities in the various centres with a view to making tho fullest possible use of their staffs /' and laboratories; tliero shall also bo set ..op local advisory boards to inquire into, advise, and report upon local problems. (6) That' one of the duties of the board shall be to advise primary producers, and those engaged in industrial pursuits as to the results of scientific investigations affecting or calculated to benefit their industries, including processes for the utilisation of waste products. (7) That tho board shall have power to establish scholarships tnd also to award bonuses and prizes, with tho object of enoouraging scientific and industrial research. (8) That tho board shall keep in touch with Government iJepartments and. also .with scientific and educational institutions, with a view to cooperation in scientific investigation as well- as in furtherance of scientific • education and of everything which will tender to foster a greater appreciation of the advantages of science not only by producers, but by tho people at large. New Inventions and Bureau of Information. From evidence submitted it would appear that there is some necessity for the oxistenco of a body to which might be submitted the work of inventors who, through lack of means or opportunity, are unable to have their inventions tested 1 or brought under public notice. It is therefore recommended that in addition . to its other duties the Board of Science 1 and Industry shall obtain reports from experts regarding any new inventions respecting which its advice may be sought. It is further suggested that tho board should also serve the purpose of a bureau of information, to which any investigator may apply for advico and direction in his work. The Cawthron Institute. , The committee has been informed that I the trustees of the Oawthron Institute

at Nelson, which is Jargely endowed for the carrying on of isimilar work to that which will come under the control of the proposed hoard, have applied to the Government for an annual subsidy of ,£2OOB, being a sum equal to 5 per cent, on the amount of death duties paid by the trustees. The committee recommends that any amount granted be subject to the enactment of legislation which will ensure that the institute shall co-operato to the fullest ext?nt with tlie board in the carrying-out of researches affecting any portion of the Dominions Appointment of Assistants to University Professors. ■ Finally, the committee recommends that the Government should .grant to each of the university colleges sums of money specially earmarked to provide fully qualified assistants to the -professors of scientific subjects, including the sul>jects of engineering, mining, and medicine. No apology is needed for the inclusion of medicine, for it will be agreed that there is nothing of greater importance for the national well-being than the health of the people. Investigations ill this- department may have far-reach" | ing effects]" not only oil the present but on succeeding generations, and may have a very important bearing on physical fitI ness anil industrial efficiency. The pro-' I fre-sors in all the subjects mentioned are ! experts, and they are at the present moment, so far as their professorial duties wil! permit, engagE'l in specific scientific instigations. To provide the professors with assistants, salaries of .£SOO per annum will be renuired. Direct grants from the Government for this purpose are urgwl. because it is eminently desirable that provision of this sort should be of a. permanent character. ' One result of this'course would be the training of a laree number of export investigators, unci the universitv woukl be greatly assisi»d in fulfil'jn.T what, should be one of its most important functions. Our Overseas Trade. Naturally, the overseas trade must be our first consideration; and when the tromendous inoreases in rates during the war are taken' into account, together with tin; phenomenal profits made by shipping companies, and the probability that high freights will continue to be imposed upon shippers, your committee feels that the position is one calling for immediate and effective action. Yo/i'r committee has come to the conclusion that the Government should at an early date convene a conference of producers ajid importers of the Dominion, with a view to, first of all. endeavouring to come to an aniieable and fair business arrangement with the steamship companies, so that.reasonable rates and passenger fares may be fixed for a period of years. If the companies 'refuse to enter into a satisfactory arrangemsnt your committee is of opinion that the Government should, in conjunction with our producers and importers, establish at the earliest possible moment a State line of steamers for the whole of our. overseas trade. ■Recommendations are made, also, for an inquiry as to ..the possibilities of the development of the Island trade, for the State ownership of the Wellingtoii-Lyt-telton. ferry service, for the State ownership of coal ships, and for Government interference in the determination of coastwise freight rates. |

Local Industries. One of 'tho outstanding, and certainly regrettable, faots disclosed to your committee was tho prejudice existing against many of 'the articles manufactured in our own country. Take, for example, boots: Even though quite as good a.n article can 1m produced in New Zealand as may be imported from Britain or America,. the local - buyer will too often demand the imported article, though the price is much higher. And,_ as with boots, so with many, other articles. Your committee would therefore suggest that an effort be made to induce our people to patronise their own industries, and it recommends that manufacturers be encouraged and assisted in prompting a publicity campaign in order to bring before the people the quality'and value of every, class of New Zealand-made goods. ,The campaign should include exhibitions, displays at local _ shows, walleheots in schools and at railway, stations, leaflets for distribution to school children, .and specially written and illustrated a-rticics in tho upper standard copies of the "School Journal."

(8) (a) That a special liceuso shall 1)6 issued to any person desiring to engage ill whaling. ' . . b) Such license shall confer the rjglit to whale in a certain defined por.tion of tho coast, extending for a distance of notmore than sixty miles, and thus porinittiner whaling within a radius of thirty miles. . (cl Tho license shall provide lor a site for a shore factory, and shall only bo issued on condition '.hat the applicant furnishes, a guarantee and undertaking that ho will forthwith establish an up-to-date plant capable of dealing with a certain number of whales and of utilising every portion of the carcass. (d) Licenses granted for 0110 portion of the coast shall not be available to permit of whaling in any , other portion ih resnect of which a license has been issued. (e) That no unlicensed person shall be permitted to chase, kill, or attempt to kill a whale. (9) That properly constructed and up-to-date railway vans be attached to the trains carrying fish. Forestry. The committee makes the following l'e.commendations on forestry:— (1) That there shall bo established a Department of -forestry, which will be. separate from and not subsidiary to any other Department of State, . and that it stiall be the duty of lliat Department to determine what lands shall be'permanently set aside as torreserves; also, that provision bo inaiie i-usunji',' continuity .aid permanency of policy for dofinite periods oi years, as has been done in New South Wales.

Your committee has also had evidence of tho apparent disinclination of public departments to encourage local manufactures. During the prevalence of the recent epidemic this country would have been almost destitute of disinfectants but for the supplies forthcoming from tho New Zealand manufacturing firms. Yet some of the largest consumers of disinfectant! in ordinary times had _ never thought it worth while to patronise tho local makers. There are a number of other productions the manufacturers of which get no orders from our State Departments; and your committeo recommends that such a questionable state of things should be remedied at once. It is urged that our iron ores should 'be examined by an expert metallurgist. New Zealand Wines. , On the wine industry the' committee has this to say:—A' considerable amount of capital has been invested in the esta.blshment of vineyards as well as in tho requisite and costly plant for the manufacture and storage of wines. Your committee, has taken evidence from vigiierons and others, with tho result that it has come to the conclusion that legislation should bo provided to remove this industry from the present uncertainty 'and possible danger lof being destroyed by the votes cast oil the question of prohibition of the liquor trade. In a portion of Canada which is now under prohibition this principle lias been: adopted, and in Australia it is proposed to make a similar provision. Without in any way, desiring to raise the debatable ques. tio'n of liquor or no liquor, your committeo is of opinion that the manufticture of wines of good quality' and unfortified should' not be interfered .with. Woollen Industries. Evidence given before your committee goes to prove that there is much dissatisfaction because of tha' 'ligh price charged for all lines of woollen goods; and it therefore recommends that an inquiry be made as to whether or not there is exploitation or profiteering on the pare of manufacturers or merchants. The. woollen companies have the benefits of a protective Customs tariff and tho supply to them of the raw material at v the pomnnindeered price, which is about; one-halt' the amount paid in ,the.open market. Evidence '.has been submitted to vour committeo that there, aro too many intermediate profits between tho producer and the consumer. Your committee i 3 of opinion that this cause of comDlaint might be removed if the retailer were enabled to deal direct with the mills, and not be compelled, as at pre6ont, to purchase from certain wholesale merchants. Flour-Milling. In order to regulate the price and to lead to the more equable distribution of flour, with the view of controlling tho price of bread, the committee strongly rocommends that the Government shall establish at least one flour mill in the North Island and not less than two in the South Island, and that suoh mills shall be run on commercial lines, including the payment of all rates,-taxes, and other outgoings for which private firms are liable. The Fishing Industry. The committee's recommendations on the fishing industry wero as follow:— (1) That the Fisheries Department be administered as a separate division of the Marine Department, with a director and staff. (2) That the Government should ac- ■ quire and work steam trawlers, and should also establish fish-chilling and ice-making plants in proximity to the fishing grounds, and engage generally in the business. (3) That Government advances bo made to fishermen on the security of iheir boats and fishing outfit. (4) That tho fishermen's boats be insured by the State office, at a low rate. (5) That a systematic, scientific, and practical survey of fishing grounds be undertaken without delay, and that the Government purchase a properly-con-structed and equipped vessel for this work, • (G) That Government assistanco bo • given to encourage the canning, curing, ■ and commercial preparation of fish food, special attention being given '.o the canning of crayfish. (7) That encouragement be given foi the manufacture of fish manure and tho ; production of fish-oil (other than wlialei oil).

(2) That at the earliest moment a scientifically trained expert shall be appointed as Chief Forester; that one of liis first duties shall be to determine for tne whole of New Zealand what Crown lauds, ( whether bush or open land, shail be 'set apart- for forest reserves; and, further, where necessary and In districts where insufficient Crown lands are available, he shall recommend-the resumption of areas of private land for the above purpose. Land once reserved for forest purposes shall be inalienable for any other purpose, except by Act of Parliament. The committee lecognises that once the forester is appointed otiier. 't'lorms will follow, including the organisation of the Department. ,(3) That immediate steps be taken to bring about a great speeding-up in the planting of quick-growiug exotic trees, especially those suitable for butter boxes, cheese crates, and -fruit and other packing cases.- Wherever piacticabie these trees, should- be planted near consuming centres. (4) Owing to the diversity ol' opin. ion that exists as' to the rate of growth of our native trees, it is important that immediate steps be taken settle beyond dispute what is the increment volume per acre per annum of timber produced by ,the timber trees in our native foresta growing under forest conditions. (5) Referring to the export timber, and having regard to the conditions already referred to under which this country may before many years be dependent on foreign supplies, the placing of restrictions upon export is regarded as an imperative necessity. (6) While the making of adequate provision for our future timbersupplies is of the utmost importance, other aspects of, forestry should not be overlooked. One of these aspects is water and stream-flow conservation. It is therefore recommended that lands at "the head of and fanning the catchment areas of rivers should be permanently reserved as forest areas in order to assist in preventing erosion and flooding, and at the same time, conserving the flow of water • for all purposes. It is also recommended that our forest policy of tho future should include planting for ■ climatic reasons, moro particularly in the larger valleys or gullies which penetrate our \ mountain ranges in tho driest areas of the Dominion. (7) That as soon as practicable a Chair of Forestry be established in one of the university colleges. In this connection tho committee is pleased to-nolo that the lato Mr. T. W. Adams, of Greendale, Canter- - bury, has left a handsome bequest to the Board of Governors of Canterbury College towards tho establishment of a school, of forestry in connection with that institution, (8) That in order to encourage local bodies particularly to afforest catchment areas in connection with their water supplies, and provide at tho same time timber suitable for general requirements, financial assistance by way of subsidy, based on the acreage planted, should bo given to local authorities for .the planting of trees qpproved by the Forestry Department. (9) That a seed store for the supply of forest seeds true to name and of the most approved varieties, as promised by the Government more than a year ago, be established without further delay. (lfl) That efforts should be made to educate public opinion as to the valuo of forests, and .the necessity of preserving them from destruotion by fire: and with that object the Forestry Department should undertake propaganda work by means of notices in public places, bulletins, and illustrated lectures, while educative work should be done in tho public schools.