WEAK INDUSTRIES

Dominion, Volume 20, Issue 56, 30 November 1926, Page 3

WEAK INDUSTRIES

“SHOULD FACE CONSEQUENCES”

A COMMERCIAL ADMISSION

‘‘The question of tariff revision is in the air, and is a subject demanding the closest scrutiny and most mature deliberation,” states the Auckland Chamber of Commerce Journal. ‘‘The industrialist, manufacturer, or secondary producer still demands further protection, and it is evident that if the customary wage increase follows, ./he will require still further protecficM, and so all see-saw along—higher wage—can t meet competition—increase duties—increase cost of living—higher wage, and so on, the vicious circle making it more and more difficult for those in unsheltered industries to live. It is clear that the farmer can get no assistance in the way of duties that will permanently increase liis profit. lie has to face world competition—very often to compete against very low wages, less satisfactory conditions of labour, longer hours, etc., and it is obvious that secondary industries that are uneconomical and need more than a small duty in addition to the added cost of importation will require careful watching to decide whether it is a fair tiling to compel the farmer and general public to endure the increased cost of living (or the benefit of a comparatively small industry. . “Several factors militating against our manufacturing to advantage in competition with the Homeland, may be cited : — , . “1. Smallness of the market, being confined to our own population of less than 11 million. "2. Consequent limited support, thus increasing cost pet unit of manufactures. , “3. Higher wages without corrcspomliivrlv higher efficiency, having the same “4. In many cases lack of up-to-date machinery and keen business organisation which are necessitated by the tree unprotected competition of Home, mi out here these defects may be covered for a time bv increased duties. ‘‘ln short,’ the Minister must recognise that the question to be answered is—are we not living in a fool s paradise in even attempting to bund up a large industrial organisation for our small and mainly farming population .. It means continually increasing duties, continually raising wages where awards are to be secured by collective action; consequent increased cost of living. But it is evident that the farmer cannot increase bis wages to the same extent as may be the case in sheltered industries, for he has no protection. A further undesirable result is the rush from country to town not only on account of the improved amenities of Ills to be found in the town, but on account of the increased wages to be obtained there. “With every desire to see a measure of protection for young and growing industries we must recognise that it, after a few vears, they are not strong enough to fight their own battles, they should face the consequences, and not be allowed to impose impossible conditions or high cost of living on tlie primary industries on which the welfare of the country mainly depends.