EXPANSION OF INDUSTRIES

Dominion, Volume 32, Issue 145, 15 March 1939, Page 11

EXPANSION OF INDUSTRIES

Minister’s Review

STEPS TAKEN AND PROPOSED

Import Selection Claimed To Have Given Fillip “Never before in the history of New Zealand has such a major step been taken in regard to manufacturing industry as the adoption of the Government’s policy of import selection.” said the Ministei of Industries and Commerce. Mr. Sullivan, in a statement issued last night. He reviewed the expansion which had already taken place and plans for future expansion. Clothing factories hi the Dunedin district were working to .full capacity as a result of a rush of orders received from local retail houses, Mr. Sullivan said. Individual factories were training new operatives to lane their places in the factories to meet the demand for products. One factory had reported that new business which had already been received mid the certainty of new business in the future, would keep the factory in full operation during the normal slack period—May and June.. Never before in the history of the firm had the factory been busy at that period. Two Shifts Daily. A tanning factory reported that for the first time for many years the tannery was working two shifts daily. Staff was nearly double what it was 12 months ago, and application had been made to the Customs Department to import additional machinery. Woollen mills had experienced a greater demand for their products as a result of the import regulations. Orders on hand would keep one factory busy for months ahead, and new hands were being taken on as soon, as they became available. In the weaving department one firm bad recently begun to make materials previously not made in New Zealand.

One firm was erecting a uew factory and was embarking upon a capital expenditure of £lO,OOO (£5OOO for premises and £5OOO for machinery). It was bringing a key man out from England to train New Zealand workers. Another firm was starting the manufacture of a new line which previously was all imported from abroad. It was spending £BOOO on buildings and £7OOO, on new plant, some of which would be purchased in New Zealand. Another concern was preparing to invest approximately £20,000 in a factory and plant to make a new product.

Radio Industry

'l’lie radio industry was fully alive to its opportunities, the Minister said. One flrm hoped to treble its output of certain parts and expected an increase of nearly 100 per cent.- in its sales of complete radio sets in the forthcoming year. Already a large number of additional workers had been taken on and more would be required when the new machinery was installed. Hardware and farming requisites would also be made in New Zealand in greater quantities as adidtional productive facilities were brought into operation. Extensive additions were being made to at least one factory and a number were putting in further machinery.

When extra plant was installed in a factory making toilet preparations, an extra five or six people would find employment there. There were also reports that an overseas concern was contemplating the erection of a large factory in New Zealand to make their toilet preparations and soap, and another overseas concern -was arranging to have its laundry products in the Dominion. Brushware manufacturers had had to increase their staffs, one by six and another by eight operatives, and a continued increase in production was expected. Good orders were being received by the biscuit and confectionery industry, which was very busy. Additional operatives had been engaged to meet the increased demand. Additional expected demand for locallymiade mall extract had encouraged one factory to increase its plant. Footwear Industry. The footwear industry bad made a spectacular advance when it was given added protection by way of tariff adjustment, and the import control scheme had given this industry another fillip. Reports were that fac-

tories were very busy and machines which were practically idle for two years bad nil been brought into production. One factory alone had taken on an additional 30 operatives since Christmas and. as output was growing, the firm was having all its machines overhauled ami wherever possible was installing the most modern equipment. Another concern was well advanced with a £lO.OOO outlay for factory extension in which production was expected to start in four or five months. When the plant was installed more intense specialization could lie adopted, and the total output considerably increased. In addition employment would be available for 60 to 70 more workers. ' Individual units in the footwear industry had instituted schools of instruction at (heir factories for (he training of new employees before they were drafted into the factory. Fruit Packing. Work had already been ■begun on the erection of a new factory in Wellington for the dehydrating and packing of fruits. 'Chough there were no drying peaches or prune plums to speak of in New Zealand, the horticulture division of the Department of Agriculture was co-operating in long-range schemes for the development of fruit-growing for tills factory—apricots, peaches, and small fruits. More than one firm was extending its production and intended to embark on the making of washing machines. One of the firms had already takeiYon more workers, increasing the total number by 25 per cent. When all these firms were in full operation thousands of washing machines would be turned out every year. Developing Silica Deposits. The institution of the control of imports had given a decided fillip to a new company to work the silica deposits of the Wliangaroa district. The materials would lie taken to Auckland and converted into materials for use in the cement, paint, brick, plaster and metal polishes industries. All preparations were completed to begin production as soon as the necessary machinery was installed, and prices were likely to lie considerably lower than those of the imported materials.

A new factory was being erected for the manufacture of wood lasts, stiffeners and shanks for the footwear trade, and arrangements had been made to manufacture completely in New Zealand a very -well-known battery.