FUTURE POLICY

Dominion, Volume 37, Issue 15, 13 October 1943, Page 4

FUTURE POLICY

N.Z.’s Manufacturing Industries MINISTER’S OUTLINE Dominion Special Service. NAPIER, October 12. “If I were asked to say in a sentence what. I believe to be our future policy for New Zealand’s manufacturing industries, I would say tlie maximum utilization of our productive capacity in -men, materials and plant, and if that, capacity can produce goods beyond our requirements, then the production of surpluses of whatever classes of goods can -be marketed overseas,” said the .Minister of Industries and Commerce, Mr. -Sullivan, at the opening of the conference in Napier this morning of the New Zealand Manufacturers’ Federation. While there were still many question marks, the Minister added, lie believed the future was more clearly outlined for their industrial life than for many other phases of post-war society.

“I recognize no fundamental argument as -between town and country and as between manufacturing and farming,” Mr. Sullivan continued. “There are problems we will have to tackle, such as whether there should, be more manufacturing in rural areas, to which I would answer yes, and mutual understanding as between farmer and industrialist, and so on, but there can be only one aim—maximum gainful employment by whatever means lie in our power. “I know you still have a number of difficulties to face. I know manpower shortages are worrying a large number of you. Taxation is inevitably heavy and the question of providing reserves against post-war losses is exercising many of your minds. Raw materials and supplies are uncertain in many fields of production. Without in any way dodging these issues I would emphasize that the number one job is still to win the war.” / Manpower was short, because New Zealand had striven to the limit to make the greatest possible contribution to the fighting forces of the Allied Nations, and its record in regard to this was good. The Government also had to provide against a threatened invasion of New Zealand’s shores. Within the Dominion the emphasis had shifted materially during recent months from defence to production, and the manpower change-over had been fraught “with all kinds of problems and difficulties, many of which had still to be ironed out. “We are sincerely endeavouring, to make the necessary adjustments as quickly as possible,” he said. “The war plans for the future define the part that New Zealand must play so far as manpower for the services is concerned. In the production and supply of foodstuffs we have been called upon to provide to the limit of our capacity and by providing hospitals, convalescent homes and other buildings New Zealand will play an important part in caring for the men during the period of action in the Pacific, but the future Allied plans may mean a curtailment of the production of munitions and military goods in this country. Question of Shortages.

“However, before certain factories now engaged in the manufacture of munitions convert to their normal business, the materials situation must be examined, and I think that the most, satisfactory manner of securing' information as to the requirements of manufactures in this country is through the manufacturers themselves. Immediately schedules of materials required are known and an examination has been made of the slocks held by the Government, as well as by the manufacturers, the question o' shortages in materials can be taken up with the British and American authorities. 1 al not today making any definite promises that these goods will be forthcoming, but I do give this definite promise that representations will be made so as to secure, if it is possible, essential materials to permit of industry being carried on.” The Minister impressed on all . manufacturers the necessity for- utilizing all stocks held by individual companies. He realized that there were problems of stock reserves and taxation. At the same time manufacturers must realize that if the Government was to assist in the procurement of essential materials . from overseas it must not be placed in the position of asking the Allied countries to provide vital materials from their meagre stocks while at the same time New Zealand permitted a certain amount ot hoarding by individual merchants and manufacturers in the country. There was a dangerous, tendency growing in this country, he said, for too great centralization of industry at four or fivemajor pointe, and if this trend continued it was going to have an unbalanced effect on the country as a whole, me Government’s plans envisaged the more even distribution of industry in a manner which would embody not only the distribution of manpower but would take into consideration such problems as transportation and the location of raw materials. The Government’s plans would permit an examination to be made or unsatisfactory conditions, particularly in small industries, so far as buildings were concerned. , Commenting on the future of control, Mr Sullivan said they had been assured by the Prime Minister in, previous years that the wartime emergency regulations so necessary at present to bring' victory in the fight for freedom would be relaxed as soon as wisdom proved such an action to be in the best interests of the nation. “Mv personal opinion is that more, joint planning bv the Government and industrial authorities will be an essential need of the future of industry, he said.