The Dominion WEDNESDAY, OCTOBER 13, 1943. NEW ZEALAND INDUSTRIAL PROBLEMS

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

The Dominion WEDNESDAY, OCTOBER 13, 1943. NEW ZEALAND INDUSTRIAL PROBLEMS

There will doubtless be a good deal of support in this country for the suggestion, put forward by the president of the New Zealand Manufacturers’ Federation (Mr. C. V. Smith) that a commission be appointed to examine the possibilities of domestic industi lai expansion. Such an investigation, indeed, may be An essential preliminary to our post-war planning, for there can be little doubt that, sooner or later, New Zealand’s tariff and import-control policy will require to be thoroughly reviewed, probably as part of our contribution to world economic rehabilitation. Such a review should be based upon a clear-sighted and balanced judgment of all branches of our manufacturing industries, particularly those which depend upon tariff protection for survival in the post-war era. And the commission which undertook the review should be impartial and fully representative of all sections of the community. The development and adjustment of international trade in healthier and freer circumstances than in the past is one of the major aims of the democracies. This does not mean that the tariff system iis to be regarded as obsolete, but it does imply a re-scaling of taiilfs in many countries. Individual countries whose industi les have specialized in the production of certain products created from the natural resources of those countries, will seek the right to compete in the world markets. Within reasonable limits it.may be necessary for this Dominion to concede that right to others, just as we hope to claim it for ourselves in respect of our surpluses of primal y products. Any system of arbitrary import control, such as the Government imposed in this country 'in the years immediately preceding the war, may conflict very sharply with international post-war planning. Insofar as the system can be shown to be an artificial device, pi omoting the establishment and small-scale growth of certain manti factuies simply by protecting them from competition, it may require to be diastically altered. , ~ In the course of his comments the manufacturers president suggested that because New Zealand’s name stood so high in Britain today, it would be impossible to imagine the Mother Country tetiiining thanks by telling us that we must (after the war) stop manufacturing this thing or the other thing . . . that we must lowei out already low tariffs?’ This is an unfortunate approach to the mattei. If sentimental appeal were to be the foundation of post-wai tiade policies Great Britain would have an overwhelming case for improved Empire trade facilities, for she has saved the Empire from defeat and made it practicable for ourselves and others to plan for an assuied future. The fact is that although this country’s import-restriction system gave preference to United Kingdom goods the concession was only relative. We denied Britain markets for many of her pre-war manufactures, notwithstanding her status as our principal customer. In the past we have pursued this policy, not only toward Britain but toward all other manufacturing countries —to an extent which may be regarded internationally as being quite incompatible with world ideals of post-war international co-operation. It is not merely a problem as between this small country and Britain. It is a world problem. r * Greater freedom for overseas trade, by a process ot taint readjustment, should not involve a retrograde movement in New Zealand manufacturing. On the contrary, the post-war era should provide ample scope for expansion in' secondary industries allied with our primary production. As Mr. Smith pointed out, a large number of well-known overseas firms have established plants in this Dominion. They are using a proportion of our primary products and ate employing New Zealand labour. These industries, it is to be hoped, will expand on their merits, side by side with the many domestic industries which have earned and won a profitable share of public support. Such industries have nothing to fear from an independent commission, which would take into very lively consideration the capacity of manufacturing industry to absorb labour and encourage a more rapid expansion of our population.