The Evening Star MONDAY, SEPTEMBER 30, 1935. BRITISH INDUSTRY.

Evening Star, Issue 22147, 30 September 1935, Page 8

The Evening Star MONDAY, SEPTEMBER 30, 1935. BRITISH INDUSTRY.

In a cable message from London the statement was made that, apart from international politics, there has seldom been a time when conditions in Britain looked more promising for a further rise in many securities, especially industrial shares. This is the reaction to the Government’s careful financial policy and to the activity of the Board of Trade in seeking, by trade agreements, new outlets for British industrial products. One section that has been very severely hit is the coal industry. A promising- development on the coalfields, however, has been the initial success in extracting motor spirit from coal, and to-day it is announced that the output in the British mining industry last year was the highest since 1930. As a result of agreements with various countries the value of the exports last year was double that of 1931, The engineering industries of the country have emerged from the trough of the depression. Their recovery has been rapid and substantial. The motor industry, for instance, showed ft record

production of 256,866 private cars in the year ended September last. This was chiefly due to concentration on economical types of cars, which enabled manufacturers to take advantage of the revival of purchasing power in 1933 and 1934. Though the small car still accounts for over 60 per cent, of the total production, its popularity, according to the ‘ Economist,’ is diminishing with the passing of the depression and the reduction in the horse-power tax. This change is welcome to the trade, for the larger car means a greater profit margin. The new demand, coupled with the devaluation of the dollar, led to an increase of 160 per cent, in imports chiefly high-powered American cars—and the suggestion that the existing duty of 33 1-3 per cent, should be raised. It is interesting to note, however, that imports still amounted to only 4.4 per cent, of home production, so that they can scarcely be said to constitute a serious danger to British manufacturers. The British export figures, while showing a considerable increase, were very much behind those of American manufacturers. One reason for this is that when the home demand is expanding there is a strong incentive to British makers to concentrate on the Home market rather than attempt to increase exports, since the latter arc leas profitable. The aircraft industry is closely associated with the motor trade, and it is rapidly enlarging its output, quite apart from Government orders in connection with, rearmament. Compared with the peak figures of 1929, the value of exported machines shows a decline, but this is partly due to reductions in prices. Another factor is that subsidiary British concerns abroad have enlarged their operations. Thus the decline in exports does not necessarily involve a loss to British manufacturers. Electrical engineering, in both the heavy and light sections, reveals a very satisfactory position in the home and export branches. Shipbuilding and marine engineering do not show such encouraging results, but employment in July revealed a substantial increase over the three preceding years, though the total was considerably below the figure of 1929. Idle tonnage stood at 878,000 tons at the beginning of this year. It is considered that no substantial measure of recovery can be achieved until freight rates are once more on a profitable basis, and a revival in international trade reduces this dead weight on industry. Taken all round, the state of the British engineering trades is as satisfactory as could possibly bo expected in the circumstances. British enterprise and technical ability stand as high as they ever did, and as new avenues open up consequent on scientific discoveries and developments, no time is lost in exploring them. The British manufacturer is holding his own with his Continental and American rivals. This is all of direct interest to New Zealand, for the purchasing power of the people of Britain has a very important bearing on the sale of our primary products in the Mother Country.