EXTRA WEALTH

Gisborne Herald, Volume LXVI, Issue 19979, 3 July 1939, Page 12

EXTRA WEALTH

INDUSTRIAL PROGRESS SATISFACTORY ADVANCE NEW ZEALANDERS' WORK REVIEW BY MINISTER (Special to the Herald.) WAIROA, this day. “When the Labour Government took office in 1935 there were 5536 manufacturing establishments in the Dominion," stated the Hon. D. G. Sullivan, Minister of Industries and Commerce, when responding to the toast of “The Government,” proposed by Mr. A. T. Carroll, chairman of the Wairoa County Council at the railway banquet held in Wairoa on Saturday evening. "The bill for salaries and wages totalled £14,844,367 and the value of the goods produced was assessed at £90,014,748.” The policy implemented by the Government, in increasing the spending power of the people, continued the Minister, had an immediate reaction and the demand for goods and services increased at a remarkable rate. For the year 1936-37 there was an increase in the number of manufacturing establishments of 5728, and the bill for salaries and wages had. risen to £18,333,077, while the value of the goods manufactured reached the record total of £105,941,722.

This was very commendable progress for one year under Labour rule, bui the figures for 1937-38 revealed an even more satisfactory story of development in the country’s industrial life. New high levels of production were reached, and more people than ever before found employment in the worKshops and factories. New Zealanders were finding profitable employment producing the thousand ana one odd articles required by New Zealanders. New High Level The statistics showed that 102,344 persons were engaged in manufacturing industries and they received in salaries and wages the sum of £20,981,587. The value of the goods they produced reached the substantial figure of £113,691,556, a new high level in production. The figures related to all manufacturing, and it was particularly interesting to analyse the position still further. For instance, continued Mr. Sullivan, if they took the figures for the manufacturing industries that did not deal with the processing of primary 'product is or with public utility services, but were what they might call pure manufacturing industries in the narrow sense of the term, they found that there had been a phenomenal advance. For the year 1936-37 the industries in this group found employment fb r 66,419 persons, paid £11,4‘73,458 in salaries and wages, and produced goods to the value of £41,750,450. If they took the added value they created by the process of manufacture on the raw materials used they would find that £21,797,490 was added to the national wealth by the industry of New Zealanders.

During the year 1937-38 very material advances were made in this group, and they found that employment was provided for 71,485 persons, paid £13,194,521 in salaries and wages and produced goods assessed at a value of £46,885,861. The added value or increased wealth so created rose to £24,367,461. Figures lor Hawke’s Bay “Hawke’s Bay has taken its place in this march of progress,” stated the Minister, “and the figures show that for the year 1935-36 the grotfp I have referred to as being purely manufacturing concerns found employment in this district for 1159 persons, who received £290,878 in salaries and wages, and produced goods to the value of £905,788. “For the year 1937-38 the figures for Hawke’s Bay reveal that 1168 persons found employment and they received £316,807 in salaries and wages, and produced goods valued at £961,375. For a district that has not enjoyed the full benefits of rail services this is most commendable.” «

The Minister stated that he was sure that with the full development ot' fhe railway service there was a splendid outlook for Hawke's Bay, not only in primary industries, but also in manufacturing industries. The primary producers had done much to make Hawke’s 'Bay far famed and their work was to be commended, but he felt at the same time that New Zealand could, and would, build for herself an honoured name as a manufacturing country as well. He had visited factories in various centres, and had been favourably impressed with what he had seen, and he had been proud of what was being accomplished. Source of Manufactured Goods There were some who would argue that New Zealand should leave manufacturing to the older countries. Just what would that mean? Apart from the possibility of war severing their communication, they must remember that such a policy would mean that all the people now profitably employed making articles and producing goods would have to find employment in primary industry—an impossibility. It would mean also that the extra wealth that the manufacturing industries created, the' £24,367,461 he mentioned earlier, would not exist and the wages paid would not circulate. It would mean that they would have to send all their wealth now created by the workers to overseas countries, and they would be finding employment for outsiders while their own people were poking for work. It would mean, concluded Mr. Sullivan, that the taxes paid by the manufacturing industries would be lost to New Zealand.