The Grey River Argus FRIDAY, APRIL 16, 1948. PROTECTION OF N.Z. INDUSTRIES

Grey River Argus, 16 April 1948, Page 4

The Grey River Argus FRIDAY, APRIL 16, 1948. PROTECTION OF N.Z. INDUSTRIES

rpHE latest suggestion of the Opposition politicians and press that a marked increase of imports is needed to keep up New Zealand factory production does not square with their earlier complaint that the Dominion has developed secondary industries which are not economic. The origin of the cry for abolition of import selection on a large scale is entirely with the importers, whose explanation is that they are above all things anxious to assist manufacturers of Britain. Taking a leaf out of Britain’s own

book, however, would mean a policy of import restriction quite as rigid as our own. Mr Holland appears to imagine that the main criterion is that of the wishes of our importers, who certainly have been exceedingly vocal in their own particular interest since ever there began to be any check upon importation. They seldom recall the fact that it was the previous Government which, by currency depreciation, imposed the original barrier on British export to this country. It might be reckoned that unless a great increase in motor cycles and cars at once occurs, this country will go to the dogs. Mr Holland quotes our pre-war import figures, which in value are in many categories being now exceeded, with the object of making out a case for a further increase, saying that a smaller quantity is now obtainable for the same money. Britain, he states, has goods for export, while New Zealand has funds at London, so that the proper thing is to exchange those funds for commodities. The idea of paying off the debts owing to Britain does not at all appeal to him, whereas he is in loye with the notion of living on credit to a much larger extent. Recent 'comment by a British Minister that export trade was encountering obstacles in the shape of restrictions abroad have not been meant to apply to this country, whose imports come probably more entirely from Britain than those of any other country. As a matter of fact -the British Government does not wish New Zealand to draw at present upon its sterling at London. It is generally admitted that this was the meaning of the British Government’s recent request that the Dominion should cut its imports down to the utmost, and not merely imports other than those from Britain. If the question in any country, and not merely this country, be whether its own workpeople shall be fully employed or the products of other countries be used instead, the answer is everywhere the same—as it is in Britain—that charity or preference ought to begin at home. If, however, it could be proved that materials necessary for Dominion industry are excluded when obtainable, ' them

short of a justification on the grounds of dollar shortage, the Government would be hard put to explain such a handicap upon employment. The fact, however, is that the Government is criticised on the score that there is rather too much employment, or rather too many openings for

more employment. Now this is by no means so serious a complaint as would be that of too little scope for employment. Undoubtedly there would be a market for more imports, because of the fact that nobody is unemployed who needs works, and nobody else is without a reasonable measure of purchasing power. There are many more reasons

than that of being able to discharge overseas indebtedness which justify a reserve of London funds, the demands on which extend further than the financing of imports of manufactured goods. On the other hand, were

the Government to favour those who are merely distributors of

oversea produced goods, it could look forward to more than one problem.. Instead of promoting essential local industry, a greater influx of products of oversea, industry must lessen consumption of our own production, as also lessen employment, and place a burden on the social security system, through a serious limitation

upon its resources. It is an. undoubted fact that every country which in the past lifetime has built up a good balance between primary and secondary industry has done so by giving its secondary industries preference over those of other countries. Britain

to-day follows that course as com* pletely as she can. There consequently can be no solid objection to the same principle here. We have gone past the point at which we could give overseas manufacturers almost a present of our market. The National Party, if in office, would not itself risk it.