N.Z. Industry At Disadvantage

Hawke's Bay Herald-Tribune, Issue 141, 1 July 1937, Page 4

N.Z. Industry At Disadvantage

AUSTRALIAN INROAD 40-Hour Week: Success or Failure? BENEFIT TO COMPEHTOR "New Zealand 18 at the partiiig of the Ways as far as industry is concerned," said Mr. A. W. Nisbet, secretary of the Weilingtoii Manufacturers' Association, when commenting yesterday upon the statement hy Mr. H. W* C. Baird at the annual meeting of the Hastings Chamher of Cominerce that "a grave menace to manufacturing concerns in New Zealand is the present competition from Austrar Ua." Mri Nishefc added: "We Will have to inake up Our minds whether the 40-hour week is a success or a failure. There are thousandS of pounds' worth Of Austraaian gOOds coming into the country, as is evideiiced hy the extra shipping figures, and I could quote numerous instances of Dominion manufacturers losing orders to overseas competitors." ■ Wellington manufacturers have been affected in difterent ways and in varying degrees by this COMpetition, but there is agreement on one point, that Australian articles, though in many instances nOt Of the quality of New Zealand-made goods, are finding a feady market in the Dominion. The fear that, once established, the Australian supply will be dangerous and hard to cnove is supported from all branches of industrial interests. It was stated by several Hrms yesterday that the attitude of the Departnient of Industries and Commerce was not helpful. The usual reply to cotnplaints in l'egard to the increasing saies of Australian goods, they said, was that New Zealand manufacturers had their factories busy and that they had notliing to grumble about. Only Temporary Activity. "This opinion is not only the resuit of an inad'equate knowledge of the state of industry, but it lacks foresight," said a leading manufacturer. "Activity in Dominion factories is lilcely to be merely temporary in these circu-uistances, and iu the meantime Australian products are beeoming established in this country because of the price coniplex of the public.* Australian' articles of clothing and footwear are as a general rule lower in quality and cheaper in price. This makes them attractive to a large section of the community and the local industi'ialist suffers from lack of support as well as having to contend with. the increased costs ' brought-' a'bbut .b*y higher wage-levels and shorter- working time. ' ' This is typical of the views of several Wellington firms who were interviewed yesterday. The representative of a footwear manufaeturing firm stated that they were in the peculiar position of being told to wait for their money so that the retailers whom they supplied could pay overseas concerns. Mr. Nisbet recalled some . of the opinions expressed at the time when a deputation hiet the Government to discus§ the proposals included in the Industrial Efficiency Act. "Mr. Savage expressed the view Ihat the increased purchasing power that would result from the restoration of wage and .salary cuts would react .to the benefit of the New Zealand manufacturer," said Mr. Nisbet. "Oue member of the deputation voiced the fear that the benefit would he for importers, and the Minister ofi Industries and. Commerce, the Hon. D. G. Sullivan, whose sincerity is unquestionable, replied that the benefit would not be for importers at the expense of New Zealand (manufacturers if he could help it. " Subsequent- events indicate that there is reason to believe that his control has been unahle to prevent it. Manufacturers of all classes of commodities are losing orders to overseas competitors, Government's Answer. f'The Government's answer to that may be that factories are busier than they have been for years. While this may be true .to a large extent, there is not the slightest doubt in my mind that if the New Zealand manufacturers were confident that their market was not going to be taken from thecn hy countries working on a 40-hour week and lower wage seales, they could plan, and would plan, for a definite and rapid increase in present production. "Speaking as a member of the special committee set up at a conference convened hy the Minister of Mines, the Hon. P. C. Webb, I am confident that nothing would tend to solve the' unemployment problem more rapidly than some definite action hy the Government that would inspire confidence in manufacturers that the New Zealand market is to be reserved for them. We have thousands out of work who could be absorbed into industry and who could produce goods which are at present being imported. "In suggesting provision for a dilution of skilled labourers it must be understood that manufacturers as a body are not in favour of a low wage standasd, as they realise that. the ability of the public to purehase the products of New Zealand factories depends entirely on the purchasing power of.the worlcer. "As has already been indicated by the acting-president of the Arbitration Court, Mr. Justice O'Regan," concluded Mr. Nisbet, "greater flexibility in the labour laws is essential if New Zealand industry is to be as it should. ' '