PRIME MINISTER'S PROMISE

Hawke's Bay Herald-Tribune, Volume 81, Issue 20, 16 October 1937, Page 7

PRIME MINISTER'S PROMISE

- Pr ese Associa Hon )

G.. Excessive Imports from Overseas HOW TROUBLE AROSE

(By f elecraph

WELLINGTON, Last Night. Speaking to-night on safeguarding o£ tho Dominion 's secondary industries, the Prime ■ Minister (Ets Hon. M. J. Savage) said in cases Whero efficient New Zealand indiyitries were imperilled through- excessive importations and their nOrmal ability to employ New Zealand workers thereby reduced/ the Government was'taking' the necessary steps to conserve the market which was legitimately held by _ New Zealand manufacturers. He w'as in communication with fhe Government'of the"United Kingdom with regafd to general policy in connection with particular industries, and when the r eplies were to hand the Government's policy would be' announced. "I would like to say a word on the causes of the iirimediate difficulties faced by some manufacturers in the Dominion," Mr -Savage said. "The evidence available proves that the steps taken by the Goveriiment last year to increase wages gave rise to a demand for goods with which local industries were in certain instances unable immediately to cope. ln such cases this led to the placing of orders overseas, mainly in the United Kingdom. At the same time local industries expanded production to an unprecedented level. It would appear that the unusual demand has now been satisfied; in fact, in many cases retailers have bought in excess of immediate requiremeuts, and are now overstocked. As a result, orders have been reduced, and some manufacturers are not at the moment working to capacity. "This is a temporary phase, and there is reason to expeet that the position will soon be adjusted. The Government is satisfied that any local industries likely to be permanently adversely •afEected by excessive imports should be safeguarded, taking such steps as are necessary and practicable to adjust their position.."