WOOLLEN GOODS

Hokitika Guardian, 21 August 1929, Page 6

WOOLLEN GOODS

THREAT OF FOREIGN COMPETITION.

PLEA FOR MORE . PROTECTION

AVELLINGTON, August 19

“Trousers are being- landed here which costs 3s without duty,” said Mr AV. H. P. Barber, the chairman of the AA’ellington AVoollen Manufacturing Company to-day, in his address to shareholders at the ordinary general meeting of the company. “What, does 25 per cent on that do as stopping the importation of substitutes for woollen goods made here?” “The shibboleth of absolute free trade is kept prominent by great importing houses and shipping magnates the whole world over,” said Mr Barber, “but it is strange that such a policy is accepted by some as an ideal state when we have the example of Great Britain to the contrary. The 400 years of continuous protection made her a great Empire; the less than 100 years of free trade has endangered tiiat position, and, as the “Morning Post” said recently, if she neglects to protect herself in a protectionist world she will shrink from an Empire to an island. The brief period of safeguarding sliowhd what can he done by judicious proeotion against cheap foreign labour, but even tiiat help granted to British workers and to the Empire is to be discontinued by the new; Government. Already the altered policy has resulted in a 10 per cent 'reduction in the wages of heavy woollen workers, which has been accepted by them. The disastrous strike in the cotton trade is another result. It is lamentable that in England a wage reduction should take precedence in importance over the application of an equivalent amount as a check on goods made abroad under different standards of living.

“As a concrete example of safeguarding in England, it is on record thafc to avoid the 33 1-3 per cent ad. valorem tax, Henry Ford Jhas opened a motor car factory in Essex at which it is expected to employ 15,000 men with a weekly wage of £75,000. As 'the British Labour Party ‘is committed to the repeal of the McKenna safeguarding duties, Stir Henry Austin says it will probably lead to the closing of the Austin factory, which employs 11,000 men, hot including the selling staff. Free trade in manufactured goods will not’ attract capital. Tiiat is an indisputable fact, not a tlmory. America’s tariff just recently increased is absolutely ironclad. It costs 89 per cent ancK 100 per cent without freight to get rugs and blankets, respectively*, into the United States' of America, whilst New Zealand’s retort to that is 40 per cent.

“The excellent propaganda speech of the president of the New Zealand Farmers’ Union, delivered in the session recently, was of much interest to us, and I wish to mention some statements made regarding the tariff. It is clear that Mr Poison still holds the long since exploded idea that the cost of an imported article is raised to the consumer by the amount of duty paid thereon. That is not correct always, for it has bden demonstrated repeatedly in ' Australia that the imported prices of farm requisites have been reduced by more than the duty when local production is in competition. Local industry .steadies the price because when it is absent the imported article lias a free run.

“Mr Poison also said the manufacturing community demands protection, and more protection, the cost of which, is unfairly piled on the fanner-. Such a generalisation is unfair, being incorrect. All the' New • Zealand manufacturer wants is a- fighting chance, and in the woollen textile business that ambition should be supported by wool growers, who have all to gain iby having their raw material converted into first-class marketable goods. The best of all markets is the home one, and land in New Zealand cannot be as successfully developed as it should unless profitable markets aUe close to the settlers. The encouragement of manufacturing with resultant work for a. large population will give an everincreasing market for the producer. It is a fact that wool sold for use in New Zealand mills returns the grower a better price than when bought for shipment. “I should be pleased if I could today give an assurance that we shall bo abie to show as good a balance-sheet next year as the one (before you, but I do not 'feel justified in the circumstances in making such a promise. Business is dull and it is hard to maintain the output at payable rates. All that I can say is that the company’s affairs are in a sound position.”