WELLINGTON NEWS

Hokitika Guardian, 25 September 1929, Page 5

WELLINGTON NEWS

MERGING IN INDUSTRY. (Special Correspondent) WELLINGTON, Sept. 23. The report, of the Australian Tariff Board for the past financial year supports the views . which‘has been frequently expressed on the;, baneful incidence of the high-tariff 1 policy in. Australia. When revisions of duties and of Arbitration Courtv’awards continued to chase one another it was urged that a bait should lie' cAII eel upon increasing imports, warning was disregarded, observes .“Tlic Argus” (Melbourne). Infpost war years the imagination of Ministries in respect of the establishment of secondary industries , in'the 'Commonwehltli ?rah vriot, and protection was forthcoming for the asking. Small manufacturing enterprises came into being in fairly largo numbers and although it was consistently pointed out that they could not live beyond the home trade, the Ministry by its action persisted in the belief that they could continue to thrive. The day of reckoning eventually came, and insufficient units through economic forces, were compelled to cease; operations. , , V

There were instances where exceedingly high duties were levied for the benfit of enterprises which employed only a few hands.,and which; were hot in a position to supply more than a nominal percentage' of Australia’s requirements of the goods they, manufactured. .Yet in face of this obvious fact the former Minister for Customs, the late Mr Pratten, was .of the opin-ion-that the Commonwealth should (be independent of imports regardless |t|at if Australia exports must also':lmport. Payment foj’ produce must .necessarily be in the form of gpods. The Tariff Board now indicates the necessity for closer concentration? of . industry.' .... ’ 1 .

Amalgamations in the last few years have been more pronounced in Australia, even amongst the, larger enterprises and the tendency appears to be more in this direction. Rationalisation of industry may bring about a certain, amount of hardship in increased unemployment. > Amalgamations, however, are carried out.with a view to reducing costs. If the. workers have any complaint on this score they should 100k ‘’ to their union; leaders to help them out. , The unions demand abolition'of'pieciS work, and they want increased wages' and less and less working time. ; ' < • 'V

1 Industry has to try. to overcome , these difficulties if it is to; live. Many mechanical inventions have been the outcome of one-sided Labour policy. / An instanoe in point is that the New South Wales coal workers are responsible for the increasing" use of the Diesel oil engines?tot say--nothing of the more extended ! use of electricity. The Chairman of Directors in addressing recently the shareholders of the Mangovete Belting Company, Ltd., stressed, the unwisdom of export regulations. He • pointed • out that lower prices for export meant higher prices for locnl consumption, or, if they cpuld not be obtained, reduced profit and, relatively less for,the. Government in the form of income tax. \

The timber strike had demonstrated the folly .of regulating industry. While imported agitators ; hold up industry and prevent Australian timber being marketed, ships loaded with soft woods from the Baltic and America arrived regularly, and their huge cargoes took the place of the better Australia woods. Our bush mills had been silenced by the roar of loudmouthed and evil-tongued; agitators, and thousands of simple-minded men .had been deprived of.work. The loss in wages amounted to hundreds of thousands of pounds, and some men would never be able to make good, after spending six months by . the ,wayside under the rulfe' of -these foreign dictators. Other countries had? been tbrqugh similar labour ' and they had adjusted the conditions! to meet the nation’s demand on a satisfactory basis. ; : ;s">' Australia has been sowing the‘wind and now she is to reap the whirlwind. In a vain effort to blow herself up to . the magnitude of the United States she has slavishly . adopted the; high

protection policy of-,that 'country,: regardless of the fact that economic conditions in the two countries are very different and very distinct. Wool and wheat,, the export of .which furnishes Australia with' the bulk of her purchasing power are depressed, and this coming on the top of heavy losses due to incessant and unwarranted strikes will make the people of Australia'realise that it is very expensive to allow half-baked politicians and so-called statesmen to play battledore and shuttlecock with the laws of economics. Unfortunately' Australia’s depression will have some reflection on New Zealand.