WELLINGTON NEWS

Hokitika Guardian, 19 December 1930, Page 7

WELLINGTON NEWS

SELF-RELIANCE IN INDUSTRY. (Special Correspondent). WELLINGTON, December 17. An industry thrives best when left alone to work out its.own salvation. When business is brisk and the economic conditions good the executives sit back in their chairs and preen themselves. They are sathVied with th miilenium that exists, and their slogan then is “Let well alone”, and they adhere slavishly t othat slogan. It is during that miilenium that the dry rot of decay sets in. When the trade declines and economic conditions become adverse then the industrial executives get busy. The lii'st move is generally to seek legislative protection, but when that is not obtainable, then brains get to work and eventually a way is found for recovery and improvement.

Legislative interference sometimes, and legislative procrastination at other times cause more harm than good to trade and industry. The rubber industry provides a fine example of the value of self-reliance in industry. There was a time when the wholesale price of rubber was well over 2/6 per lb. After the war the price receded rapidly and the rubber growers in Malyn and Covlon sought the assistance of the Rritisli Government. The growers contended that thev could not produce at under 1/- per lb. The unshot was the “Stevenson Plan”. But this scheme which was practically price-fixing, failed, and the plan was abolished. There was of course an immediate and drastic drop in the price of rubber, and the executives of the industry had perforce to use. their brains to explore all channels that would open the road to recovery. The cost of production was necessarily tackled first, with the result that many rubber growing con-

cerns have reduced costs of production to 3d or 4d per lb. Not so very long ago rubber was down to 4d per lb.,' it is now a. little over 6d per lb., and the price yields the grower a profit. The Rubber Growers’ Association besides concentrating on reducing costs, is seeking to stimulate the new uses for rubber.

The Association sent a circular to producers of plantation rubber, appealing for practical support for a bold and concerted effort to encourage the commercial development of rubber roadways. In city streets where traffic is heavy and excessive noise and virbration are almost intolerable, rubber-sur-faced roads would be greatly appreciated.

The Association has asked producers to agree to supply Rubber Roadways Ltd., a company formed in 1915, under the auspices of the Association, standard quality rubber for a period of five years. It is proposed that producers representing a total production during 1929 of not less than 150,000 tons, shpuld supply in each of the five years (1) one hajf of 1% of their 192? crops free; (2) 1% of their 1929 crops fit the market price ruling at the date of delivery, or 6d per lb., which ever is lower; and (3) a further 1% of the

1929 crops at market price or 9d per lb., on the same basis. The rubber to be called up in the above order as and when required, and is to be devoted to the manufacture of of experiments in the manufacture of, or experiments connected with rubber roadways. Hitherto the development of rubber roadways has been held up because oi the high costs of rubber paving. A few years ago £5 per square yard was generally reckoned to he the cost, but to-day a dependable roadway can be laid at a cost of about 50/- per esquare yard. Over 200 tons oi ciude | rubber would be employed in the manufacture of a mile of rubber roadway of modern width. The rubber growers have got the industry on a paying basis and if they can stimulate consumption that would take care of the increased output. Industries are best left alone and it is a singular phenomenon that the pressure of hard times is necessary to secure improvement, to revive old industries or institute new ones. The history of N.Z. furnishes the truth of this in a small way. After the vigorous public works policy of the late Sir Julius Vogel spent itself there was a measure of depression which was as keenly felt as the present. We had very few major industries, only wool and wheat. I Refrigation was a new discovery in the seventies and there were courageous enterprising men in the country* who risked time and money testing the new process. Government could not help and was not asked to Tielp. The Dominion owes the existence of the frozen meat trade to the venturesome men of the early eighties. And the population of N.Z. in those days was under 600,009. Most of our industries were started without Government assistance, even dairving was due to private enterprise. It is only in recent years that Government interfei ence has been sought and it is doubtful whether that interference has been beneficial. Self-reliant industries develop into the best.