OPPORTUNITY SEEN

Hokitika Guardian, 4 March 1932, Page 3

OPPORTUNITY SEEN

“MANUFACTURE FOR EXPORT.” WHAT NEW BOARD MAY DO. WELLINGTON, March 2. Nothing could be more important for New Zealand than the co-ordination of primary and secondary industries, says Mr Alexander S. Tetzner, a dairy farmer at Pukekohe, who was formerly a Governor in Russia. He comments on the importance and value of the work to he carried out by the Development of Industries Board, recently appointed. “It is obviously the task of the board to make clear to everybody concerned that the real exchange value of New Zealand manufacture and produce, as well as of keiwices, can only be discovered wheif they are brought to the test of price,” Mr Tetzner says. "The vital need at the moment is the provison of more employment. Secondary industries in New Zealand are employing only 85,798 workers and are paying an annual wage bill of some £17,620,000. New Zealand mnnfueturers are producing goods valued at £93,000,000. exclusively for home consumption. Exchange Premium. i “Tlie Development of Industries Board will surely encourage the desire of manufacturers to produce more, on a very .small margin of profit, merely to inaugurate our national exports ot finished articles overseas. Every employee in our secondary industries will certainly recognise the need to aid our trade balance and co-operate in an attempt to open new avenues of nation- j al income just as farmers are doing | their utmost to increase their export- j able output. j “It is obvious that with the abandonment of the gold standard the country will snip off noxious imports from America (except benzine, perhaps), huv instead New Zealand-made goods, and live on and depend upon exports only. Here tremendous possibilities exist in promoting export tirade in manufactured goods to foreign countries. The results already achieved by j local industries in Australia are most encouraging, as the exchange premium

available on money received for goods exported to foreign countries has increased greatly. “The only way New Zealand can find compensation for hard times is by shipping' New Zealand produce and manufactures to foreign countries and thus securing currencies at par with gold. Nothing short of a universal suspension of the gold standard can deprive our country of the obvious advantage of trading on a large scale with nations still open to the outside world or silver currency. With margins ranging from 30 per cent to 40 per cent now offered in the Far East and gold countries, with the artificial decrease of the cost of New Zealand production, with wages ‘cut’ and a much easier currency our manufacturers, guided by the board have a unique opportunity to concentrate all.efforts and scientific discoveries for exporting purposes and to make our secondary industries give work to thousands of our unemployed men.

Trade Investigation Needed.

“A report of market investigation is an absolutely necessary document for the board and lor every manufacturer in our country, and a systematical market research, disclosing all the essential information should be begun at once. “The appointment of export trade investigators, on lines adopted by Great Britain and Australia, is of such importance for our manufacturers and producers that I suggest the advisability of the Government bearing the costs of appointments in cases when the exporters are unable to do it themselves. The board will naturally co-operate with industrialists, so that our secondary industries may be established on a competitive basis, and goods produced comparable in quality and price with those produced abroad. The distribution of New Zealand staples and goods available for export must be made all over the world, while the exchange is entirely in favour of the exporter. Many good markets are available. ■ “Incidentally. Australia can give us a little illustration in respect of South African market. Mr McKay, the chairman of the export trade committee ot the Chamber of Manufacturers, recently informed the public that no fewer than 92 employees bad been taken on in the last 14 days in Melbourne by an engineer mg firm which had obtaine<| business orders from Capetown. The reduction of costs is enabling the Australian maim fact umors to compete even with America.

“Again, a general increase in foreign ! > ,, « : H!'ss is manifesting itself in Groat Britain, owing to tlio cheapness of tin? goods and raw materials in the woolloii industry. A oousidoraldo proportion of tlio buyers are from America, giving orders for manufactured artules (made from Xcw Zealand wool, of course).

'Che textile trades are definitely more active, and also able to bold out for better prices. The general tone of the engineering industries is muoli more hopeful, unemployment is less serious, and inoniries are beginning to cjreulate more freely. The development of national industries is necessarily closely linked with the development of overseas trade and exports.”