PURCHASE POWER

Hokitika Guardian, 18 August 1932, Page 6

PURCHASE POWER

NEW ZEALAND’S HANDICAPS

EFFECT UPON INDUSTRIES.

(Per Press Association —

Copyright.)

WELLINGTON, August 17

Addressing the annual meeting of shareholders of the Wellington/ Woollen Manufacturing Company, the Chairman of Directors (Mr Barber) said the; directors .in: the report expressed gratification at being able to l etain a'rate of dividend equal to last ’year's) and, while shareholders might not feel especially pleased, 6 per cent Tn a tlifeseJ financial topsy-turvy days eohld'' not be classed as a poor return. Another reference in the report was .to the apparent opportunity for New Zealand to obtain new business!; because of additional fiscal duties and higher exchanges ruling, biit he pointed out that wages cuts, r«rti4n£h'ments, direct taxation, feeling of'unrest and consequential pruning of expenditure by many, and also by those perhaps who could have afforded to spend normally, but were overprudent, had all helped to restrict the buying power of the liliniate consumer’s. It was- a truism that trade could only be brisk when! money was circulating in the usual channels. ,Mr Barber said that the output of suits had suffered more than any other department. Had the establishment of secondary industries and those existing received in the past adequate support, in would have in a large degree) mitigated the existing conditions of unemployment. \ . Mentioning particularly the almost impossibility of,,thousands of boys and girls leaving school obtaining employ, blent' Mr Barber, claimed that conditions would not" have been so bad haa whole-hearted support been given to New Zealand made goods. It was very plain that the- direct load of taxes -on those industries on which development depends, both primary and secondary must be' lessened at the earliert moment and not be left to Time’s slow attrition. The present high taxation was a crippling load on industry.

regard to Ottawa, Mr Barber said his opinion was that the Imperial Economic Conference must be accepted' as a curtain-raiser to the inernational meeting in London.