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Hokitika Guardian, 31 October 1933, Page 4

Addressing the Constitutional Association and the Liberal Speakers’ Association in Sydney, Mr E. Massey said the most obvious rational argument which could be put forward to support a protectionist policy, he said, was the necessity for building up key industries which would be required in the case of war. It was claimed that a country which was not able to maintain such industries as iron and steel, chemicals, electric equipment, and oil fuel supplies was doomed to failure in time of war. It was therefore argued that for purposes of defence those industries should be developed, even if some economic loss was incurred. This loss was tho premium paid by a nation to preserve the remainder of its wealth. It should not bo forgotten, Mr Massey said, that each of the industries which

was described as vital was dependent upon the outside,world for at least portion of its materials. Certain grades of iron ore, and chemicals used in smelting, and many important chemicals, were not found in Australia, which was wholly dependent on America, and Persia for oil supplies. In such circumstances it was hard to believe that Australia would not gain more by refusing to make sacrifices for industries which from their nature could not be made independent of the rest of the world, and spending the money saved in building up a supply of munitions, technical instruments, warships and other .materials necessary for her adequate defence, procured from the most dependable sources. In any case, it was not certain that a tariff was the best means of building up key industries. Probably the payment of a bounty or tne establishment of Government factories would prove efficacious. By assisting key industries by a bounty the cost of the assistance was spread much more equably than it could be by means of a tarifF. It was impossible for any such industry ' to deny the Government control of its affairs, to ensure that it would be adequately equipped in the event of wav to render the services for which the public paid in anticipation during years of peace