ENCOURAGE INDUSTRY

Rotorua Morning Post, Volume 2, Issue 357, 19 October 1932, Page 5

ENCOURAGE INDUSTRY

("Post" Special Commissioner.)

A LABOUR PLEA INVESTMENT OF BRITISH * CAPITAL IN NEW ZEALAND INTER-EMPIRE TRADE

Wellington, Tuesday. ' The investment of surplus British capital in the Dominions -in preference to foreign countries as a stimulant to inter-Empire trade was advocated by Mr. M. J. Savage (Labour, Auckland West) deputy-L eader of the Labour Party in the House of Representatives to-night as part of atf effective alternative policy to that laid down at Ottawa. ■■ Mr. Savage said. that mos't of Great Britain's population of 45,000,000- wa& consuming less than necessary -to make up a reasonable- standard of living and it was fair to say that Britain's consumption could he douhled without any appearanee ' of luxUrious living. '• ** — Approximately 3,000,000 British workers were unemployed and • theref ore a charge on the rest of the "community. Like other parts of the Empire, Great Britain was looking "to foreign countries for markets for her products. Every British investment in foreign lands added to the financial foundation of foreign preferential ti*ade striking a blow at effective* preferential trade within the Empire. " Preferential Trade "Effective preferential trade," continued Mr " Savage, "must have for its foundation a policy of investment within the Empire. Any departure from that policy sows seeds of djsruption in the commercial life vof the British Comomnwealth. Great Britain's main problem is to jieed ' and clothe her people and still remain chiefly a manufacturing nation. Owing to the recent development* in foreign countries that cannot he done."The policy of investment of British surplus capital for se.ttlem'eut purposes in the Dominion instead (of in foreign countries, would not only help the present population of the Dominion to be better customers for British goods, hut would' .also ' pave the way for settlement of British people within British territory. "This- is vital. Menace to Peace The vast unoccupied areas in* various parts of the British Dominions are a menace to the future peace- of the world. Any policy having for (ts objects the expansion of trade withjn the Empire must he based upon "increasing wages and income as production increases. A schedule of goods not produced in New Zealand should he prepared and placed on the free list from Great Britain, Mr. Savage contended. (What reason could there he for putting a tariff on goods which we must import? If local factories were brought up-to-date, they could supply the local market at economic prices and they should be encouraged to do so. Jn cases where a full supply was not immediately available, it should he possible to control imports in th'ese lines and do away with the present anarchical trade methods. "Reductions in tariff rates must effect local manufacturers," concluded Mr. Savage. "Goods that we require and cannot produce should. he admitted free of duty while we should he prepared to go to any length to protect industries that can he economically developed in the Dominion."