The Sun WEDNESDAY, MARCH 7, 1928. SCOPE FOR MORE EMPLOYMENT

Sun (Auckland), Volume I, Issue 297, 7 March 1928, Page 8

The Sun WEDNESDAY, MARCH 7, 1928. SCOPE FOR MORE EMPLOYMENT

A PLEA is likely to be made by the Auckland conference of New Zealand ironmasters for increased tariff protection against the steady flood of imported manufactures. The remit awaiting consideration proposes an extra ten per cent, on the existing tariff.

Preliminary reference to the subject has indicated strong support for the proposal. It is quite clear that the ironmasters, as well as other manufacturers of New Zealand goods, believe that industrial capacity in this country is well able to make many of the things that are imported to the benefit of oversea industrialists and to the persistent and increasing disadvantage of the New Zealand worker. Three of the principal speakers at the opening session of the Ironmasters’ Conference expressed the opinion in varying terms, but always with the same meaning, that, if greater encouragement were given to New Zealand manufactures, the secondary industries would absorb a large proportion of the unemployed, ensure greater circulation of money, and generally make for enduring prosperity. A Dunedin delegate, Mr. J. B. Shacklock* whose experience as a manufacturer, local administrator and progressive citizen, gives weight to his argument, added that the time might come when New Zealanders in self-protection would be forced to buy* New Zealand goods. It is probable that the so-called grudge against local manufactures has been exaggerated. It is at least difficult to believe that such prejudice as there may be in operation is hostile. Unless human nature lias changed mysteriously overnight, its old character suggests that, if New Zealand goods were right both as to quality and as to price, they would create a quicker demand for them, and soon would prove that there is no alluring magic or magnetism in British or foreign trade marks. As a consistent supporter of secondary industries as being more promising of development than cocksure assertions about illimitable opportunities for land settlemfent (without any evidence as to its wonderful scope) The Sun need not hesitate to assure the ironmasters and other manufacturers that a mere plea for further patriotic protection will not easily convince the half-hearted Protectionists in Parliament. If the demand for additional tariff aid is to succeed at all, it. will have to be fortified with impressive facts as to the use that has been made of protection in the past by the Dominion’s secondary industries. It is the political and economic fashion of the moment for experts and others to discourage the expansion of local manufactures, to classify some, if not all of them, as parasitical sheltered industries, and to over-emphasise their abuse of tariff protection. Economists have pointed out, more in sorrow than in anger, that while factory production in this country has increased 70 per cent, in respect of materials used, and 91 per cent, as regards value of products, the charge made for the processes of manufacture has increased by 141 per cent, within the past nine years. It may not, of course be true, but it has been suggested that a great deal of that enormous increase in production cost has been due to increased overhead expenses and inefficient administration. Whatever the cause, it has become essential to dissipate suspicion and break down the stiff opposition to more tariff protection for the secondary industries. In Australia the value of plant and machinery used in local factories has increased from £.31,000,000 (even figures) in 1911 to £112,000,000 in 1926. But in spite of the investment of an additional £62,000,000 in factory plant and increased facilities for production, there is still much dissatisfaction with Australian results. The importer is a resourceful individual who is not hampered by the necessity to devise new ways of importing. He merely has to study the public demand for goods, and when he sees that local manufactures look no better than foreign-made products, and are no cheaper, quite naturally he plans quickly to meet and even overwhelm competition. The local manufacturers must prove their merit and justify patriotic protection. When that has been done, the scope for absorbing the surplus New Zealand labour will open at once to the promoters of essential secondary industries.