Wairarapa Times-Age TUESDAY, NOVEMBER 15, 1938. INSULATION AND INDUSTRIES.

Wairarapa Times-Age, 15 November 1938, Page 4

Wairarapa Times-Age TUESDAY, NOVEMBER 15, 1938. INSULATION AND INDUSTRIES.

QOME further cheerful observations have been made by the Prime t Minister on the subject of the Labour Government’s proposal to insulate the Dominion against the consequences of price recession in its overseas markets. Mr Savage told a Wellington interviewer that he and his colleagues have always maintained that “it should be possible for the people of ally country who are capable of producing sufficient to enjoy a high standard of living to be able to enjoy that standard of living.” The Premier added that though it was said by his opponents that oversea prices and other influences would make this impossible, he thought it was comparatively easy of accomplishment. “And it seems to me,” he added, “that the people of the Dominion by their votes have accepted that philosophy.”

If the question may be asked, in no spirit of offence, but out of sincere curiosity and a desire to be informed, what is the philosophy of insulation that the people of the Dominion have accepted by their votes? That the electors by their votes have accepted Mr Savage and installed him strongly in power for another three years is beyond all question. Is it too much to ask, in these circumstances, that the Prime Minister should state in explicit,terms just what he means by insulating the Dominion against the consequences of price recession in its overseas markets?

This measure of enlightenment would be particularly timely in view of the account given yesterday by the Provincial President of the Wairarapa Farmers’ Union (Mr Hugh Morrison) of the condition of some branches of farming industry and by Mr A. W. Nisbet, in the Conciliation Council at WeL lington, of the state of manufacturing industries; some of which are declared to be menaced seriously by the competition of cheap foreign goods.

Tn a comprehensive survey of costs, prices and marketing prospects, Mr Morrison affirmed that sheep farmers found themselves called upon to produce at a loss, and that'in the absence of a remedy, much land would continue to deteriorate and must be expected eventually to go out of use.

An equally alarming picture was painted by Mr Nisbet, who stated that manufaelinters had made representations until they were tired of it regarding the need of protecting their industries against external competition. Citing a specific example, Mr Nisbet said that a factory in Wellington employing over 300 hands was faced with the position of closing down unless something was done to help it to meet competition from overseas goods. An employers’ assessor associated with Mr Nisbet said that the umbrella industry was faced with competition from Australia, Japan, Britain and Europe and ihat in all these eases lhe labour costs were well below those in New Zealand.

Tn commenting on Mr Nisbet’s observations, the Prime Minister has stated that a. Cabinet committee is working at present on the question of helping manufacturers and bringing about an increase in both primary and secondary production. It is entirely reasonable that those engaged in industry should be asked to co-operate in this enterprise, but it needs to be recognised that the question of the balance of costs and returns is vital to all industries, existing and prospective. Unless the statements being made on behalf of sheep farmers and manufacturers are overdrawn, the present position calls for examination from that standpoint and the Prime Minister is faced by a first-class opportunity of applying the policy of insulation which he declares to be possible. Mr Savage can hardly refuse to give in this way a working demonstration of the practicability of insulation, unless he is prepared to show that Ihe sheep farmers apd manufacturers are inventing (troubles and that there is no need to institute measures of insulation. Doing one or the other of these things, the Prime Minister will render a valuable service to the Dominion. The position certainly needs clearing up, and Mr Savage is in the happy position of having a free hand to deal with it. In these circumstances it is reasonable to expect him to follow up assurances with action where insulation is concerned.