INDUSTRIAL PROGRESS

Wairarapa Times-Age, 30 November 1938, Page 5

INDUSTRIAL PROGRESS

TIME FOR NEW ZEALAND TO STEP FORWARD MR SULLIVAN ADDRESSES MANUFACTURERS. SOME PROBLEMS AWAITING SOLUTION. (By Telegraph—Press Association.) WELLINGTON, This Day. “It is now many years since our sister Dominion, Canada, grew into a great industrial nation. Australia took its great step not many years ago. It is now the turn of New Zealand. I feel you are, I and the Government and the people as a whole are, on the point of seeing this country take its big step forward industrially,” said the Minister of Industries and Commerce, Mr Sullivan, in officially opening the annual conference of the New Zealand Manufacturers’ Federation in Wellington yesterday. “The great necessity is that all concerned pull their weight by co-opera-iion,” the Minister said. “The scope is there, the will is present; it now remains to harness our forces and direct them into the paths of orderly but none the less continuous expansion.” The recent statement by the Prime Minister, Mr Savage, that the Government was expediting the preparation of new plans for an increase in production was recalled by Mr Sullivan, who said he had set up a central executive, of the Bureau of Industry to give special attention to this question. The executive would concentrate more intensively on plans for industrial expansion and the establishment of new industries.

“One of the questions to be answered is: Would there be a market in New Zealand for'a greater volume of manufactured goods, the produce of our own factories?” Mr Sullivan said. “The import figures supply the answer. Taking the years ended September 30, imports from all countries increased from £43,000,000 in 1935 to nearly £60,000,000 in 1938, an advance of £16,166,881. This advance in imports was due to the fact that the purchasing, power of the people had been raised, partly by the direct action of the. Government and partly through higher

' prices for our exports. 3 “The raising of the people’s buying ’ power benefited manufacturers also as 3 the figures show. The figures for 1938 are not compiled yet, but, comparing 1936-37 with 1933-34, there is the sub- ' stantial increase to be seen* of over . £8,000,000. This, however,-is only half the increase recorded for imports ddring a four-yearly period and indicates ' that of an extra £24,000,000 spent on goods in New Zealand only one-third went into our own factories. The obvious fact is that this extra £16,000,1 000 worth of goods could have been made by our own people if—and there we come to some problems.” SUPPLY OF SKILLED LABOUR. The Minister went on to refer in some detail to the shortage of skilled ’ labour and to the need of training larger numbers of apprentices. It ’ would be the Government’s aim to enable existing industrial plants to be expanded. . “On the other hand, we are not going to build your extension for you, or put in more plants,” the Minister observed. “Existing manufacturers must exercise their own judgment and initiative. If the Government can assist in any plans of expansion, I hope manufacturers will let us know their needs. “I have been very pleased to note the number of overseas concerns which think it worth while to commence the manufacture of their products here. Some have come without direct encouragement from us, others, whom we needed in New Zealand, have required some inducement. THE FACTOR OF PRICES. “Prices are an important factor to any Government,” Mr Sullivan said. “Some Governments try to keep them low, others take no active steps to control, others exercise rigid control. Uneconomic prices are no good to anyone, not even the consumer, in the long run, because he suffers indirectly and usually the quality of the produce is lowered. “On the other hand, the prices a worker has to pay for goods determine the effectiveness of his weekly wages. Anything which can be done to make goods cheaper, without sacrificing quality or wages, is to be commended. Increased efficiency is the key. Despite the enormous strides made in production technique in recent years I feel there are still many improvements which are possible. In New Zealand, the smallness of the local market has, so far prevented most factories from ' adopting the mass production methods applied so effectively in overseas countries, but nevertheless they have become remarkably efficient.”