Wairarapa Times-Age WEDNESDAY, DECEMBER 14, 1938. BUILDING UP INDUSTRIES.
AN inspiriting story is told by the Minister of Industries and Commerce (Mr Sullivan) of the prospects of industiial expansion in New Zealand opened up by the recent investigations of his Department. Seventeen possible new industries have been listed for examination. In addition, there are thirty branches of existing industry that could be expanded in one year and another forty that could be enlarged in periods ranging,from one year to five years —their expansion depending on such factors as plant and equipment, the supply of skilled labour and the availability of materials. AH this makes very pleasant reading, but the feeling uppermost in the minds of most of those who read Mr Sullivan’s statement, published vesterday, no doubt was that it'would be still more pleasant to see a beginning made upon the industrial expansion of which the Minister holds out such high hopes. It is perfectly true, as Mr Sullivan observed, that: Of course these things cannot be accomplished in five minutes,” but with so wide and promising a field laid open it should be possible to make an early and tangible beginning. Positive plans for the establishment of even one new industry, or for the expansion of any branch of existing industry, would be most encouraging in themselves and as an earnest of more to follow. t I As the Prime Minister (Mr Savage) has said, the secondary industries of the Dominion must be developed to malic possible the better economic balance that we need. Apart from the specialised activities of the Department of Industries and Commerce, a great part of the Government’s duty in the matter of the expansion of industry is simply that of establishing financial and other conditions in which it is possible for industry to expand and prosper. Certain questions are now raised in regard to taxation and other internal costs which need to be examined exhaustively. In the extent to which industry is genuinely able to claim that it is being handicapped or even throttled', it will not expand, no matter how urgently it is asked or even begged to do so.
Given fair play, the industries of the Dominion undoubtedly are capable of expanding very considerably, and, from the broadest standpoint of community welfare, it is altogether desirable that they should expand. There is an approach by this route to an increase of production and an increase of population which could not be brought about in any other way. The suggestion, often heard, that we are foolish to manufacture internally what might be imported more cheaply pays no regard whatever to' ultimate national welfare. Nations, as well as individuals, have much to learn and much to gain, from undergoing a period of apprenticeship, from which there is a delayed benefit.
iloreover, if lhe suggestion just mentioned is meant to imply that immediate price is a sufficient measure of the relative merits of the policy of importing and that of local production it is seriously erroneous. As a people, we have not by any means an indefinitely open choice as between importing and local enterprise. We have learned in the hard school of experience that, there is a point at which we must trust to local production for improving standards of living or else go without the improvement.
Our ability to purchase imports is measured by the rise and fall of our sterling resources and in recent years we have had the experience of getting less sterling for greatly increased quantities of exports than we got formerly’for smaller quantities of exports. It. is a familiar contemporary fact, that the markets of the world, in spite of the rapid strides of mechanical improvement, are swayed against those countries which, like our own, are predominantly sellers of primary produce. All countries so placed manifestly are in a position to benefit by the expansion of secondary industries, provided the expansion is carried out well and wisely. In any examination of the facts it must appear that countries in this category have no other means than that of enlarged and more varied local production of increasing their total available resources beyond a point determined at present by world marketing conditions.
In light of world trade conditions, New Zealand unquestionably has an opportunity to profit by internal industrial development and expansion. The root condition of sound progress is that equitable terms of exchange should be established between primary and secondary industry within the Dominion. In the extent to which it is developed, the local market is the best and most assured that, our primary industries can hope to enjoy. While the responsibility devolves upon the Government of establishing the general conditions in which it is possible for industry and the internal exchange of goods and services to expand, a great deal, of course, also depends on those engaged in industry.
These are matters in which it. seems open to manufacturers in some particulars to give an enterprising lead. What is the answer, for example, to the question often asked about the neglect of specialisation in, amongst others, our woollen industry? We have in this country a number of woollen factories all manufacturing a considerable variety of goods. This is opposed to the practice lading in countries of more highly developed industrial organisation, and it. is contended that standards of efficiency and economy would be raised appreciably by going in for the measure of specialisation that is practicable in New Zealand conditions. If that is not so, the facts should be stated plainly. Nothing will do more to facilitate the expansion of secondary industries in this country than the production of goods, of unimpaired quality, at lower costs and prices. It is evidently incumbent, on manufacturers and others concerned to take every legitimate means open to them of bringing about that state of affairs.
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Wairarapa Times-Age, 14 December 1938, Page 6
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973Wairarapa Times-Age WEDNESDAY, DECEMBER 14, 1938. BUILDING UP INDUSTRIES. Wairarapa Times-Age, 14 December 1938, Page 6
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