TYRE INDUSTRY

Wairarapa Times-Age, 15 December 1938, Page 8

TYRE INDUSTRY

PROSPECTS IN THIS COUNTRY NEGOTIATIONS IN PROGRESS WITH COMPANIES. PRIME MINISTER ON OBJECTS OF TRADE CONTROL. (By Telegraph—Press Association.) WELLINGTON, This Day. Negotiations for the establishment of a rubber tyre industry in New Zealand arc referred to by the Prime Minister, Mr Savage, in this week’s issue of the official Labour journal. This industry,' he said, which would provide employment for a large number of New Zealanders, was likely to be the first of the new major industries to be established in the Dominion under the Government’s plans for increased industrial development. Mr Savage said that negotiations were taking place between certain overseas .companies and the Ministers of Industries and Commerce and Customs, and it was likely that an early decision would be made. Referring' to the Government’s recent import control and other measures, Mr Savage said that without control of overseas trade it was not possible for New Zealand to insulate itself against a fall in prices and general slump conditions overseas, and that such action was necessary in order to afford proper protection for New Zealand industries.

The action taken by the Government did not mean the holding up of trade, but it did mean that New Zealand was in a position to choose its imports rather than to take anything that other countries liked to send. “If we leave ourselves at the tender mercies of other countries when we are trying to establish new industries we might find that the ground is cut from under our feet by large importations,” said Mr Savage. _ “By complete control of trade we are in a position to protect our own industries more scientifically than can be done by means of the Customs tariffs.”

Mr Savage said that the Government’s plan also provided for the expansion of existing industries. A complete survey had been prepared for this purpose, and the Government now had information concerning the classes of goods that could be made in the Dominion to supply the full requirements cf the country. The customs tariff, sad Mr Savage, was in principle the same things as control of imports. It was put there in the first place for the purpose of nrotecting industries, but the action taken by the Government was a more direct means cf accomplishing the same ends.

“If the Government set out to draft a Bill providing for increases in the Customs tariff,” he added, “there would be the same squealing from the importing sections as we have heard in the past week because the effect would be the same in both cases—a reduction in imports. We are merely ensuring that our industries shall be given adequate protection, and we do not intend to allow them to be undermined by imports of goods from cheap labour countries.”