Wairarapa Times-Age FRIDAY, FEBRUARY 24, 1939. EXPANSION OF INDUSTRY.

Wairarapa Times-Age, 24 February 1939, Page 4

Wairarapa Times-Age FRIDAY, FEBRUARY 24, 1939. EXPANSION OF INDUSTRY.

ACCORDING to the president of the New Zealand Manu- ' I'aeturers’ Federation (Mr 11. B. Duckworth) that organisation has been asked by the Government “to put. 8,000 men into industry in six weeks—the men to be taken from publicworks.” Desirable as this transfer would be., it no doubt represents a good deal more than could possibly be accomplished in anything like the brief space of time mentioned. A desire on the part of the Government to transfer men from public works and from relief and subsidised employment to manufacturing industry should, however, be welcomed most heartily by manufacturers and by other sections of the population. At the stage of national and industrial development this country has reached, many of our public works are adding rather-to the comfort and convenience of life than to annual production. A considerable part of the expenditure on these works thus tends to resolve itself into luxury spending, which adds heavily and progressively to the costs of all forms of industrial production. A change over from public works and relief works to productive and self-supporting industry thus commends itself as one of the most hopeful steps that can be taken towards easing the burdens on industry in general and lowering working costs. There are difficulties enough to be overcome in expandingexisting industrial production and opening up new branches of production, but, while it would be foolish to anticipate easy and spectacular achievement, it need not be doubted that these difficulties will yield to methodical and well-directed treatment. Even in conditions that, undoubtedly might be made in some respects much more favourable, some encouraging progress is being made in the expansion of industries in the Dominion. Statistics published -in some detail yesterday show that the total value of the products of our manufacturing industries (including the meat, and dairy industries) in 1937-38 reached the impressive figure of £113,691,000 and that the number of persons employed was 102,344. In both instances there is a substantial increase over the figures of the preceding year and a very much greater increase over a. period of years. The number of persons employed, for example, was Avell over onefourth greater than in 1927-28 (before the slump set in) and the value of products was approximately one-third greater in .1937-38 than in 1927-28. An excellent opportunity undoubtedly now presents itself for the expansion of industrial production within the Dominion. It is not a matter of substituting internal production for imports, but rather of adding by the development of internal industry to the total annual production of wealth in this country. It has been pointed out quite reasonably by the Minister of Labour (Mr Webb) and others that the possible volume of our imports is limited by our ability to pay. for them. As matters are shaping, we have little enough prospect of enlarging the export surplus on which alone we can draw in order to pay for imports. On the other hand, every advance in industrial efficiency within the Dominion ensures additional production—additions, that is to, say, to the volume of goods and services periodically made available, on which our living standards as a people depend. In the' conversion of unskilled labour into skilled labour and in an increasing use of machinery there are far-reaching opportunities of adding to the volume of production and of effecting a corresponding improvement in general living standards. The extent to which these opportunities are turned to account in New Zealand in the immediate future will depend on the degree of wisdom brought to bear upon the shaping of national policy and the furtherance of industrial enterprise, and not a little, too, on the spirit of co-operation developed throughout the population. As the Minister of Industries and Commerce (Mr Sullivan) has said, “a heavy responsibility is placed on both employers and employees in industry to see that advantage is taken of the opportunities presented to develop the industrial resources of the country.” NAVAL CO OPERATION. J?ROM the standpoint alike of national security and that of the protection of trade routes, a suggestion advanced by the Wellington Chamber of Commerce, at a meeting on Tuesday evening, that New Zealand should co-operate with Australia in the provision of a navy for the Pacific obviously is entitled to serious attention. A full examination of the whole position, in light of the best expert advice . obtainable, is necessary, however, before any practical step can be taken in the direction suggested. It has to be determined, amongst other things, how much this country is capable of paying for naval protection and whether that maximum payment will ensure the measure of security that is desired. One recent naval visitor, Rear-Admiral W. B. Mackenzie (retired) advised that New Zealand should co-operate with Australia in providing an Empire naval squadron for the defence of these Dominions —a force consisting of three or four capital ships ami a number of cruisers. The outlay entailed in carrying this project into effect obviously would be enormous. The construction cost, of a modern battleship is about £16,000,000. Upkeep, too, runs into very big figures and it would, of course, be- useless to establish the suggested battleship squadron without also providing docks ami other base facilities in both Australia and New Zealand. The nearest battleship base at present available is at Singapore. The Sonih Pacific Dominions evidently could not provide and maintain a naval force of this description without multiplying their present defence expenditure. These are not the only considerations that, command attention. Australia and New Zealand are concerned not. only to make their territories secure against attack, but to ensure the protection of the trade routes by which they are linked to the Mother Country. The Singapore base is a vitally important factor in the defence of these trade routes and 01. the South Pacific Dominions and other Empire territories. A battleship squadron, or fleet is needed at Singapore, however, in order that the base may be turned to full account. It seems not unlikely that Britain may expect Australia and New Zealand to contribute to Ihe cost of. stationing and maintaining the required naval forces at Singapore. The Dominions could hardly do this and at the same time provide and maintain a battleship squadron in their own waters, though it may be advisable and necessary that docking facilities tor battleships should be provided in both Australia and New Zealand. 'l’he problems raised of course should be considered and dealt with in light of competent expert advice. It is apparent, however, that the solution of these problems must depend upon the fullest co-operation, not only between Australia and New •Zealand, but between the Mother Country and the Dominions.