FEDERATION SPLIT

Wairarapa Times-Age, 4 August 1939, Page 7

FEDERATION SPLIT

— — NX MANUFACTURERS — RESIGNATION OF WELLINGTON ASSOCIATION. DISSENT FROM STATEMENTS MADE. (By Telegraph—-Press Association.) WELLINGTON. This Day. A split has occurred in the New Zealand Manufacturers' Federation, the Wellington Manufacturers’ Association having withdrawn its affiliation. The president of the New Zealand Mr H. B. Duckworth, Christchurch was interviewed by telephone las! night. He said that he had nothing to say at present, as the resignation of Wellington had not been officially accepted. It had been tendered at a meeting of the council in Wellington on Wednesday and had been held over for consideration at a further meeting of the council, the date of which had not yet been decided. • Independent inquiries show that a difference of opinion has arisen on the council, it being considered by Wellington that statements have been made and impressions created which do not represent the correct opinion of the manufacturers as a whole. These relate in particular to the impression which, it is alleged, has been created, that the manufacturers of New Zealand are entirely in support of the Government’s policy in relation to secondary industries and matters affecting them. RELATIONSHIP TERMINATED. As far as Wellington is concerned, no official statement on the breach, beyond the announcement of its occurrence, has been made. None the less, and in spite of Mr Duckworth's statement that the resignation has not been officially accepted, the Wellington attitude seems to be that the fact of acceptance or otherwise of the resignation is unimportant by reason of the contention that when any person or body resigns from an organisation that, insofar as the resigning body, person or body is concerned, terminates the relationship. It is stated to be a possibility that another Dominion organisation of manufacturers may arise from the present situation. It is said that one of the complaints of Wellington is that it has been made to appear in the light of a consenting body to various statements which have been made in such a way as to suggest that they carry the full support of the manufacturers of New Zealand. It appears, as far as the council is concerned, that the Dominion president has the support of Otago, Canterbury and Auckland. CREDITS AND COSTS. Dissenting from a reported statement by Mr Duckworth that there was nothing in the Budgdt of particular interest to manufacturers, the president of the Wellington Association, Mr W. H. Stevens, said in part: — “I should say that manufacturers are perhaps more vitally concerned in the provisions of the Budget than any other sections of the community, because it is reported that Mr Nash has made arrangements with the English manufacturers that only industries which can hold their own are to be allowed under the new credit arrangements to operate in New Zealand. Therefore cost of production and distribution will determine whether industries are "economic - and we, as manufacturers, must do all we can to oppose any measure which will increase costs, and make it impossible for us to compete with similar imported manufactured goods. We must consider not only ourselves, but also our employees who trust us to provide employment for them and their families.

“I do not propose, at this stage, to comment in detail on the effects of the Budget on our manufacturing industries, and pernaps need only mention the increased petrol tax, three-fifths of which I understand Mr Sullivan stated would be carried by the commercial community, the increased company tax which will have a restraining effect on company formation and administration and the increased income tax on individuals which will direct more money from investment channels to the Government coffers."

Last night Mr Stevens was asked to make a statement on the matter of the resignation, but he declined to do so.