ECONOMIC GROWTH

Wairarapa Times-Age, 23 October 1940, Page 6

ECONOMIC GROWTH

VALUE OF MANUFACTURING INDUSTRY INCREASINGLY PERCEIVED IN DOMINION ADDRESS BY MR C. M. BOWDEN. (By Telegraph—Press Association.) WELLINGTON, This Day. “Speaking in general terms, I would say that manufacturers in New Zealand are efficient,” said Mr C. M. Bowden, manufacturers’ representative on the Bureau of Industry, in an address last night to the Wellington Branch of the Economic Society of Australia and New Zealand on “Th'e Place of Manufacturing Industries in New Zealand’s Economy,” Mr G. Lawn presided. “Alertness to scientific and technical advance, and the stress of competition from overseas markets in the past, have induced them or forced them, as the case may' be, to acquire up-to-date machinery,” Mr Bowden said. “One need only look at the figures of imported machinery over a period of years to be satisfied on that score. And they have the advantage that our workers are second to none in intelligence and possess plenty of initiative and resource. PRICES AND PRODUCTION. It did not follow, he said, that prices of locally-made goods must necessarily be higher. Instances could be cited where establishment of local works had reduced prices. But even if prices of some commodities were a little higher, it might, nevertheless, be of economic advantage to have those works. One of the biggest handicaps was that the small population did not justify really large-scale works. Distribution charges were high in that New Zealand’s small population was scattered over 1000 miles. “But, just in passing, let me say that size alone docs not necessarily promote economic welfare,” said Mr. Bowden. “I believe less faith is. now held in either the benefits or efficiency of that production. There is a trend in some countries away from the establishment of enormous factories.” He cited recent developments in American industry in that regard. “It could not be denied that unit costs in New Zealand tended to be high. Landed cost of machinery, restrictions on hours of work, and limited output from whatever reason, must cost more per unit. Such charges as rent, interest, licence fees, insurance, and land tax were paid irrespective of hours worked, and other expenses, management charges, salaries, lighting and power, delivery charges, etc., did not increase pro rata to output. Mr. Bowden outlined the development and change in the nature of secondary industries, commencing with such first industries as sawmilling grainmilling, and flax works. Perhaps the remoteness of New Zealand from the Old World was itself a factor in the establishment of other industries which followed before long. By 1880 50 different industries employed 12,247 male and 483 female workers. STAGES IN PROGRESS. With the rapid development of sheepfarming, allied industries soon came, and the most important milestone in the Dominion’s progress was the application of refrigeration and the first shipment of frozen meat in 1882. The next few years saw industries engaged in processing farm products take pride of place; these were “secondary” industries in the true sense. Though the figures for other manufactures did not show the spectacular growth of the refrigerating industry, steady progress was recorded. By 1906. 56,359 persons were engaged. Jumping ahead another 15 years, one saw great changes in some industries. Motor engineering and clothing factories increased phenomenally. In 1932 the number of persons engaged was 82,861, and in 1938 employees reached the six figure mark, 102,334, in 5924 factories. Salaries and wages were £20,981,000, and output £113.691,000. Women comprised just over one -fourth of total employees. “The impact of import control saw a very material advance in manufacturing,” Mr. Bowden said, “and not a few overseas concerns immediately established manufacturing units, some 80 in all. But in addition to these industries there was great expansion in a number of those already in existence, radio, clothing, hosiery, motor-car, agricultural implements, boots and shoes. “The pioneers of manufacturing" in New Zealand had no easy task. Many of them had to fight their way against opposition and prejudice. For many years 'colonial made’ was a synonym for poor design and quality, and that prejudice, whether well founded or not, died very hard. Today there is a different outlook. It is recognised that New Zealand has passed the stage of being a huge farm. The advantages of industry are becoming known and a pprec i tiled.”