DOMINION INDUSTRY

Manawatu Standard, Volume LVII, Issue 204, 30 July 1937, Page 9

DOMINION INDUSTRY

EFFECT OF HIGHER COSTS. STATEMENTS REITERATED. WELLINGTON, July 28. “The New Zealand Manufacturers Association appreciates the difficulties of Hon. D. G. Sullivan as Minister of Industries and Commerce in the period following the recent legislation,’ said Mr Rocke O’Shea, general secretary of the federation, replying to Mr Sullivan’s statement. “We recognise that he has tho’ interests of New Zealand manufacturers at heart, and that it is his desire to foster them to the utmost extent. “Notwithstanding, ■ industry is now in tho unfortunate situation that the brakes have been put upon it by the higher costs resulting from the Government legislation. The federation deplores that its plain statement of the position should be classed as political action. It is now a matter for the Government to admit the facts, and take the urgent action necessary to correct the position. “The manufacturing industries of Now Zealand feel that all they can do is to make their present position known. The cases mentioned yesterday are typical of the general position. To-day the head of a large lootwear factory came to the federation offices, and made the following statement: — “ ‘An English shoe, of which the warehouse price in New Zealand was already known to the Department of Industries and Commerce, was taken as an example. We made an identical shoe. We costed it on the basis of before the recent industrial legislation, and we costed it also under present conditions. The new cost price was almost exactly as much above the English shoo as the. old cost price was under it. This information was given to the Department of Industries and Commerce, and to the Customs Department. That was in response to the department’s request for definite evidence as to the effect of recent legislation. “ ‘We gave them several other instances, where our rtravellers reported that customers, usually good buyers, did not buy anything up to their usual requirements, and in some cases did not buy at all, informing our travellers that they were importing instead. We supplied the department with the actual names of the customers.

“ ‘Our firm employs over 300 hands, and is recognised as one of the most efficient in the industry. Other manufacturers in this industry in various parts of the Dominion tell me that they are being compelled to work short time, and also to dispense with labour.’ ’’

MINISTERIAL REPLY. MR ERASER’S CONGRATULATIONS Per Press Association. WELLINGTON, July 29. “I want publicly to congratulate the Minister of Industries and Commerce, Hon. D. G. Sullivan, upon his crushing reply to the manufacturers’ statement which was issued in such bad taste yesterday morning,” said the Minister of Health (Hon. P. Fraser), speaking at the Labour Party’s reception to the Prime Minister (Rt. Hon. M. J. Savage), to-day. “I cannot think it was simply a coincidence that, on the morning of the Prime Minister’s return, there should appear in the newspapers statements unsupported by facts and published under double-column headings, which were obviously carefully arranged and in some instances appearing on the newspaper placards,” said Mr Fraser. “The reply of the Minister of Im dustries and Commerce, issued with commendable speed and efficiency, was adequate, complete and crushing.” ‘ ‘FOSTERING’ ’ INDUSTRY. HON. A. HAMILTON’S VIEW. p o r' Press Association. WELLINGTON, July 28. Asked to comment on the statement by the manufacturers regarding their difficulties, Hon. Adam Hamilton, Leader of the Opposition, said: “Manufacturers, like farmers, arc finding out that the Government’s promises mean absolutely nothing. Just before the election the Labour Party published their platform, in which one of the main planks was ‘the fostering of secondary industries, so as to ensure the production of those commodities which can be economically produced in the Dominion.’ “They also said ‘negotiations would be carried out between the Government and different branches of the farming industry to fix the guaranteed prices.’ Manufacturers are as likely to have their industries ‘fostered’ as farmers are to be concerned in any ‘negotiations’ . with regard to the guaranteed price. “Having got into office, the Government takes no notice of the practical experience of either the manufacturers or the farmers, preferring to rely on their own theories as to what the position should be. Their theories do not square with the facts as the manufacturers and the farmers know them to be.”

ANOTHER VIEWPOINT. INCREASED FOOTWEAR IMPORTS. Per Press Association. WELLINGTON, July 28. Concern at the increasing volume of footwear imports, mainly from tlio United Kingdom, and the consequent effect on local industry, was voiced |. y Mr Duckworth, of Christchurch, president of the New Zealand Footwear Manufacturers’ Association, at tho annual meeting to-day. He also emphasised the difficulties the industry was facing through the. operation of the Government’s industrial legislation. He did not think any increase in imports could be expected from Australia where manufacturers were now having to pay higher wages, but it was alarming to note that imports from the United Kingdom had increased by over 100 per - cent, during the five months from January to Maycompared with the corresponding period last year. DIFFICULTIES IN CHRISTCHURCH. Per Press Association. CHRISTCHURCH, July 29. A serious position has been reached in several of the local boot and shoe factories due to a flood of imports of footwear from other countries with lower labour costs. One firm has dismissed 13 operatives already and others are working short time in older to keep their employees going, but it was stated this morning that the position was rapidly going from bad to worse and that further dismissals in the near future seemed inevitable. The manager of the factory which has dismissed 13 hands said to-day that, prior to taking that step, the factory was working only three days a week. The dismissals were made to enable a return to be made to full-time work for the remaining employees, but lie.could not see how it would he possible to avoid a further reduction in the staff in the next few weeks: Price-cutting had already broken out, he said, and his firm and others were

prepared to make sales at prices below the cost of production to-day in an effort to keep their factories going, but still they could not make sales, because of the intensity of the competition of imported footwear. Mr Savage, ho stated, had said that those people who were importing goods to undercut tho New Zealand manufacturers might find their goods would not arrive, but so far he had not lived up to his words. “They have kidded us on all along, but nothing has l>een done, .and now the breaking point has been reached,” he concluded.

POSITION IN DUNEDIN. NO ALARM FELT. Per Press Association. DUNEDIN, July 28.. Although manufacturers in Dunedin are watching the position of the market closely, there appears to bo no immediate prospect of tho development locally of such serious conditions as those prophesied in the message from AVeliington, in which it was stated that manufacturers throughout New Zealand were alarmed at the prospect of a tremendous slump in factory production, accompanied by. widespread un employment. Many of the Dunedin manufacturing concerns have been working at top pressure during the past few months fulfilling orders from retailers who desired to stock early in order to avoid the subsequent rise in prices. The goods supplied by local manufacturers have been augmented on the retailers’ shelves by importations from Ausrralia and the question that has now arisen is can the community absorb those goods sufficiently freely to maintain the market for local products? The concensus of opinion among manufacturers in Dunedin is, however, that there is no immediate cause for undue anxiety but that the result of the next two or three months’ trade will clarify the position.

A AVARNING NOTE. FARMERS’ UNION PRESIDENT. Per Press Association. AVELLINGTON, July 29. “The Farmers’ Union has, considerable sympathy with the jilight in which the Manufacturers’ Federation find themselves, as the same conditions which are causing their difficulties are also causing difficulties to the primary producers,” said Mr AV. AY. Mulliolland, Dominion president of the Farmers’ Union, . referring to the manufacturers’ statement concerning the position of their industry. “It is obvious, however, that an attempt is being made to create an atmosphere favourable to an attempt for increased tariff protection. Any increased tariff's cannot shut out the imports which we receive in payment for our exports, but will increase the internal prices of these goods at the expense of the exporting industries.” Mr Mulholland suggested that the Manufacturers’ Association should seek a remedy which will not conflict with other important sections of the community. Any scheme for decreasing imports must result in unemployment in the Dominion, and lie reminded the Manufacturers’ Association that, when New Zealand’s imports went down to £23,000,000, the Dominion’s unemployment was at its peak.