New Secondary Industries

Manawatu Times, Volume LV, Issue 7027, 10 December 1932, Page 6

New Secondary Industries

Nitrates, Sardines, Cellulose Benzole RECOMMENDATIONS BY COMMITTEE Per Press Association. WELLINGTON, Last Night. The possibility of tho establishment of certain secondary industries not seeking tariff protection an <j dealing with raw materials produced in the Dominion was mentioned in a report presented to tho House of Representatives this afternoon by Mr. A. D. McLeod on behalf of the Industries and Commerce Committee.

The Committee reported that it had considered and heard evidence upon proposals referred to it relating to tho sardine canning industry, manufacture of nitrogen, of cellulose and other products from phormium tenax, of rubber products and of motor benzole at gasworks.

Tho Committee, while drawing tho Government’s attention to the grave danger associated with granting monopolies to privato companies, even if only, for a short period of years, was of opinion that with adequate safeguards such, action might be justified in the special circumstances, particularly in view of tho amount of unemployment at present in the Dominion and the possibilities of establishing in the Dominion secondary industries not seeking tariff protection and dealing with raw materials produced in the Dominion. In the opinion of the Committee exclusive rights of manufacture should bo granted only in cases where large financial commitments were called for and where the circumstances were of an exceptional character having regard to technical and other features and where the industry concerned was a key industry or an industry of national importance or where the mdustry would be a substantial employer of labour.

Subject to these conditions and to reasonable prospects of marketing, the Committee recommend that favourable consideration bo given by the Government to such applications as were supported by adequate and satisfactory financial and technical backing • and subject tb • satisfactory safeguards against exploitation or detriment' to the public interest. . v. > In tho special case of the manufacture of nitrates the Committee recommended that no grant of a monopoly to any company bo mado until it had ihad an opportunity of reporting further. Tho Committee recommended that the manufacture of motor benzole at gasworks be encouraged by granting some concession of excise duty subject to the use qf no other than New Zealand coal in the manufacture of tb' commoditv. ,