H.—34

8

imports into New Zealand of manufactured goods represent only a small part of the total consumption of such goods xvithin the Dominion. The policy of encouraging industrial enterprise has been vigorously pursued by the New Zealand Government, both in its tariff legislation and in other ways since the Atkinson Tariff Act of 1888. Details shoxving the development of industrial enterprise in Nexv Zealand are given in Appendix No. 3, in xvhich Table A gives a summary of the principal facts with regard to the growth of industry in the Dominion from 1886 to 1906; and Table B sets out the development of the chief industries as shoxvn by the censuses of 1896, 1901, and 1906, the statistics relating in each case to the previous year. Appendix No. 4 shows the output in New Zealand of the principal commodities manufactured there in 1905, and the percentages of the total consumption of such commodities in Nexv Zealand supplied by home industries and by 'the United Kingdom, other British possessions and foreign countries respectively. From this table it xvill be seen that in such food commodities as beer, aerated waters, and biscuits, practically the whole of the demand is supplied from within the Dominion, and the same is true in only a slightly less degree of jam and confectionery. Other domestic requirements mainly supplied by home industry are, furniture (864 per cent.), blankets (802 per cent.), soap (69"3 per cent.), clothes (65 - 7 per cent.), and boots and shoes (64 - 4 per cent.). United Kingdom and foreign manufacturers supplied in 1906 less than one-tenth of the tinware required in the Dominion, and less than of the agricultural machinery, whilst the Nexv Zealand manufacturers have the greater part of the trade also in saddlery and harness, cordage, rope, and txvine, firebricks and cement, and nearly half of the supply of candles. These are practically all industries which would naturally be the first to develop in an agricultural country such as New Zealand. In regard to all these commodities it appears to be clear that a continually groxving share of the trade xvill be taken by the Nexv Zealand manufacturers, and that, consequently, British manufacturers cannot look for any particular expansion of the exports of these kinds from the United Kingdom to the Dominion. In this connection it is of interest to set out certain resolutions adopted by the Joint Committee of the Canterbury Industrial Association, and the Trades and Labour Council, appointed to consider the question of the promotion and encouragement of New Zealand manufactures and productions in May, 1905, as they illustrate the nature and strength of the movement for a national industrial policy: — " The Committee beg to report that, after having carefully gone through the evidence taken by them .... they have unanimously come to the conclusion, — " 1. That our local industries and productions in some instances are not keeping pace with the general increase of trade in the colony, and that this is caused by greater importations and cutting of prices by importers, and that the cheap labour in foreign countries in many branches enables the importer to undersell the local manufacturer. "2. That the tariff should be amended in the various directions summarised in the evidence, by taking off all duties on raw materials used by our manufacturers, which said raw material is not or is not likely to be produced in this colony, and by an increase of duty in certain directions to meet the dumping of the surplus manufactures from other countries. "3. That the attention of the Government should be drawn to the necessity of compulsorily branding all Nexv-Zealand-made goods, 'Made in New Zealand.' The evidence taken by the Committee was practically unanimous on this point, the only exception being that of the employers engaged in the boot and shoe manufacturing. " 4. That the evidence taken by the Committee shows that the workers on the whole are loyal to the cause of local industry, but this cannot be said of all classes of the community. "5. That a card should be printed in an attractive form, setting forth the desirability of encouraging local manufactures and productions from a patriotic point of view, such card, with the consent of the Education Boards, to be placed in every school of the colony, in the hope that it xvill educate the rising generation to take an interest in the cause of local industry. The cards might also be utilised for circulation in other directions. " 6. That the aid of all Tr"ades and Labour Councils, unions, industrial associations, and public bodies should be elicited by circular, or otherwise, to further the objects xve have in viexv—viz., the advancement and encouragement of our local industries and productions. " 7. That this Committee strongly urges that the Government and all bodies dealing with public expenditure should be requested to give preference wherever possible to the manufactures and productions of the colony, thus setting an example for private individuals to folloxv, and assisting in providing employment for the workers." It is desirable to draw attention to these facts as evidence of the energy and persistence with which a policy of industrialisation is being carried out. But, at the same time, it will be apparent that, with the exception of clothing, woollen goods, and boots and shoes, there are no manufactures in New Zealand which compete, or appear likely to compete, seriously with the class of manufactures in xvhich the United Kingdom is chiefly interested, and it hardly seems probable that even the combination of protective duties on manufactured goods with the free admission of raw materials can call into being industries for xvhich New Zealand has not within itself, or close at hand, large supplies of the necessary materials, such as cotton and iron,