H.—35

It is proposed, therefore, in this and following bulletins to attempt a general survey of our economic organization and its development, and to make some inquiry into the nature, distribution, and the interconnections of our industries, the position of those employed in industry, and into the general question of various industrial costs and industrial organization. It is hoped that such a survey, together with the presentation and scientific analysis of the facts of the case, will help to widen that essential knowledge of our economic organization without which really constructive proposals and policies are impossible. In making the survey the following topics will be discussed : — (1) A Survey of Production and Occupations; (2) The Relation of Primary and Secondary Industries; (3) The Tariff Question; (4) The Position of the Wage-earner; (5) The Arbitration System; (6) Unemployment; (7) The Expansion of Overhead Costs; (8) Costs in Primary Production; (9) The Burden of Rates and Taxation. The Distribution of Production. The best account we have of the total value of production in the Dominion over a period, and its division amongst different industries, is that published in the Official Year-book. The figures are admittedly estimates only, and they do not include distributive services, but they are assessed on a uniform system throughout, and are therefore directly comparable from year to year, and they afford a very fair basis of comparison between the various productive groups. The official figures may be summarized as follows :—

Net Value of Production.

All these figures are for net production only, and the definitions may appear somewhat artificial. Pasture grasses and fodder crops, for instance, are not included as agricultural products, as they reappear in the value of pastoral and dairying products. Factory products are assessed at added Values only—that is, the gross value of factory products less the value of the materials used in production—and represent, therefore, the value of net factory output, and they do not include the products of freezing-works and dairy factories, which are included as pastoral and dairy-produce. If the first six classes are regarded as the extractive or primary industries, and the last two classes as the complementary or secondary industries, the figures show that the proportionate values of output of these two groups has varied but little during the present century.

Percentage of Value of Total Product.

There has, however, been considerable change in the percentages contributed by the main industries in the primary industries group, where the share of dairying has increased greatly, while that of agriculture has fallen by almost half, and that of the pastoral industries has fallen slightly. The proportionate share of mines, &e., has decreased, but this is mainly due to the fixed price and the reduced output of gold. The figures are as follows :—-

Percentage of Values of Primary Produce.

Owing to the difference in classification the official figures for factory production are not strictly comparable with those given above. The definition of a factory is comprehensive, and includes every " establishment engaged in manufacture, repair, or preparation of articles which employs at least two hands, or uses motive power," with certain unimportant exceptions. Jewellery, boot and saddlery repairing, are here included, as are dairy factories, meat-works, newspaper offices, establishments producing heat, light, and power, &c., as well as

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(In millions.) Produce. 1900-1. 1910-11. 1920-21. 1923-24. £ £ £ £ Agricultural .. .. .. 4-1 4-0 9-0 7-2 Pastoral .. .. .. 11-0 20-2 27-5 32-9 Dairying, &c. .. .. .. 2-8 6-4 25-7 25-2 Mines . . .. .. 2-7 3-8 3-4 3-1 Forest .. . . .. 2-1 3-5 8-6 6-0 Fisheries .. .. .. 0-1 0-2 0-4 0-5 Factories .. . . . . 5-3 8-1 19-1 19-6 Building, &c. .. .. . . j 3-9 5-8 9-2 11-5 Totals .. .. .. | 32-0 51-9 100-0 106-0

1900-1. 1910-11 1920-21. 1923-24. Per Cent. Per Cent. Per'Cent. Per'Cent. Primary group of industries .. 71 73 72 71 Secondary group of industries .. 29 27 28 29 100 100 | 100 100

From J 1900-1. | 1910-11. | 1920-21. | 1923-24. • Per Cent. Per Gent. Per Cent. Per Cent. Agriculture .. .. .. 18-0 10-5 12-6 9-6 Pastoral .. .. .. 48-0 53-0 38-4 44-0 Dairying, &c. .. .. 12-3 16-8 36-0 33-6 Mines, forests, and fish .. 21-4 19-7 13-0 12-8 100-0 lOO'O 100-0 100-0