Urgent Call for Increased Production

Chronicle (Levin), 8 March 1946, Page 8

Urgent Call for Increased Production

-Press Association

Outspoken Declaration by Mr. F. P. Walsh

By . Telegraph-

WELLINGTON, Maveh 7. The New Zealand Government faees a crisis, consiclered withfn its own cireles to be the greatest in its history. Purtber and swift inflation threatens to develop in spite .of the eeonomic stabilisation system. These are the impiications in a statement issued by i\Ir. F. P. Walsh, representative of the Federation of Labour on ihe Economic Etabilisation Commission. Government and party cireles are mooting drastic measures to stop priees r.sing, rvages spiralling4 with them, and the eeonomic system breaking down. Caliinet Ministers and union leaders have launched urgent appeals to the wovkers to produce more goods and services,. so that priees may be kept clown and the tendency toward inilation delayed. The seerotary of the New Zealand Federation of Labour, Mr. W. Baxter, has begun a'Dominion tour for the federation to launch a nat onwide appeal to workers to produce more goods and services. At the' same time he will oppose the clemands of industry for increased subsidies out of the publie funds — dcmands which they are making on the ground of increased costs, paiticularly thrpugh the shortei* working week. ■ > At the same time Mr. Walsh has told the Federation of Labour in a special report that the next two or three years will be ci'itieal ones for the l'uture eoonomicc clevelopment of the eountry. He says that the very snccess of the warti.me stabilisation policy has increased the economic dangers of the immediate posiwar periocl. He recommends drastic measures.

Major Probl-ems of Crisis. He-re are some of the major problems whu-h constitute tliis crisis, aiid wliich are uiider discussioii iu labour cireles: ' 1. By kfieping -priees dowu the' eco iiomic stabilisation scheme has acted as a (1am beh'uul which capital has ac.Miniulated in the publie 's hands. The public now have too mucli money and iioi enough goods. Coiisequently priees contin'ue their tendency to rise. 2. Only the production of more goods; and services can e'ase the .situatiori.' 3. in spite of tliis the 4U-hour week nas been reintroduced/ aiid production' of goods and services is at a iuw level. Threat of strikes, abseuteeism, and a general tendency on the part of workers and some manufacturers to slow up jji'ouuv-tion have aggravated the shortage of goods. 4. At the same time practically everv trade, union in the eountry is clamourmg for liigher wages. Aianufacturers and the heads of various industries .nready subsidised out of the -pubiic i'unds ure demandiug increased subsidies to meet the higher costs created by the shorter Avorkiiig week and other causes. Cannoc Import Sufficient Goods.

5. Government cireles elaim that the eountry eannot import sufficient goods to relieve the situation, because the ; uverseas. funds, although they have ae- ; cuniulated heavily are not sufficient to ' cover the heavily increased cost of ; goods ihe eountry needs from overseas. (j. With wages contiuually risiug and ■* the puinic deinanding price controi, the | aovernment has been able to keep : priees duwu only by paying subsidies to industry. This it iinds it canuot coniiuue to do. 7. If a colution capnot be found, the whole social security structure will be . i u jeopardy. Altliougli the Minister of Industries land Commerce, and .Minister in Oharge : ot Btabihsatiou, Mr. Bullivan, and the ! .-.i inister of Wo rks, .Mr. Beinple, have ! told ihe workers that greatei^produc- | iiou is an immediate and vital neeesi sity they have not been outspoken in , the nianner of Mr. Walsh. Drastic Measures Proposed. Drastic measures proposed in some ;piiji\ qnarters uici.ide tlie following: — r. .i cuiapjeLe reorgaiusalion of New j Le.-iainl inuusiry, lnvoiving tue eiimin- ! atiu., ot wartime. nuiustries now consid1 ..j-fd unecunoiuic. j An exiension of the working week — unnuugn u itk compensation to workers r or nours worKed. above 40. Coniinuance of price controi and 0i.vuu;u eiimiiiauon of" subsidies. -1. A reaiigmneut of the couutry's' I policy on overseas debt aud the eoun- ! iry s sterhng- balance. o. A request to Britain for increases : wlien the priees for New Zealand primury products are under feview at the cnd of this year.