REAL REED FOR AUSTRALIA IS GREATER PRODUCTION

Chronicle (Levin), 2 December 1947, Page 2

REAL REED FOR AUSTRALIA IS GREATER PRODUCTION

"The Australian cust structure is j rising from interual causes as well as ' through the intiuence of high import i prices. This is not altogetlier surpris- 1 ing at a time of full employment aii'i scarcity of resources. Two important j I'actors have entered the picture in the 1 past year. Both the iuteriin increase jin the basic wage aud the 40-hour week 'iii'e adding very nmterially to the wage | costs of iudustry with 110 iinmcdiafe correspouding bonelit to production," said Sir Frederick Tout in his presi dential address to the annual meetiug of sharcholders oi' the Bank of New 8outh Wales in bydiiey 011 Friday. "Thc real problcm for Australia is si i 11 the necd for greater productivity with the emphasis ou output per man hour. • This situatiou warrants a policy of incentives, by methods of wage paymeuts as well as by tax reduetioiR-. "Price control policy has abaudone'J rigid ceilings, bul unfo rtunatcly price control has come to nieau an effectivm control of prolits within individual compauies and its general effect lia^ been to off'er little encouragement to liigher production ox* lower production costs. " Businessnicn cannot avoid looknig with alarni at thc Government 's upparcnt readiness to fetter the economv A.ith pcnmineiit control over prices. It) is possible that hopcs of an early relurn to a freely operating price mechanism would encourage acceleration of output and .secure lionest aud efficient marketing. V-