BIGGER OUTPUT NEEDED

Chronicle (Levin), 3 September 1948, Page 5

BIGGER OUTPUT NEEDED

New, Zealand Facing Rapid Deterioration "New Zealand is facing a rapid deterioration in the general standard of living as a result of ' inflationary trends, ' ' said Mrr Tercy Coyle in his presidential address at the annual meeting of the Wellington Employers' Association today. "As was stated by the Minister of finance in presenting the 1947 Biidget," he continued, "we can only assist in this matter by making better use of our available resources and, above all, by increasing oittput per irnit of labour in our factories, in industry, in transportation, and in our ofhces. ' ' Tbis applies to peo'ples in all walks of life in New Zealand, but unfortunately there are few' people who give serious thought to the .subject aua agree with the practical commonsense views expressed by the Minister.". Recurrent small strilces were sapping the fruits of the large majority of workers in New Zealand, said Mr. Coyle. Employers' eft'orts were useless without the close coordination of every group of workers and employers, Because of war and other influenees, the comniunity had been fore'ed to submit to controls — In some instances total control. Many still remained, greatly retarding enterprise and interfering with progress. "Private enterprise, the right to exert that enterprising spirit common £0 puost peoples, has all down the ages created competitiou which proved to be tlie life of trade," continued Mr. Coyle. ' ' By concentration of thought and energy more goods could be produced to meet the needs of our people as well as iowering tlie costs of goods so prd>dueed. " The justiflcatio'n of price control during the war lav in the fact that since a large proportion of the productive resources had to be used for wai purposes, civilian output was eertain to fall below demand and consequontlv tlie free plav of the forces of supplv and demand could lead only to increased prices. "The justiiication of , price control during the transition period from war to peace lies in the fact that wartime shortages cannot be expected to clisappear overnight. Lt takes time to return to normal conditions of supply. This, too, is a justiiication for some conti'ol for some indelinite time after tlie wai',, but the indehnite continuation of such controls may be claimed to be as essential as soeialisation. "The power to fix prices and, ineidentally, to limit profits, would be the most ellicient force to divert industry or industries along any predetermined channels. Bmaller businesses would be particnlarlv vulnerable. Lenin is claimed to have advised his followers in 1917' that they could not at onee nationalise the small consumer concerns, but through the nationalisation of tlie banks they may be tied hand and foot. " By its irksome and discouraging manifestations, price control had a strong tendency to impede production

and thiis prolong, if not i>erpetuate, its own necessity. Price control .was always accompanied by black market, so that protection was gained by suffering otherwise iinnecessary shortages. Distrust of Profits. "One of the most striking and signilicant features of the wage-priee *ontroversy is a strangelv fearful and distrustful attitude towards business profits," added Mr. Coyle. "It is possible for profits to be too high, just as it is possible for theni to be too low. The condition to be desired is a balanced relationship among profits, prices and wages — a relationship that tends to produce liigh and stabilised production, employment, consumption and investment over the long term. ' ' The only safe verdict on past experience is that renderecl by competition in free markets, which in itself is a safeguard in the fixing of prices of goods. Any influence directed against profits is a threat to the very foundations of fgee enterprise.." Mr. Coyle appealed to ' members of the association and to business people to foster to the fullest extent a spirit of unity by followi'ug constitutional methods in the employment of labour, lixation of wages, antl the conduct of business in general. Bocial peace might dopend upon the reasoning and good common sense of the workmen, but it might also depend upon the loyalty and farsightedness of the emplover.