TIDE OF PROSPERITY

Dominion, Volume 32, Issue 156, 28 March 1939, Page 8

TIDE OF PROSPERITY

High Level Reached Tn Australia VISITOR’S IMPRESSIONS Dominion Special Service. DUNEDIN, March 27. Some impressions of conditions in Australia wore given to a reporter by .Mr. .1. R. Fairbairn, who has just returned from a business trip to the Commonwealth. Australia, he said, had been experiencing a wonderful term of prosperity, though there was evidence that Hie. tide had reached high level and that ir period of less activity might now bo experienced. “The secondary industries have been flourishing.” Mr. Fairbairn said, “and generally speaking are still having good times. In view of the somewhat limited domestic market, and the difficulty in finding overseas outlets for manufactured goods, added to the fact that the farmers are experiencing difficult times because of low wheat and wool prices, I feel sure that the Australian industrialists will shortly be brought face to face with the fact tUirt Australia cannot continue to have healthy secondary industries while primary producers are having a hard struggle. Certainly some very wonderful and efficiently managed businesses have been built up with the protection accorded.” Speaking of the potato embargo, Mr. Fairbairn said there was a very strong movement in the cities to have the New Zealand embargo lifted, as such a step would regulate prices locally and at the same time stimulate the citrus fruit industry, which would benefit considerably as the result of the probable lifting by New Zealand of the limitation imposed on the importation of Australian oranges. “Everywhere I was asked about the state of finance and industry in this Dominion,” Mr. Fairbairn said, “the general impression being that we are likely to pass through very difficult times before normal trading and stable financial conditions rule in this country.

“Australian manufacturers are faced with the fact that if they are to retain their Dominion connexions they must operate branch plants here, and already arrangements to that end are under way, but from inquiries I found that North Island centres are favoured as being closer to Australia in the matter of direct shipping and are considered as 'being more favourably situated in the matter of distribution.

“Apart from defence,” Mr. Fairbairn added, “the main item of political interest iu Australia centres in the National Insurance Bill, which it is realized - was too ambitious for the Commonwealth and is being whittled down in ail effort to bring the cost within the limits of the financial ability of the country to meet. The watering down of this national insurance may possibly have far-reachiug consequences politically and it will not be surprising if a definite swing toward Labour occurs at the next Federal elections.”