HARSHER CONTROL

Dominion, Volume 33, Issue 190, 8 May 1940, Page 14

HARSHER CONTROL

Australian Investments COMMONWEALTH MEASURE The Coiniiionweaitli war-rime investment regulations will be applied "will* increasing severity" to assist' lite Government in ils niobilizaiioit of resources, announced the Treasurer. Mr. Spender, recently. Mr. Spender revealed tbiit. a shortage of certain types of labour and materials already exists and is growing more acute. _ , Recently, he said, he bad refuseu permission for capital issues intended to finance the establishment of new retail businesses, chain stores, cash order companies, hire-purchase liuanee companies. and various amusement undertakings. In certain quarters, be said, there still appeared to be misunderstanding of the objects and principles of the National Security (Capital Issues) Regulations. Primarily, they were designed to avoid the dissipation in non-essential enterprises of resources required for the furtherance of Australia's war effort. This particularly applied to resources insufficient for the general requirements of defence and civil industry. "If unrestricted competition is allowed for resources,” he continued, “supply costs and prices will rise, and while neither the Government or anyone else will get all the labour or materials they require the economy will be dislocated and the community in general will be worse off. With the rapid growth of our war undertaking, which extends and makes more urgent the Government’s need for all kinds of resources, the regulations will have to be applied with increasing severity. Already it has been found necessary to reject proposals which would not have expanded any essential industry, assisted the exchange position, or done anything more than duplicate existing facilities which are already adequate. “Issues of bonus shares based upon a revaluation of assets of capitalization of goodwill could not, unless there were special circumstances to warrant it, be permitted at a time like the present. Such transactions servo no major national purpose and have the effect of needlessly widening the investment market. Other proposals have had to be rejected because they would have led to the unnecessary importation of materials or equipment from non-sterl-ing countries.

“It is vital also that we should keep post-war necessities in view. The curtailment of defence works and the release of-men from the fighting services will create a major problem of reemployment. Secondary industries, whether producing for the home market or for export, will be experiencing competitive pressure at a time when international considerations may limit the extent to which tariff protection can be given to them. Under such conditions, some industries which had sprung up or expanded under war conditions might fare very badly.” Mr. Spender added that he had directed the advisory board dealing with, these problems specially to consider the state of employment in particular branches of industry.