THE NEED FOR STABILITY

Dominion, Volume 36, Issue 25, 24 October 1942, Page 6

THE NEED FOR STABILITY

On October 17, 1940, a committee representative of all sections of the community, after a careful study of the economic position’of the Dominion, brought down a report embodying proposals designed to give a measure o.f economic stability. More than two years later the Prime .Minister, discussing this very question, said: “We are dealing with a most important problem, and if we do not take action we will inevitably land the country in disaster.” The position has worsened in that time, the problems have become much more acute, and the responsibility for lack of action rests solely with the, Government.

The 1940 committee concentrated its attention on two objectives: (1) To stabilize prices, wages and costs, and (2) to increase production of all kinds. The second issue was one in which the individual could do something, and the record of production is the convincing evidence of a sustained effort. But the first objective required action by the Government of the day and the delay that has occurred has thrown the important factors further out of balance. Some attempt lias been made to control prices over a restricted range of commodities, but wages and costs generally have been free to move upward to such an extent that the difficulty now is to find a suitable basis for any plan of stabilization. Two years ago the Minister of Finance, addressing a dairy conference in Wellington, said that the splendid report of the Stabilization Conference set out “principles that were as good as any in the ccfiintry,” and added that the Government had taken steps to see if it could bring about the element of stability that was imperative. On Wednesday last the Prime Minister stressed the need for a general stabilization programme involving costs, prices, rents, wages and all other matters which could and should be controlled for the duration of the war." Two valuable years‘have been lost, years of war and increasing stress and strain that have made attainment more difficult. And even today, instead of the Government having definite proposals to place before. Parliament and people, the Prime Minister apparently could say nothing more than “I think such action will take the line of general stabilization.” It will probably be found necessary here, as it was in the United States, to effect preliminary and far-reaching adjustments in order to establish a foundation on which any equitable measure of stability can be based.