WELLINGTON NEWS

Hokitika Guardian, 1 November 1927, Page 4

WELLINGTON NEWS

BETTER TIMES AHEAD,

(Special to “ Guardian ”.)

WELLINGTON, Oct. 29,

Speaking at the opening ol the Pageant <>t Industries at the Wellington Town Hall on Tuesday ol' last week the I ’rime minister prophesied that good limes were ahead. I his is one ol the (heap prophetic utterances that is frequently being made just now, hecau.se the wish is lather to the thought. Certainly there must he an improvement, and there lias been a considerable improvement. during the past six months, hut is it a lasting improvement. Wo are just now tit the beginning ol a new season when our primary producers secure their returns, and those returns promise to lie a little better than they were a year ago. lint the net income to tin* producers will not he much greater than in the previous year because their costs of production are extensive, and they have no means of reducing same. It is because <d t lie*

undue costs of production which seri ntisly affects the return to the producer and restricts his purchasing power. The producers are fed up with cheap platitudes, and would much prolcr to see .something ol a definite nature undertaken that will reduced theii costs. When taxation is reduced, transport charges lightened, award wages made more reasonable, and are based on what the worker produces and not on what he and his family con- ■ iimes. when interest rates are lowered, and services rendered at a fair price, the producer will he encouraged to develop his land and increase his production. Letter times will come sonocr if costs of production are reduced. The Prime Minister's prophecy of* better times is based on the outlook tor higher prices for wool and dairy produce. Xo doubt at the moment those prices are good, hut how long will they stay good - It will depend entirely upon tlu* purchasing power of the consumers of our products, and that purchasing power is still very restricted. We cannot hank on high prices, hut should strive to reduce the costs of production, which at present are excessive, and hamper the primary producer in the development ol his industry. New Zealand is a pro-

ducing country and our existence <! pends upon the volume and value ol our primary products, and this industry is being choked with primary costs and overhead charges. In the course ol Ids speech Hie Prime .Minister stated that

no nation ever became great unless i; was self-coil taint'd. This is a fallacy. No nation can ever he self-contained, even the t'nited States, which has endeavoured to isolate itself from the rest of the world has been unable to declare itself self-contained. ’ r b" biggest industry in the t'nited States to-day is motor manufacturing, and if -America were set l'-eontn inett tills wnulcl have been impossible. America has to import rubber, tin, leather, and several other goods to enable mass production of motor ears to he undertaken. A self-contained nation would he an economic curiosity. So many people large t that trade cannot he a one-way a frail*. Xo country can sell goods year after year without buying goods. It there are exports there must he imports, for in the long run goods exported are balanced by goods imported. International trade balances are settled in goods or'and-services, it k only very occasionally that gold is used for settlement, purposes, and just now with the scarcity of the yellow metal, not even the (Tiited Stales is anxious to part with the metal. Instead of indulging in cheap talk merely for liesake of appearing optimistic tie* Prim** -Minister would have done a real scivic e to the counti'v had he stated that tin: cost of Government would In* iv* | < I lived with a view to reducing taxation, that borrowing abroad would he curtailed, that restrictions on trade, commerce and industry would he abolished, that Government will interfere less ami

less in the country’s private enterprises. ami that everything would lie done to reduce the costs of product ion so that the spending power of the primary producers may he increased, for

that way lies the surest road to prosperity. " Instead of talking too much about depression, let us look to the future with confidence,” said Mr Coates. “It will go a long way towards bringing prosperity hack amongst us once again.” This sort of talk is often described as ■'fluting.” and it is not incorrectly described. How can gazing at the future bring hack prosperity;-' If Mr Coates would help to remove the crushing burdens on the hacks of the primary producers prosperity would come hack to the country with giant strides.