The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JUNE 20, 1928. THE UNEMPLOYMENT PROBLEM.

Hokitika Guardian, 20 June 1928, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JUNE 20, 1928. THE UNEMPLOYMENT PROBLEM.

In the “Economist” of April 21st., says an exchange, there is an interesting survey, by a correspondent writing from Christchurch, of trade and industrial conditions obtaining at the time of writing (February 20th). Much of this, of courso, is familiar history. The article, however, discloses an intimate knowledge of affairs. For example, the writer at that date very accurately forecasted the final result of the National Industrial Conference in the prediction that the parties would probably split on the question of compulsion. In another part of the article the writer touches the question of unemployment and the question of reducing its incidence. Conditions in New Zealand, lio points out, are governed by the state of the primary industries. For some years past farm prices have been low compared with internal prices, which largely determine costs. Farming has thereby been rendered unattractive, the latest figures recording a. decline of 10 per cent, in the numbers engaged in rural occupations, indicating a pronounced drift to tlio towns. “But,” lie H v<j, “the more sheltered industries have only a limited local market for their products, and export practically nothing at all. Hence, their expansion is limited by the needs of the local market, they cannot absorb the influx of lalwur and unemployment results. The unsheltered primary industries, which alone have ail export market, unlimited for all practical purposes, could expand greatly, but owing to the narrow margin between costs and prices, cannot compete for labour and capital with the more attractive conditions offered by town industries. It is held that the absorption of unemployment must begin on the farms. As their production, and, therefore, their demand grows, the local sheltered industries may expand, too, but the latter must necessarily follow —they cannot lead.” All this is obvious truth, recognisable as something we have heal'd often before. The point worth emphasising, however, is that we have neglected to assign to it its rightful importance as a factor in the problem of usefully distributing our available labour. The thing to lie done is to make it possible for the primary industries to employ more men, thereby increasing production and wealth, so that the secondary industries, thriving on the prosperity of the farming community, could also employ more men. The farmer’s handicaps are chiefly two, the narrow margin between his costs and hie prices, and the effects of artificial restrictions placed upon his industry by Arbitration Court awards. Since he cannot control prices, tlio ebviious thing to do is to cheapen his costs, and relax the industrial restrictions which at present represent an additional impost on the costs side of his ledger. If we can solve that problem we may advance appreciably nearer to reducing the incidence of general unemployment.