VICIOUS CIRCLE

Sun (Auckland), Volume II, Issue 610, 12 March 1929, Page 9

VICIOUS CIRCLE

How Britain's Trade Is Retarded AUSTRALIA’S ALSO (United I*.A.—By Telegraph — Copyright) (Australian and N.Z. Press Association) (United Service) Reed. 12.50 p.m. LONDON, Monday. Just as the Economic Mission found a circle in Australia, so the final report of the Committee on Industry and Trade, appointed in 1924 under the chairmanship of Sir Arthur Balfour, finds a vicious circle checking the revival of British industry. The depressed industries are not restorable without fresh capital, which cannot be attracted except after the restoration of healthy conditions. The report does not believe that even the most depressed basic industries lack the power within themselves to take first measures toward regeneration, if they are convinced of necessary reorganisation involving the writing down of capital and improved handling of overseas markets. The latter needs thorough reconditioning. Trade has been lost through the manufacturers’ want of care in the selection of their agents. It is most essential that the heads of firms should visit the overseas markets and give increased attention to salesmanship. Initiative and reorganisation must come from industry itself. The State could only ease the difficulties of transition.

Discussing industrial peace, the committee states that it is opposed to compulsory arbitration or legislation similar to the Canadian Industrial Disputes Act. It favours works committees for all large industrial undertakings. It does not recommend a permanent National Industrial Council, but approves of periodic national conferences between the employers’ and the employees’ organisations. It tentatively advocates a gradual extension of the minimum school-leaving age to 15.

The Labour members of the committee, in an appendix, state that the main report is inadequate. The country’s serious situation cannot be remedied by private enterprise and free competition. They are of opinion that the necessary reorganisation and co-opera-tion cannot be attained without the State’s initiating activity and support. The minority recommends the appointment of a National Economic Committee, and the employment of a Development Board, first to survey the economic situation nationally, and, secondly, to map out reconstruction in conjunction with the representatives of the employers. It also favours repetition of the safeguarding and McKenna duties.