POLITICAL OUTLOOK

Taupo Times, Volume XIV, Issue 39, 20 May 1965, Page 5

POLITICAL OUTLOOK

A piuning of developmental effort is recommended to the Government in a report by the Monetary and Economie Conncil. The council points out that in the interest of balanced progress, the Government should take a ] more active role in direct- ] ing the course of industry. ] Inflationary moves should be noted, and the Governt ment should move quickly to balance them with measures which only the Government can take. The report contains severai suggestions which, while admitted as essential by economists, are unpalatable to the Government as bringing hardship to certain seetions of the community. A spokesman for the council has made the point that the council does not recommend retrenchment. Its recommendations are aimed at keeping our growth-rate even, and eliminating the costly progress achieved by the "boombust" technique. "When the council indicates that production and plans in a certain industry are reaching a level which could be dangerous to our economy, the Government may take one of three actions," the spokesman said. "It may do nothing at all; it may order a cut-back in the industry by imposing any one of a number of checks — and it may, having decided the development is needed, adopt other measures which will help the expansion while offsetting its inflationary effects. The decision as to which course it follows is always one for the Government." ^ ^ * The Monetary and Economie CoiinoiPs report made special reference to the building industry, which was described this week by the Minister of Customs, Mr N. L. Shelton, as "our key industry — our barometer. "The Government is natI urally very concerned when j the building industry is over-committed," Mr Shel- ! ton told an industry group. i "It would be just as con- | cerned if this industry ; were under-committed." j And yet the building — j or rather the housing — i industry is one which has ; been asking the Governj ment for years to do its j planning for New Zealand's ! needs for as far as 10 years ! ! ahead. An intensification of demand for the re-conven-ing of the National Housing Council is expected soon. Economists, as well as seetions of the building industry, would appreciate a pooling of information to enable the rate of building to more accurately match New Zealand' s long-term needs. The National Housing Council was set up by the previous National Government following the Housing Conference of 1953. As it was constituted then, it was a "Get Houses Built" council. Target figures of housing accommodation necessary for the next 10

years were drawn up, and the council got on with seeing those figures were met. The target figures proved extraordinarily accurate — • but the council was sumImoned on fewer and fewer i occasions. It still exists on paper, but -it has not met for nearly five years. In the meantime, the "target figure" system ran out two years ago — since when the jrate of New Zealand housebuilding has been on the "as required" basis. The present Government has made promises to reconvene the council. It has been said that it would first have to be reconstituted mainly to increase Government and financial representation — but nothing has been done. * * * Though considerable resistance exists to the idea that Nevr Zealand should seud a military unit to South Vietnam, contingency planning within the services has reached such an advanced stage that an artillery unit could be on its way within twenty-four hours — if required. Military sources indicate that this has become possible only through the purchase of the flight of Hercules C130 transport aircraft, plus the Italian-de-signed 105-millimetre howitzers and their tractors. Previously, New Zealand had no air transport capable of carrying the efficient but weighty 25-pound-ers, limbers and "quads" of j World War II vintage. Sup- ] port of our artillery unit in ; Korea was by sea, and ! with the best will in the ! world, a full month was | needed to get the unit | away, let alone into action. Today a battery of the 16th Field Regiment could be uplifted from Papakura in 24 hours, and ] could be in action in ] Vietnam within a week. The demonstrable value of this, say our military planners, is that no time is wasted in the transit and t tooling-up periods. A small force can be kept at home longer, and can be rushed in a few hours to ! ari. area threatened by i "brushfire war." But, they argue, three ; aircraft, even at £5,000,000 ' are just not enough. A request for another flight, plus | more guns and portable j equipment, is "just around 1 the corner."

— N.Z.C.N.A. News Service.