WRONGLY TIMED?

Taranaki Central Press, Volume IV, Issue 463, 3 July 1937, Page 2

WRONGLY TIMED?

PUBLIC WORKS SPENDING View Of Experts The wisdom and timeliness of the Government's presen't public works programme has, by application, again been called into question from two i different sources (says a. statement ( by ‘the Associated Chambers of I Commerce of New Zealand). First, there was the cabled advice > from London in the Press, that distinquished Oxford economists agree there is a danger of a severe depression during the next few years, and that “it can be counteracted if the State and local authorities, with other public bodies, will increase expenditure on public works as »and when the slump begins.” The mes- | sage stated further tha't, in the view ' of the economists, it was important i during 'the present phase of active • trade, and to prepare plans for ex- i' tending it directly the re-armament expendiiture and activity slows down. ' An officer of the International Lab- j our Office at Geneva, at present on !

a visit to New Zealand, now express- I | es himself on the subject in almost | '1 identical terms. | I What of the Future? I These opinions support the view I j that the present vast public works j I programme in New Zealand is being . I carried out at the wrong time. It i ! is true that Britain, owing tio her j expenditure on re-armament, has no > ■ need to engage in a public works i j programme at the present time in j i the same way as New Zealand, it I > might be argued, has need to do as j , a cure, for unemployment. But New I j Zealand getting substantial bene- | j fits from Britain’s re-armament ex- ■ pendlture through the enhanced I prie/s which it is possible for conI sumers in Britain to pay for the , Dominion's primary products. The i New Zealand! Government, by super- | ! imposing a lavish public works pro- | gramme on top of this new prosperlj ty, is Simply bringing about inflation, 1 and impending the re-absorption of I unemployed by private enterprise, j The New Zealand Monetary Comj mittee of 193'4, in dealing wj.h public ! ' works in its report, said that if pub- , 1 lie works were to be expanded m | , bad times tihey must be curtailed j ;in good times. The Committee rs- ; I ferred to the recommendation of the ; | Na'.ional Expenditure Commission ■ that before any public works were | carriedi out in the future,, or before | any assistance was given by the State to public works which were to be carried out by local authorities', the proposals should first of all be subject to expert examination by an independent board of works. The Monetary Committee went on to Say: ‘Such an advisory body, if establisn- | ed, might also keep tile economic | situation under review and do valu- | able work in the direction of planning , works' for which there was no immed«atp necoasiiy, which could be un'diertaken with advantage in times of depression when working costs are cheaper, and when an expansion of j pubic works would ease economic conditions by promoting employment I and diffusing spending power .....

I A national authority is necessary,” I said the "to keep the I situation under survey with a view I to mitigation of the' worst effects of | booms and slumps, and to have the j works planned and ready for such j time as employment and: business in--1 dices take a turn downwards.” The Committee recommended that the | Government should take action along | those lines. Some Now—Some Later. All tiliis is in keeping with the view of the British economists, but small notice is being given it by the New Zealand Government, which is reported to be contemplating a further heavy programme of public works expenditure fop th e curreu l year. Under such a system of self-deter-mination by Government as to works to be undertaken, there must re- ■ main with the taxpayers the suspic- | ion that political considera'tions inj fluence the position more than they I should, andl more—it is fair to as- , sume*—'than they would under an inj dependent board. The fart that the i Monetary Committee, which endorsed the setting-up <, f a boar ,i ; w ., s : composed of member, of Parliament, i is in itself eloquent. : Such a board migh; find that, i while ifhci'e are works which need ’( o be done now, other works couldi be I postponed for some years—decisions i which it would arrive at by indeI pendent judgment, uninfluenced by < political considerations, but with a I view to ironing out violent displacea i nients of labour by slumps.