Wairarapa Times-Age THURSDAY, DECEMBER 1, 1938. STEPPING FORWARD IN INDUSTRY.

Wairarapa Times-Age, 1 December 1938, Page 6

Wairarapa Times-Age THURSDAY, DECEMBER 1, 1938. STEPPING FORWARD IN INDUSTRY.

ACCORDING to the Minister of Industries and Commerce, ““Mr Sullivan, the time has come when New Zealand should follow the example of Canada and Australia and take a big forward step industrially. With that proposition, an overwhelming majority of the people of the Dominion, whether they are in the category of employers or employees, no doubt aie; in complete sympathy. It may be claimed with confidence that no considerable section exists in t-his country which would or could seriously oppose and impede an expansion of industry otherwise assured.

Mr Sullivan, as he is reported, has had something to say of lete about political opponents of the Government “who, having been beaten at the polls, would go to the extent of wrecking the Government and the country.” If there are such people, the facts regarding them should be brought out explicitly, so that they may be judged in. the light of day. Action should be taken also against bodies of workers who impair economic efficiency, and directly or indirectly penalise all sections of the population, by arresting the wheels of industry in disputes over petty technicalities.

It will be agreed by the body of New Zealanders, irrespective of their political leanings, that any unwarranted attacks on industrial efficiency and national wellbeing, from whatever quarter they come, ought to be met and repelled. Difficulties of this kind no doubt will be overcome speedily if our national energies are concentrated, as they should be, on a well-oi.ganised campaign for the expansion of industry and production. It that campaign is to be launched hopefully, however, we must recognise and act upon the realities of our situation.

One of these realities is the factor of high and mounting costs which was dealt with in frank terms by representatives of both manufacturers and farmers at the ,annual conference of the New Zealand Manufacturers’ Federation which Mr Sullivan opened officially on Tuesday. Having emphasised, on that occasion, the interdependence and mutual interests or primary and secondary industries, the Dominion president of the Farmers’ Union, Mr AA. AV. Mulholland, added that.

New Zealand today faced the problem of keeping production at a high level. There were lands going out of production because of high costs, and machines in factories standing idle because of high costs. It was the same problem and they should get together and deal with it.

The president of the Manufacturers’ Federation, Mr J. T. Spears, also declared that both farmers and manufacturers were being hampered in producing goods as cheaply as was necessary in order to meet external competition.

Mr Sullivan himself observed on this subject that the prices a worker had to pay for goods determined the efficiency of his weekly wages and that: —

Anything which can be done to make goods cheaper, without sacrificing quality or wages, is to be commended. Increased efficiency is the key.

These broad contentions may be accepted, but their acceptance implies that prosperity and progress are not to be measured by indicated expansion in terms of inflated money. If the Minister and his colleagues wish to see New Zealand take a big step forward industrially, they must help to establish conditions in which every opportunity will be given for the increased production and cheapening of goods. At present, unfortunately, we are in the grip of rising costs and prices which increasingly handicap industry and impede its expansion. Ihe essential facts to be considered were stated quite fairly by the Minister of Mines, Mr AVebb, when he observed, at Westport the other day, that if the Government’s plans for social security were to be successful, production must be maintained and stimulated.

The Government (Mr Webb went on to declare) had no intention of inflation by using the printing press to put more notes into circulation. That only meant, with more money and only the same amount of production that the people would compete with one another for goods. Wealth did not fall from a tree.

Whatever may he thought of our experience to elate under Labour rule, it may be agreed that the true test of economic progress is in making goods and services more readily available. In allowing production to be checked and restricted by a continuing upward movement of costs increased in various ways we are surrendering the substance in order to snatch at shadows. The primary condition of an expansion of industry in this country, or in any country, is that production should be facilitated, instead of being handicapped and restricted by mounting'costs. The immediate problem is that of finding some way of escape from a state of affairs in which prices and costs are chasing one another to the mutual loss of all concerned—workers, employers and the whole body of consumers.