PUBLIC WORKS AND PRODUCTION.

Wairarapa Times-Age, 9 December 1938, Page 6

PUBLIC WORKS AND PRODUCTION.

AN important question, in the treatment of which the ability ■"of the Government to rehabilitate the financial and economic position of the Dominion seems likely to be tested decisively, has been raised by Professor Belshaw, of Auckland, in the course of some comments on the establishment ol exchange control With reference to the observations of the Alinister of Finance (the Hon W. Nash) on the necessity of promoting an increased production of consumable goods in New Zealand, Professor Pmlshaw points out that: —

Since labour and capital cannot be used for public works at the same time as for manufacturing consumers’ goods, a further implementation of this policy would necessitate a contraction of public works expenditure.

This contention is unassailably logical. Expenditure on public works evidently narrows and limits the resources available tor the production of consumers’ goods and the Government should without loss of time define its policy in this vital matter. Nothing but a substantial and progressive increase in the goods available for use and consumption will maintain sound economic conditions in Ihe Dominion. Stationary or declining production undoubtedly would entail unchecked inflation and an intolerable increase in costs which would bear hardest of all on our export industries. At least steadily increasing production within the Dominion is demanded imperatively as an indispensable means of maintaining general national prosperity. x