Wairarapa Times-Age SATURDAY, MAY 6, 1939. “SOMETHING WILL HAVE TO BE DONE.”

Wairarapa Times-Age, 6 May 1939, Page 6

Wairarapa Times-Age SATURDAY, MAY 6, 1939. “SOMETHING WILL HAVE TO BE DONE.”

TO ART of the discussion that is raging. at, present on tl P XtYon o? import restrictions and the serious economic and financial problems by which the Dominion is faced k nrvino- over snilt milk After three years experience oL Gabon ?de and a policy of free spending, the people of this country towards the end of last year re-established the Go J ern "} power with an absolute and substantial major ty Al who helped to swell that majority must accept then sL. responsibility for the difficulties that have now arisen. Meielj Strangling at this time, though mcrnbrn. o the Gow ernment and their opponents alike show themse J es enough to engage in it, evidently will se t rve ? l0 n ? u po the What is needed is a united and practical attack upo U problems raised, with a view to working out the best solution that, is possible. One important aspect, or section, of these dealt with from a standpoint of reason and modeiation by a deputation representing retailers which waited upon Hie Prim Minister (Mr Savage) in Wellington yesterday So ne of t leading facts submitted by the deputation weie that, ot the o-oods distributed by retailers in tins country, twenty pel cent were of New Zealand manufacture, and 80 per cent impoited. Tt was submitted that under the restrictions imposed the volume of imported goods Would be reduced by (0 per cent, and that this would mean a reduction of 56 per cent m the volume o. retail trade. In order to make good the estimated deficiency m supply of goods, it was pointed out, the output of New Zealand manufacturing industries would have to be multiplied by 3.8> 11 it was contended, could not be done within any reasonable time and the import restrictions therefore would work out in the disappearance of many small businesses, a reduction in the number of workers employed in the retail trades, higher prices, a lower standard of living and far-reaching effects upon all sections of the community. The deputation appealed lor a modification of the restriction policy and for,an approach by stages to the measure of exclusion now enforced. The case thus made, out for retail traders—in itself obviously a strong case —must be considered in relation to the total economic problem by which the Dominion is confronted. In a bulletin issued by the Canterbury Chamber of Commerce in consultation with the Faculty of. Economics, at Cantcibuiy, University College it is computed that if sterling funds are,to be built up by £5,000,000 during the current year (an achievement which may reasonably be regarded as very desirable m view of the low point to which sterling funds have been 'reduced), it will be necessary to reduce imports for the year by some £18,000,000, or about one-third of the value of our imports in 1938. It is also pointed out, however, that probably more than fifty per cent of our imports are essential to the maintenance of present production (in the Dominion) and more of these might be required if interna] production were to expand, and further that: — Only 351 per cent of the total (imports) are classed in the consumers’ goods and unclassified groups combined. Even if these were to be eliminated altogether, the reduction in total imports so effected would be just about sufficient to meet the present situation. With export returns down by some ten millions from the peak figure of £66.7m. reached in 1937, though still at a fairly high level in spite of the effect of high, and rising costs, the Dominion must reduce its imports if it is to meet its oversea obligations and pay for the imports it is able to afford. There is no comfortable solution of this problem. It is quite clear that if consumers’ goods are imported freely’, other goods that are needed for the maintenance of internal production must be shut out, and vice versa. The Prime Minister has declared himself determinedly opposed to any reduction of wages, but the problem threatens to become that of maintaining any employment and wages for at least a fairly considerable proportion of the people of the Dominion. As Mr Savage observed, something-will have to be done. Some lowering of living standards appears to be inevitable in the conditions that are developing. A country that has been importing 80 per cent of the goods distributed by its retail traders and a 1 the same time applying more than fifty per cent of its lotal imports to the maintenance of internal production cannot cut its imports drastically without feeling the pinch in some way. Great as the difficulties of the situation undoubtedly are, they should not be regarded as overwhelming. The essential call made is for enterprising action and much more is likely to depend upon the extent to which producers, industrialists and traders are able-effectively to pool their efforts than upon what Ilf‘ present Government, or any alternative Government, is able,to accomplish. There is a good deal still to be done in distinguishing between essentia] and non-essential imports. Dor the rest, much must depend upon the ability of manufacturers and industrialists in the Dominion to meet the exceptional demands now made upon them. •/ Rather too much is perhaps being made of the “inevitable lime-lag” in expanding the output of New Zealand secondary industries. Factories, machinery and an output of goods cannot be produced from a hat, but there are various ways of enlarging and expanding the output of an existing industrial organisation. It may be worth while to consider whether the forty-hour week’ is really worth having in the existing circumstances of the Dominion. .Much is heard about a shortage of trained factory workers, but there is such a thing as the dilution of skilled labour with unskilled labour which progressively becomes skilled. The question of working additional shifts in some classes of factories should also be worth going into, as a means of increasing,output and reducing, overhead costs. Every possible effort of course should be made to transfer labour from unproductive to productive employment. Formidable as our total economic and financial problems undoubtedly are, it should be recognised also that the Dominion is faced by such an opportunity for industrial progress and expansion as it has never had before.