PRODUCTION & COSTS

Wairarapa Times-Age, 17 October 1940, Page 6

PRODUCTION & COSTS

CONFERENCE PROPOSALS SUGGESTED STABILISATION. REDUCTIONS IN PUBLIC EXPENDITURE. (By Telegraph—Press Association.) WELLINGTON, This Day. The General Working Committee of the Economic Stabilisation Conference has made a number of recommendations in which it states that it has attempted to ensure that, commensurate with a maximum war effort: — (1) Sufficient of the necessities of life will be available to all. (2) Shortages in the supply of goods will be spread fairly over the whole community.

(3) The prices of goods necessary for 1 the maintenance of a fair standard of living shall be kept down as much as possible. (4) The goods value of the pound will as far as possible remain constant. The committee recommends that the Dominion should as far as possible pay for the war as it goes, firstly by taxation, and secondly by internal borrowing. In fairness to Britain, overseas borrowing should be reduced to a minimum, but while labour and materials are available, it would be unwise to refrain from using them in furtherance of the war effort, even if this ne- j cessitates overseas borrowing. ( Primary production, particularly of f the goods Britain specially needs, should be developed with the utmost efficiency. The Government should consider overcoming the farm labour difficulty, which in the main results , from the disparity between labour conditions on farms and elsewhere. Increased production is urgently needed in all industries producing for war purposes, and in others such as footwear, clothing and building. The Trades Committee agrees that in industries where the need for increased production is shown, every effort should be made to achieve it by any or all of the following:— (1) An adequate supply of materials. (2) The best possible use of available labour. (3) Additional hours of work where these are found necessary. The committee recommends that a greater measure of co-operation between employers and employees should be set up. It is necessary that the policy of import control should be continued. While recognising the good work ot the Price Tribunal, the committee considers that administering and policing and the present degree of price control must be greatly improved. The committee agrees that considerable savings could be effected by the adoption of standards. To assist in the stabilisation of prices, an effort should be made. Standardisation should be improved and expanded. In addition to wages, salaries and rents, the prices of the following categories of essential commodities and services should be stabilised: Foodstuffs, standard articles of clothing footwear and household necessities, public services, fuel and light. In connection with housing, the committee agrees that the present rate of building is well below bare requirements, and that the capital cost of building is unduly high. It makes recommendations designed to overcome these difficulties, including the remission of the sales tax on major items of building materials. All State and local body expenditure should be carefully surveyed, with the object of effecting a reduction and economies wherever possible. . . The committee affirms the principle that no one shall profit out of the war. UNITED EFFORT URGED BY PRIME MINISTER. MORE NECESSARY THAN EVER. 1 (By Telegraph—Press Association.) 1 WELLINGTON, This Day. ' Addressing the Economic Stabilisa- ' tion Conference, which reassembled today to consider the Working Committee’s report, the Prime Minister (Mi Fraser) said that since the conference first met the tide of war had rolled nearer New Zealand’s shores. No man could say what the future or near future had in store for this country, and it was the more necessary and urgent at the present time to throw all measures that would tend toward cohesion and solidarity into the effort required. The committee had heard a great num- ) ber of witnesses, and long-range evidence had been placed before it, and it was now ready to report to the _ full ! conference. The main object of the r conference was to get together in 3 friendly consultation representatives ol all sections of the community, and to gauge production and distribution so that they would arrive at some means s of helping the country. The first object d was to get the greatest measure of y unity to enable them to find a basis d upon which all interests could work, e The conference went into committee to consider the report.