Wairarapa Times-Age FRIDAY, APRIL 18, 1941. POST WAR RECONSTRUCTION.

Wairarapa Times-Age, 18 April 1941, Page 4

Wairarapa Times-Age FRIDAY, APRIL 18, 1941. POST WAR RECONSTRUCTION.

interesting outline -of plans for post-war reconstruction was given by the Minister of Finance, Mr Nash, in a report to the Labour Parly Conference. Even with the war still to be fought and won, too much attention can hardly be given, to plans and preparations in this category. The primary, call upon national energy and resources meantime of course is in prosecuting' the war, but a methodical and wisely-directed strengthening of the national economy during the war period may be made to do much, also, to open the way to an enterprising and unhampered expansion of industrial and other activities when the war is over.

An approach from this standpoint to the problems involved in the management of both war and post-war economy is demanded obviously in the existing circumstances of the Dominion. There is, for instance, an increasing shortage of many kinds of consumers’ goods. In the extent to which this shortage is made inevitable by the internal development of war production —as, for example, in clothing and other trades —or by a reduction of imports occasioned by the necessity of husbanding sterling funds or the failure of oversea sources of supply, this shortage must be and no doubt will be accepted in a good spirit as a necessary and desirable contribution, in one form, to the national war effort.

In the. extent, however, to which the shortage is capable, of being made good by drawing on unused resources, or on resources that are being used, less effectively in other ways, the position calls for review. In a country as lightly organised and developed industrially as New Zealand, and even when full account is taken of the present difficulty of obtaining machinery or plant from overseas, assurances in general terms that the manufacturing industries of the Dominion' are doing everything in their power towards meeting demands should not be accepted too readily. It is the primary condition of a. worthy war effort and of a worthy preparation for after-war reconstruction that enterprising and advantageous use should be made of all our resources.

Whatever can be done to expand genuinely productive industry during the war period will not only confer immediate benefits, but will be a. valuable preparation for and contribution to after-war reconstruction. A. fundamental fact that greatly needs to be grasped and acted upon in this country is that the expansion of production satisfying internal needs also creates markets for new production. In our recent history we have had for extended periods the experience of having to sell large quantities of excellent export produce at ruinously low prices. At times great increases in production, have brought to the producers returns no greater than they had obtained previously for a smaller volume of exports. Limits will be set to this unhappy state of affairs in the extent to which we develop efficient and more varied forms of production within our own borders.

Tn his report to the Labour Party Conference, Mr Nash said that: “The post-war world will show greater industrial activity in New Zealand than before the war.” It must be hoped that he is right. Should events prove him to have been, in. this matter, a. true .prophet, there should be little need, in the postwar period, to rely upon any abnormal expansion of public works as a means of providing employment for returned soldiers and other parts of the population. The Finance Minister, in his report, referred both to public works and’to the expansion of primary and secondary industry. Much that he had to say about facilitating the absorption of returned soldiers into both primary and secondary industry, by making provision lor training and in other ways, will be approved unreservedly.

Where soldier settlement, is concerned, it should be agreed by all that, there must be no repetition of the disasters and tragedies that followed on the last war. It. is necessary not only to avoid establishing soldier settlers on land boomed to preposterous prices, but. to take full and careful account of the marketing outlook. In the conditions that exist, and are developing, we are faced by the prospect, or at all events the possibility, of restricted or diminishing markets for some leading items of primary produce. To say the least, no obvious ease is made out, in these circumstances, for building up some classes of production for export. No doubt, however, there are other branches of production from the land which may be opened up advantageously in New Zealand. A start has been made with the cultivation of linen flax and sugar beet, and the growth of tobacco and some other commercial plants appear still to be capable of great expansion in New Zealand. The question of the direct association of secondary industry with land industry —a development which has been carried well past the experimental stage in the United States, should also be worthy of the fullest, investigation in this country.

Courage and enterprise, based upon loyally to just principles and ideals, are needed to win the war. They will be needed equally in solving the problems of post-war reconstruction, and are needed now in building al least the approaches to an effective attack on those problems. In the experience of the last twenty years we have learned much of what must be avoided, if we wish io escape a repetition of disaster, in the shaping of onr national policy and the management of our economic affairs as lime goes on. If we have taken to heart the lessons of what we have hitherto called the post-war period, we shall not again allow our productive energies to be paralysed as they were in the period of the great-slump, with results that have not even yet. disappeared. An enterprising and efficientexpansion of productive industry, over the greatest, range that, our resources and opportunities will permit, is and will continue to be the key to the establishment of the highest, attainable level of material prosperity. It is t.lie key, also, to an honest and faithful discharge of the obligation we owe to our soldiers.