WAR ECONOMY

Wairarapa Times-Age, 22 March 1943, Page 4

WAR ECONOMY

CHANGES IN AUSTRALIAN | NATIONAL LIFE PRODUCTION AND ARMY REQUIREMENTS. SURVEY OF GENERAL SITUATION. (Special Australian Correspondent.) SYDNEY, March 18. With the launching of the third Liberty Loan of £100,000,000 and the passage through both Houses of Parliament of the disputed Income Tax Bill, making Australian taxation the highest among the United democracies this country ’is now confirmed and estab- ’ lished in its “austerity” war routine. Changes in the Commonwealth’s national life have been sharpened in re--1 cent months by an intensified war eco- * nomy. Today almost seven out of 3 every ten of Australia’s working population (five millions in a total popula--1 tion of seven millions) are employed r in support of the war effort —in the ’ fighting forces, industry and essential ' civilian services. The impact of a tremendous change-over from normal I peace-time production and economy is , now being increasingly felt, j FOOD POSITION. I Primary producers are warning that r the approaching winter will see the - Commonwealth faced by some food shortages. Additional manpower is ad- : mitted to be the solution of this probr lem, but Mr Curtin is adamant in re- , sisting pressure to release Service men i for primary production. “When the al--3 ter native is men to fight or a shortage 3 in some foods,” he said, “we must tighten our belts.” Today milk is , quota-rationed for civilian consumption and some other items, such as beef : and fish, are scarce) Vegetables and I fruit are in short supply in the cities ■ and prices are high. Because of a dis- - pute in the baking industry bread was virtually unprocurable in Sydney for three-days this week. However, while rationing of more foodstuffs is probable before the end of the year no one will go hungry or lack essentials ■to health. Like New Zealand, > Australia is feeding great numbers of* American troops in the Southern Pacific. STRINGENT RATIONING. Australian clothes rationing already is more stringent than in New Zealand and the scale is expected to be made even more severe next June. Australians will be given a lessening opportunity to spend their money. For example, it is likely that fewer lines of furniture may be permitted (only twenty per cent of the pre-war output is now being produced) and that the entertainment industry will have to surrender more manpower. Liquors and tobaccos are in short supply and retailers carefully husband their rationed stocks. Because of the liquor shortage it is not uncommon for hotel bars to be closed on two or three consecutive days. The barley shortage may result in a further curtailment of the beer quota. Many country hotels are so short of manpower that they are unable to serve meals to travellers and can provide only beds. City cafe . diners have become used to the maximum charges of 4s for lunch and 5s for dinner—and nowadays one seldom hears the terms: “Austerity meals.” INDUSTRIAL TROUBLES. The brownout in Australian cities has not been modified to the same extent as in New Zealand and there has been no reintroduction of late night shopping. Many stores now display notices of: “Be kind to our staff, they are harder to get than customers.” While by no means free of industrial troubles (including absenteeism and stoppages) these were reduced in 1942 to almost one-third of their 1941 proportions. This compares very favourably with the figures of Britain and the United States. The .main criticisms against Mr Curtin’s Labour Government (which is in office only with the support of two Independent members and lacks a Senate majority) has been, based on the handling of industrial disputes and the threat of financial inflation.' The pre-war cost of living in Australia has been increased more than 22 per cent against 13 per cent reported for New Zealand. MR CURTIN’S STANDING. Mr Curtin, succeeding Messrs Menzies and Fadden, as Australia’s third wartime Prime Minister, enjoys personally the wholehearted support of all nterests. While there has been agitation for a National Government so far few disputed that Mr Curtin is the Australian best fitted to lead such a Government. Most of the Canberra political correspondents believe Mr Curtin’s personal popularity will carry the day for Labour, if an election is held at this juncture—although many believe Labour’s popularity is waning. > The war has made Australians increasingly conscious of the need for developing overseas relationships. New Zealand affairs recently have , been much more prominent in the news than was the case even six months ago. Australia, faced with postwar social rehabilitation and housing ] problems is striving to learn from New Zealand’s experience in these matters. ] While all emphasism here is still on winning the war the shape of things to come after the war is being increasingly discussed and the department under the control of the Federal Treasurer, Mr Chifley, already is working on post-war reconstruction prob- ( lems. k