The State of the Nation

New Zealand Listener, Volume 29, Issue 740, 18 September 1953, Page 12

The State of the Nation

ECONOMIC SURVEY, 1953, presented by the Rt. Hon. S..G. Holland, Prime Minister and Minister of Finance; Government Printer; 2/..

(Reviewed by

W.

Rosenberg

HE more one looks at political developments in this country the more one is convinced that a fundamental political change has occurred between the 1930’s and the present time: Prior to 1939 New Zealand had a twoparty regime of the British type where parties represented different ideologies. Since the end of the war the difference between the parties seems to have become.that between the ins and the outs. In other words, New Zealand: seems to have adopted the American style of government where the outsider just cannot understand what. is the difference between the two parties. Reading the Government’s Economic Survey, 1953, one is struck by the similarity of outlook between our present: Government and that of any alternative administration. And the reason for this similarity is simple: the parties have agreed, more or less, on a common 6ob-jective-and that ‘is that the present economic structure is to be maintained

in its essential private enterprise shape backed by a considerable public sector. But they have also agreed that the private enterprise system is continuously on trial, namely, that it must produce the goods that make possible continuously rising standards of living. And since standards of living arfé so closely wrapped up with production. there is unanimity about the need for greater production. If we take the common objective of greater production for greater welfare in a private enterprise society, and put it in the environment of the New Zealand of 1953. we get tg Economic Survey, * 1953. This survey etarte out with the fact that we will be three. millions in this country .by 1975, assuming present trends to continue. Well, if we wish to maintain our living standards, three millions Means. 21,000 new houses every year, over 5000 new classrooms within 10 years, several hundred thousand kwh. new electricity generation, more railways, roads, bridges; a new telephone system; some 3000 more hospital beds and so forth, To finance such expenditure we must raise production-first and foremost primary production. So the survey -con-

templates the problem of improving ap--proximately ten million acres of occupied marginal hill country in the North Island, The present yearly rate of development of unimproved land is about 80,000 acres, of which 30,000 acres are developed by private owners and the remainder by the Lands and Survey and

Maori Affairs Departments. This development will continue. ‘ In all, the survey assumes that it is realistic to expect an agricultural production increase of the order of 30 per cent in New Zealand as a whole by 1975, Forestry and manufacturing are other branches of production which will

require expansion if employment and liviing standards are to be spanteined, and raised. Everyone realises that so tit and widespread a programme of development will make great demands on the nation’s savings, and since taxation is one of the main forms of savings public finance policy is no longer free to be used as a political playball. Current expenditure will have to be kept down by any government in power and revenue will have to be kept up, The survey gives the impression that New Zealand is well prepared for the period of development that lies ahead of us, and unless a world slump should overtake us there can be little doubt that the tasks of government as depicted in the Survey, 1953, will be the same in the future-National or Labour: facilitation of the provision of rising living standards ie a rapidly growing population. |