BRIGHTER OUTLOOK.

Auckland Star, Volume LXII, Issue 202, 27 August 1931, Page 3

BRIGHTER OUTLOOK.

CONDITIONS IN DOMINION.

REVIEW BY MR. SPENCER

ADDRESS TO EMPLOYERS

A wide variety of subjects, ranging from unemployment and taxation in New Zealand to Socialistic misrule in Australia and Britain, and "a disgraceful pact" in India, were discussed by Mr. Albert Spencer, president of the Auckland Provincial Employers' Association, in. the course of a long address at the annual meeting of the association this afternoon.

"Wan,t of confidence in the general outlook has been prevalent for some time, but there is now a more optimistic feeling throughout the country," declared Mr. Spencer. "Our primary and secondary industries have had more than their full share of the economic depression, but the present outlook seems much brighter. Our staple products have made some progress towards more stable conditions, and a further improvement is expected in the near future. Our reduced national income will be offset in many directions, and this country, mainly being a food-producing one, will recover from her depression more quickly than the pessimists predicted. Pessimists should remember that the record of this country is good, its credit is high, and its proportion of gold to currency is 120 per cent, as against that of the United States of 111.1 per cent and of Britain of 41.8 per cent."

Under the circumstances, Mr. Spencer said, ho considered it ridiculous that the rate of exchange was against the Dominion, but probably the report of Sir Otto Niemeyer would later be accepted as a basis of financial readjustment, and that should b'e greatly to the benefit of New Zealand. Decline in Value of Exports. Discussing the decline in the value of exports from £47,500,00 last year to £37,000,000 at the end of June of this year, Mr. Spencer considered that they had something to be thankful for that imports had dropped by £11,500,000. Imports would be further curtailed if secondary industries had the support they deserved, and work would be given to thousands of people. He went on to stress the need for economy and the reduction of overhead charges. He traced the decline in the price of primary products, end said that means must be found of making more drastic reductions in costs, which would show the i primary producer a margin of profit.

Criticism of the unproductive work being carried out to give relief to the unemployed followed. There was plenty of productive work to be done, said Mr. Spencer. For instance, teams of fifteen men, under good foremen, could work wonders on the farms of the. country. Camps in this way might move from point to point, and the work would prove of immense benefit to the .whole community. Several teams could also be employed in putting in order abandoned farms. "Wages 'Cut' Too Late." Referring to the wages "cut," Mr. Spencer voiced the opinion that it came fully twelve months too late, and, as a result, some firms were not in a position to extend their operations immediately. Thus it might be some time, particularly in the .secondary industries, before the reduction in wages could be reflected in either a reduction of the cost of manufactured articles or the employment of more labour. A reduction of 12J or 15 per cent would have tended towards a quicker recovery and provided employment for thousands. Now that labour was taking its share of the burden, it would only be fair if all interest charges could be revised. Mr. Spencer expressed the view that England was slowlv but surely realising the "folly" of "sticking to the free trade fetish"; spoke of the_ dumping of foreign goods in Great Britain to the detriment of New Zealand; criticised the philanthropy of the Old Country and the trend of Socialistic misrule; discussed conditions in India, and declared it was utterly futile to give Dominion status to-that country; and commented on the disastrous state of affairs in Australia. Lesson of; Australia. In conclusion, he emphasised the need to take the lesson of Australia to heart. The same destructive forces, he contended, were in our midst, and must be firmly kept in check. In times of prosperity concessions allowed unions were not noticeable, but now that prices had fallen the employers' associations must make a united stand against demands which, if granted, could only result in further curtailment of industry and increases in unem-loyment. Particularly must the Government be urged to L,ke prompt steps to prevent petty and ti\. ial disputes —fanned into a flame by irresponsible agitators—from causing the present bad conditions to be made worse by suspending industrial operations and throwing more men out of emplnvment.