NEW ZEALAND’S PROSPERITY

Press, Volume LXXIV, Issue 22305, 20 January 1938, Page 10

NEW ZEALAND’S PROSPERITY

MR SAVAGE REVIEWS TRADE FIGURES INCREASES IN WAGES AND PRODUCTION PEOPLE’S SHARE OF NATIONAL INCOME (From Our Parliamentary Reporter.! WELLINGTON, January 19A new high prosperity level is claimed for the Dominion by the Prime Minister (the Rt. Hon. M. J. Savage) in a statement made this evening. Mr Savage, quoting official Government statistics, disclosed some of the increases which have taken place in several trade and business channels in the Dominion during the last year.

Some of these increases are: —

Value of production, 40 per cent, increase.

Factory production—a new record by more than £5tg.15,000,000.

Factory employment, an increase of 21 per cent, in two years.

Total wages bill of New Zealand, an increase of 40 per cent. Note circulation, an increase of 41 per cent.

“A stocktaking in New Zealand just now shows that people have resumed industrial and business activities this year in conditions of remarkable buoyancy,” said the Prime Minister. “It can. be fairly claimed that two years of Labour government have brought New Zealand to the highest level of prosperity it has ever experienced. The official returns break all previous records — in fact, the latest statistical abstract giving the figures of production and general business last year is a record —a smashing number. “So far little or nothing has been said about results, but the people ought to know exactly what is being done and how firm are the prospects for continuance of prosperity. The chart has never been better. “For example, the Government Statistician says that the value of production last year was £136,000,000, representing an increase of 40 per cent. This sum is £ 10,000,000 more than the previous record figure in the boom year of 1928-29. It follows that the gam in the value of production will be reflected this financial year in the national income figures, which are likely to be much higher than last year’s total of £ 140,000,000.

Record Factory Production

“An outstanding record was also achieved in factory production for the 1936-37 year,” Mr Savage added. “The value of production was just on £106,000,000. This amount is far ahead of the previous record of about £91,000,000 in 1929-30. The details show that people are earning their increased wages. These also reached a record level last year, the amount of factory wages being £ 18,383,000 compared with £ 16,840,000 at the height of the boom eight years ago. “Employment in our factories has shown an increase of 21 per cent, in two years. The number employed is more than 96,000, this also being a record. The total wages paid in New Zealand within the last two years have risen from more than £67,000,000 to £94,000,000, an increase of 40 per cent.” Banking Returns The buoyancy at record levels has been shown during the: period in business activity as emphasised by the banking figures. Cheque transactions show an increase of 34 per cent, in two years, while the note circulation has increased by 41 per cent. “The people have had more money to spend, and they have spent freely to the benefit of business and the community generally. In other words, the policy of the Government in practice has established conditions which have made this record prosperity possible and are still maintaining it. All the returns show that the people are enjoying their prosperity and that more people than ever before are sharing to a larger extent in an increased national income. If that were not so it would be idle to talk of ‘better times.’ ”