COSTS

Press, Volume LXXIV, Issue 22551, 5 November 1938, Page 24

COSTS

TO THB EDITOH Or THI PKESS. Sir,—lt seems to me that New Zealand will soon be classed as a huge lunatic asylum, as our legislation is only applicable to a large, wealthy, and thoroughly self-contained country, instead of a small, -sparsely-populated place, dependent for its living oh the export of primary produce, which has to meet the keen competition of the whole world.

In such circumstances it surely must be obvious to the meanest intelligence that costs of production must necessarily be. kept down to the lowest possible level. This is, of course, not being done—quite the reverse, in fact,—as costs have been steadily increased until.' to ease the situation, subsidies have had to be paid to sections of primary producers to enable them to exist. That such subsidies will need to be not only increased as costs grow, but also extended to cover all primary produce is clear, and will eventually involve the payment of an amount quite beyond the capacity of the country to bear.

The resultant economic position is obvious.

The trouble is that the economic policy of the country is allowed to be determined by a few men who are unfortunately devoid of business experience, and who allow their hearts to rule their heads. They emphatically state that certain things are economically quite possible, and, like a pack of children, tßeir blind followers believe them, without thinking matters out for themselves.

Apart from the question of subsidies for primary producers, the enormous expense which will be involved in the social security scheme will be enough in itself gradually to effect, a stranglehold on the country. In this connexion it is most sincerely to be hoped that the friendly societies will do all in their power to keep going, so that when the social security scheme crashes they will be in a position to continue with their good work, and not be forced to start de novo. As regards unemployment, little or no provision is made. Mr Armstrong states that there will be no unemployment by March 31 next, and, of course, he is correct!

Taking a long view of the position, I consider that it is just as well that Labour secured a majority at.the last election, as the result will undoubtedly show up the utter lack of business sense displayed in Labour legislation, and thus serve as a valuable lesson for the future. Responsible members of the Government have repeatedly stated that present commitments cannot be met without a large increase in production, but what do we find? Decreased efficiency and go-slow methods, not to mention numerous strikes. Our legislation is breeding a nation of leaners, with no incentive for individual effort, and with the State as a prop! It is a fact that the less work we humans are called upon to perform the less we desire to do. The utter fallacy of the Labour politicians' view that the 40-hour week would mean an increase in production owing to the improved stamina has been exploded. Unless Labour is brought up with a round turn, production will gradually go on decreasing, and Unfortunately the Government will find it almost impossible to combat the tendency as it is the slave of the Federation of Labour, and dare not go too far with its masters. Payment by results should be introduced, thus creating a reward for willingness and efficiency. I stress the point that both these attributes, willingness and efficiency, must be present, as in the absence of either the elimintion of those failing to pass the test must be effected. Such failures should be allotted a class of work fitted to 'their physical and mental calibre. Such a system seems to be the only method of increasing production. It is manifestly unfair and demoralising to place efficient men alongside inefficient men and expect good results. The efficient men are surely entitled to their full reward, and should not be called upon to carry the inefficients on their backs as they are expected to do under the present system. The Government is certainly not in an enviable position, and it will find the utmost difficulty in straightening things out, but the present position has been brought about by its constant pandering to the one class, which now thinks that the Government is there merely to do its bidding—without any regard to the general welfare of the community as a whole. This is called Socialism!—-Yours, etc., i „^^„ NEW ZEALANDER. November 4, 1938.