MORE PRODUCTION NEEDED

Press, Volume LXXXV, Issue 25913, 20 September 1949, Page 6

MORE PRODUCTION NEEDED

COMMENT BY MR HOLLAND EFFECT ON N.Z. DISCUSSED Goods imported by Britain from the United States would be dearer by about 30 per cent., but the position in New Zealand would be very much worse, said the Leader of the Opposition (Mr S. G. Holland) yesterday when, at the annual meeting of the Canterbury Employers’ Association, he discussed the devaluation of sterling. In New Zealand there would be duties, taxes, and other charges on top of the additional 30 per cent., he said, and American goods would probably be 50 per cent, dearer, and in some cases 60 per cent. There was a possibility that the alteration might be of some advantage to New Zealand, as the United States would be able to bid higher prices for the New Zealand produce such as wool, tallow, hides, skins, and pelts which she wanted. However, if America forced the price of wool up on a free market, the local mills would have to follow, and pay more for their requirements, so that the subsidy paid by New Zealanders would be greater. Another possible advantage to New Zealand was that American tourists would find visits to New Zealand cheaper, said Mr Holland, and more people might visit the country. However, Australia would be even cheaper for tourists, and many might prefer to go there. “Where Britain goes we go.’.’ had been stated in New Zealand many times, said Mr Holland. Some persons might wonder why New Zealand. a sovereign country, could not fix its own rate of exchange with the United States. If it did it would have to live on its dollar earnings, and would not be able to do as it had in the past—borrow dollars from the pool in Britain. Before Britain was any better off she must increase her exports to the United States by more than 30 per cent. That was a tremendous task, said Mr Holland, and it emphasised that too much attention had been paid to the distribution of wealth and | not enough to the production of I wealth. I No one should forget that Britain’s diflQculties were caused mainly by war I sacrifices, he said, but there were other factors that must be considered. | The output a man hour in America in all aspects of national economy was almost double that of Britain. * America had great natural rei sources, and had not been devastated ' by war. but it had an efficient inI dustrial system, and its economy was I based on private enterprise. “The ■ one country that can support the I highest standard of living is the count v y founded on a system of rugged 1 individualism and private enterprise.’ j he said. ■ “I have always held that the private enterprise system owned and | operated by individuals will always I out-perform any system centralised in any capital of any country and maini ly dominated by the State.” I Few persons realised the extent to I which New Zealand was living on capital. Mr Holland continued. In | the United States earnings had been ; allowed to be sufficient to allow for j industrial expansion and maintenance. but in New Zealand there was I an absence of incentives, and there i were taxation penalties on efficiency" 1 “More production is the only soluI to the problem.” Mr Holland concluded. “and we find these word-’ being bandied about freely, but almost every act of the Government seems to stand in the wav of more production.”