PROTECTION OF ECONOMY

Press, Volume XCII, Issue 27750, 30 August 1955, Page 8

PROTECTION OF ECONOMY

MINISTER'S WARNING ON NEW MEASURES “SOMEONE MUST GET HURT ” (New Zealand Press Association) AUCKLAND. August 29. A warning not to accept the present easily and uncritically without considering the future was given by the Minister of Industries and Commerce 'Mr D. J Evre) to the Auckland Manufacturers' Association tonight. To overcome the problems of the demand for more goods than overseas returns could finance, the Government was cutting back on the effective demand, reducing the amount of credit availab’c from the banks, limiting any expansionist potential and cutting down on inflationary trends.

'We are entering." he said, “a relatively new field, new to us and new t? - e au .*h° r, t£es in other countries. I» is obvious that if our new attack ™ to® disease is effective, it must, in the short run. hurt someone. Manumay find ,hat thev ran no longer finance extensions which they them^ r m Vlt . a lL y “pessary to enable th»? t ‘ tbe ~ ncr?r ant demands for « 7?'*’ " hich ,hev believe till 1 the r ' :oa nsion of essen- ? rodu Sj lo n They may find be"ns t - hat the demands have be--2?™ 1 ? . 1 incessant. This is part of he intent behind these measures.”

„ » “ p,Ur y ®f Caution” • «f.F yre said ,h ' l rea son whv he was meas!,res which were re-j-"L g ? econdar y industry from the wh. ! r£ d ? dvan . ce J was the same as that Dromn ted prudent commercial liSrinf ? Ur .u e ? POhcy ot caution and to th< *. future when their rewere strained. .J*,, 6 the rauntry was enjoying really prosperous times, signs were reached 1 th “ r* 13 -*. ” misht have abou * t^end^ d^ h thl lnut of such eXDa nsionist ~?? ds as the economy could support e«? r a P , r T n h?i On ? itions - “ was nnt nSb- U been *° sell washing «??oi ne .ti e ? rigerators ’ and other con-

nil Si. re sa ‘ d ’* cou, d well be that production insome lines seemed to be getting out of touch with realities it S’urer? ’ ? at " hi,e ‘he manudemand eftlmates ° f total potential ?h?y d . were reasonably accurate the t?l ’? a,es Ot their °wn shares Of E? ‘ ‘ -?, e . r ® unduly optimistic ealn? r£u ? "’ ,d ’ lal « tin > a «ra could teSnl ? _ Over -P r oduction in tota effective demand. These do . me stic manufacturers have hT?,yh C , U 2 f s ? me imports misht temporary overafSX M™?? 1 ans Y;ers to this state of anairs, Mr Eyre said, were stocktaking ’bxertising campaign?: nwt reductions, and replanned prbducmlhv hl'fh d *2 todav micht nor?t. rr? the development of new outF S ° me of these manufactured P?" d ’ overseas—not as a dumping ground to overcome a temnorary embuiX S ? Pnt as a long-term aid Tn unit costs throughout and reducing