The Press THURSDAY, MAY 24, 1962. Economic Planning

Press, Volume CI, Issue 29830, 24 May 1962, Page 12

The Press THURSDAY, MAY 24, 1962. Economic Planning

The Prime Minister (Mr Holyoake) has no need to apologise for his advocacy of positive, long-term economic planning in New Zealand. Whether they like it or not, all Governments by the policy decisions they must make influence decisively the growth and development of the nation. Planning means no more than making such decisions conform to a logical programme. It need not entail any more interference with nationalised or private industries than we accept already—probably a good deal less. What industries should be encouraged and protected, and how? Should farming, manufacturing, or servicing’ have first claim on our resources? How should capital be shared between social and productive purposes? These are the questions that cannot be answered properly without reference to some over-all outline —and no such plan exists or has ever existed in New Zealand. Indeed, we have had no “economic general “ staff ” capable of preparing one since the Labour Government, moved by Ministerial and departmental jealousies, scrapped the Organisation for National Development in 1946 The deficiency has not been made good by setting lip several new organisations, including the Monetary and Economic Council, which has the power and

resources to discuss these issues in only the broadest terms. If Mr Holyoake fills the void he will perform a great national service, perhaps the greatest within his reach.

W’hether anything as comprehensive as the Organisation for National Development, or as cumbersome, is now required is questionable. But the general principles on which it was founded are as sound as they were 20 years ago. Basically, it was to provide the machinery by which the State, local government, and private enterprise of all kinds could fix targets and priorities, in the light of which all sectors of the economy could make their decisions. The organisation could not, however, make the decisions, responsibility for which would have remained with the Government and with business. If Mr Holyoake wishes to consider other forms, which are not really very different, he can study the planning authorities in. say, France and the United Kingdom, the former brilliantly successful, the latter as yet unproved. What he cannot do, and still call it planning, is to continue making decisions, as his predecessors did. to suit particular political or economic circumstances affecting part of the nation without full understanding of their effect on the economy as a whole.