Hard To Keep N.Z.’s Living Standards

Press, Volume CII, Issue 30126, 9 May 1963, Page 17

Hard To Keep N.Z.’s Living Standards

* r In the next 10 years New Zealand must increase her gross exchange earnings by a cumulative sum of at least £25 million to £3O million annually to maintain even her present standard of living, said an Auckland management consultant, Mr R. S. Milne, yesterday. He said to maintain this standard of living was a “tall order.” Mr Milne was giving a lecture titled “Modern Management in Manufacturing Industry” at the New Zealand Institute of Public Administration convention.

It had been shown, he said, that New Zealand could maintain its present level of living standards only by an increase in exports, a reduction in imports, and closely linked to this, an improvement in the level and rate of growth of our total productivity. This increment, said Mr Milne, could not be achieved solely from New Zealand's farming section. The other sectors must contribute substantially to export earnings, import reduction and general productivity increase. The most potent section for achieving this must be the manufacturing sector. It had the opportunity for export, the means for import reduction or substitution, and the methods for increasing productivity. Job Not Easy The marshalling and mobilising of resources to meet this challenge would not be easy, said Mr Milne. Even given the physical and financial resources, the technological knowledge and skills, and an abundant supply of highly-skilled labour, the job would still not be easy. The burden of marshalling and mobilising resources to meet this challenge satisfactorily rested solely on the shoulders of “the agent of development”—the manager. Courses of action suited to rapid and productive industrialisation suggested by Mr Milne, included: Increasing the status, competence, and participation in management by foremen; encouraging the gifted minority who pioneered small businesses and built big businesses; increasing the number of firms in the medium-size group (above 200 staff) in which productivity was high; and decompressing salary structures to pay foremen and top executives higher salaries. Community Attitude Mr Milne said that something would need to be done in New Zealand to ensure that the community attitude and actions toward the manufacturing industry, were directed towards acceleration.

future community welfare and future community living standards. This was imperative in our industrialising future. Mr Milne saw a rapid development in management skills as an hnperattvs it New Zealand was to force on with what looked like an inevitable industrialisation. Mr Milne said that managers in New Zealand were predominantly a young to middle-aged group. The social status, prestige and recognition of managers as a group had begun to act as an attraction for recruits. On the question of pay. the foremen, for added responsibility got little above his subordinates in New Zealand. Recognition for the foreman and technicians was lacking today in New Zealand. The characteristic most important in management for the future was management's relative youth, he said.

What was called for, said Mr Milne, was “a joint action strategy of mass offensive.” Mr Milne said that one could not escape the conclusion that, if we lacked one vital thing in New Zealand at the moment, it was a clear and specific statement of objectives, that is a statement of objectives which the economy must reach within a specified time. It also needed a further statement of the ways and means of achieving these objectives. Mr Milne said that though we might wish to escape joint action, we could hardly escape responsibility for