Employment level commended

Press, 17 August 1977, Page 2

Employment level commended

From D. L. FYFE in Wellington

New Zealand was the only Western country so far that had maintained anything like full employment. the former Secretary to the Treasury, Mr H. G. Lang, told the electoral committee of the Meat and Wool Boards yesterday.

Mr Lang who is now a director of the Wool Marketing Cornoration, in the absence overseas of two directors, said that if the level of employment in Australia was transferred to New eala nd there would be about 80,000 unemployed.

The key to maintaining full employment was the maintenance of a reasonable incomes policy. Since the turn of the century, Mr Lang said, he believed that there had been a situation where it was recognised by almost common consent that the trade unions did not use all the "muscle" that they had. The test now was whether unions would accept conciliation and arbitration, or whether the more militant unions would insist on using their "full muscle.”

Mr Lang said he n.ought there was a fair chance that the trade unions would accept the

more moderate stance. In that situation, it was important that other sectors of the community should also be seen to be doing their part. In the past, said Mr Lang, there had been a tendency to take the safe options. Now, however, a stage had been reached where this was no longer possible. If it was wished to continue to have full employment decisions had to be made which might hurt in the short term if a reasonable level of economic growth was to be obtained.

Mr Lang said that New Zealand would do that.

.Answering a question, -Mr Lang said he could not agree ..that the reason why New Zealand had fewer unemployed was that it had a largely agriculturally based economy rather than an industrial one. In the last major recession. when New Zealand had an even more agriculturally based economy, the country had had more unemployed than other countries.

The reason why there was little unemployment was that both major political parties gave full employment higher priority than in other countries. Mr Lang said.