AUSTRALIA PROSPERS

Dominion, Volume 31, Issue 96, 18 January 1938, Page 8

AUSTRALIA PROSPERS

Flourishing Conditions Soundly Based

REDUCED EXPENDITURE ON PUBLIC WORKS By Telegraph—Press Association. Auckland, January 17. The general prosperity that is at present ruling in Australia was commented upon by Sir Henry Gullett, a former Commonwealth Cabinet Minister, who arrived by the Awatea on a holiday visit to the Dominion, accompanied by Lady Gullett. Sir Henry said the country had experienced other boom years, such as in 1926, 1927 and 1928, but to-day’s prosperity was soundly based on production.

“Australia has never been so prosperous,’’ Sir Henry said. “This is due to the same conditions that you have enjoyed in New Zealand. We have had a number of good seasons on the whole and remarkably high prices have been obtained for all classes of primary products.” Results in the eastern States had not been so satisfactory this season, and it had not been a first-class year for lambs, Sir Henry added. On the other hand, the wheat harvest had been good, and the present prices were highly profitable. The nourishing state of affairs applied alike to primary . and secondary industries and to business generally. There, was still some unemployment, but it was very close to normal, the figures being below’ those for 1928, which was a boom year. For children leaving school there were plenty of avenues of work open. Sir Henry pointed out that public works expenditure throughout Australia had been very heavily reduced, and was still falling. That was, he contended, the best indication of good times. So many workers were being absorbed by private enterprise with a consequent, reduction in the unemployment figures that the necessity for expenditure on large public works was diminishing. Most States wore eertainly carrying fairly robust public works policies, but . they were not abnormal. Except for £2,000,000 obtained abroad last year, Australia had not borrowed a penny overseas since 1929. Sir Henry said the £2,000,000 was part of £11,500,000 which the country was spending on defence this year, the total being the highest peace-time defence expenditure the country had ever known.