PLACE FOR ALL

Dominion, Volume 35, Issue 47, 19 November 1941, Page 8

PLACE FOR ALL

Ideal Of Balanced

Economy POST-WAR PROBLEMS Primary And Secondary Production Dominion Special Service. WAIRAKEI, November IS. A balanced national economy, with all phases of primary and secondary production working in harmony together, was advanced as an ideal by "Mr. C. V. Smith, Dunedin, in his presidential address to the conference of the New Zealand Manufacturers’ Association today. He wag speaking with particular reference to post-war readjustments. “It is very difficult in these days, of course, to talk about industry without treading ou the toes of some other section of the public, such as farmer or importer.” said Mr. Smith. ‘ Yet in actual fact there is a place for every section. The prosperity of one section reflects in the prosperity of tlie others, and if the publie generally was educated to the true economics of the position and not influenced by statements published by parties interested in their own personal affairs rather than in national affairs, and behind which there is usually another story, I can visualize that New Zealand could enjoy as high a .measure of prosperity as any country in the world. In other words, by means of that education we could secure amicably a ‘balanced economy,’ which Is something we have not hjid in the past.

Delay in Recovery.

“It is obvious from our experience following the last war, that shipping and other trade channels will not be completely re-established for some years after actual hostilities cease. Granting a similar inevitable delay in getting back to normal on this occa-. sion, though strong efforts are already being made to cushion the worst effects, it is clear that industrially speaking we will be thrown on our own resources to a very large, extent, not only in meeting the needs of New Zealand, but in providing foodstuff’s for the people of England. “It is possible that, in the period of post-war reconstruction Britain will wish to transfer some of her population to countries such as this, while the whole system of production within the Empire might conceivably undergo radical readjustment in the light of war experience. Oue thing, however, is certain; that we as manufacturers are destined to play a major part in these developments, and if we are to achieve the balanced economy I have cited as our national ideal, all phases of production must work in harmony together. Providing Employment. “No matter what the external conditions may be after the war, we must find work for our own people, and you can only do so in two sound ways. You can absorb some in primary production —but not many—and you can absorb some in factory industry where there are tens of thousands of opportunities if the situation U correctly handled. There are also two unsound ways of planning the future. You cau build a nation of Government servants .and public workers, or you can depopulate New Zealand. In New Zealand we boast about almost everything in the country except the goods that our own New Zealanders are making, and we have only to compare that outlook with the Australian and Canadian outlook on their own products, to see that till now we have stood still both in population and industrial development, while other Dominions have forged ahead. “Now let us first take the ease of the farmer. A prominent speaker in the last Budget debate in Parliament recently said that no factory could exist for six months without imports, and that the farmer must produce the money for these imports. He omitted to mention, unintentionally I know, that the opposite is equally true. The farmer needs imports, he needs the manufacturing processes of his owu products, he needs the local market, he needs somebody to pay the taxation of the country, and above all he needs avenues of employment for bis children. Farmers’ Troubles. "I know the farmer’s troubles. One of them is the fact that he has to take what he is given for his products, though his price has no relation to his costs. Tliat is a very real problem, but I think that it can be lessened considerably by departing from his policy of relying entirely on butter, wool, cheese and meat. These are precarious products at any time and the first two may be particularly precarious in the future We iu this country need a much more diversified programme, more modern and intensive methods, better cheese and better bacon, more attention to other types of produce and their uses —such as tinned foods, asparagus, vegetables fruits, meats, milk products such as casein, sugar of milk, condensed milk; wines, sugar, seeds, oranges, linen flax, tobacco, maize. Soya beans, for example, offer immense possibilities both as a food and as a basis for industry, while our tinned vegetables and fruit hate been proved under test to be without peer in any part of the world. Afforestation. particularly in New Zealand where trees of all sorts grow so fast, offers perhaps the greatest opportunity of all, though it is a matter more for the Government than an individual farmer. "The solution of the farmers problem—and he has a real problem-lies along the lines of more diversified, more modern and more intensite fanning, with industrial production assisting him to make the fullest use of Ills output. If this scheme is to be a success, our young people must be trained accordingly, which means, in short, encouraging more boys aud girls to go in for agriculture. Post-War Problems. "Today, to cope with the heavy press of work,* both for local and war needs, many of our factories are working two or three shifts, while others are working many hours of overtime, and there are more people engaged in factory industry than at any other period in our history. After the war, when production for .military requirements suddenly ceases, these industries will no longer need the same number of workers, and there will be a serious collapse if strong steps are not taken to anticipate it. Soldiers will be returning from the battle-front quite rightly expecting a place in industry and commerce, and we might conceivably be faced with a sudden migration of people from the Homeland. “Now, if you agree with me that the economic future of our country depends upon the simultaneous development of the primary and manufacturing industries—first by means of diversified and intensive farming, and secondly by both the scientific processing of the products of the farm, and manufacturing generally—then you will appreciate my concluding point, which is an appeal to

all sections of the community to give serious thought to the problems winch lie ahead. Though I have pointed out the effect that import control has had on New Zealand industry, 1 am not blind to its many disadvantages. I realize that import control was introduced to save our sterling exchange. It was not introduced as a pian to expand New Zealand industry, and in this fact lies its many weaknesses from the manufacturers’ and importers’ angle. I look forward to the day when it can bo abolished in its present form, and a simpler method introduced. 1 look forward much more, however, to the day when, through the excellence ot our products and the national consciousness of the New Zealand public only the minimum amount of protection will be necessary.”