STATE CONTROL OF INDUSTRY

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

STATE CONTROL OF INDUSTRY

Minister’s Views EXPECTED POSITION AFTER THE WAR

Dominion Special Service. WAIRAKEI, November 18.

The opinion that the Rubicon, from individual freedom in industry to control in the national iriterest, had been passed in many countries was expressed by the Minister of Industries and Commerce, Mr. Sullivan, when addressr ing tlie New Zealand Manufacturers’ Federation today. There were individuals and groups of individuals both here and in ether lands who had firmly fixed their faith to what they called freedom, he said, but was it not freedom to exploit, to cut or to raise prices unduly, to create uneconomic competition and redundancy? Actually, that was not freedom, he considered, but licence. "Today,” said Mr. Sullivan, “we are directing our energies to the successful prosecution of the war. To that end all our activity must be subject to eo-ordiuated control. Insofar as control is essential for war and regulations have been promulgated to that end you have been assured that as soon at it is expedient after the war to remove them they will be removed. But there are other measures of control that are not related to war. There are modern trends that point to the fact that Government control in many cases will be more necessary than ever after the war. In an article criticizing the Industrial Efficiency Act, ‘Jobson’s Investment Digest’, of August 15, 1941, has this to say: ‘. . . . to promote new industries and enhance the efficiency of existing industries. This is just what New Zealand needs. Her primary industries cannot absorb many more workers or produce much more wealth. The economic development of the country is inevitably dependent on the development of secondary industries. For this Government assistance is essential.’ If then, Government assistance is essential and I believe it is—as trustees of the public purse we must guard the public interest. , “I am sure that you as manufacturers would not like to see control go completely by the. board. Such a removal would soon see industry m parlous plight. A flood of cheap manufactured goods from countries with a low standard of wages and. living; a frenzied and ruthless fighting for a limited market; a return one might almost say to jungle law, would soon follow the lifting of what are necessary restraints. Protection by Control.

“Prominent citizens and leading organizations have asked for control measures to be taken to protect sectional interests. If, then, control is deemed necessary to protect one section of the community, is it not justifiable to exert control in the wider national interest? . . . Monetary control is necessary to stabilize our economy; price control has been designed to prevent un'due rises in prices; petrol supplies are controlled in the interests of national safety; import control was necessary to save sterling and to give you, as manufacturers, your first real opportunity. For the rehabilitation of our men now overseas, I believe planning is vitally necessary, and I feel that iu the future development of New Zealand, Government aid and reasonable control will be necessary. Meanwhile, our job is to win the war. “We shall be faced after victory has been achieved with conditions of a totally unprecedented character throughout the world, 'but particularly in Europe. We have, I think, learned in the past half-century that as with people so with nations —one section cannot be prosperous while another is suffering economic hardship. There is something else that we have learned, something that always impinges on our economic life in time of war. We have learned that there is apparently no limit to the amount of money which can be raised for the real needs of the warring nations. If, then, money can be raised to be used iu a manner economically wasteful, surely we can raise money for productive development. That is a question of Empire significance and import; a question of world-wide import. Following the war there jntiy be a vast development of Umpire production and development, and we will possibly have a further duty of providing food for hungry people.”