MEETING HARDSHIPS

Dominion, Volume 38, Issue 20, 18 October 1944, Page 8

MEETING HARDSHIPS

Adjustment Of Claims Under Stabilization MR. FRASER’S COMMENT The Government fully realized that while stabilization must be the guiding principle in dealing with requests for better economic conditions, that did not mean that weaknesses in the system could not be put right, and that just claims should be turned down simply by using the word “stabilization,” said the Prime Minister, Air. Fraser, when addressing delegates at the annual conference of the New Zealand Public Service Association which opened in Wellington yesterday. Ways must be found of adjusting those claims, but he stressed that it should be uo part of the adjustment process that community services should in any way be interrupted. Amid laughter Air. Fraser also observed that the Government’s problem was that everybody approved of stabilization for everybody else but themselves. “There can be no doubt about the inevitable defeat of both Germany and Japan, but we would be very foolish if we built up our thoughts for any future development on an early termination of the war,” said Air. Fraser.' There was always the possibility of an unexpected collapse of Germany, but he did not see signs of it yet. It behoved this country, therefore, as far as its war effort was concerned, its internal economy and its overseas trade, to plan those in accordance with the realities of the situation, Even for a period after the war was over it would be necessary to adopt the same attitude. While he was condent this country would surmount post-war difficulties, it would be foolish not to recognize the possibility of great handicaps in the disposal of some of its exports, particularly wool. “There are very serious problems ahead, on the outcome of which our whole economy and social progress depends, for unless we produce wealth, in sufficient quantities—not just the issuing of money that has a call on that wealth, but actual wealth in goods and services for exchange, overseas for. other commodities we heed to maintain our standard of living—then there is no actual progress.” Nobody who knew anything of wealth, of production and distribution and the intricate financial system could do other than approve of stabilization, he continued. The Government’s problem, however, was that everybody approved of stabilization for everybody else but themselves. “We must get out of that attitude and realize that stabilization was introduced to prevent the country heading for ruin.” The Government was alive to the fact that, though it was the best in the world, the wartime price index had weaknesses. Those had to be rectified, and they were being rectified. It was also recognized that stabilization might impinge on some sections of the community with hardship. When such cases were brought forward they were entitled to receive consideration. Stabilization was fundamental to sound economy during wartime, and might also be necessary for a period after the war. It was correct that all requests for better conditions should be considered in the light of that fundamental and overwhelming principle of stabilization. *> But that did not mean that any weaknesses in the system should not be put right, and that just claims should be turned down simply by using the word stabilization. At the same time, it meant that stabilization must be the over-ruling principle. ________