LOANS FOR INDUSTRY

Evening Post, Volume CX, Issue 112, 8 November 1930, Page 13

LOANS FOR INDUSTRY

INSTEAD OF PUBLIC WORKS

NOVEL SUGGESTION

The novel suggestion that some at least of the loan money available this year iu Australia might profitably be jused for the' assistance of private enterprise, in place of expending it all upou more or less uhremunerative public works was made by Mr. Gullett, M.H.K., at a Nationalist rally, Says the "Daily Pictorial." Mr.'Gullett. pointed out that Government loan expenditure this year would be reduced to £15,000,000, a reduction that would lead many workerc Uithprto employed on Government undertakings to seek work in the channels of private enterprise. It was essential that these and the rest of the unemployed should be re-engaged as soon as possible. The question arose as to whether a more profitable way eduld be found for the expenditure of a substantial part of the £15,000,000 of loan money than upon public works. "Such an avenue," said Mr. Gullett, '' could be found for the expenditure of loan money through the medium of private enterprise." .' WITH SAFEGUARDS. A big factor in to-day's depression, ho pointed out, was financial stringency, leading to reduced turnover and unemployment. ; Industries could be found, however, which, if they had capital, could, even at the present time, carry on profitably and pick up much unemployment. . . '' Government loan money made availr able to them after thorough investigation and under proper safeguards," Mr. Gullett went on, "would have a sound prospect of becoming reproductive as against the very dubious reproductivity. of most public works." Public money was applied in this way iu Britain and also in Germany, France, and other great industrial countries. Mr. Gullett suggested that honorary State and Federal Committees, presided over by a Minister, could investigate applications for advances, and concerns which were assisted could be required to subscribe at least pound for pound -against loan money advanced by . the : Governments. ' The Government would . thus bo really the debenture holders with .a first call over all assets. . ■: ■ ;