REORGANISING INDUSTRY

Evening Post, Volume CXV, Issue 148, 26 June 1933, Page 8

REORGANISING INDUSTRY

One of the methods proposed by the National Reconstruction Association for the restoration of industry is the use 'of a limited guarantee which wiU renew confidence. Under experienced guidance such a guarantee may be of great value, but there is scope for even more effective work in the reorganisation of industry so that its added efficiency will win the support of the prudent investor. An association of business men representing all industries cannot participate actively in the control of a par* ticular branch of production, but it can provide machinery and exercise its influence to secure reorganisation. A much-quoted article from "The Times" on the doom of laissez-faire and a recent address by Sir Arthur Salter illustrate this principle. Individual units of industry cannot serve the community efficiently Ai they refuse to. co-operale with each other. Independent action must lead to redundant productive capacity, irregularity in production, and uncertainty |of returns. To remove these defects it is necessary that industries, while retaining full scope for' initiative in the management of individual businesses, should also provide a means of conserving the industry as a whole. In New Zealand we have deemed it advisable to prevent overlapping by securing for the State a monopoly of railway construction, hydro-electric development, and postal and telegraph, communication. Extension of the monopoly system to other fields is avoidable only, by assuring that the benefits of unified control are obtainable byy other means—co-operation* within the industry. A National Reconstruction Association cannot force such cooperation, but it can give a definite and strong lead to its ; members in that direction by demonstrating the benefits of united action and helping to devise machinery for that purpose.