N.Z. INDUSTRIES

Evening Post, Volume CXXIV, Issue 62, 10 September 1937, Page 17

N.Z. INDUSTRIES

ECONOMIC PROBLEMS

In the fourth of the series of lectures on "Some Economic Problems of New Zealand," Mr. F. B. Stephens, M.A., 8.C0m., discussed the question of secondary industries in New Zealand.

After a brief historical discussion of the growth of secondary industries in New Zealand, during which it was pointed out that the relative position of secondary industries had remained practically constant since 1900, the lecturer suggested that the policy of tariff protection by itself had proved ineffectual as a means of stimulating a greater diversity of economic activity in New Zealan^. The fact that the economic welfare of New Zealand was so closely.tied up with the rei turns from primary products and that , the prices of these products fluctuated 'much more widely than the prices of [manufactured commodities, suggested that unless there was some change in the economic structure, New Zealand must always be subject to wide fluctuations in economic welfare. The policy of industrial promotion which increased the relative importance of secondary industries in the Dominion must, however, reduce the fluctuations and must react favourably to New Zealand as a whole. ' I

INDUSTRIAL EFFICIENCY ACT.

The Industrial Efficiency Act was carefully examined and many of the implications of that Act were discussed in detail. The lecturer concluded that 'there were many problems associated with the Act, yet if it were administered not as an individual piece of legislation, but as a part of the general pblicy aimed at the stabilisation of conditions in New Zealand, it was bound to react favourably to New Zealand as a whole. The lecturer did not suggest that New Zealand should aim at complete self-sufficiency, which was not only impracticable but impossible, but it was suggested that there were certain lines of production, in particular the production of ultimate consumer goods, in which New Zealand could with great advantage increase her selfsufficiency. The whole problem, however, was bound up with problems of the tariff, transport, taxation, and similar problems.

A keen discussion followed. The next lecture will be on the subject of taxation.