NEW ZEALAND'S POSITION

Evening Post, Volume CXXVII, Issue 147, 24 June 1939, Page 8

NEW ZEALAND'S POSITION

(To the Editor.)

Sir,—Mr. Parlane's accusation of puerility and nonsense should, be directed against his leader who has frequently claimed (I say, has claimed, because today he is silent on that subject) that prosperity came to New Zealand - through his participation in raising wages and shortening hours, and against those of his party who would "spend our way to prosperity with "the sky the limit," and 'every man: living like a millionaire." Your correspondent admits this by saying that "indiscriminate increases or decreases in wages will not solve the problem." Of course they won t nor will the doubling of the note issue, which, I suppose, is one of the simple and sensible methods." ■ _ That there is a problem Mr. Parlane admits. If New Zealand is prosperous, why all this bother? The fact is that the receding prosperity of our farming industries, coupled with lavish internal expenditure on non-pro-ductive works—the higher wages and shorter hours have enormously increased the cost of these works—the creation of a new army of Govern^ ment employees, the hot-house encouragement of new non-economic industries, which, since they cannot possibly lead to an export trade will not help to solve the problem, are undermining our economic position. In conclusion, let me remark that it the "proper balance between pro-! duction and consumption" were maintained, many of the staunchest supporters of a spendthrift Government would be starving. . Let wages be high and hours short if there is a corresponding increase in output. me Labour Party places a false emphasis on consumption, instead of correlating it to production. —I am, etc., , NEW ZEALANDER.