HOPE FOR A CORE

Evening Post, Volume CXXVIII, Issue 45, 22 August 1939, Page 8

HOPE FOR A CORE

"DRASTIC MEASURES'*

COUNTRY'S. DIFFICULTIES

The hope that the steps taken by the Government to cure the financial position of the Dominion will not accentuate the" difficulties they set out to remove was expressed by the advisory board of the New Zealand Timber Merchants' Federation in the report it submitted to the annual .meeting- of the federation last week. "In the last annual report attention was drawn to the fact that for three years a programme of almost unlimited spending had been carried on by the Government, and that, unless heed was given to the need for maintaining a high level of overseas prices, national and industrial difficulties of a. serious nature could be expected to follow," | the report stated. "This forecast has, unfortunately, proved to be correct. The fact that, nationally speaking, we have been living beyond our income has at last become apparent even to the 'Government's most ardent supporters, and the decline in. overseas credits and i the consequent restrictions on imports and on the export of capital are well known to all members. "Within the last few days also the Budget for the forthcoming year has been presented, featuring increases m i taxation in many directions. It is not our province to comment at length onthese matters, but as factors in the present state of industry, and as factors bound to have a big effect-on the immediate future of our industry, they are of importance to our members. IMPORT RESTRICTIONS. "The effect of the drastic curtailment of imports instituted. last December is now fully apparent, and, while the Government has stated Liat workers whose livelihood has been lost as a result of this policy can be and are being steadily absorbed in the new manufacturing industries, the fact remains that unemployment has been created; and, even if of a temporary nature only, has a most depressing effect on industry generally, and this effect must be felt in the timber industry as elsewhere. ; "It is-the sincere hope of the advisory J board that the drastic measures which have been taken to cure what is admittedly a very serious position will j have the desired effect, and that they ! .will not, as may be feared in /ome quarters, accentuate the difficulties they set out to remove."