INDUSTRIAL PLANS AND POLICY

Evening Post, Volume CXXXIX, Issue 100, 30 April 1945, Page 4

INDUSTRIAL PLANS AND POLICY

Replying recently to representations by the United Kingdom Manufacturers' and New Zealand Representatives' Association, the Minister of Finance stated that after meeting loan and other commitments the balance of sterling funds available would determine the extent to which import licences might be granted. Import licences, said Mr. Nash, would first be granted (a) to meet the demands for maintenance and modernising of machinery and equipment necessary for the production of essential goods in New Zealand and (b) for the importation of other essential goods not available from the production of the Dominion. In a comment at the time we said that this statement must be considered in the light of the policy to be followed by the Dominion for the development of secondary industries. The Government has been subjected to considerable criticism because.of its failure to give industry any real guide as to the part it may be expected to play in assisting in postwar national reconstruction* a failure which contrasts sharply with measures already being put into operation in other countries, and notably in Great Britain. This lack of information has undoubtedly hampered 'industry in making its own plans, with any degree of confidence, for meeting the many problems that will arise during the period of transition from a war to a peace economy, and has given rise to some misgivings as to the extent to which the Government will seek to exercise control over industry. There is a feeling that instead of Contenting itself with performing its proper function of creating the conditions that will enable industry to make a maximum contribution to national reconstruction—a course which is being pursued in Great Britain—the Government may endeavour, by controls and other measures, to dictate the course of future developments.

The need for intelligent planning to overcome successfully the difficulties of the transition period is evident, and from that point of view the survey which the Minister of Supply proposes that the Organisation of National Development should make, perhaps rather belatedly, of likely developments in the manufacturing industries is welcome. Under the spur of war conditions New Zealand industry has shown that it' is capable of great development and that it can produce many types of goods which before the war were considered beyond its scope. Provided there are proper safeguards— that the industries are economic and conform with the national interestsuch development will be desirable and should play an important part in realising the goal of full and useful employment for all. The information which Mr. Sullivan seeks will be helpful, but what use will be made of it must depend on the nature of the general economic policy the Government intends to follow. And that at present is largely an unknown factor. ' Manufacturing development is obviously closely related to other factors of great importance, not the least of which is New Zealand's obligation to the rest of the world, and especially to the United Kingdom. While Mr. Sullivan is entitled to expect the assistance of industry in supplying him with the information he seeks, an assurance .that industry will be left as free as possible to make its own plans for post-war development and to carry them out would be an added incentive to full co-operation.