BACK TO INDUSTRY

Evening Post, Volume CXL, Issue 58, 6 September 1945, Page 9

BACK TO INDUSTRY

MEN FROM OVERSEAS

UNEMPLOYMENT AHEAD?

The need for making provision to reabsorb returned servicemen, into industry was stressed by Mr. E. B. K. Gordon (National, Rangitikei) in his Budget speech in the House of Representatives yesterday. He said the Budget did not contain one proposal that stipulated increased employment, nor one proposal that would stimulate increased employment. As he saw the position, with so many men returning from service overseas, the Government would have an unemployment problem on its hands. Plans should have been made before now for the utilisation of those men in industry, and the Government should give a lead -with the object of encouraging industry to expand. ■ -, ■ If the men could not be employed they would be placed in public works camps, which was a most undesirable solution. The men had been promised useful work on their return and the Government had shown a great lack of foresight in failing to visualise the position in the event of large drafts coming back quickly. Industry should have been encouraged by a reduction of taxation, and the abolition of many of the restrictions imposed.

OVERSEAS PROJECTS.

The Government had failed in its duty in not making it possible to encourage overseas industries to expand their factories to New Zealand. The greatest incentive in peacetime for increased production was the profit motive and the easiest way to do that was by reducing taxation. The excess profits tax was agreed to for war purposes, but the Minister of Finance had forgotten that the war was over. It was more important to provide useful jobs for returned men than it was to show a large surplus'in next year's Budget. A farmer had written to him suggesting that production could be increased if the extra production did.not involve extra taxation. It was a proposal that the excess profits tax should go.