N.Z. WARNED OF DANGERS AHEAD

Gisborne Herald, Volume LXXV, Issue 22569, 24 February 1948, Page 6

N.Z. WARNED OF DANGERS AHEAD

NO EASY COURSE

CRISIS REPERCUSSIONS HERE HARD WORK SOLUTION (I*.A.) WELLINGTON, Feb. 24. "I am convinced that we cannot too often emphasise in these difficult days that our standard of living mast be earned by the,sweat of our brows: it cannot merely be dictated nor can it be secured by tiie easy expedient of handing out extra pieces of paper money.” This was stated by Mr. Leslie Lefeaux, former Governor of the Reserve Bank of New Zealand, when he addressed the quarterly dinner meeting of the Hutt Valley Chamber of Commerce and Industry last night. "Can anyone deny that this is one of the great crises of the world, and especially of the British race'.’” he asked. He felt .therefore, that they of British stock should put away ail ]'. - t:v considerations and consider ti.ebroader issue. The position of Bri tain we. t'd have repercussions here before long Guaranteed Trice It might be. sooner or later, that a problem might arise in connection with Lis guaranteed price if the return from exports fell. What was produced was largely a matter for themselves; what was obtained for the surplus exportable was beyond their control. Nevertheless, ihe country’s standard of living depended in the main on the level of its production and not the national income expressed in terms ot inonev. the speaker proceeded. There was. too, a limit to the amount of overhead charges which could be borne by any country as well as by any m austriul organisation. Standards of living might be endan gered by either of two causes: by reduction in the output of individual producers. or bv a reduction in their numbers in comparison with the test of the community. He disagreed with a lot of the criti cism of the profit motive. Lower Standard of Living If people's activities were compulsorily restricted, or if they were deprived of the fruits of their labour by excessive taxation, their output would lend to decrease, and the country s s’andard ot living would fall to that extent. Atter all. it was the efforts of those who worked harder than average which made possible any assistance to those who contributed less than the average. Was it likely manv would continue to work harder than their fellows to enable them to reduce their working hours to considerably less than their own? Primary producers had responded magnificently to the call for maximum production in ihe war and were ill doing so to provide food for Britain, Mr. Lefeaux‘said. Was there not a risk that, sooner or later, their output might become affected if much easier conditions than theirs obtained elsewhere and at the same time 'hey were not allowed to retain a re." 'vible proportion of the fruits of their production? Mr. Lefeaux said the true test ot the 40-hour week lay in whether it would, in good times or bad, provide those things, including amenities and health measures, which they required In relatively prosperous times surpluses should be accumulated against the rainy day. Total Cost of Production If a rainy day should come, it would be little use going to Britain, as in the past, for a loan to tide over. New Zealand had been something iike a cyclist riding downhill with a following wind. The damage seemed to lie in that the wind might change and f he road lie uphill. Were the lasting qualities of .energy and enterprise being developed which would fit the people to withstand adverse conditions? Or was there a danger of one section becoming overtired wnile others took things too easily with an inclination to lea 1 on the Government if things went wrong? ‘‘One thing is clear.” he said. “It is the combined efforts of t h e community as a whole which will deter mine your standard of living as a country, and a high standard means plenty of goods and services available to the people; not merely big monetary incomes.”