The Grey River Argus TUESDAY, February 25, 1941. ADAPTATION OF N.Z. INDUSTRY.

Grey River Argus, 25 February 1941, Page 4

The Grey River Argus TUESDAY, February 25, 1941. ADAPTATION OF N.Z. INDUSTRY.

Advocates of industrial expansion,' some of whom lack a sense of proportion, ought to recognise in the figures to-day published by the Minister of Industries and Commerce a growth already that has, to say the least, been fully adequate for a country with a population no greater than our own. Indeed, the outlook is not such as sheds a rosy light upon the proposal of Mr. J. A. Lee that taxes ought to be remitted to factory owners in order that they may further develop their . plant and thereby employ additional people. If Britain is any criterion, and her line is some guide even at this distance, factory production presently in this country may be extensively diverted from consumer goods to war materials. It is certainly a fortunate circumstance that in the past five years secondary industry has so largely grown as to prompt in some minds the notion that there is no limit to further expansion. Since the Government took office nearly thirty thousand workers have been added to the pay-rolls of productive industry, according to the Hon. D. G. Sullivan, the increase in factory employees last year having been 6,287 to a total of 108,722, whose wages amounted to almost twenty-five and a half million pounds, an increase for the twelve months of £1,190,539. The value of the output was almost cue hundred and thirty million pounds, an increase on the preceding year of more than fifteen millions. Thus to about eighty-five million pounds worth of material the factory workers and plant added last year a value exceeding forty-four millions. Surely this picture of activity denotes that every reasonable opportunity for development has been exploited and that the Government must have given encouragement to the fullest extent of its ability, despite the fact that the year was characterised by increasing war obligations. There is, however, another side to the picture of which the public cannot lose sight. A message . in this issue illustrates the diversion of factory activity in Britain to war production in a remarkable degree. Not only luxury goods, but essential ones, are being reduced in output by one-third and one-half, and being in some in- ’ stances entirely suspended. At present we have in the Dominion a mission from the Commonwealth to discuss the restrictive effects which the war is exerting upon factory production, transport, and commerce generally. It is obvious that, apart from lack of materials, the transport limitations mean a narrowing market, and the position meantime has to be studied from that standpoint. The Governments of all British countries counsel people to exercise a wise economy in'expenditure so that prices may not be unduly raised as supplies contract, the remedy being to direct for the present what in less critical times would be welcome spending power into channels that will facilitate in conduct of the war to an early victorious result. The Prime Minister has just indicated that sacrifices and difficulties in our economic life are becoming so inevitable as to necessitate the establishment of an Advisory

Council. The purpose in view is that of concentrating - nian-pov.'er and machinery upon those I onus of production which are most. essential in the existing situation. The Government expects soon to call a conference with a view to obtaining the support of all concerned for a truly national cooperative effort in the directing of which it is intended that there shall participate with the Government, Parliament, and the organisations of employees and workers representing all branches of activity in both primary and secondary industry. As the shipping shortage is one factor in this matter, it may be expected that some new forms of production will be inaugurated, whilst it is probable that some present forms may need to be apprecL ably curtailed. This is not, indeed, to say that there is going to be a lack of opportunity for those at present employed, but it doos suggest the necessity for a 1 willingness on the part of many to transfer their labour to such activities as the Avar effort may dictate. Incidentally, the Government will not be lacking in its support for such new’ enterprises, and there will be no question of capitalists being deprived of means of co-operation on account of the higher rate of taxation which the Avar has entailed upon each and every section of the community. As Mr. Fraser says, avc have as our most insistent objective that of enabling the Dominion to emerge, from present and prospective trials, with its social and economic standards either intact or recoverable, and even this is going to mean organisation and goodAvill on the part of the Avhole population. In other Avords, ‘ there Avill be sacrifices to be made, and these before it behoves anybody to proclaim that conditions shall be altered immediately so as to obviate any ■ further sacrifices. The latest particulars as to Britain’s sacrifices are designed to illustrate for us the meaning of the more intensified phase of Avar upon which the British Commonwealth is entering. lienee, New Zealanders, while preparing to take their share, can, on reflection, feel satisfied Avith their economic development and the ability it affords them for co-operation with Britain.