The Grey River Argus TUESDAY, December 14, 1943. STATE INTEREST IN INDUSTRY.

Grey River Argus, 14 December 1943, Page 4

The Grey River Argus TUESDAY, December 14, 1943. STATE INTEREST IN INDUSTRY.

'Whatever its immediate significance in relation to the duration of the Avar, the cessation of Home Guard training is a pointer to Hie time when manpower will no longer be monopolised by military necessity, and when .'new problems of economy must be faced. . In Australia the Labour Convention is about to consider post-war policy, and it may be expected to study industrial reconstruction on a basis of cooperation between the State and private enterprise, as well as on that of an extension of State initiative. The Commonwealth has laid out on factories vast sums cf public money, and it is scarcely to be expected" that it will allow these to become “windfalls” for private capitalists. Regional planning in industry must be undertaken by Australia, and no dcubt more is going to be heard in New Zealand of a better distribution of several manufacturing industries. The extent to which the government during the war has changed the industrial pattern of any country will be the extent to Avhdch it - will be able to exert pressure in the direction of a better distribution. The best example is probably the United States, where the con-j version of Avar industries over to j peace production has become a. | topic almost as much discussed as the Avar itself. blunerous

leading managers whom the Government has employed to organise the war economy are now returning to their own businesses and getting ready for peace. Tt is pointed out that among vast marketing and other changes, (he western States no longer depend on the eastern ones for steel. New industries have arisen, such as that of magnesium. But the major factor is undoubtedly the enormous development of government enterprise. Thirty times the amount of government money is being spent in this war than was spent in the last, there having been over eighteen billion dollars sunk in war production factories, some entirely State-owned, and some owned jointly by the State and private corporations. Of new money invested in these plants, the War Production Board estimates the Government’s share as follows:— Explosives, 99.6 per cent.; shipyards 96 per cent.; aircraft. 93 per cent,.; ammunition, 90 per cent.; gun factories, 90 per cent.; chemicals 81.5 per cent.; vehicles, 86.3 per cent. The point is that so deeply is the Government now committed that it is not likely to pull out of business. If it did withdraw, indeed, there might be a repetition of the great depression, and there certainly would be great dislocation and no little unemployment. Mr. Curtin recently was reported to favour for Australia a postwar policy of controlled capitalism, rather than a general change to industrial nationalisation. He has doubtless in mind this matter of joint government and private interest in various undertakings. In the United States the same question has given rise to advocacy of mixed corporations of State and private capital, especially in the production of aluminium. chemicals, magnesium, synthetic rubber, aircraft and ships. Whatever will minimise unemployment will be the solution most in favour. Governments are as a result of Avar industry in a position to-day where they can influence the competitive position in key industries, thereby having the opportunity to stop monopolists from ousting competitors. It will be interesting to sec in what degree trust's will come thus under a cheek, especially in the United States. In New Zealand the Government has itself carried out a good share of war production and financed a lot more. It should thereby be able to- assist in minimising unemployment, and will have a direct interest in regulating competition, alike from internal and external sources. Moreover, governments may find it necessary to finance the restoration of many enterprises which peace tyill find in want of support. It is fortunate, therefore, that primary production is meantime most self-sup-porting. Should more manpower now become available for it in New Zealand, the country when peace comes should be able to play an important and not unprofitable part in the general post-war restoration by providing inuch- needed materials for food and clothing.