DOMINION'S PRODUCTION.

New Zealand Herald, Volume LXII, Issue 19209, 24 December 1925, Page 10

DOMINION'S PRODUCTION.

One of the most valuable investigations undertaken by the Government Statistician is designed to furnish a reliable measure of the volume of production in New Zealand. The inquiry is beset with difficulties, many of which cannot be overcome, so that its conclusions cannot be regarded as exact, 1 ut if it is conducted on a uniform system the results for successive years may be accepted as a trustworthy indication of the general tendency. Tho results of tho inquiry for 1023-24 have been published in the latest issue of the year book, a vast amount of painstaking labour having been necessary to produce the brief chapter on the subject. The most striking fact is that for the first time the value of production has exceeded one hundred millions, the actual figure being <£105,958,8.59, Bj allowing for the growth of population and variations in prices the statistician arrives at an index of "relativo productive activity,"' or of the physical volume of production if prices and population had remained constant. Upon this basis, "productive activity" was lower in 1915-16 than in 1910-11, the year selected as the base, and continued to decline until 1919-20, when it was only 75.2 per cent of the corresponding degree of production in 1910-11. There was an improvement in 192021 to 76.9 per cent., followed by a decline to 76.2 per cent., but 192223 recorded a promising increase to 83.7 per cent., which was continued in 1923-24 to 85.8 per cent. These index figures are as nearly as possible a measure of the average individual effort of the whole population, and, as the statistician acknowledges, are open to criticism. Wide fluctuations may be occasioned from year to year through large additions to the population by natural increase. which would not immediately assist in material production, or by migration, which might not be immediately absorbed in productive enterprises. The question of outstanding importance is whether, with the assistance of additional population, the total volume of production has increased. Calculations from the official figures produce the following result: —

Production. At 1910-11 Per Prices. cent. £ £ 1910-11 .. 51,904,442 51,904,442 100.0 1921-22 .. 89,859,579 48,757,232 93.9 1922-23 .. 99,096,122 54,628,512 105.2 1923-24 .. 105,958,939 56,753,583 109.3

Population in 1923-2-4 was nearly 28 per cent, greater than in 1910-11, and the value of production was more than double, hut the latter expansion was almost wholly due to higher prices. Measured in tons and bales and bushels, the increase in 13 years was only 9.3 per cent. In view of all the dangers and difficulties of the period, it is gratifying and probably remarkable that there has been any physical growth at all, but the margin is a very small safeguard against the instability of high prices.