OUTLOOK IN AUSTRALIA.

New Zealand Herald, Volume LXVI, Issue 20405, 6 November 1929, Page 16

OUTLOOK IN AUSTRALIA.

MANY PROBLEMS AHEAD. t HIGH COST OF LIVING. NEW ZEALANDERS' IMPRESSIONS. Although tlio chango of Government in Australia has not caused disquiet, economic conditions are far from satisfactory, according to several New Zealand business men who arrived at Auckland by tho Maheno from Sydney yesterday. Mr. P. Selig, formerly managing director of tho Christchurch Press, said that unemployment was moro acuto now than it had been at any previous time in Australia. Mr. Scullin, tho new Prime Minister, was looked on as a sano Labour man, and tlio inclination of the people was to give him a chance. The economic, industrial and financial problems, in conjunction with tho largo deficit, were such that Australia needed very careful and wise administration.

It was recognised that Mr. Bruce had made a tactical blunder in attacking the Arbitration Court, although tho principle of doing away with duplication of awards was sound. Tho people on the whole woio satisfied that tho dual control of industry by tho Federal and State Courts was an obstaclo to industry; in fact, tho waste of money in duplicated legislation was appalling. A Possible Solution. A leader of industry in America had said in conversation with Mr. Selig that ho thought tho apparent absence of thrift in Sydnoy was bad for tlio future of tho country. Ho suggested that a remedy for tlio industrial welfare would bo profitsharing schemes and payment by results wherever practicable, and also round-tablo conferences with tho men. These proposals, however, would bo difficult of consummation, as tlioy would be subject to interference by tho Court tribunals and the Labour leaders. The cost of living in Sydney seemed to becomo greater every day, Mr. Selig said. Tho prices of food and other necessities, with the possiblo one exception of boots made in Australia, were higher than those ruling in Now Zealand. As an indication of tho hard times being experienced, Mr. Selig mentioned that he had noticed numbers of shops and offices to let in tho leading thoroughfares, and it was scarcely believable that there were over 1000 flats to let in and around Sydney. Notwithstanding this largo new blocks of flats were still going up. New Zealand Better Off. Mr. J. P. Stevenson, of Auckland, who spent tlireo weeks in Sydney, remarked that owing to the high cost of living a man with £6 a week in Auckland would be as well or better off than one with £lO a week in Sydney. The rent of the cheapest kind of unfurnished flat was £2 10s a week, whilo furnished flats went up to six or seven guineas, aud even more in the best localities. "I certainly think they arc up against it, and I would far rather be in New Zealand than in Australia at present," Mr. Stevenson added. Merchants were having to give very much more extended credit to retailers than was the practice in New Zealand—from 60 to 90 days in Australia, compared with settlement on the of the month following purchase, as in New Zealand. Mr. A. Hanna, of Auckland, said that while in Svdnoy he noticed a tightening of the money market, due to the coming huge debt redemption. lie referred to ;i local body needing a loan of £500,000, which the Government's policy appeared to be blocking.