PROMOTING WORK

New Zealand Herald, Volume LXXII, Issue 22260, 7 November 1935, Page 15

PROMOTING WORK

GOVERNMENT POLICY PUBLIC ACTIVITIES ENCOURAGEMENT OF INDUSTRY SCHEMES FOR DEVELOPMENT [BY TELEGRAPH—SPECIAL REPORTER] PAPAROA, Wednesday In continuation of liis campaign for Kaipara tho Minister of Finance, Mr. Coates, moved into tho northern part of his electorate to-dav, using Paparoa as n base, and addressed meetings at Taipulia and Marohemo. Tfio policy of tho Government to promote employment through tho encouragement of private industry, supported by some expansion in public works, according to carefully-devised programmes, was one of the main points discussed by Mr. Coates at his meetings to-day. Dealing with the problem of public works, he said that even during the worst years of the depression there had never been a • complete cessation of activities in that direction. However, in a time of acuto depression a prudent Government was forced to take account of certain factors limiting the extent to which loan expenditure could be pushed with safety. An unduly expansive loan policy would have defeated the attempts of the Government to bring down interest rates, while at the same time tho annual loan charges would have imposed an additional burden on the Budget until such time as the works became reproductive. Time lor Expansion The Government now felt that the time was approaching for an expansion of public works activity and provision had already been made in this direction in the Estimates for the current year. He had already made a pronouncement relating to tho Government's public works programme and to the scheme of works to be undertaken in co-operation with the Unemployment Board. Mr. Coates wished to emphasise that tho expenditure of loan money would be confined to such amounts as would bo justified by tho financial returns. Any additional charges on tho Budget would bo at least covered by the direct or indirect return. The long-range programme of the Government would be undertaken in co-operation with the Unemployment Board and full consideration would be given to the bearing of public works on the unemployment problem. However, a permanent solution of that problem could not be found through public works alone. Their function was to utilise fully the resources of the country which were at present unused, including resources of labour pnwer, while at the same time providing a useful stimulus to employment in private industry. Restoration of Confidence The main attack on the unemployment problem must be in the direction of encouraging private employment. This was all the more important because the Dominion's employable population was increasing, and there was a tendency for labour to be displaced by the increased use of machinery and more economical methods of production. "The reconstruction measures of the Government during the past few years have been directed toward establishing a sound basis on which private enterprise can expand with confidence," said Mr. Coates. "The considerable improvement within the last two years shows that this policy has succeeded, while the success of the Government in balancing the Budget has removed one factor of uncertainty. It ensures to the business men that taxation will not be increased, and offers the prospect of tax reductions at an early date. Return to Productive Work "For some time the Government has been working 011 proposals which should give positive encouragement to the development of private industry. Measures are already under consideration providing a basis and a procedure for co-operation between the Government and interested groups. In addition, specific schemes of industrial development are actually being discussed at present. If negotiations relating to one particular project can be successfully concluded, permanent employment will bo provided for as many as 1700 men. "The housing policy of the Government will also provide a strong impetus for employment in the building trades, while the survey into the natural resources of tho country already commenced in Hawke's Bay, North Auckland and tho Waikato, will ultimately cover tho wholo of tho Dominion, and will provide a body of knowledge of inestimable value to those with capital to invest. "In these ways and by promoting legislation facilitating the voluntary reorganisation and co-ordination . of* industry, the more effectivo utilisation of our resources will be assured," Mr. Coates concluded, "and tho unemployed returned to full productive work." BAY Or PLENTY MR. BARKER DENIES RUMOUR [BY TELEGRAPH —OWN CORRESPONDENT] WHAKATANE, Wednesday In an address at the Kaitaratahi hall Mr. H. L. Barker, the Democrat candidate for Bay of Plenty, gave an emphatic denial to rumours that the Democrats would support Labour 011 the Treasury benches. New Zealand had already had the Democrats' attitudo to Labour clearly defined by their leader, Mr. T. C. A. Hislop, and statements contrary to his public remarks were merely' being used as propaganda against tho Democrat Party.