THE New Zealand Herald AND DAILY SOUTHERN CROSS THURSDAY, OCTOBER 6, 1938 ARRESTED DEVELOPMENT

New Zealand Herald, Volume LXXV, Issue 23161, 6 October 1938, Page 12

THE New Zealand Herald AND DAILY SOUTHERN CROSS THURSDAY, OCTOBER 6, 1938 ARRESTED DEVELOPMENT

What New Zealand needs to-day more than anything else are renewed incentives for the expansion of industry, both primary and secondary. The Dominion is suffering from arrested development. Many important industrial and commercial projects stand postponed because confidence in the country's future under the present Government is lacking. Much capital has emigrated for the same reason and cases are on record of investment moneys being deterred from entering the country. Nor is it only a question of confidence; high establishment and working costs, punishing taxation and constant State interference raise forbidding barriers against new enterprise. Worst of all in its ultimate effects is the denial of opportunity to young -men and women, so that many of the best of them —highly qualified, venturesome and keen—have reluctantly to renounce their native : country to seek openings abroad, where they can find, a ready market for their knowledge, ability and energy. The loss of this good young 'felood is going to cost New Zealand dear unless on October 15 the electors rid themselves of the incubus of the Labour Government and its levelling-down philosophy. The creeping paralysis that at present affects primary and secondary industry can only' -be cured by returning the Nationalists with their programme of allowing industry to live and expand and of encouraging new enterprise to start up. Mr.* Hamilton promises to harness "idle productive capacity" by restoring conditions in which it will Be used to increase the national income. instead of, as at present, making heavy drains on it for unemployment relief, uneconomic public works, and swollen departmental staffs. The failure of these methods to put people back into regular work is proved by the fact that on the latest returns 40,950 persons were dependent on the Employment Fund. That "explains why the people have this year to pay over £5,000,000 in wages tax and levy to cope with an unemployment problem that, Mr. Armstrong says, has been abolished. The numbers are made up in this way: — Registered 2,154 On sustenance . . .. 8,000 Paid from fund . . 35,796 Total .... V. 45,950 Mr. Armstrong does not admit the 35,796 to his official return of unemployment, but, as they would be unemployed if work were not made for them, the people can draw their own conclusion. No more convincing proof could be offered that industry is stagnant in this country and development arrested . than that almost" 46,000 should fail to find regular w or k in times of so-called prosperity. Nor is-that all. At the latest official return, no less than 22,358 were engaged on public works, most of • them not reproductive and few of an urgent, nature, at a cost of over £20,000,000, Had the national economy been functioning normally, with insistent for from factory and field, and for building and trade and transport, «o vast a programme of public works had not been necessary. Normally, in fact, only half the total, or about 11,000 j(ien/ 4 would be placed on public works, the rest being required for regular jobs. To this 11,000 above normal hajs to be added the 14,000 extra added to the staffs of other State departments since Labour took office. Thus the Government at the present moment is making jobs or providing sustenance for over 70,000 people, made up as follows

Employment Fund . . 45,950 Extra public workers 1 11,000 Extra public servants 14,000 Total . . .... 70,950 All cannot be well with an economy that needs so much abnormal support. All cannot be well in these so-called good times when so much labour has to be diverted into unproductive State channels. If the Government would acknowledge that its true end is the socialist State, and that it sought insidiously but steadily to strangle private enterprise and destroy private property, its administration could be explained. Without that acknowledgment, it can only be described as ruinous blufidering. Contrast New Zealand's slack condition with Australia's bounding energy. In the Commonwealth, under wise government, labour and capital have entered into a working partnership. Never in Australia's history have there been fewer trade union members out of regular work, never fewer dependent on employment funds. Not only are Australian workers supplying more of Australia's needs foist the import returns show they are supplying more and more of New Zealand's. The Government's policy here has displaced Dominion workers and made more jobs for Australian men and women. Not only that, but New Zealand capital is following New Zealand orders across the • Tasman. The emigration of capital in the last year is estimated at £7,500,000, and surely it is mpre than a coincidence to find Australia welcoming the immigration of £7,500,000 new capital in tne same period. More than anything else New Zealand needs tq arrange the same working partnership of labour and capital that Australia has achieved so impressively. But that consummation devoutly to be wished will be defeated by the. hostile policy of the so-called Labour Government,* and more and more people will have to look to the State in this land of arrested development, unless electors demand on October 15 that Mr. Hamilton.'be returned to reduce taxation, curtail State interference, isncourage industry and enterprise, and restore V:. freer economy).