NO OTHER WAY

New Zealand Herald, Volume LXXVI, Issue 23339, 6 May 1939, Page 15

NO OTHER WAY

ME. SAVAGE'S VIEWS REFUSAL TO REDUCE WAGES BORROWING NOT FAVOURED [BY TELEGRAPH —PRESS ASSOCIATION"] WELLINGTON". Friday Replying to the deputation from the Federation of Retailers regarding imports, the Prime Minister, Mr. -Savage, said the speakers had madq, an excellent case for the retention of the standard of life at present enjoyed in New Zealand, but 110 case at all for an alternative means of meeting tho present position. The state of the London funds had forced the curtailment of imports and the Government had chosen what it considered the best way of bringing that about. , The Government had come to power to build up the standard of life, not to destroy it. It was not going to apologise for having lifted the standard of living, which had increased the demand for imports. The problem to-day was how to put tho brake on imports so that the Dominion could continue to pay its way overseas. Ho considered the best way was to secure a better balance in New Zealand by spending less on various public works and more 011 manufacturing goods. Ho agreed that there would be a time lag and some people would be inconvenienced, but no change worth making could be made without some inconvenience. Question of Time

Mr. Savage said he could understand the anxiety of retailers when they could not get goods, but it was a reflection on New Zealand manufacturers to say that they could not fill the gap. It would take some time, but it could be done. They could never manufacture all the requirements in New Zealand, and even if they could they would still have an obligation to purchase overseas because they could not export without takiiig the same value in return.

The Prime Minister said he was not going to argue about anything said by the deputation about the necessaries of life. Radio sets had been mentioned and he agreed that they were no longer luxuries, but part of tho standard life of the people,- but it was not possible to keep on importing at the rate set during tho last few years.

Government's Choice Referring: to methods that could be adopted to meet the shortage in London funds, Mr. Savage said that the Government would not reduce wages or borrow. He added that the position could not be solved by manipulating currency in New Zealand. It could only be solved by exporting more or importing less and the Government had set out to import less. It was alleged that local manufacturers were short of materials, Mr. Savage continued, but he had not met any who were short. He had met some who frankly admitted they had "got the wind up" and imported more than they needed.

"We want to work with you," Mr. Savage said, "but do not tell tis we are not to pay our debts, because we want to do that. Wo will pay our obligations at home and abroad." The Small Shopkeeper The Prime Minister said he did not think the small shopkeeper would disappear and the Government did not want him to disappear. Replying to an invitation, he said he would be delighted to inspect some of the stores in New Zealand to see just what their problems were. "In spite of all the jeering you can read in the papers," he said, "my interests are in the stores and with the people there." Mr. Savage said lie did not see any reason why floor coverings should not be manufactured in New Zealand. He agreed that there would be a time lag and that would have to be investigated. He expressed astonishment at the statement that manufacturers had not replied to inquiries for increased orders. "If they cannot supply tho market we have got to do something," lie declared. "This is not a question of putting the brake on hard and fast and leaving it there." Unalterable Objective When the whole matter was boiled down it was just a question of w-hat alternatives the deputation would like to see put into operation. If there was a better alternative he was looking lor it, but it must enable New Zealand to meet her overseas obligations, while it enabled the internal position to develop so that there would not be a repetition of the present trouble. "While our efForts may alter, our objective never will," Mr. Savage said. "Our objective is to make goods in New Zealand and meet our obligations overseas, but if someone or some section has an idea I want them to say, Here you are; here is the way to get the thing done.' " Better Plan Invited

In conclusion Mr. Savage asked the deputation to prepare a statement setting out a better alternative if one could ne found, and he said that, while thev wore considering that, the statements they bad put forward would be considered by tho Government. If a way could be found to ease tho situation action would be taken, as ho wanted to get a contented and prosperous people in New Zealand and creditors overseas who were not worrying Mr Savage said he realised that the job of expansion of industries could not be done at once, but it should not take very long. ,

trade fetters prevalence in world IRONICAL ENGLISH VIEW . - t A philosophical and rather humorous view of Now Zealand import control policv is taken by the shipping manager of a large English clothing manufacturing company, in a, letter to the company's ]New Zealand agents, under date April 14. _ "You may he quite sure that mvself personally, and this company generally, are fully alive to the serious restrictions recently placed on trade between New Zealand and the Lnitod Kingdom," the writer states. without In any way attempting to minimise the situation, wo have been dealing with this sort of thing in various quarters of the globe for many years. Prior permits, import licences, exchange control, and so on, are, unhappily, the daily bread of United Kingdom exor later a free exchange of commodities is bound to take place between the various nations, pel haps not for another generation or two, but that that time will come is as certain as night follows day, for the reason that, in the present state of civilisation, 110 country can be entirely belfsupporting. The only people who can be so are tho savages in the back woods who hunt for their food and livo in caves. , . "To those countries who appear to think that imports are a curse, one would say that there is one complete wav of relieving themselves of the incubus, and that is to stop their own exports Imports will stop soon enough then."