THE New Zealand Herald AND DAILY SOUTHERN CROSS TUESDAY, NOVEMBER 19, 1940 IMPORT ECONOMIES

New Zealand Herald, Volume LXXVII, Issue 23817, 19 November 1940, Page 6

THE New Zealand Herald AND DAILY SOUTHERN CROSS TUESDAY, NOVEMBER 19, 1940 IMPORT ECONOMIES

When' New Zealanders understand that the object of restricting British exports is to divert material and financial resources from civil to military consumption, they will accept any sacrifices or deprivations imposed on them in good spirit. The hardships imposed by this negative way of winning the war —by d-oing without some things —are in no way comparable with those suffered by the people of Britain or the men on active service. In any case New Zealanders have no choice because the restrictive policy has been accepted with alacrity by the Prime Minister. He finds in it justification for Mr. Nash's import controls, although these were applied nine months before war broke out and for reasons not connected with the war. But now that restrictions can be regarded as a war measure intended to conserve the Empire's economic strength, and not as an unwelcome necessity brought on by State profligacy and financial bungling, they will be accepted readily enough. In doing without many things they have become accustomed to use the people would be better satisfied, however, if they knew that the Government was cutting down on its own import requirements, other than munitions. There is an uneasy impression abroad that, while the Government compels individuals to do with less, it continues to furnish itself on the old extravagant scale. If he can, the Prime Minister should remove this impression by showing how Government precept is backed by Government practice. As a matter of sober fact, a proper reduction of imports cannot be made unless State joins citizen in curtailing overseas orders. The State is by far the largest spender and importer in New Zealand. In the current financial year Mr. Nash has made provision for Government expenditure of £102,000,000 out of a national income stated by him at the high figure of £190,000,000. Out of every pound of earnings, therefore, the State expends 10s 9d, leaving the individual with 9s 3d. It is clear that if the Government does not cut down its own imports in proportion to private reductions, the economy effort will be seriously discounted. Neither Mr. Fraser nor Mr. Nash has yet given any indication that the State is doing its part. Take the much-vexed question of petrol rationing as an example—what economies have the departments themselves effected 1 It would be some consolation to private individuals if Mr. Nash could show a material saving in consumption by Ministers' and officials' cars, and by railways and public works vehicles. Then there are the large sums being paid overseas for steel reinforcement and various fittings for the huge programme' of public buildings. Are these unnecessary drafts on exchange and essential war materials being curtailed 1 A sum of £2,800,000 was provided for public buildings this year and a further £4,3,'50,000 for roads and bridges, whose construction involves imports of machinery, vehicles, bitumen, steel reinforcement, and so on. For the construction of railways, another. £3,450,000 has been voted, requiring imports of steel for bridges and hard woods and rails for the tracks. These are but a few examples of the way in which the Government is drawing on exchange funds, examples chosen because in almost all cases drafts are also made on essential war materials. This form of public expenditure makes inroads not only on sterling but also on New Zealand's dwindling labour supply. The British restrictions are designed to divert workers to essential employment as well as to conserve funds. This part of the Empire policy has not yet been seriously applied in New Zealand. Funds, raw materials and men are still being largely employed by the State on non-essential tasks. The President of the British Board of Trade has stated that it takes two workers to supply two fighting men with munitions. But New Zealand has not recruited 60,000 men for the munitioning of the 60,000 in the forces. Instead some 30,000 are supported on public and relief works. Unless the Prime Minister can place New Zealand labour to better advantage and organise it for higher output, he is going to fall far, far short of that endeavour to which he pledges himself this morning—an endeavour to maintain the social and economic standards of the people, while waging total war. If New Zealand is going to do without many imports from Britain and still maintain living standards, she will have to make much more for herself and work harder to do so. And in reducing imports, the Government should share equally in sacrifices with the people by cutting down all its overseas spending, except for munitions.