ECONOMIC POLICY

New Zealand Herald, Volume 81, Issue 25052, 16 November 1944, Page 6

ECONOMIC POLICY

POST-WAK austkalia EMPLOYMENT AND' SECURITY CANBERRA, Nov. 35 The Commonwealth's post-war economic policy will be set out in a White Paper, to be available in a few weeks. It will be wider in scope than the recent British White Paper. This information was given to the Federal Parliamentary Labour Caucus by the Minister for Post-War Reconstruction, Mr J. B. Chifley, who said the Government's plans would be directed to the achievement of the following social and economic objectives: — (1) A high and stable level of employment. (2) Raising the standards of living. (3) Individual and family security. (4) Development of Australia's national resources. Change-over to Peacetime Conditions Within these general objectives the Government's plans were directed to enable the individual serviceman and war worker to adapt himself readily to peacetime conditions, and to ensure that economic and social conditions were such that there would be a place in which servicemen and others could contribute to tho work of the community and lead a satisfactory life. Tho Commonwealth would also bring forward long-range plans for national works to bo carried out after the initial post-war works programme had been completed. Tho proposals included vast water conservation schemes for domestic, industrial and irrigation purposes, together with the construction of huge electricity and generating plants. The establishment of a Commonwealth bank of industrial development was being investigated by the Secondary Industries Commission, which was established about a year ago to plan Australia's post-war industrial develop- ! ment. Tho objects of the bank would be to finance small and expanding industries, or thoso needing reconstruction after the war. Commercial experts were being consulted on export guarantees and other financial aid to the export of Australian goods. There was evidence that countries ranging from India to New Zealand were eager to trade with Australia. Proposed New Industries Mr Chifley submitted to caucus a detailed list of manpower and material priorities for proposed new industries and for the expansion and conversion of existing industries to peacetime production. The priority list included the manufacture of motor-cars, tractors, heavy electrical equipment, Diesel engines, bicycles, surgical instrnments, alarm clocks, sewing machines, internalcombustion engines, and a wide variety of other articles. Mr Chifley also announced that the War Cabinet had approved the diversion of more than 30,000 men for the 12 months ending on June 30, 1945, for Government ana private building. Tho plans provided that by the end of the war Australian building activities_ would have reached 75 per cent of their prewar level. At tho end of the first two post-war years the level would be 50 per cent higher than in tho 1938-39 period. The Labour Caucus will meet next week to discuss Mr Chifley's statement. Warning o! Dangers Warning of the dangers and difficulties which would face the Commonwealth Government in establishing industrial undertakings after the war was given in a special report prepared by the chairman of the Secondary Industry Commission, Mr J. K. Jensen. His report, which was circulated to members of the Labour Caucus by Mr Chifley, recommended that Government munitions factories to be used after the war for the production of civilian goods should be handed over to private enterprise, Mr Chifley said no decision had been reached on Mr Jensen's recommendations, which, together with alternative proposals, were being investigated.

Mr Jensen, in his report, suggested that only seven of 37 Government munitions factories be retained for defence work after the war, and that the re-, mainder be disposed of to commercial industry. Important reasons militating against Government success in commercial industry were listed by Mr Jensen as.' (1) Lack of commercial experience by Government temployees; (2) loss of time before Government employees acquired efficient manufacturing technique; and (3) lack of effective liaison between Government-owned factories and similar overseas concerns operated by private enterprise.