MORE CHEERFUL OUTLOOK

Otago Daily Times, Issue 21986, 22 June 1933, Page 8

MORE CHEERFUL OUTLOOK

IMPROVEMENT IN AUSTRALIA COSTS GREATLY REDUCED. (Special to Daily Times.) AUCKLAND, June 21. “The outlook in Australia fit present is much more cheerful than it was 12 months ago,” said Sir Lennon Raws, of Melbourne, managing director of Imperial Chemical Industries in Australia, who arrived at Auckland to-day by the Wanganella. “The great difference is that all the State Governments are working under the Premiers’ Plan, and hope to balance their Budgets by the end of June next year.” There has been some anxiety during the present season concerning the possibility of a drought. Sir Lennon continued, but there had recently been beneficial rains in the agricultural areas. Practically all the produce from previous seasons had been sold, and as costs had fallen, the position of the primary producer had improved. There had been a certain revival of public works and secondary industries were employing more men. The Australian manufacturers, however, were not yet free from their difficulties, and manufactured goods were still comparatively too highly priced. Costs in Australia had fallen to such an extent that the increase in price in Australian currency required to make efficient production profitable was not very great. It was far better to let natural causes determine the areas of production rather than attempt to fix them by artificial means. Sir Lennon added that there had been an all-round decrease in production costs in Australia. There had been a definite fall in the cost of living as a result, ot the Federal nominal basic wage having been reduced by 30 per cent.