POST-WAR ECONOMY

Otago Daily Times, Issue 26177, 13 June 1946, Page 6

POST-WAR ECONOMY

o— —— PLACE OF STABILISATION « LABOUR FEDERATION’S VIEW (P.A.) WELLINGTON, June 12. An elastic form of stabilisation in post-war years was supported by the conference of the New Zealand Federation of Labour. It was decided to favour an interim policy of encouragement of firms and industries which could show increased production of essential goods. The conference had before it a statement from the president, Mr A. McLagan, M.L.C., of the circumstances of the presentation of the Walsh report on stabilisation. The New Zealand Federation of Labour, said Mr McLagan, reaffirmed its adherence to a policy of stabilisation under the Labour Government as one of the necessary prerequisites of economic justice under immediate poSt-war conditions. When stabilisation was introduced. Mr McLagan said, it was not the purpose of the Labour’s national executive that all wage rates and all conditions of employment should be fixed and held. The aim was to improve the general standard of those performing the useful work of the nation during the war. With peace, Labour’s policy remained one of supporting an elastic form of stabilisation, having for its end the removal of injustices, control of prices, and increasing of the volume of essential goods relative to purchasing power. Discussing the report of Mr F. P. Walsh on economic stabilisation, Mr McLagan said the natidnal council had referred it to the executive to consult with and advise its representatives on the Economic Stabilisation Commission. The national executive regretted the circumstances surrounding the publication of the Walsh report, and felt that the good which could have resulted from it was defeated by the opponents of Labour. Mr McLagan also suggested to the conference that the federation might well move to bring together parties interested in post-war stabilisation issues. In recommending the endorsement of stabilisation. Mr McLagan told the delegates that subsidies were essential to ensure that stabilisation operated pronerly. The conference endorsed Mr McLagan’s statement.