TROUBLED PERIOD

Otago Daily Times, Issue 26227, 10 August 1946, Page 6

TROUBLED PERIOD

PROBLEMS OF INDUSTRY GOVERNMENT CONTROL CAUSE OF IRRITATION Though nearly 12 months have passed since the conclusion of hostilities in World War 11, the community finds itself in many respects still in the grip of conditions either created or accentuated by war. From “big business ” to the housewife, in her humble but important sphere, the people, of the Dominion as a whole are faced with problems that are frequently irritating and just as often appear to offer no prospect of immediate solution. At the root of most difficulties are post-war shortages. With many of these, the public is all too well acquainted. The key industry, building, has been badly hit at a time when the need for its full activity is greatest, and many industries lack the materials that would enable them to operate at full capacity. Where materials are available, skilled labour is often in short supply, and mounting costs offer another problem, the full impact of which the purchaser is not feeling, only because his buying is compulsorily limited in range—becf?use his inability to obtain all his needs leaves' him more money to spend on the things that are available. Transport of Goods In centres such as Dunedin, perhaps to an even greater extent than elsewhere, the shortage of coastal shipping is one of the business man's more pressing problems, preventing a return to normal trading conditions. For the consuming public in Dunedin, however, it has had at least one brighter aspect in that it has released for the local market greater quantities of some goods that northern buyers are anxious to obtain. While local manufacturers have not indicated that any. serious curtailment of their present activities is in prospect, reports from the north suggest that shortages of materials, which have already led to some staff reductions, are likely to result in a threat to the livelihood of a considerable body of workers. Few branches of industry are independent of imported supplies, and, while licences are. available for some raw materials that are urgently needed the materials cannot be obtained from the manufacturing countries, which- find that their own needs absorb all available supplies. Causes of Dissatisfaction

The effect of difficult, and often confused, conditions has beben to create a greater measure of Government control over the activities of industry and to bring with It delays and difficulties that are causing a considerable amount of dissatisfaction in the business community. The sources of most com'plaints are import control, and the measures which the Government has taken to control and distribute essential goods which are in short supply. Business people who were ready to accent control as inevitable in time of war‘are now smarting under the necessity of accepting the same restrictions ‘at a stage when they feel that they should be returning to greater freedom in their operations. The establishment of a number of new business has also increased the competitive nature of commercial activity —not so much in the selling as m the buying field. It has accentuated the dissatisfaction among- importers in respect of Government allocation of the materials which customers are clamouring to obtain. Instances of the injustices which importers state they are called upon to suffer are not easy to obtain. Representatives of the Daily Times who have offered business people the opportunity of giving publicity to these complaints have encountered almost invariably a prompt refusal to allow such instances to be reported. Their reason always is stated to be a fear of victimisation by the department responsible for the issuing of licences or permits. Those who feel that they have a grievance say they are no more prepared to allow their names to be associated with a specific instance of dissatisfaction in this respect than they are to make an individual complaint regarding pillaging, which is well known' to be rife. It is possible to mention business men who are prepared to accept the integrity of the controlling departments without question, but it is nevertheless true that a great majority of importers, rightly or wrongly, believe that it would be dangerous to their interests to take any step that might be considered likely to annoy the responsible officials.

Suspicion Aroused Such a felling is, perhaps, not an unnatural result of extending bureaucratic control. It can be understood in the case of a long-established firm which is refused a licence to import goods which it knows are passing over the counter of a rival whose business may have been established for only a short period—and not by a returned soldier. The offended party immediately suspects favouritism or political “pull.” He might have less cause for suspicion were he in a position to understand the reasons actuating the department’s decisions. Wheifihe applies for a licence he must give the partment details of his business that normally would be a carefully.guarded secret. When his request is declined he must be prepared to accept the refusal without an explanation. Even business men who are prepared to give the Government departments credit for strict fairness in the allocation of licences or permits are as ready as others to deplore the delays which arise from control. These delays, they agree, have the effect not only of retarding their operations and restricting their freedom to plan their activities but also increase administrative work and costs. Instances are quoted in which overseas prices have risen while the importer awaited apnroval of a licence, and opportunities to purchase lines that are urgently required have also been lost through departmental delay Unwilling to Comment

There can be no doubt that, in comparison with pre-war years, the dependence of industry on Government action has extended to a very marked extent. An earlier freedom to discuss aspects of business activity has been replaced by a reluctance to exprss individual opinions and by a tndency to withhold comment unless it has the backing of a central organisation. Even in these cases there is a tendency to deal leniently with Government departments, though more forceful comment of a private nature is freely expressed. The business community at present has its full share of troubles. These can be overcome only when supplies are restored to normal and a greater measure of freedom can be enjoyed through a relaxation of restrictions and control.