FULL EMPLOYMENT

Otago Daily Times, Issue 26289, 22 October 1946, Page 6

FULL EMPLOYMENT

PLANS TO COMBAT DEPRESSION PROFIT-SHARING SCHEME Thespians envisaged by the party to maintain full employment in the event of a recession of prices overseas were explained by Mr Holland. With a guaranteed market for several years for New Zealand produce, the likelihood of any serious recession was remote, he stated, but nevertheless it was necessary to be prepared for such a contingency. The National Party would maintain an overseas reserve fund to ensure continuity of supplies to New Zealand in spite of a fall in prices, and at the same time the Government, while revenue was buoyant, would establish reserves in order to be able to expend public employment should private employment decline. Under the National Party’s policy of minimum and maximum prices for farm produce, stable incomes for the farmers would be assured, and the root causes of the last depression would not be permitted to operate. As a general principle, public expenditure should be restrained in times of prosperity, and expanded if. private expenditure showed a tendency to recede. Provision would be made for interest-free loans to local bodies. Purchasing power must not be reduced, there must be no sudden contraction of credit, and no cutting of wages. With reference to New Zealand exports, Mr Holland said that in general good prices seemed assured for some years. Importance of Industries While farming was New Zealand’s basic industry, manufacturing was also important to the economy of the country. New Zealand had every reason to be proud of its industries, which had done a great job during the war. The policy of the National Party would he to import those things which could