EXCHANGE RATE

Poverty Bay Herald, Volume LIX, Issue 17958, 9 December 1932, Page 8

EXCHANGE RATE

INCREASE IN AUSTRALIA

“NOT A SOLUTION”

••'] am strongly of the view that the increase in. the exchange rate has not been the solution of Australia’s problems, and it would certainly not be any palliative so far, as New Zealand is concerned,” said -Mr- d. Fletcher, head of the Auckland branch of the Fletcher Construction Company, who has returned ■■ from Australia. -“The position in. Australia' is probably just a,s unhealthy to-day as at any time in the country’s history, in that the employment problem is only being rnet by means which must ultimately be the country's undoing,. “Building in Australia to-day is generally at, a very low ebb,” .said Air. Fletcher; "In *1928, when. I last visited Sydney, the sky line was broken everywhere' bv the arms of electric cranes; to-day the only crane reared up was that over . Lire big war memorial ; outside of that there is not a. building of any size going up. .“Melbourne presents a contrast, however, for there building appears to lie normal, and several big buildings are in course of '.erection, chiefly office blocks. In Adelaide conditions are much the same as ijl Sydney, the only building work,of any moment being in connection with the hospital. “One of the outstanding features of industrial ctonditiomi in Australia at present,” continued Mr. Fletcher, “is the growth of small industries, which have secured a footing purely on the basis of the tariff protection, which has a minimum of 25 per cent., plus 10 per cent, primage, to Which is to bo added the tariff represented in the 25 per' cent, exchange. “The healthy and advantageous development which is taking place lies in the development of the ' mineral wealth of: the country.” Mr. Fletcher staled. “Practically the whole of the companies engaged in the metallurgical industries in Australia, have recently combined in a scheme for the development of the gold resources of Australia. i-

“Tlie combined company is known ns Gold Mines of Australia, Limited, and includes, the. great Broken Hill companies, the Zine,Corporation and several London interests. The objects of tfie company are to test out areas which are regarded as promising and to specify all plant and development requirements to obviate the entry of ‘wild-cat’ mining proposals. . “The development, of mineral resources has so impressed the Commonwealth Government that a, special hoard has beep set up, to ~sponsor mineral development. and at ’the present time this board is applying itself particularly io the brown coal deposits with a view to tiro extraction of fuel oils.”