PUBLIC WORKS POLICY

Poverty Bay Herald, Volume LXV, Issue 19694, 28 July 1938, Page 7

PUBLIC WORKS POLICY

COMMONSENSE BALANCE

SLUMPS NOT INEVITABLE

MR. SAVAGE'S VIEWPOINT

(Parliamentary Reporter) WELLINGTON, this day

Comment on New Zealand's public works policy contained in the annual report of the Reserve Bank differs so materially from the present Government's plans that these references were brought to the -attention of the Prime Minister, the Rt. Hon. M. J. Savage, who gave another, his own point of view. "I give credit for the viewpoint which the report takes," >-emarked Mr. Savage. "It is the orthodox point of view, which I do not hold, based upon the alleged inevitability of slumps. I do not think slumps are inevitable. Bad times can only come when famine arrives, or for a similar natural cause. Our production gives no evidence of breaking down. Therefore, a slump can .only happen when the people are unable to buy what they are able to produce. "I am not finding fault with anybody's opinion, but I disagree with the idea of holding up public works waiting for a slump which some neopie say is bound to come, thus hastening ■a slump," he added. "Work should not be carried out just for t ie sake < f work, but because it gives a new service, creates additional wealth or greater facilities for the people. Thai is the only excuse for a public works policy. I do not say that our methods should be unbalanced, for we have to take a common-.sense balance in our productive and .eneral developmental agencies."