N.Z. EMPLOYERS

Southland Times, Issue 22157, 27 October 1933, Page 8

N.Z. EMPLOYERS

MEETING OF FEDERATION. CHAIRMAN’S ADDRESS. In the course of his address at the annual meeting of the New Zealand Employers’ Federation at Wellington yesterday, the president, Mr A. C. Mitchell, stated: — “On the occasion of our last conference a year ago we had high hopes that the World Economic Conference would result in the stabilizing of international currency, the amelioration of tariff barriers, the cancellation .of war debts and the stimulation of international trade. We were encouraged in these hopes by the appeal issued to the world by President Roosevelt which seemed to indicate that the United States of America would cooperate to the full with Great Britain to achieve these things. Unfortunately before the assembling of the conference, the internal conditions in the United States became so bad that the President had to devote his whole energies and the whole resources of his country to the improvement of the internal situation with the result that no plan for international stabilization of currency could be adopted. This first great object of the conference having to' be abandoned, the conference was unable to achieve success in other directions and the world’s greatest needs in the interests of economic recovery remain unsolved.

An Important Point. “When one considers the difficulty of obtaining an agreement on important questions amongst a comparatively small group of men engaged in similar businesses, it is easy to understand the tremendous difficulty of securing an agreement between many nations with different degrees of civilization, different ideals and ambitions and many languages. One thing emerges clearly from the failure however; that for the British speaking people the hope of betterment lies with themselves. The British Empire is spread widely over the world’s surface, it contains vast resources of every kind of product required by modem life, its component parts are under similar systems of government, its political and industrial leaders speak the same language, have the same ideals and ambitions and have sprung from a common ancestry; it should therefore be comparatively easy to secure agreements on major questions of economic policy between Great Britain and the dominions and in such agreements, I am convinced, lies the hope for betterment of our countries for several years to come. Further, a wider international agreement may gradually come about from any lead given by the component parts of the Empire in the form of agreements upon trading and currency problems amongst themselves. “The foundation of such agreements was laid at Ottawa. The erection of a permanent structure of Empire prosperity upon that foundation is now the work to which the statesmen of Great Britain and the Dominions must apply themselves with all the skill, energy and devotion of which they are capable. They have many difficult problems to study—external debts incurred for Dominion development in good times the burden of which has been enormously increased by the fall in the price of primary products, loss of markets outside the Empire through the industrialization of other nations, as for instance Japan, and the need for balancing the production of several countries of the Empire—are amongst the most serious. There should be none however, permanently incapable of solution if the weight of public opinion throughout the Empire is solidly behind the statesmen and governments of each country in measures taken with this definite object. Empire agreements upon questions of currency and commerce should become a slogan throughout Great Britain and the dominions. Dependence on Britain.

“Our own great dependence on the markets of Great Britain is shown by the following figures which give the proportion of our total exports that are sold in Great Britain, other British countries and foreign markets:— Year United Other British Foreign Kingdom Countries Countries per cent, per cent, per cent.

Clearly our interests are wrapped up in those of Great Britain and any restrictions on our exports to the British market would be disastrous. It is necessary to be on guard against quack remedies. There is no short cut to prosperity. A country is only a multiplication of individuals and in face, of the fact of our diminished national income we must all work harder if possible and be content to accept less for our. labour until the price level is restored. Industrial expansion is possible in New Zealand on sound economic principles if confidence can be restored sufficiently to attract capital. Confidence is somewhat psychological. “We, in common with the rest of the world, have been passing through times of extreme difficulty and anxiety and are still confronted with problems of unprecedented magnitude and gravity. I wonder whether it can be said that we have all acquitted ourselves with that credit which was to be expected of us as a British people? Have we not displayed indications of panic, and a disinclination to support those to whom we have entrusted the administration of our affairs? Have we extended to them on all occasions that loyalty

which was their due without which it is more difficult for them to be successful? There seems to be rather a tendency for the people to split up into email factions each pursuing its own separate ideal under untried and oft times inexperienced leaders. Such a condition tends to delay rather than hasten economic recovery. There have been cases of certain sections of employers engaged in the same industry breaking away from and acting in opposition to the policy of their own organization. To those who have had experience of the working of our organization it is difficult to understand the motive behind these secessions except to regard them as evidence of panic.

American Experiment. “No one can have read of the American experiment without being struck by the one outstanding fact in connection with it, namely, that the President of the United States has outlined a definite policy of reconstruction and whether they may think him right or wrong the American people are prepared to back him to the hilt in an endeavour to make his experiment a success. We in New Zealand have not been called upon to display anything like the wholehearted faith in a new doctrine that the peole of the United States have had to show. In the first place the position has never been so critical as that in America. We had nothing like the degree of industrial and financial disorganization to overcome, but we have not followed the American example of wholehearted adoption of a common policy. By constant wearisome reiteration of criticism of every government measure a maximum amount of evil may be done in the destruction of confidence, the delay of business and restriction of employment. “I want to ask you gentlemen as representatives of this federation from all parts of New Zealand whether we are to accept this criticism—that the business community of New Zealand is less patriotic than the people of the United States of America? This may be an unpleasant suggestion to the people of New Zealand but it is fully time that we faced facts fairly and squarely. If our members irrespective of their political views would _ pledge themselves to restrain their criticism of Government measures and rather to do everything possible to restore the confidence of the business community and to stimulate activity by doing what they can to assist in the work of rehabilitation, I am persuaded that the results would surpass anyone’s expectations.

“There is much money available in New Zealand even to-day for sound developmental enterprises, but the confidence which must precede the commencement of such undertakings is lacking. If a spirit of calm determination to face facts, to work hard, to be cheerful under adversity and to be content with but small profits, placing the ultimate success before the immediate gain as the goal to be aimed at, can be inculcated in us, we shall have nothing to fear.” After making reference to the death of Mr H. E. Holland and expressing sympathy with the widow and family, Mr Mitchell moved the adoption of the annual report.

1929 73.69 11.70 14.61 1930 80.14 10.82 9.04 1931 88.02 4.94 7.04 1932 87.78 5.28 6.94