WAR ECONOMICS IN DOMINION

Southland Times, Issue 24154, 17 June 1940, Page 2

WAR ECONOMICS IN DOMINION

Question Of Longer Hours PROFESSOR BELSHAW’S VIEWS (Special' to The Times) AUCKLAND, June 14. “It is not possible to send men overseas and direct the economic resources of the country to the war effort, and at the same time sustain a great volume of public works, expand industry for private purposes, have a 40-hour week, and avoid reductions in the standard of living,” said Dr H. Belshaw, professor of economics at Auckland University College, in an address at the weekly luncheon of the Auckland Creditmen’s Club yesterday. While speaking mainly on war economics, he also referred to methods of finance and advocated a system of compulsory savings.

The problems of a government were to direct man power and materials to the war effort as effectively as possible, to reduce subsequent dislocation to the community and to spread the burdens as equitably as possible on the shoulders of those best able to bear them, Professor Belshaw said. The potentialities were the same as in peace time, but the problem of war economics was to squeeze as much as possible out of a concentrated effort over a short period of time. INCREASING PRODUCTION The first way of achieving this concentrated effort was to increase the total volume of production and direct it to the war effort. This required the developing of maximum efficiency in organization and the taking up of the slack. Some sort of concession on the part of trade unions in their ordinary demarcation rules was needed and, on the other hand, assurances were required from employers and the Government that such relaxations would not be permanent disadvantages to the workers. There was a limit to extending hours, but he did not think it had been yet reached in New Zealand. There was also the possibility of greater production through more intense effort, the reduction of industrial stoppages, and the use of the shift system to keep machinery more fully occupied. ' S&M£?FORM 0% COERCION *

“I would suggest that if individual groups or individual business firms offer resistance or cannot do the job there is a case for some form of coercion,” Professor Belshaw continued. “It is also inconsistent with a really serious intensive war effort to retain the 40-hour week. I would say further that you cannot expect workers to agree to forgo some part of their leisure time unless they can be shown that other sections of the community are bearing their share, and that there would be a restoration of conditions when the war ends.”

A second way in which means could be found for the conduct of the war was through reduced consumption by the civilian population. A serious effort could not be made without a reduction in the standard of living. He referred to the system of compulsory savings prepared by the English economist Mr J. M. Keynes, and suggested that a scheme on these lines might be introduced.