EXPANSION OF PRODUCTION

Southland Times, Issue 25747, 10 August 1945, Page 6

EXPANSION OF PRODUCTION

PRINCIPAL POSTWAR NEED ' (Special) WELLINGTON, August 9. “The Dominion is emerging from the war with most types of consumable goods, except food, in short supply, and with a serious shortage of houses,” said Mr Nash in presenting the Budget in the House of Representatives this evening. “The measure of our success in meeting requirements in all such items will determine our postwar standard of living. We can obtain the things we want only by making them for ourselves or by producing exports to exchange for imports. Therefore, a rapid expansion in production, both primary and secondary, must be the predominant objective in our postwar activities. Where men are to be employed must generally determine where houses will be required, but this fact will not delay efforts to overcome the immediate pressing housing needs, particularly in the main cities. Location and magnitude of production will also be important factors in planning power and transport requirements.” Machinery for the systematic co-ord-ination of postwar activities on a regional as well as a national basis had already been established, he said, and the study and planning of fundamental requirements, such as power and transport, location of industry, and the relative priority in which labour and material should be made available for works were receiving attention. DEFERRED MAINTENANCE Pursuant to the paramount objective of obtaining the maximum of employment in the production of consumable goods as quickly as possible, the Government would facilitate in every way the carrying out of deferred maintenance work, and the replacement of worn-out and obsolete plant, both on farms and in factories. Importations for these purposes, as .well as for expansion of industry, replacement of trucks for essential road transport, requirements for the railways and for hydro-electric and other power units, together with necessary raw materials to enable industries to operate at full capacity, would make heavy demands on our overseas resources, but if we were to help ourselves, items coming within these categories must receive priority. Large stuns would also be wanted for imported commodities required in making good the wear-and-tear of the war years in the homes of the people. During the wax- years imports for civilian purposes had fallen into arrears, and a considerable proportion of those arrears would have to be made good in order to restore the economy of the Dominion. It could be done only as goods became available overseas and as we had the requisite resources to pay for the goods. Our sterling balances were now about twice as large as was considered to be normal in prewar years, but, having regard to the substantial rise in overseas prices and the huge volume of arrears of requirements, it was quite clear that we would have to husband our overseas resources carefully and ensure that sufficient was reserved for essential requirements.