“A Strenuous Year”

Sun (Auckland), Volume IV, Issue 1074, 11 September 1930, Page 10

“A Strenuous Year”

LA I E EXT RA

EMPLOYERS’ BODY MEETS Dominion’s Economic Position A COMPREHENSIVE survey of economic conditions in New Zealand was made by Mr. Albert Spencer, in bis presidential address to the annual meeting of the Auckland Provincial Employers’ Association tiiis afternoon. In opening, Mr. Spencer commented with satisfaction upon the increase in membership during the past year, which had been a strenuous one for the association, and during which valuable work had been accomplished.

“New’ Zealand, like other countries, is feeling the economic pressure of world conditions,” Mr. Spencer stated. He pointed to America’s gambling orgy in shares being the primary cause, and stated that the consequent debacle in America affected Great Britain’s industries and severely depressed her export trade. This, together with intense foreign competition, had affected prices for New Zealand’s agricultural produce by reducing the British public’s spending capacity. TAXATION BURDEN Air. Spencer proceeded to refer to tho burden in taxation being exacted in England, which was still rapidly increasing. He pointed out that the British Chancellor of the Exchequer had increased taxation in Britain by £35,000,000, and by next year the Durden would bo up to £45,000,000, and each increase would disastrously affect manufacturers and trades, already finding it difficult to met foreign competition. Each addition meant more unemployment. Deprecating the tremendous growth in New Zealand’s social services and colossal public debt, which placed the Dominion in a worse position per capita of population than Australia, Mr. Spencer said that fortunately this country’s production, on the same ratio, was the highest in the world. He considered that there was n- reason for alarm, but unfortunately New 7 Zealand was suffering from a world-wide depression and want of confidence. The serious deflation in values of all agricultural and pastoral products had affected the Dominion as a food-pro-ducing country very seriouslv indeed. The world shortage in wool and food products, which, a year ago. enabled inflated prices to be obtained, resulting in a period of fictitious prosperity and inflation of land values in New Zealand had now passed. The speaker expressed the opinion that only by keeping the cost of primary production down to a reasonable figure could New Zealand rely on obtaining a market which would show a profit. PRIDE IN MANUFACTURING Pride in New Zealand's manufacturing industries was expressed by Mr. Spencer, who claimed, however, that if they were to hold their own in this period of universal fall of prices it would be necessary to introduce the latest ideas in machinery, equipment and management and rationalise to prevent overlapping and prevent wasteful local competition. He suggested that an investigation into New’ Zealand’s manufacturing industries was urgently required, and that this should be undertaken by a Development of Industries’ Board. Ho also remarked that without the confidence of investors which was now lacking, the necessary capital would not be forthcoming. Dealing with the unemployment insurance plan for the Dominion, Mr. Spencer cited the demoralising effect of the scheme on portion of the people in Britain, leading them to rely as a “right” on assistance from outside instead of relying on their individual efforts. “In a young country like New Zealand the damage that might be caused by the introduction of such a system can hardly be over-estimated, and dt is hoped that the Government Will give the matter very mature consideration before introducing such dangerous and risky legislation,” stated Mr. Spencer. DEMORALISING EFFECT

“It also has a demoralising effect on the Government and all local bodies who are forced through political reasons to provide all sorts of uneconomic schemes to keep their political opponents quiet—and still the continual cry goes on forcing the Government and local bodies to find work for the unemployed, throwing fresh burdens on the ratepayers and adding further taxes on the already over-taxed community.” Mi*. Spencer deplored heavy taxation, stating that the excessive road taxation had had a demoralising effect upon many farmers in New Zealand who, in some cases, paid 20s an acre in taxation. He asserted that Babour was striving to tax the rich to keep tho poor in idleness. While he believed that all employers would gladly find work for the unemployed, he considered that taxation must first be considerably reduced and labour conditions made more elastic by the Arbitration Court. Mr. Spencer went on to refer to the hopeless indebtedness of the British Unemployment Insurance Fund and the fact that unemployment was steadily increasing because of recent reckless change under which the dole was granted. In discussing the question of economy in administration, Mr. Spencer suggested that the Government would be well advised to have a full commission of inquiry into the whole question of departmental expenditure and decide whether economy could not be effected. “PUBLIC SCANDAL" Urging a reduction in departmental expenditure, Mr. Spencer advised the Government to tvt its face against increasing the staff, the army of Government officials running about the country and cities having almost reached a public scandal. He condemned in strong terms the waste of money on commissions and held up the Superannuation

Fund as an example of reckless disregard of public funds. Tho steady fall in prices of New Zealand’s agricultural products had affected the country’s economic position, said Mr. Spencer, who pointed out that the adverse returns were reflected in the. banking returns. Tho phenomenal growth in butterfat production in North Auckland and tho Waikato was appreciatively referred to by Mr. Spencer, who said that the total amount of dairy produce for the year in the Auckland Province reached £ 8,000,000. . The need for immediate Government action regarding the importation of foreign goods was strongly urged by the speaker, who said that the state of trade between the Dominion and foreign nations was most disturbing. Jio considered the Workers’ (Compensation Bill, which was lekily to come before Parliament this session had many obvious and dangerous features. If some of the clauses became law the workers themselves would bo the principle sufferers while tho special clause relating to medical benefits would have far-reaching effects on industry and employment and would cost the community an additional £200,000 a year. There were clauses which were far r’iead of the capacity of the country to carry and the problem was —can the country afford to indulge in such-reckless, advanced socialism? Considering the economic position of the country would be disaster to increase the present tax on industries which were already too overburdened with restrictive laws and regulations. After the addresses of Mr. Spencer and Mr. J. S. Dawes, a vice-president, the following members v ere elected to the committee: —The Hon. E. W. Alison. Captain R. C. Hammond, Messrs. J. A. C. Allum, Andrew Menzies,, J. XV. Wiseman, T. Simson, M. J. Bennett, T. H. Bowie, A. H. Court, C. A\ . Coles, J. C. Craig. A. A. Brown. J. A. Graham, C. F. Gardner, J. Hellaby, W. J. Jaggs. G. F. Bane. James Bowo, G. Mills Palmer. A. W. Page, C. Rhodes. A. Thompson and P. T. Birch. The president and the vicepresidents are to be elected at a later meeting. DIFFICULT TO CARRY ON In his remarks, Mr. Dawes said it was becoming increasing difficult for employers to carry on, largely owing to the present restrictive legislation and increasing burden on industry. He had been told by one employer that one company was working under 13 awards. This and other aspects had been entirely ignored by the Government in dealing with the unemployed problem, and the country was to be further taxed to maintain another Government department, which would have power to spend money at its discretion without responsibility either to Parliament or the taxpayer. A “dole” system would be instituted in perhaps its most objectionable form.

In congratulating the association on its strong position, Mr. A. G. Bunn commented that one question which impressed him in the review was that of economies in'government. Taxation undoubtedly was one of the greatest burdens on employers. He thought the Government would be well advised to stop all present railway construction works which would not be remunerative, and save an expense of £7,000,000, which would be an incubus.