“Taranaki Central Press” SATURDAY, MARCH 20, 1937. ROLE OF PUBLIC WORKS.

Taranaki Central Press, Volume IV, Issue 388, 20 March 1937, Page 4

“Taranaki Central Press” SATURDAY, MARCH 20, 1937. ROLE OF PUBLIC WORKS.

Is it wise to undertake large public works in times of prosperity, unless such works are absolutely essential for the welfare of ■ the community? The question is one of practical economics, and I the view taken by most people, we think, will agree with that j given by the president of the Associated Chambers of Commerce (Mr. M. G. C. McCaul) at Auckland, that public works on a large scale should be reserved for times of depression in order to absorb surplus labour then available. Only works of absolute necessity, he said, should be undertaken in times of prosperity, so that in times of depression the Public Works Department could provide work for large numbers of men. That would iron out the creases between prosperity and depression.

The classic example of the use of public works for this purpose is that of Sweden in the late depression. 1 rade was bad and unemployment had risen alarmingly. The Government voted a large sum for public works, but it was not necessary to carry out the full scheme, for the “crease” was quickly ‘ ironed out and Sweden returned to comparative prosperity, with labour fully absorbed in the normal industry of the country.

To-day Sweden is regarded as one of the most prosperous countries in the world, with a high standard of living. In New Zealand, unfortunately ,the very opposite policy seems to have been pursued by Governments of different shades of political opinion for many years back to the time of Vogel. Public works have been pushed on in prosperous times, only to be dropped when depression appeared on the horizon, thus accentuating the peaks of boom and slump, with labour now in short supply and then, a few years later, extensively unemployed.

The evil has, of course, in the case of New Zealand, been aggravated by the use of money borrowed abroad and the dependence of the Dominion on the overseas market. This makes the need for prudence in the public works programme, urged by Mr McCaul, all the more obvious if a home-made slump is not to follow a home-made boom.