TIMID CAPITAL.

Taranaki Daily News, 30 September 1929, Page 8

TIMID CAPITAL.

In his address to members of the Auckland Employers’ Association, the president (Mr. Albert Spencer} touched upon the timidity of capital, due to investors being still shy of risking money in industrial enterprises “under the present unstable condition of arbitration awards and the thousand-and-one petty Government restrictions pertaining today.” It was, he said, urgent that production costs should be reduced to a more economical level, so that the Dominion could successfully compete with other countries where conditions were more favourable to manufacturers. Unfortunately, Mr. Spencer's diagnosis is borne out by facts. As the banking returns show, there is ample capital available in the Dominion, but investors are shy and prefer “safe” investments yielding low rates of interest or deposits in the banks, to risking their money in enterprises subject to Government restrictions and the trammels of the Arbitration Court. That fact accounts to-day for the stagnant state of industry, and the unemployment existing. Were the Arbitration system entirely remodelled there would probably be no need for unemployment relief works, except, perhaps, for the incompetent and lazy, who always will be a problem. Automatically industry would right itself, extensions would be made, enterprise be stimulated, and the money be forthcoming. Workmen, at least the efficient ones, would be better off, for then recognition of efficiency and output could be given. To-day that is not usually done, for fear that such consideration will be used against employers in subsequent Arbitration Court proceeding's. The present system makes for mediocrity, giving no incentive to the honest and ambitious worker to excel and give of his best, and the result is apparent in the ever-increas-ing cost of services and goods. It cannot be otherwise. But the point is, who is going to “bell the cat?” The Reform Government, with all its numerical strength, whilst recognising the need for reform of the industrial system, shrank from taking action, contenting itself with calling a conference of parties and placing upon it the responsibility of evolving reforms for Parliament’s consideration. The United Government is even more timid; it is too dependent for its very existence upon the support of Labour, and Labour, though it has abused the court up hill and down dale when its decisions were averse to the workers, and has not hesitated at times to entirely ignore the court’s behests and de-registered, is still strongly in favour of the retention of the system, an attitude whi'eli, of course, is easy to understand. The matter, however, is national and not sectional, and should be regarded from that point of view, e have chosen to interfere with the economic laws. We could pay the consequent penalties in good times without seriously affecting oufselvcs. To-day things are different: we have been passing through more difficult times, and we can see that the Arbitration Court is sitting on the country like an old man of the sea. Until he is dislodged, capital will be shy of industrial enterprises, farmers will not be seeking labour at comparatively high rates of pay, and unemployment will continue, despite all the Government can do in its zeal/ to provide palliatives to relieve the con-1