The Timaru Herald. FRIDAY, MARCH 18, 1927. THE OUTLOOK.

Timaru Herald, Volume CXXIII, 18 March 1927, Page 8

The Timaru Herald. FRIDAY, MARCH 18, 1927. THE OUTLOOK.

All sections of the community are- beginning- to realise that the cause of unemployment is deep-seated and far-reaching. Primarily, of course, the destiny of this country leposes in the fortunes of the man on the land. It is a dangerous policy for any country to have hut on© string to its how; nevertheless, it is generally agreed that, some one lias badly blundered in connection with the* butter bungle, while the position in the wheaigrowiug industry, although extremely unsatisfactory, is: by nc means* beyond redemption. Another contributoiy cause of unemployment is the embargo on potatoes, imposed hv Australia, which threatens to inflict heavy losses on growers' and further aggravate the labour situation

by making it exceedingly cliff: - cult for the men engaged in the potato-growing industry to finance the employment of more labour. Discussing the labour outlook the other day, the Prime Minister appealed to the country to regard it as a national problem and not a party matter. “The country is temporarily facing .« ieal national problem, and nothing is to be gained from a national point of view by attempting to make political capital out of such a situation. Pho Government are quite* as sympathetic with the man who is out of work through no fault of his own as any other political party in New Zealand, and have IroAvn their sympathy in a practical way by employing large numbers of men in excess d normal requirements.” So said the Prime Minister (Eight lion. J. G. Coates), in Wellington, on Wednesday, when asked to comment on the criticism of his, recent statement on unemployment,, and the measures taken by the Government to cop.o with the* situation. “The Government,” continued Mr Coates, “are in no way responsible for the causes which have led to unemployment: The obvious Get is that our national revenue lias shrunk heavily, and under these circumstances the* nation must reduce expenditure. The consequences of spending more than one* earns are the same for a nation as they are for an iiulieidual. The* sensible person who finds* that his income, is shrinking takes* immediate* steps to reotity the balance*—he strains every nerve to increase, his income, and, above all, he. los >s no opportunity of reducing his expenditure.” Generally speaking, the country will realise the tremendous .problems facing the Government 1 , but it, must be confessed that widespread disappointment will be felt unless the Prime Minister and his Ministers tackle, their job with resolution, and courage. The, legislative authority afforded the bunglers associated with dairy control was given by the present Parliament, regardless of the warnings persistently issued by the opponents* of control. “As* events have proved,” said the Member for Palmci sfon, in an interview the other day, “the opponents of' the scheme have been justified in their attitude.” What has been the result of the* operation of the compulsory clauses? Today we are in a hopeless muddle. On the Home market we, have lost the prestige v/imh had.teon won for New Zealand butter. Several opponents cf emit ml did their best m Parliament to have compulsion held over for 12 months by moving amendments to the Dairy Control Bill, but without avail. The compulsory clauses have come into, operation, with the dire result which now perplexes the industry. Tr is stated in the cable message that there are 400,000 boxes cf butter in store at Home. Then wliat of the* produce stored on this side of the water? The prospects are far from, bright. What the Government has to consider, however, is wliat is best for the struggling daily farmer who is up* against it. Parliament gave the Dairy Control Board authority to enforce its foolish policy upon willing and unwilling dairymen, with disastrous results, and those menacing powers must lie restricted. With regard, to the wheat problem,, the. Minister* of Customs has definitely stated that under the terms of the tariff agreement with Australia, sixmonths’ notice* must he given of an intention 'to impose an embargo on the importation of Australian flour. The agreement, of course, works* both ways, since this same provision has enabled New Zealand to export large quantities of butter to Australia, despite the protests of Australian dairymen. Doubtless*, the Prime Minister, when he meets the “demonstration in force” will suggest that the requisite notice be' given New Zealand’s, intention to prevent the dumping of Australian flour into this country, to the detriment. of an essential industry. Obviously, as* the Government realises, it will not be possible for this country to keep its workers fully engaged, while lireaones’ in ihe tariff Avail facilitate ihe importation of the products oi the soil or the finished article of . industry, which inevitably swings the trade balance more unfavourably against the Dominion, and clogs the channels of employment. The Government has its hands tolerably full with intensely perplexing problems which await solution, but we are satisfied that if the Government puts its .own, house

in order, as far as national expenditure is concerned, and lives up to its election promise <-f “more business in Government, and less Government in busioss,” the country*s economic and financial position can be stabilised and a safer basis discovered for local and national development.