Wairarapa Times-Age WEDNESDAY, JULY 14, 1943. OUR ECONOMIC FUTURE.

Wairarapa Times-Age, 14 July 1943, Page 2

Wairarapa Times-Age WEDNESDAY, JULY 14, 1943. OUR ECONOMIC FUTURE.

WITH a great deal that the Dominion President of the Farmers’ Union (Mr Mulholland) had to say, in his address at the annual conference of that organisation in Wellington today, on the subjects of rehabilitation and post-war economic development, there is likely to be wide agreement. Mr Mulholland spoke as one who desires that all practicable assistance should be given to the men who have fought for their country in order that they may re-establish themselves satisfactorily in civil life. He is in favour also of the encouragement 01. “economic” industries. It is already obvious that the problems involved in rehabilitation and in the. development and expansion of industry are closely related. A very large proportion of dur returning soldiers evidently must be provided for otherwise than under schemes of soldier settlement. This in itself provides an excellent reason for concentrating on a policy directed to an allround expansion of the productive power of the Dominion—a policy which as time goes on will, enable it to increase its population steadily, if not rapidly. As Mr Mulholland and those of his way of thinking arc never tired of urging, it is of course right that/ the problems involved in stimulating industrial growth and expansion should be approached with due caution. It is also very necessary, however, that these problems should be approached in a spiiit of enterprise. There is danger in permitting the growth of industries that are really uneconomic, but there is danger also in a spiritless and slothful failure to make the most of our national opportunities. A reasonable standard by which to direct and govern industrial development in this country was suggested by Mr Mulholland when he said: — However, “economic” industries should not be judged too slavishly by cash comparisons, but by whether they increase or reduce the amenities of life that are available to the people of New Zealand, and contribute to the ability of this country to maintain a largely increased population. When, however, Mr Mulholland says that “our manufacturing industries should be directed mainly to the use of those raw materials which we ourselves have, or can produce,” he is propounding a policy of economic defeatism and proposing to impose preposterous restrictions on the development of industries in New Zealand. If Britain find the United States, for example, were restricted to the manufacture of materials produced within their own borders, a very large proportion of the industries of these great manufacturing countries would be brought to.a standstill. There is undoubtedly considerable scope in New Zealand for the processing and manufacture of materials that are or might, be locally produced, but in many branches of industrial production the cost of materials constitutes a small part of the total manufacturing cost and there is no reason in the world why raw materials should not be imported for any industry that offers', on the whole, advantageous results and returns. With vast natural resources of cheap electrical, power and with every opportunity to organise and train an industrial population that will challenge world comparison, New Zealand need have no fear of making an open-minded approach to the problems of industrial development, but rather should be determined that precisely that approach must be an essential part of her post-war policy. It is, of course, agreed that as an exporting country we must be prepared to spend on imports what is left of our trading balance after we have met external debt and other obligations. It would be going to an absurd extreme, however, to contend that we must import only manufactured goods. There are many lines of mass-production manufacture in which we cannot meantime hope to compete with the world at large. It is undoubtedly open to us, however, to supplement largely by internal manufacture the supply of goods and services that otherwise would be available, and there is no reason why we should not develop gradually an export trade in processed and manufactured goods as well as in raw materials.