The Waikato Times WEDNESDAY, DECEMBER 14, 1938 INDUSTRIAL DEVELOPMENT

Waikato Times, Volume 123, Issue 20679, 14 December 1938, Page 6

The Waikato Times WEDNESDAY, DECEMBER 14, 1938 INDUSTRIAL DEVELOPMENT

Mr Savage’s admission of the need for a better balance between public works expenditure and industrial activity has not come too soon. Hitherto the vast spending on roads, railways and such works has been stoutly defended on the grounds that all the works undertaken are necessary to the development of the country. Although the Prime Minister still contends that public works are creating values,” whatever that may mean, he is now advising strongly the need for a better balance. In view of his experience of the past three years, Mr Savage would probably be the most relieved man in the world if the industrial expansion programme robbed the Minister of Public Works of every man he employs. New Zealand manufacturers are alive to the wisdom of taking advantage of the opportunity provided by the control of imports to put fresh life into their businesses. Some time must elapse, however, before the tangle is straightened out and importers and manufacturers know where they stand with the Government. Manufacturers have offered wholeheartedly to co-operate with the Government in increasing production and absorbing the “unemployed.” They cannot move until they are assured that another turn will not be given to the policy, until they are certain that their production at high costs will not be beyond the purchasing power of the public, and until industry is reorganised on its new basis. When they are ready to go ahead, many manufacturers will be faced with the need of fresh capital for plant and building extension and the organisation of marketing. It is to be hoped the capital will readily be forthcoming. It is hoped, too, that men now employed on public works will And employment in the factories more and that younger men and boys will be able to obtain apprenticeships in the industries.

Assuming that the manufacturing industries attract the necessary labour and capital and succeed in replacing the flood of imports to the desirable extent, the Government will still be faced with one of its greatest and most stubborn difficulties—production in the primary industries. Control of overseas trade cannot help the producers of butter, cheese, meat and wool, but will rather add to their difficulties by further increasing costs. If the Public Works Department and the manufacturing industries are to compete for the labour that the farmers cannot attract the position will be worse than ever. Labour’s attitude to the problem has always been that farmers must attract labour by paying competitive or better wages for farm workers. In practice, however, this solution has presented the greatest difficulty since the Government must now pay for the products of the dairy farms from its own coffers. If wages that would attract labour to the dairy farms were paid the guaranteed price would have to be advanced substantially, and Mr Nash has already shown that he will not allow that, whatever his advisory committee may suggest. Yet further increase in primary production is essential to the financial stability of the country. So, apparently, New Zealand must still go “onward and upward.” The steeper the grade the less likelihood will there be of the brakes holding should there be a slip backward.