TO INCREASE PRODUCTION

Waikato Times, Volume 123, Issue 20692, 30 December 1938, Page 4

TO INCREASE PRODUCTION

One of the most significant changes in the Government’s policy, discussed by the Hon. P. C. Webb yesterday, is its new anxiety to transfer men as fast as possible from public works to definitely productive occupations. It is patently a change for the better. Not so long ago the Prime Minister was unwilling to place any limit upon the public works that could be undertaken. He was always positive that public works were “creating values.” The country needed good roads and railways and such, and there was no earthly reason why the work should not be done while men were able and willing and needed work. Experience has shown that besides “creating values” public works create liabilities, and that there is a definite limit to the expenditure that can be undertaken without damaging the country’s financial stability. In other words it has been shown that public works must be paid for. Now the cry is for greater production to meet the liabilities that have been created and provide for future expansion. The policy of lavish spending without proper regard for production was workable as long as reserves of wealth lasted. Those reserves have largely been exhausted and, faced with the practical necessity, the Government is very sensibly casting about for means of producing real wealth. Secondary industries were at first favoured as the means of solving the problem, but the Government has realised that it must at the same time, and immediately, increase primary production.

When the attempt is made it is found that the general policy has reacted to the detriment of production, chiefly because of the greatly increased burden of costs. Labour has left the farms, the farmers themselves have lost much of the incentive to produce more and the secondary industries find themselves unable to compete with imported goods. Hence the Government has taken control of overseas trade and is desperately seeking means of encouraging primary production by preparing the land and transferring public works men to farming occupations. Another and very real problem will be to maintain the overseas markets, or to find new outlets for the greater production in prospect. _____________