The Waikato Times THURSDAY, NOVEMBER 23, 1944. RESOURCES OF PRIVATE INDUSTRY

Waikato Times, Volume 195, Issue 22513, 23 November 1944, Page 4

The Waikato Times THURSDAY, NOVEMBER 23, 1944. RESOURCES OF PRIVATE INDUSTRY

If private enterprise is to be called upon to make a major contribution to the reconstruction of a war-shattered econony—and inevitably it will be so—there is urgent need for a clarification of policy by the New Zealand Government, according to Mr Stronach Paterson, president of the Associated Chambers of Commerce. The point is that enterprise subjected throughout the war to complete control and heavy taxation may find itself, when the war ends, scarcely in a position to make its best effort to rehabilitate servicemen and meet the new demand for consumer goods. Will it then be blamed according to the measure by which it falls short of the postwar need, when in fact it has for years been emaciated by restriction in a straightjacket? If it is the intention of the Government that enterprise should be ready to take up’ the load, such a policy should be declared and private industry should be prepared accordingly. So far the reconstruction policy has laid emphasis upon the activities of the State, but most people know that while the State must and will continue to operate certain services such as the Post Office and the Works Department, the great bulk of the men and women returning from war service must look to private employers for their future livelihood. What part of the post-war demand for consumer goods will the State be able to meet? Or what undertakings apart from those in the nature of public works can the State operate? Clearly private enterprise must take a prominent part in the reconstruction, and it is therefore essential that preparations should be made accordingly. This is an imperative need apart altogether from the profit motive. It, is good economics, recognised in-most countries, that industry should be kept on a sound basis so that it can continue to take the strains imposed by the war and by the transition to peace. How can industry be strengthened and enabled to expand when peace comes? Taxation is one of the keys. At the present time most industries operate for the greater part of the year to provide revenue for the Government of a country at war. Little complaint is made about that. It is recognised that revenue to fight the war must be raised by every conceivable means. There comes a time, however, when industry must divert a part of its revenue to the renewal or extension of plant and other facilities to maintain or increase production. There has been a considerable “running down” of plant to extract the last ounce of production from it without the laying out of fresh capital, for it has been impossible to accumulate reserves for this purpose. This is one direction in which industry may be assisted by Government policy. There are many other ways. A wise Government would take industry into its confidence and plan for a future which will have difficulties enough. All the resources of private industry as well as of the State will be required for the w.ork ahead.