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Some adjustment is therefore necessary, and the adjustment
must be to domestic demand, because it does not seem possible that
external demand for our exports will be strong enough to provide a
sufficient profit margin to draw resources from domestic consumption
to the export sector,
Nothing very drastic is necessary, and as I said in October
in the Legislative Council, our problem is not great in comparison to
that faced by many other countries.
But if our ability to maintain sustained growth and prosperity
is to be safeguarded, some adjustment will be necessary in both the
public and private sectors.
This problem has grown over the last two years and has not
been resolved through operation of the usual corrective mechanisms as
we had hoped, and clearly it cannot be allowed to persist.
Another condition for our continued economic growth is
provision of more land
A 2
land for new industry, and land for both
the Government and private enterprise to build the new towns in which
those who man the new industry must live. And, of course, of equal
importance is the communications system that makes the development of
new areas possible and attractive.
These aspects of development demand high priority. The success
of our Industrial Estates is indicative of the way in which a new land
policy can attract new industries. This process is clearly vital to
that of diversification.
While no doubt