LABOUR’S POLICY DEFENDED

Press, Volume LXXIV, Issue 22424, 10 June 1938, Page 6

LABOUR’S POLICY DEFENDED

“FINANCES OPERATED PRUDENTLY”

ADDRESS BY MR H. E. HERRING, M.P., AT HORORATA

A defence of the Labour Government’s policy, with special reference to its control of finance, taxation, and the social security plan, was made by Mr H. E. Herring, M.P. for Mid-Can-terbury, in a political address to about 60 electors at Hororata on Wednesday evening.

Mr Herring said that the party had placed 12 points before the electors, 10 of which had' been carried iifto effect, and the remaining two would be put into operation before the end of the present Parliamentary term, Mr Herring quoted from the last balance-sheets of trading banks, mercantile firms, companies, and other trading concerns which he said showed that the disaster forecast under Labour’s control had not come true. In addition to the increase in profits of trading concerns, there was also an appreciable increase in the deposits in the Post Office Savings Bank, the figures for . 1936 being £2,685,000, compared with £4,342,000 in 1937. These figures, he contended, showed that although people were spending, more, they were saving more than a few years ago.

He quoted from the report of the British Department of Overseas Trade op New Zealand’s economic conditions. The report mentioned the improvement which had taken place, and gave a large part of the credit to the Labour Government’s policy of increasing the amount of money in circulation, thus increasing the spending power of the worker. “I maintain that all the financial arrangements of the country have been operated prudently and wisely,” said Mr Herring. “In short, the finances of the country have never been so well cared for, and .not for a long time have they been in such a healthy condition. Taxation and Income “It has been said that New Zealand is • most heavily taxed, but the only way to estimate taxation is to express it on a percentage basis,” he said. After all, it was the amount of income that was left after taxation was deducted which counted. He said that taxation had not increased in proportion to income. The first year the Government took office, the percentage of tax to income was 24,2, the second year it dropped to 23.6, and this year it was, 21.7 per cent, so that there was a diminution of taxation, he added. The Labour Government favoured raising money by taxation rather than by borrowing, and the country was, for the first time, living within its income. The Government had diminished the Dominion’s London debt by about £7,000,000, which had been shifted to New Zealand and was now a domestic debt, continued. Mr Herring. That would mean a redistribution of income in New Zealand. In addition, two very successful loan conversions had .been carried out, saving more than £400,000 in interest.

Dealing with the Government’s social security plan, Mr. Herring said he thought the proposals were misunderstood.

“They are wonderful—the health and medical services are of incalculable value,” he stated. To make the proposals universal* there -would have to be a levy of 2s 6d in the £, instead of Is in the £, he explained. Mr Herring answered a number of questions,- and was thanked‘for his address by Mr T. E. Pearson. Mr J. Hall, presided at the meeting. Mr Herring gave a similar address at Rakaia last evening.