POLICY DEFENDED

Ashburton Guardian, Volume 56, Issue 208, 16 June 1936, Page 6

POLICY DEFENDED

NEW LABOUR LEGISLATION. “NO SURVPRISES HAVE BEEN SPRUNG.” RESERVE B‘ANK IS THE MASTER. OPINION OF MR HERRING. “The usual ‘dismal Jimmies’ are abroad in the land 5 the very people who assured. Mr Savage that they regretted his accession to the Treasury benches, certainly, but were going to show ‘their splendid spirit and assist him every inch of the way 10 carry out his legislatiwe programme after it was passed. it rather reminds me of gromises and pie crusts,” said Mr 11. E. Herring, M.P., to a “Guardian” reporter this morning on his return to Ashburton from Wellington. \ -

Mr Herring said he would like to make a, statement as he thought it would be opportune now that Parliament has risen after completing an intalmenb of its legislative programme and especially when there were people saying that the Government had exceeded, in effect, the instructions given to it.

“The frequent iteration of statements to the eifect that the Acts passed were not foreshadowed by the election programme have me staggered,” Mr Herring said. “For my part, I challenge anybody to show that I did not emphasise the extreme and vitally all-important ne‘ cessity for taking over full and complete control of our currency and cre‘ dit. And from all I have heard, all my colleagues did the same thing. They all stressed absolute control of the monetary system, that is, the banking system. I used to say that this proposal was the very keystone of the arch and that without it the Labour Party need not bother to take any other action. . u l l

“Well, now this control has been taken.‘ The Reserve Bank in master of the situation. All Jare-ding banks mast: submit details _of their operations, have no right of note issue and: generally are completely subservient to the State Bank, which has been fully nationalised by eliminating the private shareholder.

“I used to say from the election platform that this was what would be done and it has been done. So why do people beat the air and say Jshe Labour Party has overstepped its undertakings as given prior to November '29 last?

State Control of Banking.

“What is wrong with the idea of state control of the banking system?” he added. “Nobody would contemplate private control of our judiciary, surely. And the Minister of Finance is the officer responsible to Parliament and Parliament is elected by the people. "‘The Marketing Bill is a. natural corollary? to the Reserve Bank Bill and was forecast from all platforms. It was made abundantly plain that farmers’ production was to be purchased by the State at a price to be fixed upon. The Labour Party considered the farmer had too long been the sport of the speculator and was deserv—ing of a measure of assistance, especi—ally taking into account the national importance of his activities. “To bring myself into the picture again, I clearly remember stating that a beginning was to be made with dairy production. One must begin somewhere. Tlhe State Bank was to be utilised for buying the total {production at a guaranteed price sufficient to cover average‘ costs of average farmers on average land. By these costs “all cests were intended. The wife’s and children’s labour was to be considered, a. living wage to other help, if any, and legitimate expenditures involved in the business of butter production. All shortages were to be met by an overdraft from the Reserve Bank and would be its responsibility; all excesses put into a special fund to be utilised for the benefit 'of the industry. And the Bill provides for all this to. be done. “Why, therefore, do people continu-‘ ally say that full and complete indica-l tions of the policy to be followed was not given? 1

Dairy Farm Revaluation. “The Prime Minister has stated that immediately on resumption of the sit~ ting of Parliament, legislative provision will be made to carry out revaluation of dairy farms on the basis of the guaranteed prices as decided to enable farmers to enjoy the standard of living considered his due with regard to his economic importance. And if in this process some mortgagees find that their holding is diminished, they must face up“ to it and recognise that such action enables their mortgagor to carry on, and secures them a return that at present is in sore jeopardy, to say the least. All businesses suffer losses from time to time and I do not see Why the money-lending business should be an exception. “Now, this is a promise, certainly, and was made from the platform, but it has not been yet implemented because of pressure of business. Have patience; it will be done,” he continued.

“And not wishing to be tedious, I must say similar things about the Industrial Conciliation and Arbitration Act. I am certain that I made the intention clear every time I spoke and it has been done, and done very well. ”The other Labour Acts arose out of the Industrial Conciliation and Arbitration Act and are largely machinery Acts anyway, “The whole aim and object has been to endeavour to increase the purchasing power by every means possible to be taken. The farmer must get an economic price, and the industrial worker must be enabled to buy the farmer’s production. , One cannot be lifted without the other, and in this

direction lies the hope of recovery and re-establishment, at any rate in partial measure, of equities and property values.

l “A start has been made with public works, a, largely increased number of ‘men being employed, and the whole unemployment situation has come under review and overhaul. The employment of placement officersis likely to be productive of good results, re—ports to hand already giving; reason for one to take a. hopeful View of their ultimate utility. “Time only will show whether we have wrought wiser and well. It may prove all a. mistake. I, needless to say, do not think this is likely to be the case. Ido say, however, that all that has been done since March 25 last was indicated in our election policy as finalised! by our leader, Mr Savage, after full and complete consultations with his colleagues and supporters of the party.

“Any statement of the sort that has recently been frequently made to the effect that the country has been taken by surprise and was not fully apprised of the policy prior to the election is therefore completely wide of the mark.

“Finally, I have every confidence in the ability and integrity of the Prime Minister, the Cabinet, and the party. They are solidly together, actuated by a common aim, the welfare of New Zealand and its people, fully conscious of the responsibility upon their should—ers and determined to carry into effect the Whole legislative programme that, I repeat, was clearly laid down in all pre-election speeches by all candiaateLs. As Mr Savage has said, ‘We are out to built}, not to destroy,’ and there is no need for anybody to feel nervous.” ' ,