Ashburton Guardian Magna est Veritas et Prævalebit. WEDNESDAY, SEPTEMBER 28, 1938 CLAIMS BY LABOUR.

Ashburton Guardian, Volume 58, Issue 298, 28 September 1938, Page 4

Ashburton Guardian Magna est Veritas et Prævalebit. WEDNESDAY, SEPTEMBER 28, 1938 CLAIMS BY LABOUR.

No one will deny the sincerity of Mr Herring’s political views or argue that he has not been a most energetic representative of this constituency during his three years’ term as member ot Parliament, and for his work in connection with the purely local affairs of the district he certainly deserves credit and thanks. It is his party affiliation that renders him unacceptable to those who realise that the great need of this Dominion is progress on sound lines instead of a frantic leap into doubtful experiment. In his defence of what the Labour Government has done during its term of office Mr Herring adopted the now familiar attitude of claiming that the country is prosperous as a result of the policy pursued. He overlooks the fact that the foundation of the economic conditions in New Zealand is the export trade, the return from which has been increased greatly since the depression period that caused a reaction against the previous government. The real stimulus for present conditions came from the rise in the value of production, £20,000,000 higher iq two years and last year £30,000,000 about that of 1932. It needs only a decline in the value of our export trade to bring down the whole Labour economic structure. In its dream of bringing about Utopia, Labour ignores realities. In the Social Security scheme, for instance, the Government has committed the country to an undefined financial burden, mortgaging the future for the sake of presenting an attractive bait for those who do not realise the danger of lack of prudence. Defending the enormous increase in taxation Mr Herring said that the ratio was not equal to the advances in wages. But he did not explain how it is that thousands of persons in the community find themselves paying so much more than formerly in taxation without any increase whatever in salaries or incomes. The truth is that the Government’s adjustments in income tax penalise heavily persons in receipt of moderate incomes. Under the Labour Government’s scale the tax payable has increased by upwards of 100 per cent, in the case of those in receipt of assessable incomes ranging from £3OO to £SOO. Upon an earned assessable income of £4OO the increase has been from £6 1 Is 2d to £l2 9s Bd, and upon one of £SOO it has been from £ll 10s 9d to £22 Bs. Nor does Mr Herring explain how it is that higher prices are discounting the increases in wages, while producers also are alarmed at the speed with which costs are overtaking prices. But the great danger to this country lies in the fact that, as is frankly admitted, the legislation of the last three years, revolutionary as it is, is but the thin edge of the wedge. The country is to be called upon, not only to carry a scheme of social security which will test to the utmost the economic resources of the country, but at the same time to embark upon a Socialistic experiment in the financial system itself. The commitments already entered upon constitute a sufficient problem for solution in the future without adding to the difficulties by upsetting the whole system of recovery. The Prodigal Son, when he had wasted his substance in riotous living, returned to his father s house. If the national substance is wasted, there will be no alternative but to pay dearly for our transgressions.