REFORM'S POLICY.

Auckland Star, Volume LIX, Issue 51, 1 March 1928, Page 5

REFORM'S POLICY.

MR. DOWNIE STEWART DEFENDS.

BEST-GOVERNED « COUNTRY.

PROBLEM OF UNEMPLOYMENT.

(By Telegraph.—Special to "Star.")

DUNEDIN, this day.

Last evening the Hon. W. Downie Stewart delivered a policy speech, in which he defended the record of "he Government and dealt at length with finan-

cial questions. Mr. Stewart said the criticism whicli the Government had incurred was not apparently accompanied by a rise in ih» popularity of any other political party. It was very difficult to see ho av the | Nationalist party could gain grouua while it changed its leader, its name, and its programme every few months. On the other hand, the Labour party seemed to have lost all its ideals and early enthusiasm and become a more party of opportunism, continually recasting its platform in its endeavour to capture votes at any cost. "I well remember," said the Minister, "that its early leaders were filled with apostolic fervour, believing that the natioiiajisa tion of land and industry would solve the problem of poverty and all the other ills of society. But the actual ..experience of Lab<?ur rule in State after .State in Australia had shown clearly that it can neither bring about a more distribution of wealth nor cure unemployment nor poverty. Indeed, some of these problems are far more acute iu the Labour States of Australia than in New Zealand." The worker found that under State ownership he had merely changed his boss but not materially improved his status or conditions of work, while the capitalist, who had been bought out with Government bonds, enjoyed a secure and guaranteed incomt without the risk and anxiety of managing private enterprise. The Labour movement had fotind that its idol of nation alisation had feet of clay, and that it was necessary to quietly discard its most treasured dream if it desired to make political headway and if a creep ing paralysis was not to spread over all enterprise and development. The task of Government at the present time was one of great and increasing difficulty. It was besieged by conflicting claims. Yet it was surely of some significance that almost every New Zealander who went abroad returned tc declare that this country was the best governed in the world—that its credi; stood high in the financial world and that on the whole he would rather livs here than anvwhere else.

Detailing what the Government had done in respect to unemployment, Mr. Downie Stewart said the Dominion was employing far more men on public works than the normal programme should require, and it was impossible to maintain the present high figure for any length of time without creating kwrther difficulties. About ten years ago we were employing on the public works about 3000 men, and this number had gradually risen year by year until last year we employed, at the peak, over 12,000. It was-well known that unemployment relief works were not economic and did not yield full value for the money spent. Because of this fact the Government had tried as far as possible to meet the cost of unemployment out of revenue rather than out of loan money. But it must be remembered that unemployment was a still more serious problem in Australia, and if the New Zealand Government agreed to provide employment for all who were unemployed at the present rate of wages it was only a question of time before we would have a large influx of unemployed from Australia seeking work in New Zealand. It is also quite clear that the local bodies could not go on raising large loans each year to cope with unemployment. It was suggested that the Government should carry out a large pglicy of closer land settlement. That was a sound policy in normal times, but at the present time the main effort was directed towards enabling the men who were at j ' present on the land to stay there. Another remedy suggested was much higher protection to secondary industries by means of a high tariff. But in his view a high tariff was no remedy for unemployment, as can be seen in Australia and America at the present time, where unemployment was far more rampant than in New Zealand. Those who said a change of Government would solve the problem had to explain why unemployment was far more chronic and on a much larger scale under the Labour Governments in Australia than under the Reform Government in New Zealand.