LABOUR'S POLICY.

Auckland Star, Volume LXII, Issue 262, 5 November 1931, Page 10

LABOUR'S POLICY.

ELECTION CAMPAIGN.

GREAT ISSUES AT STAKE.

EXTENSION OF CREDIT

RESTORED PURCHASING POWER,

(By Telegraph.—Press Association.) WELLI2\ GTON, Wednesday,

Labour's election policy was enunciated by the party Leader, Mr., H. E. Holland, when he spoke this evening to a large crowd afc the Wellington Town Hall. He dealt with a wide range of subjects, including unemployment, land settlement, taxation, finance and credit, interest charges, and the Arbitration Court. The rehabilitation o£ industry, he contended, was the only solution of the unemployment problem. Mr. Holland said the country owed to the Labour party the fact that the elections were to be held, and that in consequence there would be no wholesale disfranchisement of electors. The contest this year found the two anti-Labour parties at last driven into oile camp desperately defending a combined policy against the attack of Labour. The issues at stake were greater than in any previous conflict, and the forces which Labour was meeting represented tho combination of vested interests and money power. That combination proposed to remedy the evils of depression by dragging the community down to the uttermost uneconomic level. As against this, the policy of the Labour party was one of constructive processes' making for rehabilitation. The Coalition was fighting this election on the Reform party's policy. The United party had surrendered to the historic enemies of the party led by Ballanco and Seddon, and the last vestige of the principles of the old Liberal-Labour alliance had faded permanently into the eftadows of political intrigue.

Provision For Unemployed. The Labour party held that the only solution of the unemployment problem Was the rehabilitation in industry of all who were now unemployed or working part-time, and this should be done on wages that would provide a reasonable standard of living. Labour would make an immediate further provision for tho unemployed Out of the Consolidated Fund and additional grants would be made to hospital boards "for the relief of distress arising from unemployment. To meet the general situation, they would organise the industrial resources of the country on modern lines. A courageous policy of primary and secondary industrial development would be undertaken with systematised productive effort and plaliiied output. For this purpose internal credits would bo arranged With the Government, the people and the banks co-operating. The work undertaken would be of a productive character and their credit facilities would bo Organised 66 a£ to fit in with the volume and value of production. The purchasing power of people _ depended upon the leVet of lhcome received,, by the wage and salary earners. Wage ' reductions meant a depreciated, local market and consequent stagnation, hefieo thero could be no return to prosperity until there was a restoration of purchasing power. There could be no restoration Of purchasing power without a return to the living wage standard. The evidence of wholesalers, -manufacturers and retailers before the special Economy Committee abundantly proved that the cuts already made had reduced their turiiOVer, and in consequence hud increased their cost per unit of output. Tho first task to be undertaken by a Labour Government would be that of ' getting tho unemployed back to productive Work. An equally important task ' would be the restoration," especially of lower Wages aiid salaries, to the purchasing standard before cuts were made. The present Government, in its deter* minatiOrt to interfere with the Arbitration Court awards, was merely following the Course dictated by the Employers Federation aiid other interests. . The Labour party would retain the method of industrial conciliation and compulsory arbitration, not because they were satisfieel with every decision of the Court* but because the Labour movement in ; politics subscribed to the principle of arbitration as somewhat better than the lock-out and the strike. ,

Control of Credit. In-the present crisis the credit system in private hands ha ! practically broken down and there 'Vras a marked lack ot co-ordination between finance and industry. It was imperative that the State should take a more effective part in controlling currency arid credit. To this . end the Labour party would take steps to establish a central bank iihder the control of the State. This bank would have the sole tight of note issue. Pend- , ing this change, regulations governing ■ the issue of notes by private banks would be extended and under the existing hanking laws the Labour party would raise sufficient credit for immediate industrial purposes, employing methods somewhat similar to those adopted during the war. In that period there Was no difficulty in raising* llioriey. The Labour party proposed how to iisc national credit for the purposes of economic reconstruction and rehabilitation. The present banking laws Would permit this to be done. The siihi of £25,D0C,000, spread over a three years' periodj Would be sufficient to put "the Dominion olice again Oli its feet. -The cVideiice of bankers to the Economy Committee indicated that this money could be raised. Land and Other industries. In administering its policy of land settlement the Labour party would give careful attention to the selection of suitable men, in addition to those who were already employed, for the work of preparing for immediate settlement of large areas of Crown and other lands. Men taking part in such work and willing to become permanent settlers' would have preference in takiiig up land when ready for settlement. To facilitate the development of secondary industries of the Dominion, all industries development boai'd would be appointed to co-operate with the Government. Every encouragement would be given to the upbuilding of such industries. Provision would be made for the regulation of importation into New Zealand of goods the like of which were being produced in New Zealand. , Immediate inquiries would be instituted for the purpose of arranging definite trade-agreements between the Dominion and other parts of the British Commonwealth and other countries ill Order to increase the market for Domiuion exports. Investigations would also be made into the possibility of arranging with primary to co-operate | with the Government for a guarantee of j the price for primary products. ■»

The Labour programme provided for an extensive scheme of main and secondary highways construction, and particularly the construction of roads to backblock districts now without adequate road access. The Government's decision to subsidise the purchase of fertilisers was a solitary move in the right direction, but the, present subsidy did. not go far enough. It covered only certain classes of fertilisers.

Mortgages and Taxes. Mr. Holland declared that in the case of mortgaged farmers with £3000* to £5000 unimproved value, no benefit would accrue from the removal of the graduated land tax, while these men would now have to pay income taxation. He was not objecting to the obligation to pay income taxation, but merely pointing out that the small farmer was not bene" fiting by the change. On the other hand, the large landholder would have the graduated land tax removed, while income tax would not be increased by anything like the extent of tho benefit he would receive from the removal of the graduated land tax. Generally speaking, the principal beneficiarics would be large concerns such as banks, etc., with a large of scattered properties. The owner of £20,000 unimproved value would benefit to -somewhere in the vicinity of £80, while an unimproved value of £120,000' would be exempted from the payment of nearly £3000.

In the case of income tax, the increase on £350 income was nearly 214 per cent, while that on £1000 income was only 47 per cent. While conditions demanded it, the Labour party would impose an additional super-tax on higher incomcs and a super-tax on dutiable goods which could be produced in New Zealand. They would also place a special emergency tax on investment incomes that were free from taxation. They would remove the primage duty and also abolish all .indirect taxes on foodstuffs and other necessaries not produced in New Zealand.

I Dealing with the wheat question, Mr. I Holland said the Labour party would institute a comprehensive investigation into the whole question of production find distribution of wheat, the wheat and flour duties and flour production and distribution (including the operations of Distributors, Limited). Their object would be to ensure the production of wheat and flour in sufficient quantities and the supply of bread and also of animal foods at reasonable prices, while at the same time guaranteeing an adequate return to the wheat farmers and standard wages for workers employed in wheat areas.

Wheat-growing was an industry natural to New Zealand and they could not allow it to be destroyed. Neither could'they leave the Dominion at the mercy of outside countries, for .it was one of the staple food items.

A Provisional Moratorium. The Government's only solution of the interest problem as it affected the primary producers was a moderate extension of the Mortgagors' Relief Act—an enlargement of the powers of the Court to enable that body to make such remissions, reductions or postponements of interest on existing mortgages as it might deem advisable. The main weakness of this proposal was that it placed on the mortgagor the obligation to move in the Court, and in many cases legal charges would bar the mortgagor from claiming relief.

The LabOur party's proposal was for a provisional moratorium to prevent foreclosure arid machinery for mutual adjustments. If within three months of the passing of the legislation? no agreement should bo arrived at, a 20 per cent reduction would operate with tho right of appeal by the mortgagee or lessor, as the case might be. Evidence tendered to the Economy Committee on behalf of stock exchanges, sheepowners and stock, and station agents favoured interest reductions. There Were others, of course* who emphatically opposed even the suggestion of such a course.

Mr. Holland's Prediction. Tracing thd wage and salary reductions of 1921-22 and the legislation of 1930-31 and the years in between, Mr. Holland made the prediction that if the Coalition should - retain the Treasury benches there Would be cither wholesale dismissals or further heavy Avage and salary reductions, or both, covering economies totalling from £1,000,000 to £1,500,000, that all classes of pensions find allowances would be cut down, the wages tax increased and every . industrial award "and agreement placed In jeopardy, together with substantial tax reductions to wealthy landowners and ineti with large incomes.

At the conclusion of his speech, a resolution Was ca fried without dissent in which Mr. Holland was thanked for his address, and confidence was expressed in the Labour party ancl its policy.