LABOUR'S AIM.

Auckland Star, Volume LXVII, Issue 184, 5 August 1936, Page 10

LABOUR'S AIM.

POLICY EXPLAINED.

MAJOR QUESTIONS.

DIFFICULTIES OF PAST.

HIGH TAXATION YIELD.

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, Tuesday.

In introducing the Budget in the House of Representatives this evening the Minister of Finance, the Hon. W. Nash, said that the election campaign last year had followed extraordinary difficulties to primary producers owing to fall in prices and consequential overmortgaged land. That had been accociated with cuts in salaries and pensions and reduced votes for education, healtfl and other social services, and unprecedented unemployment. Discussing revenue, the Minister said that the main feature of last years operations and the only one that was important from the viewpoint of the current year's Budget had been buoyancy from the yield of taxation. The surplus of £261,800 realised had been entirely due to this factor. The total revenue received had exceeded the Budget estimates by £430.000. The extent to which the revenues had recovered was still better illustrated by a comparison of the yield from taxation for last financial year with that of the previous year. With the exception of stamp and death duties and land tax, every item of taxation had shown a substantial increase, amountinsr in the aggregate tr. £2.002,000. That increase had been offset by a decrease of £079,000 in the yield*' from stamp and death duties, due to abnormally large payments having been received the previous year, and to a decrease of £34.000 in land tax due to lower valuations. Trade and Marketing. "The election policy of the present Government," said Mr. Nash, "affirmed that New Zealand's trade and marketing policies would best serve the people of Dominion, the nations in the British Commonwealth, and other countries, by putting our own production and marketing system in order. The election manifesto said that the essential procedure to give the best results to exporters, importers, producers and consumers would be to allow production to exnand so Ion? as any important human wants remained unsatisfied and to take the necessary steps to_ ensure that the expansion of production did not ruin the producer by catastrophic price falls. This implied the relation of expanded production to sound marketing machinery with means to ensure simultaneous expansion of demand and exploration of new markets to extend sales of immediate and future pioduct'«n.

"The aim of the Government, as expressed in a paragraph, was and is: To organise an internal economy that will distribute the production and services of the Domirfioii in a way that will guarantee to every person able and willing to work an income sufficient to provide him and his dependents with everything necessary to make a * home' and ' home life' in the best sense of tho meaning of those terms. To this end the Government has raised the allowances to those who are unemployed, has provided for increased rates of pay on public works, is instituting the 40hour week for industry, and has raised the wages of people on a graduated scale "so that when reaching adulthood they will automatically secure a basic wage. This basic wage is a minimum which must be paid throughout industry, and will be based on the sum required to give an adequate standard of living for a man, his wife and three children. The amount will be fixed by the Arbitration Court and altered from time to time to suit changing circumstances. Needs of the Child. "On the side of education it is the Government's intention to reorganise our school, college and university systems to provide the maximum facilities for all children from the kindergarten to the university. This; however, will not be worth while unless we can also ensure that the physical needs of the child and the adult are fully provided for on the same basis as are the needs of the mind. Health services should be made as freely available as educational service. That is why the Government intends to organise a system of public health services, including full medical, maternity, and dental care, which will stress the prevention rather than the cure of illness. This system will be extended to all, our people in both rural and urban areas. The Government has already taken the initial steps f&r the organisation of a complete health insurance, invalidity, and old-age superannuation scheme. The objective is to provide superannuation by right during sickness or old age, without a means test. The preliminary organisation has been established under which negotiations will be inaugurated with all bodies associated with the care of the aged and the sick.

"The organisation of the Friendly Societies, the National Provident Fund, the Public Service superannuation schemes, the pensions system, the Government Life Insurance Office, and the Health Department will all be used to determine the most efficient financial and service procedure necessary to provide for accident, invalidity, sickness, and old age. In the intervening period whilst the constructive work is proceeding, steps are being taken to introduce pensions for invalids and to raise the general standard of all pensioners. Control of Banking. "Unless a Government controls its banking and credit system it will be materially hindered in the planning and carrying out of its policy. That is why the first major policy measure of the Government was the Reserve Bank of New Zealand Amendment Act, which gave it full control of the foreign

exchanges and of credit within the country, making the Reserve Bank entirely a State Bank. "In a developing agricultural economy, the question of farming finance is allimportant, and New Zealand is no exception. Over forty years ago the •State initiated a policy whereby settlers were provided with finance at particularly low interest rates, and for long periods. This system has been the greatest single factor in developing New Zealand's farm lands. "Last year the Government then in office established a Mortgage Corporation, changed the old procedure, limited the scope of the legislation for social service, introduced private shareholders and share capital and bonds not guaranteed by the State. As with the Reserve Bank, tho Government liks bought out the shareholders of the Mortgage Corporation, and the institution has again come under direct Government control and responsibility as the State Advances Corporation. Bonds will be State guaranteed, so that money may be raised at the lowest possible rates. Where it is necessary to assist a farmer in financial difficulties, or for purposes of providing homes for wage-earners, a high percentage 'of the security will be lent. There are safeguards, so that the loans cannot be used for speculation. The intention, is to provide homes and farms for the people at low cost."