STATE CONTROL.

Auckland Star, Volume LXVIII, Issue 201, 25 August 1937, Page 15

STATE CONTROL.

GOVERNMENT'S PLANS. SOCIALISTIC SCHEMES. FEW OBSTACLES REMAIN. (From Our Own Correspondent.) \ HAMILTON, Tuesday. "The Coalition Government fell through flirting with Socialism, and the reputation of the Labour Ministry has been greatly diminished among the rank and file of the people by its coquetting with some of the big men of Capitalism," said Mr. O. C. Mazengarb, of Wellington, when addressing a meeting of electors on behalf of the National party inHamilton this evening. The speaker added that the fact was the Government needed the assistance of business men, because it was unable to put its socialistic schemes into operation without them. It had therefore decided to seek their assistance, and to proceed cautiously and steadily toward the realisation of its dream of a co-operative commonwealth.

Burden of Taxation. Dealing with borrowing, Mr. Mazengarb said the Government under its Finance Act had authority to borrow £13,000,000 extra'by way of a "debt in perpetuity." ' Instead ~of carrying out its promise to abolish the sales tax and reduce taxation, . the Labour party loaded „ the taxpayer? with another £11,000,000 in. taxation, ijje figures for 1935 being £15,605,206 and those for 1937 being £26,940,844. , . Although the Prime Minister had condemned thrift as] an antiquated notion, he did not* hesitate to use the funds which the thrifty had placed jn the Post Office Savings Bank and the Govrnment Insurance Department. He did not hesitate to borrow through the Treasury ana the Reserve Bank the money which the. thrifty had saved. Progress of Socialism. With State control of finance, of transport, of building, and with State' control of medical services in the offing, the country was well on the way to the stage when the Government would be able "to kick away the few remaining obstacles to the State ownership of all the means of production, distribution and exchange. The audience, which was a large one, gave an attentive hearing to Mr. Mazengarb, who said in answer to questions, that he was not opposed to the 40-hour week or to any suggestion of increasing wages. A cordial vote of thanks and confidence was carried.