LABOUR'S CRITICS

Auckland Star, Volume LXIX, Issue 138, 14 June 1938, Page 12

LABOUR'S CRITICS

MR. RICHARDS' REPLY

ADDRESS AT SANDRINGHAM.

GOVERNMENT'S CLAIMS.

Giving an answer to Labour's critics— those whom he termed the "prophets of gloom"—Mr. A. S. Richards, M.P. for Koskill, addressed a capacity audience in the Carlton llall, Saiidringham, last night.

The Mayor of Mount Albert, Mr. H. A. Anderson, who presided, said Mr. Richards "ia<l served the electorate since 1931 faithfully and well and he had been a member of many important committees of tlie House. The size of the audience indicated the interest taken in the member for Koskill.

"The main purpose of the meeting- is I to give a documentary answer to some | of the statements made by the Leader of the Opposition, the Hon. A. Hamil-1 ton, and other critics of the Government, and to produce evidence in rebuttal of statements made by these critics who have tried to misrepresent and distort the real position," said Mr. Richards, who quoted many figures during lii» lengthy address. Taxation and Debt. Dealing with Mr. Hamilton's remarks about taxation, Mr. Richards said he would admit the country was fairly heavily taxed, yet its taxation was one of the lowest of any country in the world. Other countries had followed a monetary policy which had run them into debt, but the present Government would not make such a mistake.

New Zealand's national debt when Reform took office in 1912 was £84,353,913, and it stood at £227.>>14.647 when Mr. Coates took office in 1925. In the following three years it bad risen to 251.396.252, and the total public indebtedness at March 31, 1932, was £348,829,321. Mr. Massey in 13 years added £143,460.734: Mr. Coates' Government added £23,581,605 in 13 years, and during the term of Mr. Forbes another £31.226,706 was added. These were staggering figures, added Mr. Richards, who said the present taxation was no - fault of the Government. What was the Government expected to do in the short time of three years. It could not repudiate.

The major items in taxation were debt and social services, which absorbed 28 per cent and 31 per cent respectively. ''The Tories fixed the debt charges, not us," continued Mr. Richards. "Mr. Hamilton had said we must reduce taxation. Would he like to *ee us reduce pensions and wages ? Defence is a big item in taxation, and the main highways is another. We cannot neglect either; neither can we neglect the maintenance of public buildings. It is not good business to neglect millions of pounds of valuable assets." The Government had, in two loan transactions at Home, Mr. Richards said, saved interest amounting to £498,949, and a reduction of overseas debt of £4,000,000. From 1923 to 1929 over £46,000,000 had been borrowed at high rates and often sold at £92, the under par of these loans costing £1,800.000 and the cost of raising them £3,300,000, a total of £5,100,000 in dead costs and charges. During the same year direct taxation was reduced by an average of £4,000,000 a year. "These Governments gave away their income to their wealthy friends and then pawned New Zealand to overseas bondholders," Mr. Richards said. "Labour has not borrowed and will not do so. We have reduced in 2J years the overseas debt by £2,207,000, yet you are told we are ruining busi-1 nesses and the people. So say the prophets of gloom. Mr. Endean days the country is going to the dogs.' (Laughter.) Labour's Claims.

As proof of the success of the Labour Government Mr, Richards claimed that I unemployment had been reduced; that, factories and the number of persons I engaged in factories had greatly increased, while materials- used had risen from £59.940.080 in 1935-36 to £70,668.000 in 1936-37. The balance after all costs had been met had increased from £5,642,000 to £6,581.000. Two-tliirds of the total increase of £5,700,000 in income tax was in receipts due to the improvement of business. The latest returns revealed that at the year ending March, 1936, 10 individuals had an income of £17,368, or an aggregate of £173,684, another group of 1094 had an aggregate of £4,983,986. Labour aimed at equalising more the distribution of the tax, and this Mr. Richards showed by reciting a table of figures. Giving comparative figures, Mr. Richards said that the wages and salaries bill between 1935 and 1938 rose from £00,969,000 to £91,588.230, an increase of over £30,000,000, while income other than wages and salaries rose £15,000,000 from March 31, 1935, to March, 1937, or £9,000,000 between March 1936 and March, 1937. I

In a survey showing how capital had fared under Labour administration, the speaker said that of 50 companies that had been examined, not one made a loss during Labour's administration and during the same period they had, as a whole, increased their net profit earnings by £1,404,055. an increase of 36 per cent in terms of the total profits earned by them in 1935. In addition jreneral reserves had increased by £1.105,000. Facts spoke for themselves and proved that the return of capital in New Zealand was more than satisfactory. If coste had risen, profits had risen even higher and shareholders were receiving handsome returns irrespective of what the workers had gained. "It all shows that Labour can govern capital better than the capitalists can," said Mr. Richards. (Applause.)

Reference to the increase in Post Office Savings Bank deposits and the increase in the number of depositors since Labour took charge was also made, the improvement in transport services and roads in rural districts, the Government's National Health Security scheme and the co-ordination of the marketing service. "Democracy has never .been better and more safely treated than under the direction of Mr. Savage," declared Mr. Richards, "and the Government's policy is going to mean in the end security for the country and more happiness and comforts for the people."

A vote of thanks and confidence in Mr. Richards as their "future representative" and a vote of thanks to the Government for its policy for the welfare of the people were unanimously passed-