STATE CREDIT.

Auckland Star, Volume LXIX, Issue 224, 22 September 1938, Page 13

STATE CREDIT.

EXTEND CONTROL.

LOW INTEREST RATES

RURAL AND URBAN LOANS.

EXPANSION OF INDUSTRIES.

(By Telegraph.—Press Association.)

WELLINGTON, this day,

I "In the extension of its policy the Government proposes to maintain and extend the control of credit and currency until the State is the sole authority for the issue of credit and currency," says the Prime Minister, the Kt. Hon. M. J. Savage, in hi* outline <>t the Government's policy, which will he broadcast to-night. "The first major act of the Labour Government," he continues, "was to buv out the shareholders of the Reserve Bank at market rates and to strengthen th<v powars of the hank so that it could better preserve the stability of our currency and also provide a banking service necessary to bring unused resources and idle labour together to produce goods and services and to provide for the needs of the people. "State advances will he granted:— (a) to provide credit to the fullest extent for farmers at the lowest possible rates of interest; (b) to provide a maximum amount of capital at the lowest rates of interest for persona in rural and urban districts who desire to own their own homes, and for the erection of suitable houses for the accommodation of workers on farms; and (c) to extend the provision of credit for the establishment and extension of secondary industries. Secondary Industries. "The establishment, protection and expansion of manufacturing and other secondary industries is essential to the development of the Dominion. The Government believes a vigorous policy of industrial development and expansion w essential to the welfare of the Dominion, and this the Government intends to carry out, so that the industries of New Zealand will he efficient. We will at the same time have regard to our trade relationship* with England. "The Government, through the Department of Industries and Commerce, has made extensive investigations into possible new industries, and as a result a number of new activities have been commenced and others will be commenced in the near future. "The first essential of any programme of development is the provision of basic industries. It has therefore Been decided to establish an iron and steel industry, as on the success of such a venture the prosperity of so many other industries must to a great extent depend. "Scientific and industrial research will include the fullest investigation into the national resources of all kinds, such as minerals, soils, plants and animals, with a view to their exploitation for the purpose and increasing the production and living standards of the people. Wages and Conditions. "Wage* and conditions In industrial and other employment will be maintained and improved in accordance with productive facilities and potential living standards. "In native affairs (a) immediate action will be taken to determine the sums which should be provided equitably to meet native claims; (bT native Und development and settlement will be extended; and (c) the provision of houses, water, sanitation and health facilities in native districts will receive attention. The Maori people will he assisted to take part in public life which is rightly theirs and to enjoy the increasing standard of well-being afforded to all who contribute to the jjrowth and production of the Dominion." ,