LABOUR GOVERNMENT

Bay of Plenty Times, Volume LXVI, Issue 12331, 21 April 1938, Page 3

LABOUR GOVERNMENT

ADDRESS BY PRIME MINISTER SPENDING TO THE BEST ADVANTAGE GUARAXTEED PRICE DEFENDED Wellington, April 21 The Prime Minister, the Rt. Hon. M. J. Savage, in the course of his speech in the Town Hail last night began by referring to a number of current misrepresentations covering Labour’s policy and also himself. “It is urobable,” he said, “that most of you have beard all sorts of rumours about m> health because of a recent indisposition. According to my political opponents I am suffering from every known malady from ‘hiccups’ to hardening of the arteries. All kinds of stories are abroad, A i friendly London editor has advised me by air mail that I am to resign when the elections are over. Others have gone as far as to select my successor, but the political destiny of this country rests with the people and only they have power to remove me from office, I have never felt better in my life than I do to-night. Please take no notice of those who for political reasons are conducting a whispering campaign at my expense.”

‘•The economic position of New Zealand is better to-day than it has ever been in the recorded history of this country,” said the Prime Minister. “Trade has been buoyant ever since the Government came into office. With a stimulating policy, prosperity is more widespread, more substantial,- and more- secure than it has ever been before in the Dominion. Why have we broken all trade records? Because the national income has been more equitably distributed than ever before: the rank and file of the people have been better able to buy and pay their bills. May I anticipate the editorial rejoinder to-morrow uiat we have also broken all previous records in respect to taxation revenue, which is a very different thing from increased .rates of taxation. Of course we have, hut at the same time we have excelled the records ( of all former Governments in spending the money to the best advantage of the people as a whole. “Let me analyse the use which was made of the revenue for Labour’s first complete year of office, 193637. The total revenue from taxation was approximately, £31,000,000; £11,000,000 was national debt services, of which £6,500,000 went overseas; £18,000,000 was spent on social services; £3,000,000 was for highways; and the rest of the money went in essential repairs, defence and administration.

“We hear a lot said about high taxation, but the test is what have people left after paying taxation? Between 1935 and 1937 the aggregate private income increased £37,000,000 and the yield from taxation increased £10,000,000. It is too early yet to give full detailed results of the past financial year, which closed at the end of last month. A provisional report, however shows that the year was again a notable one in comprehensive' evidence of progress and prosperit.v. Another substantial surplus has been secured and I can assure you that my colleague, the Hon Walter Nash, will he able as Minister of Finance to present a splendid Budget to Parliament next session. The salient feature of State finance last year is this, there will he a surplus ot, approximately, £BOO,OOO and the public debt will he less at the end of the financial year than it was at the beginning.

“The total value of production last year was the highest on record in New Zealand. The cash increase in two years of Labour was over £39,000,000, as compared with a production value decrease of fully £37,000,000 in the two blackest years of the depression Government. It does not require monthly bulletins to prove the difference in values, but while frankly admitting the gain and effect of overseas increases, I take leave to point out that huge accretions, to the volume ot production are the direct results of the Labour Government’s policy of more equitable distribution of income. Official figures prove that the increase in the volume of production from field and factory was much larger after the first full year of Labour Government than in any of the previous recorded years. “Thrift to-day is at a peak level, all records In savings have been surpassed under Labour. To-day there are over 1,030,000 depositors in the Post Office and Trustee Savings Banks. Of that record total fully 880,000 are in the Post Office Savings Bank, with over £58,000,000 to their credit.

“The registered number of unemployed in March, 1936, was 54,000. In March 193 s It is 6,095, to which must be added, to make a comparison with the figure two years ago, 8.000 men totally unfit for any work whatsoever. To-day there are over 20.000 men on Public works. These 20.000 men are paid at living wage rates with conditions unsurpassed in any other part of the world. “The biggest increase in the Labour Budget is social services. Next to the United States ot America New Zealand has more motor cars per head than any other country. In two years the number of cars has increased by 27 per cent. In two years the number of radio licenses has increased by just 50 per cent. In the last twelve months people could afford to invest £6,840,000 on the totalisator, representing an increase of 101 per cent over two years. There can be no question of the ability to pay for social service. The social security plan of the Government will be made the law of the land during the next session of Parliament.”

In referring to tne position of the farmer the Prime Minister said the figures demonstrated a magnificent advance on the treatment they received from the Coalition Government. The farmer’s improved position was indicated to a remarkable degree by the greater use of fertilisers and agricultural machinery. The increase in the production of superphosphates in two years was about 30,000 tons. The improved income of farmers was also reflected in the increased use of agricultural machinery. In two years an additional 1,700 dairy farmers have purchased milking plants. Farm prosperity has, in fact, been demonstrated in many ways. The farmer, like the prosperous townsman, nas a perfect right lo use his increased income as he desires, but it may be observed that last year the country people bought 30 per cent more brand new motor cars than they did in 1936. The benefits of a guaranteed income to dairy farmers have been reflected in the official returns and these gains cannot bo refuted. Let me remind the dairy farmers that although they doubled production in the ten years before the advent of the Labour Government, in December, 1935, they did not get a penny extra as a reward for their splendid efforts. They were driven to the verge of bankruptcy and yet they are invited to destroy the present system of guaranteed prices and begin all over again. The