"THE HIGH COST OF LOW LIVING IN NEW ZEALAND"

Bay of Plenty Times, Volume LXXVIII, Issue 15120, 1 November 1949, Page 3

"THE HIGH COST OF LOW LIVING IN NEW ZEALAND"

I Doidp Claims Election Will Be Fought And Won In The lichens

LtoNAL party policy outlined to r electors in tauranga \

e of the vital issues this election is the cost of living—described as the 'high cost of low living in New Zealand'," * r tte l Mr F W Doidge, M.P., when speaking on the National stated. »r • a fuU hQuse in the Town Hall last night . Mr Party P " ff ree ted enthusiastically and a vote of confidence in 1 50 ge I the Leader of the National Party. Mr Holland, was fted with acclamation. r e of the major causes of this condition, he said, was 11 there was more money than goods. Everybody was be wl bv shortage of goods, but not everybody had more was to have been the sheet-anchor, stated TvX-i<re It was to have pegged prices and wages, but *JK>i had broken down. This was not the fault of the «Jucers manufacturers or storekeepers. ''The failure of stabilisation was due to the militants and , ornnns who were strong enough to enforce demands. pressure giwwf» «

I ,u high cost of low living in \Sd means hardship to Ki'thousands of people," stated rnnidfie Those on social secur- ! on small fixed incomes, (• servants, 95,000 of them, L C people who suffered. "ToP fa result of flooding the few with paper money wc have J Kn more" purchasing power WLTand the result is higher fe inevitable and inflation is prices <*i<- „ fenS'e stated that women had IK understanding of this issue men The housewife was the GnSr of the Home Exche- ? d had to budget be£n income and expenditure She 3 into the larder these days Kafeedthat the family eaterChad to be done on the principle Raves and fishes without |e miracle.

for them was because "we won't do as much for the £l." New Zealand's only hope of maintaining her standard of living was to increase production, and that was not being done today. , New Zealand's present prosperity, it was well known, was the result, of phenomenal prices in Great Britain, but if the bottom fell out of the London market, that standard of Jiving would collapse overnight. A few weeks ago, Mr Walsh, of the Federation of Labour, told the blunt truth: "Our present prosperity is due to the misfortune of other countries which have been ravaged by war .. . Those countries are forced to pay us fabulous prices." "A Fool's Paradise" "That," said Mr Doidgc, "is the answer to the childish nonsense wc listen to in Parliament when Government, members claim that New Zealand's present prosperity was due to the fact that a Socialist Government was in office. If ever a country lived in a fool's paradise it is New Zealand under a Socialist Government," he added.

housewife Has The Headaches" litis the housewife who has the; Caches," he said. "She rememL the pledge in 1935 'if the Lour Government is returned the Eke will be saved at least 5s l t he £.' Instead the £1 today, mLof being worth 20s is only {orth half that sum. What you could |»yfor £1 in 1935. today costs 33s 4d. ["That is why I believe this electa will be fought and won in the lichens," added Mr Doidge. j The best way to illustrate the price fees since 1935, he continued was to tte the case of a housewife purLing weekend meat for a family live. She bought a six lb sirloin y two lbs of lamb chops, which a 1935 cost 6s, but in 1949 the cost te9sßd. The weekend meat alone fist 3s 8d more than in 1935. | Referring to the cost of clothing, Sir Doidge ouoted the following [rices for 1935 and 1949, the 1949 (jure .appearing in parentheses:— [Men's navy serge suit 47/6 (175/-) Wall wool N.Z. suit 47/6 (126/6) Sirts (poplin) with two collars 5/11 pi/-) sports coats 19/6 (71/-) wool aglets and pants 5/11 (16/9) all W overcoats 32/6 (100/-) boys' lege suits (all sizes) 27/6 (71/-) fly fashioned silk hose 4/11 (12/6) iressing gowns 10/6 (75/-) tweed {oats 32/6 (110/-) tea towels 8d W) blankets (double) 18/11 82/6) sheets (double) 9/6 (65/-). J These fieures demonstrated how the benefit of higher wages was [diminished, by the higher cost of living, he stated. Mr Nash stated last session that le cost of living had only increased f per cent, since 1937-38. This Statement was preposterous in the Ptof the people's own experience. [ln the 1936 Budget, the Labour [Government promised to build pes, thousands of them, at a cost I £6OO. Where were they., asked i-r Doidge? If the statement of a I per cent increase was right a »se could still be built for £IOOO. Jt today it was impossible to build West five-roomed house for less P £2OOO. That was the cost of Wlism. [I? New Zealand, the people wore m but for motor cars. Of the p 250.000 cars on the road, four Pof five had been on the road pover 10 years and many of them F ready for the scrap heap. It a s rue the dollar shortage nlaced [American car out of reach and Li • car un in P rice - but "our f '«n is the price to us here in W Zealand." " 1 : was possible to buv a car in PJn for £3OO. The nrice for that BiJ? r J n Now Zealand was ' 0f Ihat "Sure the sum of d T nt in freight, insurance etailevs profit, but for the [! 'p of buying a £3OO English j IJ4 in e purchaser paid Mr Nash

Dealing with taxation, Mr Doidge said that people were waking up and were beginning to realise that nothing was free they had to pay for everything 'they got. New Zealanders paid 8s out of every pound they earned to the Government. They worked two days out of every five to meet tax demands.

It was not what a person paid in direct taxation that counted, it was the indirect taxation that hurt. Every family in New Zealand paid £3/10/- per week in indirect taxation. The Labour Government came into power in 1935 pledged to reduce taxation, and instead of being reduced it had been multiplied four times over. Since 1935 taxation had gone up from £l6/5/7 to £7l/10/10 per head.

The Labour Government had not fulfilled its pledge to abolish the Sales Tax. but year by year had increased the burden until in ten years it had gone up from £3.500,000 to £15,000.000. Taxation had been increased from £37,000,000 per year to £130,000,000, and total taxation was £21,000.000 above the wartime peak. At £130,000,000. saturation point was not yet reached. "What happens in New Zealand is that, in the main everybody who works pays for his or her own benefits and a bit more for benefits of those who don't work."

Referring to company taxation, Mr Doidge said that most of the companies registered in New Zealand were very small cent, had incomes under £BOOO a year, over half had assessable incomes of under £IOOO a year—little more than earned by an average watersider. In New Zealand there were 7642 establishments classed as factories who employed 135,000 people. Most were registered as companies and their incomes were so small one wondered why they carried on. "But," added Mr Doidge, "think of the unemployment there would be if they didn't." The State was the sleeping partner in every business in New Zealand. The State took the lion's share of the profits and none of the risks. The only worth-while incentive, was the profit incentive, he claimed. Tax Reduction The National Party, stated Mr Doidge, believed that the guiding principles of tax reduction should be to prevent wasteful expenditure; reduce thc cost of living; restore incentives to increase production; remove taxation penalties on thrift; remove injustices; reduce the cost of production; allow "ploughing back" of earnings into industry; and to leave as much money as possible in the hands of those who earned it.

j Increase In Costs ' to Mr Nash costs had gmcreased 34 per cent, but L o thej speaker, ask members |' ne .Wellington Hospital Board i' ryeheve him? Twelve years Wa T T ? tm Z and maintenance K' n board ' s institutions was Kan* 3S now £1.224.000FonS from a quarter million Nferj2. a -" quarter millions. The ad Wellington hospitals BfSS from to W, f 't in "he c e ln overyl.ostea£Muxury t 0 brin 8 childWhS 6 worltl - Jt was a C> The cost of burial : ° deal l& P * vt y is determined : au ses of! C £ lvely with the basic f" e attrihiK er . llving cost s whioh Sffinf t 0 lnfla tion; taxation; Sn S IVe ? tor increased pro- ? s down „, J lnterf erence which Sc anH penally S r °l Ah ' P^ e and Property f es Siv reStrcts su PPly and ? Mces hi^ ods ln short supply & Ce «conSr^ B6 of the*. g^tanS etltlon ; interference rfi n i result ing in hisnKey- r a e £"*d output and less fas J* 1 * industrial troubles b° { 4hcn'i?M aroUnd 0f shi P s V livingT bute t 0 thc hi & K Jd wS te< ? that the NationNn S ld check inflation bv ft for a It would v on would i e priPe IKVeI - p ro- ? ng incentiv bc + stimulated by E>lov2 Ve U oboth employer n'mrf Xne manufacturer S>d bv ? p r 3 du f. ei ' would be enK- wS°, ns in taxation. i Csnti v s2 d be encouraged Wor^ndhl aS i extrapay fnr & a ndcon=, plans for profit:l*psovernmeni - Do,dGo chimed, W' s SIS »T IZed thc Nation- *£ ai »d out - c rn ? ony in1:o in<.H it wa"^ 111 through, but ;> e , • poor ' anaemic and give h?r J - BvH Sfusion it needs," O a Party u* mea «s. the ¥? n g Power° Ped i° rest ore the Vih e reaSS S he £1 wa * it ' C tl 2, that one reason would not do as much

The rate of progress in housing was not good enough, claimed the speaker. The shortage of homes was estimated at 49,000 and average marriages were set down at 13,000 a year and that did not allow for the slum clearance problem. The National Party policy was home ownership—"own your own." The Government sought to justify the delay in building homes by pleading shortages of materials. If that was so, added Mr Doidge, how could it justify the erection of an £BO,OOO watersiders' block at Lyttelton and a £60,000 community centre in Mr Nash's electorate in Naenae, and GOO tons of cement for the Lyttelton project. How could these be justified when schools, hospitals and homes were needed.

Dealing with what he termed Socialism or solvency, Mr Doidge stated that it was crystal clear that Britain's Socialist Government pursued a policy that was a dangerous policy—a policy that imperilled the Empire. To quote from the London Daily Mail: "Our only hope is that the British people will smash Socialism before Socialism smashes Britain." That he thought would be the prayer of millions of loyal Britishers throughout the Empire—the prayer that at the coming general election the decision would be .to surrender SociaMsm for solvcncv. "Unavoidable Criticism"

It was, he said, distasteful to criticise the United Kingdom Government but they had reached a stage in Empire affairs when such criticism cculd not be avoided. The party in power at Westminster guided Empire policy. The Dominions Office had wide power and the Colonial office had complete power. It was plain to all that a Socialist Government at Westminster was not guiding the Empire wisely. The National Party’s first act after the election should be to urge a calling of an Empire conference and there to start on the

great job of strengthening and - revitalising tfhe British Empire. The party pledged to fight to keep intact the system of Imperial Preference. Working harder was not sufficient in itself to save Britain from bankruptcy. “Our future and our hope of survival lies in the development of the Empire and its vast resources. The outcome of the New Zealand election was likely to have repercussions overseas. “In his speech last Thursday night,” said Mr Doidge, “the Leader 01 the Opposition made plain where the National Party stands on the challenge of Communism. Mr Holland’s statement has thrown the Federation cf Labour into a panic. Why? A year ago, the Prime Minister, addressing the Federation of Labour, said the same thing. “On that occasion the Prime .Minister accused the Communists of aiming at industrial anarchy in New Zealand, and Mr . Fraser added: T would be blind if I did not see these problems. If the choice lies between carrying out and applying discipline, and turning our backs on the interests of the people, we will apply discipline.’ That is what Mr Fraser said, but he did nothing about it. There was no let up in industrial lawlessness, which culminated in the cai'penters’ strike, and a general stoppage. At that point, the Minister of Labour. Mr McLagan, came forward and declared: ‘Such tactics will not be tolerated; should these boycotting and wrecking tactics continue, the Government will take whatever action may be necessary.’ Discipline Needed

"What Mr Holland affirms is that we of the National Party will do likewise. What Mr Holland said was: 'We want discipline in New Zealand, and we are going to get it.' Those : in high places behind the Labour organisations are in a panic because they know he means it. They know he won't be brushed ss ; de like Ministers in the present administration. "No one will be the least impressed by the statements contained in the telegram sent to Mr Holland by Mr Baxter, secretary of the Federation of Labcur," stated Mr Doidge. "Our policy provides for the independent supervision of secret ballots which decide strike issues and the election of union officials. Does anyone doubt the need for such supervision. In this country the worker will never, under any circumstances elect a Communist to Parliament. Yet Mr Baxter wants us to believe that the worker cheerfully and voluntarily elects Communists to the control of his union.

"If strikes in New Zealand are not Communist-inspired, why have we had so manv of them?" asked Mr Doidge? "Why have we had more strikes-under the administration cf this Government than under its predecessors? "The official Labour candidate in this electorate was foolish enough in his opening address, to stress the number of strikes and lock-outs during the 14 years prior to 1935. "Th» Bay of Plenty Times, in an editorial, makes my opponent look very foolish. The Times chides my opponent with omitting to mention that between 1935 and 1948 there were twice as many strikes, involving twice as many men, as in a like period before the Socialists took office. Last year, 1948, there was a black record. There were, last year, four times as many disputes as in the year before the Socialists look office; the number of men involved were multinlied by seven: the number of days lost multiplied by nine, and the amount lost in wages increased 20 times before these benefactors of the masses came into power.

"When the National Party becomes Ihe Government and takes up the challenge cf the Communists, I am convinced that ninety per cent, of the workers of New Zealand will be whole-heartedly behind us. Further than that, I am convinced that if we fail to our pledge to cope with the Communist who flouts and defies our industrial laws, the workers of this country v/ill never forgive us," he said. Never, claimed Mr Doidge, had there been a more vital general election than that to be decided on November 30. The National Party believed that this was victory year for it. It was not a case of wishful thinking and this optimism was based oh facts, figures and steadv progress. In 1935 the total National Party vote 1938, 380.000; 1043, 403.000 and in 1946, 507,000. The National Party vote had increased by more than 100.000 last election and that meant that the party's strength had increased by. 100,000 in three years. "National to Labour!"

It was common to hear of men and women who had changed from Labour to National, but where in any part of New Zealand, he asked, had anyone ever heard cf a change from National to Labour? In this election the National Party only needed a ■ handful of votes to turn the scales. The Maori vote saved the Government from defeat last time, but nothing could save them this time and they knew it. If anyone was stfl in doubt about the impending fate of the Socialist Government he must have had his doubts dispelled on Tuesday night when the Prime Minister opened the campaign for the Socialist Party, added the speaker. "It was oathetic," he stated. "Here was a leader who was to set alight to the fire on the hill top— a beacon which would inspire his followers and tell them battle had begun. He delivered a speech which produced as much heat as an empty grate."

"Here was a leader who was to produce a policy which would point the way from today's troubles to tomorrow's prosperity. A 1! he did," claimed Mr Doidge, "was to spend two hours walking up a dead-end street." Admittedly the Prime Minister was a tired man, crntinued Mr Doidge. He had to carry a heavy burden —a burden that was inevitable when he led a party in Parliament of men selected not for ability but for their dependability as cogs in the partv machine. It was clear from the Prime Minister's, speech that the Socialist Party was a party without a policy. Other Ministers had spoken and they too had assured the people there was a policy. The Postmaster-General told the people it was to be a "toffee-apple" po'icy. "Heaven help us." stated Mr Doidge. "To what polemical heights we ascend." On the other hand, claimed the sneaker, into what high relief did the Prime Minister's fumbling effort throw the speech made by the Leader of the Opposition. Mr Holland's and his speech on Thursday night were typical cf

himself—robust and eager, resonant with enthusiasm. If, as the Prime Minister gloomily forecasted, there were difficult days ahead, here was the man to lead the country through them. Vote Of Confidence In Party Address By Mr Doidge At Te Ranga (Times Correspondent) A motion of confidence in the National Party, and in Mr F.- W. Doidge as the member for Tauranga, was passed by about 40 people following an address given by Mr Doidge in the Te Ranga Hall on Saturday night.