"PICNICS REPLACE POVERTY"

Press, Volume LXXIV, Issue 22338, 28 February 1938, Page 12

"PICNICS REPLACE POVERTY"

Lessons From The I Depression \ MR SAVAGE REVIEWS LABOUR'S WORK CPBBSB ASSOCIATIOK TELEGBAM.) FEATHERSTON, February 26. "Poverty has given way in New Zealand to picnicking—and, in cer-j tain quarters, to garden parties," said the Prime Minister (the Rt. Hon. M. J. Savage) at a picnic held by the Wairarapa branch of the Labour Party on Saturday afternoon. "A few years ago crowds gathered to demand more food and work, and they were given the charity that is as hard as a stone," continued Mr Savage. "This year the greatest assemblages all over the Dominion have been for pleasure, every form of holidaying having been a record. This is the difference between having a Labour Government in power and a National Conservative Government in a panic."

Speaking of the lessons to be learnt from the depression, Mr Savage said that the system of leaving everything to private enterprise and hoping for the best had been proved false by the great economic disaster. The attractions of private enterprise might still please some, but they were not enough to satisfy the requirements of the people. It was necessary to emphasise that fact because there were some men to-day who .want to go back to the old system. They were the men who wasted ' four years trying to turn the corner and then turned the wrong corner into the political wilderness. Aim of Labour The prosperity known to-day should not be permitted to lull people into believing that social and economic reform was never necessary. The aim of Labour's policy was to give the Dominion a steadily rising level of prosperity instead of a succession of booms and slumps. And already the new ways were proving to be better methods in redistributing the increased national wealth. The history of the depression and of recovery the world over had surely taught that governments had to accept the responsibility for deciding the main direction of national economic development. The conviction that was now widely held was that man could in actual practice- interfere successfully with the play of economic forces. Even Mr Chamberlain, the head of a Tory Government, had said, "We have had to realise that even the most efficient industry cannot create or maintain the conditions necessary for successful operation. Governments must regulate the direction and volume, of trade."

"One of the bogeys which our opponents delight to conjure up is the prospect of another depression," continued Mr Savage. "They threaten the people with depression, both from outside as a result of the so-called overseas recession, as well as from inside as a result of Labour's prosperity policy. Let there be no mistake or misunderstanding about it. Even if there is any recession overseas, Labour's policy is being framed to avert the effects from being imposed on the people of this country. It is largely a money problem. The Government is termined to base our money system on production." Maintaining National Income The depression Government believed that the fall in overseas prices led naturally to a fall in national income. The Labour Party still held that national income must, and could be substantially maintained during bad times overseas. It would protect standards of living by maintaining wage rates and employment, by protecting the farmers' income, and no cutting of public works on the score of economy.

Mr Savage said the clearest lesson of the depression was that monetary policy was the most important single factor influencing a country's economic prosperity. Already the Government had used public credit in restoring prosperity and would not hesitate to use it further, whenever the necessity arose. The Prime Minister went on to contrast the state of affairs before the Government came into office with conditions to-day. Those who had helped most to create the economic mess which the Government had had to clean up now said that the causes were beyond political control. Towards the end of 1935, Labour was given its opportunity to reverse the disastrous policy of its predecessors and the beneficial results had been increasingly apparent, contended Mr Savage. By increasing the standards of living and creating national assets, prosperity had not only been restored but it had been increased to levels never before experienced in the Dominion, there was a vast difference in the lot of the wageearners and more people were employed to-dayj than at any time in New Zealand's history. Increased purchasing power for most people had had a marked influence on the .extent of shopping business. The economic system had been reorganised in the case of agriculture. Because of better times, taxation last year had reached the record sum of £31,000,000 and, of this, £ 18,000,000 had been paid for social services, so that more than half the taxation was handed back to the people. Taxation to provide social services was part of the Government's policy of redistribution of the national income, concluded Mr Savage.

WARM RECEPTION FOR MR SAVAGE

LABOUR PARTY PICNIC AT FEATHERSTON (PBESS ASSOCIATION TELEGRAM.) FEATHERSTON, February 27. An enthusiastic reception was accorded the Prime Minister (the Rt. Hon. M. J. Savage) by a large attendance at a pichic at the Tauherenikau racecourse on Saturday, or-

ganised by the Wairarapa branch of the Labour Party. The Prime Minister was introduced by Mr C. Kenward (chairman of the Featherston Labour Representation Committee) and Mr D. Wilson (National Secretary of the Labour Party) presided. At the conclusion of his address, Mr Savage was greeted with cheers and with the singing of "For He*s a Jolly Good Fellow."