BENEFITS FOR THE PEOPLE

Press, Volume LXXIV, Issue 22435, 23 June 1938, Page 16

BENEFITS FOR THE PEOPLE

GOVERNMENT’S POLICY OF WEALTH-DISTRIBUTION MR FRASER ON INDICATIONS OF PROSPERITY (PRESS ASSOCIATION TELEGRAM.) DUNEDIN, June 22. The claim that by its policy in increasing wages and distributing the national income the Government had an immeasurable benefit on the people of New Zealand was made by the Minister for Education (the Hon. P. Fraser), during his address in the Town Hall to-night. Mr Fraser said the Government did not, and never had, contended that it would control prices overseas; but it claimed that its policy had been of great benefit to the people of the Dominion. “We are told that this prosperity would have come anyway, even if the Government had not been in office,” Mr Fraser said. “I want to say that we have never claimed that we can control the prices of wool, butter, and cheese on the London market; but we do claim that while we are pleased to have good prices for New Zealand's produce overseas, if another government was in office—the Nationalists, for instance—the people as a whole would not have received the benefits that Labour’s policy has given them. What is the benefit of that percolation of wealth brought about by the Government’s measures? Money that came into the country. would never have reached the great number of homes under another government, because we have had prosperity beforehand still there was hardship in many homes." “ The Minister quoted comparative income figures, showing that between 1935 and 1938 the total wages of New Zealanders rose from £60,969,149 to £91,588,230, an increase of more than £30,000,000. Small farmers’ average incomes \Vent up from £lO2 in 1935 to £295 in 1937, and at the present time it was more than £3OO a year. The increase of income brought about by the Government’s policy for the small farmer was equal to 200 per cent. Wages and Cost of Living

“It has been said that the cost of living has risen to such an extent,” Mr Fraser continued, “that the people are no better off than when their wages were smaller. That is not right. Wages have risen by 23.3 per cent., or nearly a quarter, but the cost of living has increased by only 12J per cent., or one-eighth. It is important that* there should be good wages, but it is also important that they should be regular, and assured to the people, and should go into the homes of the people at a lair rate during every one of the 52 weeks in the year. The important thing is the size of the income that comes into the home; so that the housewife can see that everyone in the family is adequately provided, for. .By that test the Labour Governmefft’s policy has conferred immeasurable benefit on the homes of -this Dominion.” • • The, Minister referred to the increase in savings bank depositors from 840.000 to 920,000 between 1935-36, and 1937-33 under a Government that “was going to close the doprs of the savings bank.” The extra deposits amounted to £13,700,000, and average individual deposits had gone up by more than £8

Dealing with the Government Life Insurance Department, as representative of all insurance companies, he said that new business had risen from £2,005,995 in 1935 to £3,430,940 in 1937, while policies in force had increased from 69,982 to 80,959. The total amount assured and in bonuses had gone up from £25,051,292 to £29,409,136, an increase of £4,357,844. The net profits of 50 companies operating in New Zealand had risen' from £2,800,000 in 1935 to £3,600,000 in 1937, an increase of £300,000, or 27 J per cent. All these things were real indications of prosperity.