SECURITY PLAN

Press, Volume LXXIV, Issue 22443, 2 July 1938, Page 3

SECURITY PLAN

GENERAL PRINCIPLE ADMIRED *

HASTE CRITICISED BY MR W. J. POLSON

DEPENDENCE ON INSULATION THEORY

(From Our Parliamentary Reporter.!

WELLINGTON, July 1

“Although there is not one of us who would not like to see the most liberal social security plan possible put into practice, we can only go one step at a time,” said Mr W. J. Poison (National, Stratford), when speaking in the Address-in-Reply debate in the House of Representatives to-day. The Government’s plan was based on the belief that New Zealand could be insulated against what might happen abroad, Mr Poison said, but the insulation theory itself was founded purely on inflation.

Mr Poison congratulated the mover of the Address-in-Reply motion, Dr. D. G. McMillan (Government, Dunedin West), on his brilliant speech in support of the Government’s health and insurance scheme. The speech was of a kind which probably no other member of the House was equipped to give, and it had certainly been a great pleasure to listen to it, because it was full of information, as well as being ably delivered. Nevertheless, it had overlooked certain practical considerations, although these might be dealt with by Dr. McMillan later. “Dr. McMillan’s speech would fill any man with enthusiasm for the social security scheme,” Mr Poison said, “and if it could be worked without great sacrifice, there is no one who would not want to see it in operation. We would be glad to see a workable scheme of the most liberal nature possible, but when we look at the facts we are bound to conclude that we are going too far. However much we may desire to do these things, we can only go one step at a time. “The whole of the scheme is based on the belief that we can insulate this country against the effect of what may happen abroad,” Mr Poison said. “This, as an exporting country, depends for its income on overseas prices, which are subject to fluctuation, but the Government thinks it can do something that will nullify the effect of any fall in prices. There has been a great deal of silence about the insulation theory, but I am glad that at least one member of the Government is frank. When speaking at Horsham Downs recently, the Hon. W. Lee Martin said, when asked how the Government wou'd maintain the guaranteed price if the London prices dropped 16s per cwt. that the difference would be found out of national credit and certainly not out of taxation.” In other words. Mr Poison added, the plan was pure straightforward inflation. The Minister for Agriculture had admitted that if export prices fell the Government would inflate and create money out of national credit. It would pay in inflated currency and the effect of inflation was always worst on the workers, whom the Government claimed to be helping.

NO UNCONDITIONAL SUPPORT

FRIENDLY SOCIETIES’ ATTITUDE

COMMENT ON MR SAVAGE’S

STATEMENT

[THE PRESS Special Service.!

WELLINGTON, July 1

The statement made on Wednesday by the Prime Minister (the Rt. Hon. M. J. Savage) in referring to the Social Security Bill, that although the existence of friendly societies “practically depends on the decisions the Government will make, yet they have offered unconditional support in the launching of the scheme,* was replied to to-day by Mr A. G. Shrimpton, honorary secretary of the Dominion Council of Friendly Societies. Mr Shrimpton stated that the first intimation of the press statement received by him was a telegram from an affiliated order in Christchurch, requesting a contradiction of the report, as the societies in Christchurch were disturbed. „ . - He replied as follows: “The Dominion Council has made no offer to, and received no further information from the Government, since the evidence before the Select Committee. The press report of unconditional support is ridiculous.” “As for the reported statement by the Prime Minister that the friendly societies “have offered unconditional support in the launching of the scheme,’ undoubtedly Mr Savage is liberally interpreting the attitude adopted by the Dominion Council’s representatives before the Select Committee of the House in offering benevolent co-operation in the administration of the proposals that may ultimately emerge, on the grounds that the skeleton proposals submitted for examination embodied in the main many of the objects of friendly societies, and were thus an extension of their work,” said Mr Shrimpton. "Possibly the Prime Minister’s choice of ‘unconditional’ was at this stage a trifle extravagant in its committal of myself, and Mr Gregory, who presented the statement on behalf of the Dominion Council, especially in the absence of details of the scheme and our expressed hope that the Government did not intend strangulation of the friendly societies. “A friendly society lodge is not a militant organisation, and particularly eschews all religious and political discussions. Had this not been so, the good they have accomplished and the duration of their existence would not have been sustained. Last year was one of great activity throughout the movement, and all orders made wonderful increases in membership, which distinctly shows that the movement, although verging on a century of existence in this country, is still a virile and practical application of the spirit of brotherhood.”