GOVERNMENT POLICY

Dominion, Volume 31, Issue 287, 31 August 1938, Page 6

GOVERNMENT POLICY

“Not Following Rule Of Political Economy” MR. W. L. BARKER’S ADDRESS “There is no need for me to dip into the political garbage tin, as my political opponent would suggest, for he, as well as I, knows it is empty,” said Mr. W. L. Barker, National candidate for Wellington East, in a political address at Seatoun last night. A packed hall greeted the speaker, who was given an excellent i-eception, being warmly applauded at the conclusion. Mr. E. W. Kellow presided. The present Government was not following the rule of political economy —a balance between investments and expenditure, said Mr. Barker. It was adherence to that sound principle of government that was responsible for the stability of Great Britain, where the rights of property were recognised, where industry was encouraged to produce, and where the people were encouraged to become owners and to save. In New Zealand, those were the very factors at which the Government was striking. Wealth came from the land, trom business, from the savings of the people, and that was productive wealth, said Mr. Barker. Without this there could be no distribution, no social security. The greater the number of people with property, who owned businesses or shared in them, who were thrifty, the greater became the State, because it was drawing revenue from the country’s productivity. The present Government’s policy, however, was embarrassing business by increased costs, and was harassing property owners. No Guarantee of Security. The present Government proposed to create social security, said Mr. Barker, but it could not guarantee security, for it gambled on the future, on an overseas market which depended for its prosperity on confidence overseas. It said it would increase the country’s production. Politicians did not increase production, but the people did, and if the State took over the people’s powers of production it set back the very factor on which it depended for revenue.

These methods constituted a departure from constitutional government, said Mr. Barker. They were economically unsound and would inevitably lead the country to bankruptcy. Taxation had to be kept low if a State was to progress. Industry had to be encouraged so that it could absorb those who were not property owners. By those methods confidence was built up and capital attracted. The only system that had proved capable so far of keeping costs down was the much maligned capitalistic system. The present Government had increased costs. It had increased taxation, and all its policy of increasing the spending power of the people was of little avail. It had offered the people a temporary heaven. But what were the consequences of this system? asked Mr. Barker. The Government was unquestionably embarrassed financially. It had to tax because this was the only method of securing revenue. It had to manipulate in budgeting. It had increased its financial obligations. It had increased taxation to saturation point. It would not borrow overseas. It had to borrow £14,500,000 for public works, which were non-productive. It proposed to do so internally, yet capital was leaving the country because of lack of confidence.

Outlining some of the policy points of the National Party, Mr. Barker said the control of the country’s primary produce must be handed back to the farmer. The system of marketing must be.freed from political control. Secondary industries must be encouraged by reducing costs and not increasing them.