JUST HOW !

Evening Post, Volume CV, Issue 147, 23 June 1928, Page 17

JUST HOW !

LABOUR AND FINANCE The Welfare League writes:— .'. . The Socialist Party' which" is presented to the public under- the : more attractive title oi "Labour"'can--well be described as the party of many promises. Taken at its o\yn valuation it is a party which will transform New Zealand into a veritable paradise. There is no political, economic, or social- problem but it has a perfect solution for. . , It will provide abundance of'cheap land, supply the farmers'and:.-settlers with ample credit, protect .the..secondary industries, and make, .fhem./.aljvflourish,- provide high wages aud short-hours, for "all workers; provide cheap transport by laud and sea, free medical ..and nursing services, higher education and plenty of leisure and comfort for everybody.' That indeed, is the tenor of the.many professions.of this übiquitous party. '.". ' ... ... In the recent policy, speeches of Mr. EL E. Holland, SLB., ".LeacTer "of .the Opposition, 'therei are profession's* and promises' .'in abundnncol-iOn"Ueh'al£Vo£'iliis party, ho promises asfollows :-jC"-.' '/S,-\ : : . (1), That: .theyi will land for settlement by purchasing, -large estates (compulsory where necessary), and dividing these up for settlement. (2) That they will provide plenty of cheap money for farmers and workers... .(3) That;. th'ey.■Ayill -establish a State ■Bank—and-- Agricultural -Banks. . (4J ■_ That .they; will;. establish a Stateowned shipping..service. ' '." ..,_.. .(5)- -That they-.-will create a ,State monopoly, of- air'.bfanch.es'.qfJnsuraDce. (6) That they will "provide" a nationalised medical service with free medical, dental, and maternal .attention. (7) That they will create a State monopoly of all land agency-.business. - (8) That 'they Will, respect existing tenures of land, which are already established1 in law.. . .■•••' . V (9) That they will provide for acquired land being : settled, on, a- tenure of perpetual lease,-subject to revaluation and. "occupancy and use." ' (10) That they will relieve the struggling farmers of their present burdens o£ what they term "mortgage-hold." , - (11) That they will extend the public ownership of national, utilities and provide for the speedy national control of tr food supplies of the people. (12) That they will establish State farms to produce the people's foodstuffs. There are other promises of relief and benefit which need hot be given in ;detail such as increase of the basic wage, larger and extended allowance of State pensions, family allowance* provision of work for all out of employment at full trade union rates, whether competent for the work or otherwise. These and other minor things all involving cost- to the State which, after all, is just the taxpayers, are freely presented as- gifts, from this Socialist Party. '■■!'.' ' . ... We cannot help noticing in the several speeches which Mr. Holland has delivered he has failed to show how the ambitious programme of: State ' Socialism which his party presents is to be carried out. The alHmpqrtant question .of financial means is either passed over by him altogether or is touched upon very lightly Still all people with' any common sense will recognise that this is the crux of the matter. Where is the money to come from ' ,- ■ ' ■ . .-■ We are as a State considerably dependent upon borrowed■-capital. Even if the well-to-do class in.our Dominion were taxed to a point approaching confiscation, it would not provide the .'revenues to carry out the programme outlined by this party. How, then, are all these promises to be carried out? Can. Mr. Holland ensure that the British,- or American, moneylenders will.lower their rates of interest or are they not more likely-to raise them on .the risks- involved ?^ A , State' Bank and Agricultural bank's" will not- produce money. Australia with its Bank has at least as .much financial trouble as New Zealand. In its 1925 platform this party declared for "the immediate establishment of a State Bank with the sole right of note' issue and to the ultimate exclusion of'private banking." It has since repented of the "exclusion of private banking" idea and cut it out. ... "■'.'■■ When we turn, to the'^present official platform of the party; weirfind that in order to provide revenues: it proposes "increase taxation on unearned increments and monopolies, .increased graduated income tax, with a corresponding reduction of'indirect taxation." Any ordinary accountant would tell Mr. Holland that this would not provide the means to give effect to his programme. In a recent speech he says the party would substantially increase the death duties on large estates and more steeply graduate the land tax on largo estates. These two affirmations are not on the official plat-, form/but that we suppose is immaterial; Even from these taxes on ■ large estates the revenue could not be produced to fulfil the great promises contained in this party's programme. It may be noted that the more they burdened the large estates with land, .tax the less could they take- in the way Of death" duties. It is very, clear. on .reviewing the whole position that neither Mr. Holland nor any other member .of .his .party has supplied an answer to the question -how are they going to carry out these numerous promises they are making? Where are the means to come from is-the question to which the electors should demand a clear and sufficient answer. State' ventures of all kinds, as. proposed, cannot be entered upon except at enormous costs and the authors of these proposals should be required to show, apart from the issup of whether the schemes are desirable or not, how the means are to be secured to give effect to what is proposed. The vital ouestion is—how?