LABOUR'S OBJECTIVES

Evening Post, Volume CXVII, Issue 55, 6 March 1934, Page 12

LABOUR'S OBJECTIVES

MR. SAVAGE'S TOUR

SOUTH ISLAND CAMPAIGN

(By Telegraph—Press Association.) ASHBUETON, March 5. The Leader of the Opposition (Mr. M. J. Savage) opened his South Island campaign tonight, when he addressed a large meeting here. The Mayor (Mr. Woods) presided. Mr. Savage said that it was apparent that the breakdown of. the Parliamentary system was due to control being vested in those with large private interests to serve rather than the common good. Unless incomes were sufficient to allowthe purchase of imports as well as domestic goods and services, periods of industrial stagnation were . inevitable. The present monetary system was largely based on external prices, and the system should be transformed into one having, for its foundation goods and services produced in the Dominion. World conditions made . the national planning of production and distribution necessary. If national solvency and the welfare of the people were to be considered wages and the benefits of the machine and scientific processes must be available in the form of purchasing power, shorter hours of labour, national health services, and universal superannuation at a retiring age or at invalidity. Prices for all forms of production and the purchasing power of the people being interdependent, guaranteed prices for goods and services was the only logical solution of poverty among plent}'. EXCHANGE RATE. Referring to the exchange rate, Mr. Savage said that it would have been moro equitable to have granted a straight-out subsidy on exports payable to relieve struggling farmers according to circumstances. An increase in the exchange always gave temporary assistance in the greatest measure to those with the largest* turnover, who probably needed it least; it could not be graded. On the other hand, a straight-out subsidy could be graded according to circumstances. Attempts had been j made to make the people believe that the raising of the exchange would have the effect of increasing the national income, when as a matter of fact it did, not increase the aggregate amount ,of national income, but merely transferred part of ' the national income from some pockets into others. The only redeeming feature about the exchange transaction was that it was an admission that external prices were not sufficient to maintain the primary industries in the Dominion, and was a substantial argument in favour of the Labour policy of guaranteed prices over the whole field of production.