CHANGE NEEDED

Evening Post, Volume CXVIII, Issue 58, 6 September 1934, Page 7

CHANGE NEEDED

THE SOCIAL SYSTEM

MR. W. NASH'S VIEWS

The incidence of unemployment taxation, and the necessity for an altered social system, were matters dealt with by Mr. \V. Nash (Labour, Hutt) in the Housb of Representatives last evening, when speaking in the Budget debate. Mr. Nash claimed that the incidence of the unemployment tax was unfair. It was a flat tax, and the same amount was paid irrespective of the amount of the income. It was desirous that thero should be an, alteration as soon as possible. Dealing with the unemployment situation generally, he said he would urgo the Minister of Finance to give some consideration again to the complete abolition of subsidies. The subsidy system would result in the exploitation of the funds by all sections of the community. The Government was taking more than it should from the Unemployment Fund for public works, a,nd he did not think it was fair, in answer to that observation, to say that the work otherwise would not be done. That would leave an inference that nothing would be'done. Subsidies tended to extend unemployment. MALNUTRITION. In spite of the fact that there might be a reduction in the number of unemployed, the suffering of the lesser number was still as acute. If there was any indictment of the administrators of the country and the system that was operating, it was in the amount of malnutrition shown in Health Department reports. Per 10,000 children examined, the numbers suffering from malnutrition were as follows: —1928,' 684; 1929, 706; 1930, 630; 1931, 668; 1932, 581; 1933, 548 (a smaller number were examined). Those children were suffering from a shortage of the essentials that the country produced in such an amazing over-supply. The Dominion was one of the most productive areas in the world, yet it was not known what to do with the products from the soil; and though the resources of the country were not being developed to the full, people were short of. food. SUPPLY OF MILK. Children in New Zealand were not getting the milk they should, and he contended that there should be some scheme by which everybody would be assured of securing the necessary article. It might be done with a system of tokens, though there would have to be some other commodity money as well. . ■ The Prime Minister (the Rt. Hon. G. W. Forbes): Who would redeem the tokens? Mr. Nash replied that it could be done by allowing the employer to pay part of his wages in token form; the registered unemployed would receive a part, and the tokens issued could be redeemed by taxation. Inside the commodities that could be produced from the country's soils, the people who required those commodities should get them. There should be removed from the country and the Government the reproach that people were short of the essentials of life. Successful planning, said Mr. Nash, was exclusively dependent on the expansion of consumption. He contended that all that had been done in New Zealand was to save capitalism. The consumer only entered into the matter so far as he brought into being the profit necessary for the system. One could go back with an element of recovery to the old system, but the price paid would have to be paid again. A change of the foundation was essential. Some system should beimplemented by which the people in New Zealand would receive what they required. The surplus would be sent overseas under negotiations, and this country would j agree to take the surplus products of the other country. Out of the products sent overseas the overseas debt and interest would be paid.