THE WRONG POLICY

Evening Post, Volume CXX, Issue 123, 20 November 1935, Page 18

THE WRONG POLICY

WAGE REDUCTIONS

MR. FRASER'S ATTACK

A condemnation of the Government's wage-reducing policy was made by Mr. P. Fraser, Labour candidate for Wellington Central, speaking to a crowded meeting in the Methodist Schoolroom, Webb Street, last evening. Mr. G. Farrow presided. Mr. Fraser said he desired to bring before the people the circumstances that had led to the present situation, and to point out why a change should be brought about. He briefly dealt with the maladministration of the Government's railway construction policy, and said that Labour would salvage whatever railway lines were feasible. He condemned the Government over the state the Native Department had drifted into, and said that the Government had been condemned by the Commission which it, itself, had set. up. The Controller and Auditor-General had called attention to the administration of the Native Department as far back as 1932. In spite of representations, nothing was done to stop the misapplication of money. A reorganisation was made in the Department, but in'the meantime the harm had been done. The saddest part was that an attempt was made on the part of some Cabinet Ministers and on the part of some of the followers of the Reform and United Parties to treat the matter lightly. Had a Labour Government been responsible for the matter it would have been heard of from one end of New Zealand to another. The Labour Party would guarantee an honest and efficient administration. A WRONG POLICY. Dealing with the economic position, Mr. Fraser contended that it was never necessary in New Zealand to have embarked on a policy of reduction. The Labour Party was never content to be accomplices to economic crimes against the men, women, and children of the country. At the last election the Government had asked for a blank cheque, but had made no reference to the extension of the life of Parliament. In extending the three years to the four, the Government had violated the fundamental principles of the Constitution. Quite recently, the Prime Minister, in reply to requests made by a Labour deputation, said that if the occasion ' arose again he would adopt the policy he put into operation previously. Consequently, said Mr. Fraser, if there was a decline in price levels, the electors could expect another attack on their standard of living. Before the wage reductions were brought into operation the wage-earners were receiving a wage insufficient to maintain a home. The first effect of wage reductions was that the struggle was intensified. Less money went from the homes to the retail shops, and the retailers had to reduce the number of their employees. Those who had lost their jobs had no purchasing power, and that added to the effects of the depressioh. The wholesale lousinesses suffered, warehouse staffs were reduced; and behind the warehouses, New Zealand industries were affected. The ridiculous policy of the Government had resulted in the increase of unemployment. Instead of embarking on a policy of wage reductions, an endeavour should have been made to have propped up the purchasing power of the masses in town and country, so that trade and commerce could go on in as nearly a normal course as possible. ATTACK ON SAVINGS. At the present time the Government was trying to scare the people in regard to their savings. The raising of the exchange rate had made the value of £1 only 16s. The Government had compelled the relief worker to use his savings before help was given. The Government had destroyed the savings of the people, yet that same Government now warned the people against the Labour Party. All that was needed in New Zealand was a Government that believed in the people, believed in itself, and would control economic forces for the welfare of the people. At the conclusion of the meeting a vote of thanks and confidence was carried with enthusiasm.