BIG TASK AHEAD

Evening Post, Volume CXX, Issue 154, 27 December 1935, Page 8

BIG TASK AHEAD

LABOUR GOVERNMENT

IMPORTANT POLICY CHANGES

LAYING FOUXDATIOX

Having placed the control of its affairs in the hands of a Labour Government, the country will be awaiting with considerable interest developments on the political stage during the coming year. The outcome of the recent General Election was the birth of one of the most important experiments in the history of New Zealand, and the complete reversal of policy on major issues that is likely tip take place from now on must' have farreaching effects, the value of which it is impossible ,to .predetermine. On January 8, the Labour Cabinet, holds its first meeting o£ the New Year, and a start will be made to lay the foundation upon which the Government will build its new political edifice. The coming year is bound to be the most vital for the new Government, because on its structural efforts in that period will depend the success or otherwise of its administration. Members of the new Ministry, in their' public utterances to date, have made it quite evident that they are fully seized with the magnitude of their responsibilities, and that they are approaching their new tasks with caution, confidence, and"vision. In the short time they have occupied themselves diligently to getting a grip of the machinery of their various departments, and acquiring the knowledge and experience that will be essential if they are to make the Government an. effective administrative omit. ■ ' ' ' ' Labour's main objective is to utilise to the maximum the Dominion's'natural resources, in the direction of so organising the internal economy that there will be, for everyone willing to work, an adequate income and a "decent standard of living." The Government's sympathy with those who have' suffered as a result of economic conditions has already found practical expression in the bonus to the unemployed. GOVERNMENT'S GOAL. The path to Labour's goal lies chiefly along the lines of guaranteed prices for farmers and a statutory .minimum wage for workers, and it is this experiment that will be watched . with the closest attention.- It involves the introduction of an entirely new principle in New. Zealand's political economy, and the manner in which. the Government will . make it operative will be followed by the eyes of the world. According [to its undertaking given prior to the election, the Government will, during the first year after taking office, pay guaranteed prices for all primary production/, after it has, of course, established the necessary financial aids. These prices will be fixed after negotiation with the representatives of each of the primary industries, and will be based on an average return to the farmer over a period of from eight to ten years. Simultaneously with this,' the Government will negotiate trade agreements on a reciprocal basis with the nations of the British Commonwealth and other countries for markets for the maximum quantity of New' Zealand's products. . . New Zealand has led the rest of the world in certain phases of social and industrial legislation, and it is the Government's hope that its' contemplated currency-control plan, ..without which guaranteed prices and wages would be impossible, will also show- the ; way. The essence of Labour's policy is. contained in the determination to ensure that "New Zealand's standard of living will be determined in New Zealand, by New Zealanders in ■ accord with New Zealand's resources." -The reorganisation plan entails as one of its most important principles the withdrawal of ,the high exchange, which was inaugurated; by the past Government as. a. means of helping the primary producer directly, and the rest of the community indirectly. The increase in the exchange has failed to satisfy many, and while they will be' glad to see it go, the manner of its going is of the utmost . importance. The Government has already indicated that the drop will take place gradually, and in as painless a form as possible, so that.trade will suffer a minimum of dislocation. MARKETING AND TRADE. If it' is' to adhere to the letter of its pre-election promise, the Labour Government will be guided by four broad, principles in carrying out its marketing and trade proposals.' It has laid it down as its view that the four essential rules to safeguard the interests of exporters and 'importers, producers and consumers, are:. (1) That production must,be, allowed to go on expanding as long 'as any. important human wants remain unsatisfied; (2) expansion of production must, not threaten .the producer with ruin; (3) therefore, . expansion of production must be related, • through sound marketing machinery, • and incomes, to simultaneous expansion of demand; (4) cut-throat competition must be eliminated, and markets explored to find new demands for present and future production.. . ' . ■ ' Internally, the Government is committed to a vigorous public works policy, with which is bound up the' question of ' organised employment, and which will admittedly ■ require careful handling if its full-benefit is ,to be felt. Secondary industries, where considered" economically advisable, are to be encouraged, and reorganisation of certain ef the social services is to take place. .An import-

ant innovation wili.be a national health service along particularly liberal lines; and a scheme of national superannuation is also to be introduced.

The basis of the Labour Government's whole programme is State control of credit and'currency, which is to be carried out through the Reserve Bank. .

Political precedent as far as New Zealand is concerned has been jettisoned, and no one is more aware of the vast' responsibilities that this implies than the Labour Administration itself. ,It is generally conceded that the Prime Minister (the Hon. M. J. Savage) has selected as his first lieutenants in the new Cabinet the bestequipped team possible. They are mostly men of proved practical experience, and while, their administrative ability has yet to stand the test, they bring to their new posts capacity to work, willingness to learn, complete confidence in-their cause, and a genuine desire to set things right according to their own political beliefs.