BETTER OFF

Evening Post, Volume CXXIV, Issue 26, 30 July 1937, Page 10

BETTER OFF

NEW ZEALAND TODAY

LABOUR PARTY'S CLAIM

MINISTER'S SURVEY

'"Even a brief survey of conditions in ■ New Zealand today means the best of ~ all welcomes to the Prime Minister. If ' he looks around the country as a whole - he will see the substantial results of the Government's reconstruction policy," said the Acting Prime Minister (the .. Hon. P. Fraser), during his speech at ' a representative party reception to the ■ : Prime Minister (the Rt. Hon. M. J. Savage) yesterday afternoon at Parlia- ,. ment House. '**■■' "More people today are in work; trade is better, internally and externally, bank figures have touched new record levels," said Mr. Fraser. "Wages 'have been steadily rising, and also have, 'been given a wider distribution. There can be no doubt that the lot of the . worker, the farmer, and the small business man is infinitely better than it was two or three years ago—yes, ever so " much better than even twelve months . ago." _' The Minister recalled the fact that '.the immediate objective of the Labour Government when it took office in De- ' cember, 1935, was to bring about a measure of economic reconstruction which would result in the highest possible standards of social well-being for ' the people as a whole. ■ "Has that immediate objective been attained?" asked. Mr. Fraser. "I am '■ not blind to certain disabilities still - existing and entirely due to the heavy carry-over of economic difficulties from the depression, but conditions . generally prove that the Government has achieved largely its initial aim. We are enjoying in New Zealand today a revival of prosperity, partly due to relatively good prices for our exports this yeaj, but in a larger measure to the Government's policy during the past eighteen months of increasing the pur- . chasing power of the people as a whole. RESTORATION OF WAGES. "The restoration of wages by legis- " lative enactment to their 1931 level " added considerably to the spending -; power of the people. , The extensive •Public' Works programme, the guaran- . teed price and organised marketing, the ■ adjustment of mortgage debts, and the benefits of money at reasonable rates _<of interest have allcontributed to the improved standards of living which are /.everywhere apparent today. "It is only necessary to compare conditions today with those obtaining .- twelve months ago—to take the com- ■ parison back further the improvement :- is still more striking. To indicate the ..-measure of economic recovery which has taken place I should like to quote ...a few of the more important facts and ..figures. "First of all, there are the unem- ■ ployment figures. Since July of last ■year the number of unemployed has fallen by 16,692—a decrease of 30 per •;cent. When the Labour Government : took office the number was over 57,000, . and there had been periods of ovfer ■ twelve months when the average was .over 70,000; today, the figure has been reduced to 37,546. '"The State Placement Service, 1 am pleased to say, is doing excellent work, and has contributed'largely to the improved employment situation. Over 12,000 placements have been made since the beginning of ApriL "It is even more gratifying to note ,that the total wages bill of the Dominion has increased during the past year r by £15,000,000—this represents an.in- = crease of 20 per cent, over 1935-36. INDUSTRIAL POSITION. "The manufacturing industries have 1 also shown a substantial improvement. "It is apparent, however, that industry 'is reaching stability after a very rapid ;rise in prices and production. No up-to-date statistics are yet _ available, but from information already ■collected it is obvious that the year 1936-37 will show a great improvement ' over the. previous year.' It is anticipated that last year's output of over £90,000,000 and the record number of persons engaged—B6,s96—will be greatly exceeded. "As to trading conditions generally," •continued Mr. Fraser, "one does not have to go to reports of the Department of Industries and Commerce for •1 the information that retailers are ex- . periencing an increased turnover. A ■particularly striking indication that the public is spending more readily this year is the fact that a grea'-r proportion is being spent on luxury lines— ,'the imports of motor-car are up by 28 per cent; radio licences have increased by 25 per cent. There is also "■ the evidence of increased business _ turnover in the sales tax returns, which are nearly 25 per cent, higher this year. '.- "Probably no better indication of -the general level of business activity •could be obtained than banking statistics—record levels of note circulation and cheque transactions have been -•reached during recent months. Over - the past twelve months the circulation ' of bank-notes has increased by 20 per . cent, and cheque transactions by 15 . per cent.. "I should like to refer also to the rise in prices which New Zealand, in - common with every other country, is experiencing:. The latest official index .numbers of retail prices show increases over the past twelve months, but such increases are considerably less than the iiwreases in wage rates. "I should like to ooint out also that r ~. Governmental action in controlling r :.'rentals anu prices of various necessary comm^c'ities has contributed in no j small ■vr-jTgsure towards keeping price increase* within bounds. This applies j. particularly to wheat,, flour, and bread, g : oranges, petrol, raw tobacco, and j onions. . . I EXTERNAL TRADING. c '. "Recovery in internal business activi- * ties has been accompanied by a mater- c ial change for the better in the ex- *■ ternal trading situation. The volume * "of exports has increased by over 20 per cent, to £64,500,000 for the year t exifiing "June, 1937. and imports by 26.7 r W<e cant, to over £ 50,000,000, The rise s in wcml has, of course, been spectacu- , lar. The wool cheque is greater this year by £5,000,000 and the proceeds of \ wool sales constitute a record figure / at over £15,000,000—this is 50 per cent. .. better than last year. Mutton and c lamb exports also show an improve- t ■ ment of £1,180,000, while the value of f butter exports has increased by 11 per i cent, to £16,500,000, and cheese by 17 per cent, to £5,250,000. ■■■•■ "The dairy, farmer has benefited to an even greater extent than is re- . -vealed by this return, since the guaranteed price has been appreciably j . greater than the overseas market ~ price. "Turning now to public finance, H -•will be recalled that the national ac- r counts for the financial year revealed t a surplus of £472,000. Income tax and s Customs exceeded the Budget esti- I mate by over £1,000,000. The Cus- t toms returns last year at £9,500,000 r

were the highest ever recorded in New Zealand.

"These are but a few of the innumerable concrete facts which demonstrate the range and measure of better times for the people as a whole," concluded the Minister.

"I do not overlook a certain amount of voluble dissatisfaction of which the most is being: made by those opposed to the Government. lam bound to say, however, that much of it can fairly be described as an anomalous protest about the cost of prosperity.

"Meanwhile, all of us here this afternoon and hundreds of thousands of contented people throughout the Dominion are united in welcoming the Prime Minister home to a prosperous country, whose welfare has first place in his heart."