BRIGHTER DAYS

Evening Post, Volume CXXV, Issue 48, 26 February 1938, Page 10

BRIGHTER DAYS

THANKS DUE TO LABOUR

MR. SAVAGE'S CLAIM

PEOPLE HAVE MORE MONEY

(Special to the "Evening Post."

FEATHERSTON, This Day.

"I wish to be generous in making contrasts," said the Prime Minister (the Rt. Hon. M. J. Savage) at Tauherenikau today, when comparing conditions in 1935 with those of today. "If one were to compare the worst record of the National Government with the best of the Labour Government the difference in favour of Labour's policy would be that between night and day."

After dealing with the increase in exports and in banking and business turnover, he referred to the wageearners.

"How had the wage-earners fared in the change-over from depression to prosperity?" he asked. "Let them think over the vast difference in their lot. In 1935 the wage-earners got £67,000,000. That was considered to be enough by the National Government, which had sabotaged the statutory means for increasing wages. And there was no promise from that party last election to increase wages. Last year the workers' earnings totalled £96,000,000--a. gain of 43 per cent. In other words, those who worked for wages received £29,000,000 more than they were paid under the last year of Coalition Government. ' As a matter of fact wages in New Zealand today were higher than they were in the boom year of 1929. It had been asserted that wage increases would have -increased riaturally even without the Labour Government. But would wages have gone back to the 1931 level? "We all know what has happened.in other times of prosperity," continued Mr. Savage. "Other sections of the community enjoyed increased returns while the wage-earner remained in a relatively poor position. History supplies the proof. . When the wageearner's position became unendurable in the past he always had to fight for an increase. He had to fight all the time, because employers do not willingly increase wages. He will have to fight again if the wage-cutters ever get back into political power, and reenact their depression policy of stopping the machinery of compulsory arbitration. .•'.: MORE EMPLOYMENT. '•'The Labour Government said higher wages and shorter hours would bring about more employment. This has been proved.-Since December, 1935, the number of unemployed has been reduced from 57,000 to less than 10,000. More people are employed today than at any time in New Zealand's history. The employment of boys and girls has increased substantially during the past year. Over 16,000 boys and girls, left school last year to take up some definite occupation. Have you heard any parents repeat, the old depression cry: <'What are we to do about our boys?' ;, "A great deal has been said against the Labour Government's policy of paying adequate sustenance rates. No excuse is necessary. We refuse to believe that hunger is the best promoter of employment." . * .. "It must not be inferred that the wage-earners alone have secured prosperity under the Labour Government. In fact, it cannot even be said that they have received the lion's share. The aggregate private income has increased 36 per cent, in two years. This means a gain of £37,000,000. "You have been told by Nationalist propagandists on the platform and in the anti-Labour Press, which means nearly all the daily newspapers and mushroom journa_s, that the Government's legislation has shackled private enterprise, and robbed them of profits. Actual facts confound these prophets of disaster. Within eighteen months of Labour rule some 1350 new companies were registered, with a capital of over £13,000,000. The profits of 150 representative companies, whose results have been published, showed an average increase of over 14 per cent, after the payment of taxation. The number of registered factories last year increased by 692, bringing the total to well above 17,000. There has been a record increase of 21 per cent, in the number olfactory workers during the past two years. Increases have been recorded in respect Of every kind of factory. The value of production has gone up from £79,000,000 to £105,000,000 inround figures. Increased purchasing power for the majority of the people has had a marked influence on the extent of shopping business. Last year almost 1000 more shops were opened, giving employment to an additional 7000 assistants throughout theDominion.

"The economic system has been reorganised in respect of agriculture. The dairy farmer has been given a guaranteed income for the first time in his life. He has been given security and stability. Two years ago the average income of small farmers with valuations under £3000 was £2 a week. Today £5 15s is the average after paying rent, interest, and working expenses. Orderly marketing has been established in respect of many farm products. Thus the dairy farmer is I protected against the vagaries of overIseas markets. The procedure is .now simple arid economical. ! TAXATION REVENUE. "What about taxation? Yes. I have anticipated that question. Let me be quite frank in my answer to it. "As a result of better times the taxation reyenue last year increased by £5,500,000 to the record sum of £31,000,000. That, admittedly, is 'a mighty lot of money.' "But what is it used for? Tliis is the test. Well, to begin with, £11,000,000 goes to the annual payment of National Debt services—a legacy from previous Governments. The sum of £18,000,000 is paid for social services, including health, education, pensions, and unemployment relief. Thus, more than half the taxation is handed straight back to the people. Approximately £3,000,000 is spent on highways. The rest of the money goes in essential repairs, defence, and administration.

"It is true'that taxation was less under the Depression Government, but then incomes and wages were also much lower, and tens of thousands of people had nothing on which to pay taxes. And as I have said, the social services were shamefully inadequate.

"We hear a lot about high taxation. In this also the test is: What have people left after paying taxation? Since 1935 the aggregate private income has increased by at least £37,000,000, while the taxation revenue has gone up £10,000,000. The extra money left for the people is £27,000,000. The surplus appears to be a good dividend.

TAXATION FOR SOCIAL SERVICES.

"Taxation to provide social services is part of the. Government's policy of redistributing the national income. Can New Zealand afford its social services on the present improved scale? I say 'Yes/ and I defy; anyone to disprove it.

Let critics and 'doubting Thomases' look at the nation's resources and the expenditure on luxuries. New Zealand is one of the richest countries in the world.

"The people who today are clamouring for a remission of taxes can mean only one thing—reduced State expenditure. This' would mean cutting social services and thereby, producing the very distress by which the, National Government made the depression worse. "It is said that the Labour Government has been in too great a hurry to make conditions' better for the people—well, that surely is a good fault. With such a goal in view only a fool would want to cut-down the pace of progress. The Government stands by its achievements. These speak for themselves. W. began 'on the quick elimination of social misery. We increased wages, pensions, extended the pension scheme to 10,000 invalids who formerly were among the forgotten people, and lifted the unemployed out of starvation. We have established national control of public credit, and remedied the main fundamental defects in our financial system. ■ "It would take hours to give all the Government's achievements in detail. The quickest and the surest way to realise their effect and value is to look back at the widespread misery in New Zealand only a few years ago, and then study the broad evidences of real prosperity today."

Dealing with the future, Mr. Savage said that it was for the people to take their choice. That was the unquestioned right in a democracy. On the one hand they were confronted with a party which appears to have forgotten, nothing and learned nothing as a result of its disastrous experience during the five depression years, and on the other hand the Labour Government guaranteed to carry out a policy diametrically the opposite.

"I will never agree to any policy that will bring back the cruel forms of social injustice which marked the depression years under the former Government," added the Prime Minister,