LABOUR'S GOAL

Evening Post, Volume CXXVII, Issue 83, 10 April 1939, Page 8

LABOUR'S GOAL

"WILL OF PEOPLE" •

PROGRESS REVIEWED

FIRST PARLIAMENT

**We have set out to do what is possible and what is right. We have had the responsibility for finding solutions and making decisions, and at all times we have, I believe, been guided by the dictates of common sense in the application of principles which we set out to apply," said the Prime Minister (the Rt. Hon. M. J. Savage), when presenting the annual report of the Parliamentary Labour Party at the annual conference of the New Zealand Labour Party this afternoon.

"Wheh we took office," Mr. Savage Continued, "we set upon fulfilling the Jfteeds of both a short-range and a longPjS&e plan^ There was, first of all, the fjsmedying of the grave state of affairs when we assumed office, the restoration of cuts, the impromement of unemployment relief rates and wages, of hours and conditions of work, to quote outstanding instances

"And while attending to immediate pressing needs, we undertook measures for the permanent improvement of the living standards of the people. In serving this end we were at the same time laying the foundations of an economy which means security for everyone.

"Where the particular instruments of the capitalist system were rendering adequate service, no change was made; but where the free working of Capitalism was resulting in insecurity necessary alterations were made."

PARTY'S ACHIEVEMENTS

Proceeding to review the party's achievements during its first Parliament, Mr. Savage claimed that they had in fact carried out the promises made in their election manifesto of 1935, and gone considerably further. The last three years had constituted a record in legislative and administrative activity on the part of any Government in New Zealand. In addition to its Parliamentary activities, the Government had continued to devote considerable administrative attention to financial and related questions, the expansion of manufacturing. of housing, and of defence.

Dealing with national defence, Mr. Savage said that much progress had taken place—although it must be stated that some difference of opinion as to methods existed both within the party and out of it. However/ the remits before the conference would give ample scope for discussion on the matter. "Since the Labour Government assumed office, defence expenditure has trebled and I am satisfied that the money is being spent sensibly," said Mr. Savagei. "But the mere increase in defence expenditure is not enough. In -common with every other democratic country in the world today we are engaged in planning to prepare our peace-time economy to meet any emergency that may arise. The troubled state of the world today justifies the closest possible scrutiny of our attitude towards defence problems, and I am in no doubt that we should make every effort to defend the standard of living in the democracy we have built. "Broadly speaking, I think we may claim that the outstanding result of the Government's policy has been an immense improvement in the standard of living of the people. This is reflected in many ways—the, most" important so far as the workers are concerned is in wage rates and the total wages and salaries paid out. Due allowance must, of course, be made for the recovery in export prices in the increased prosperity of the past three years!

TRUE TEST AT HAND

"Now that export prices have receded, particularly in wool, the true test of Labour's policy, is at hand. There is no need to remind this conference that it is the aim of the Government to organise an internal economy so that local production and standards of living can be maintained and improved in spite of trade recessions overseas.

"We have laid the "foundations for such an economy—it remains to develop and perfect it. The policies of guaranteed incomes, of regulated marketing, of credit and currency control, of expansion of our own manufacturing industries, of maintenance of purchasing power, and the redistribution of national income are all directed towards this objective.

•'We have been criticised on almost all points from all angles. There are those who say we have gone too far and too fast and others who say not far enough and. not quickly enough. We have set out to do whatris possible and. what is right. We have had the .responsibility for finding solutions and making decisions, and at all times we have, I believe, been guided by the dictates of common' sense in the application of the principles which we set out to apply.

"We cannot afford to move rashly unless we are willing to risk upsetting the sound economic and social structure we are erecting, nor can wa afford at this stage to endanger the movement to which so many years of your efforts and mine have been devoted.

■ "Given the continuance of international peace there is only one limit to this programme, and that is the physical capacity of the country to produce the requisite goods and services and the obstacles in the way of fulfilment are put forward not only by vested interests who say it must not be done, but also by those who say it can't be done.

"I say it can and will be done," Mr. Savage concluded. "There is difference of opinion as to the means, that is, inevitable and healthy. In our democratic faith and organisation we say that the will of the people must prevail, and so long as we are the Government that will be the case."