The Evening Star. MONDAY, JUNE 20, 1938. MR SAVAGE ON TOUR.

Evening Star, Issue 22988, 20 June 1938, Page 8

The Evening Star. MONDAY, JUNE 20, 1938. MR SAVAGE ON TOUR.

From all accounts the Prime Minister (Mr M. J. Savage) has been having a successful tour of the Southern Hawke’s Bay and Wairarapa districts — successful, that is, from tho Labour Party’s electioneering point of view. Mr Savage is choosing his words with care. Ho is talking a great deal, but is mainly dealing in pleasant generalities which reflect the driving force of an idealist rather than of a statesman intent on getting down to material bedrock on matters affecting the economic position of tho Dominion. In short, he makes it appear that everything is lovely in this New Zealand garden of ours, and so a section of the people acclaim him, in the same way, perhaps, as they would acclaim a popular play. It is a significant fact that Labour speakers on tour studiously avoid going very deeply into tho financial repercussions following the wholesale enactment of Socialistic legislation. For instance, home budgeting, that vital feature of the domestic lives of the people, is rarely even mentioned. Time and time again before the last election the present Government’s candidates stated that if the Labour Party was returned to power it would not only raise wages, but would ,also keep down the cost of living so as to permit wage-earners to enjoy the full benefits of the rise. Unfortunately, too many electors believed that this double dose of beneficence could successfully be administered. During the next election campaign it will be interesting to observe if this old “ catch ” .is to he applied again. At Eketahuna Mr Savage said he was not going to apologise for the mistakes he had made or for the things he had failed to do. He would probably make some mistakes, although he did not know of any at the moment, but he would make other things, too. Tho droll manner in which this is put calls for no comment of any import, but it is •of more than passing interest to note that, speaking in Masterton on the same day, the Prime Minister made mention of the reconstruction of the superannuation scheme, thus unconsciously admitting in effect that he had made a big mistake when he expected that the scheme in it§ original form would win widespread favour. According to his latest pronouncement on the broadening of the plan’s scope it appears that if the people’s savings or other provisions do not bring in £2 10s a week for a single man or £4 a week for a married couple taxpayers will be entitled to all or part of the benefit. Inasmuch as this proposal would eliminate to a large degree the penalty on thrift, so palpably a weakness in the original suggestion, it is bound to make a wider appeal. One of the other main problems facing legislators, however, will be the corresponding accentuation of the difficulties associated with costs. During his visit to New Zealand, the British Government actuary, Mr G, H. Maddex, reminded the country that the annual expenditure of the State on social security under the existing law was £8,995,000, and he estimated that the new proposals would bring the total to £17,850,000. While cross-examining Mr Maddex, the Prime Minister maintained that New Zealand’s increasing production would meet the larger cost of social security, and now, when he talks about extending tho scheme still further, it would seem that he has nn-‘ limited faith in dominion production’s ability to expand. The average annual income of New Zealand from her exports during the last ten years, including the two recent abnormally good ones, was slightly over £48,000,000, of which 96 per cent, came from land products, and the country’s annual interest bill was over £11,000,000. The current public works programme is estimated to cost over £17,000,000, and, on the first basis, the security plan was to cost £17,850,000. It should be realised, therefore, that producers are almost certain to have more than they can do to increase their marketed output to the point of meeting the heavier burden. A large body of electors would welcome more “ figures talk ” from the Prime Minister instead of the vague statements about following in the footsteps of Richard John Seddon, and so forth.