WAR FINANCE

Evening Star, Issue 23862, 17 April 1941, Page 10

WAR FINANCE

LABOUR PARTY DISCUSSION TAXATION AND BORROWING OF SAVINGS [Pgb United Phess Association.] WJSL.UNGTON, Aipril 16. The New Zealand Labour Party resolved at its annual conference to-night that finance for the war should be found by taxation, by the borrowing of genuine savings, and, only where necessary and to the benefit of ,the Dominion, by Reservo Bank credit. It was explained by the Minister of Finance (Mr Nash) that the Government’s policy would probably lead to a combination of the three methods. The Government was recommended to examine the .procedure of post-war credits .now operating in the United Kingdom. This recommendation was made after considering a remit suggesting that interest-bearing bonds should be given in return for taxation on wages. lu place of a remit suggesting the appointment of a board of industrial planning,-the conference recommended that an economic council should he set up by the Government. A remit suggesting that the Government should control patriotic funds was defeated,- and the present regulations placing control under the National Patriotic Funds Board were approved. Speaking in reply to one remit, Mr Nash said the Government was taking immediate steps to utilise to the full limit the iron resources at Onekaka. A suggestion that interest rates should be" reduced to the lowest practicable level was approved. A remit supporting guaranteed prices for primary producers was approved. The Government was recommended to ensure that the producers were guaranteed a legitimate share of the national income by the purchase of their products at equitable prices. The issue of free school books and requisites, which would remain the property of the State, was advocated. It was also decided to nri;e that school books should be revised and simplified and that the Government should print and distribute them, preferably through the head masters and school committees. POST-WAR PROBLEM. A programme of post-war reconstruction and expansion associated with the repatriation of soldiers was submitted to the conference by Mr Nash. The Government, he said, had a scries of proposals under consideration, and planned to bring into conference representatives of the soldiers, workers, and employers. It. was believed that such a conference would be helpful in ensuringg that economic employment would he available for soldiers on their return from overseas. Plans had been made for training them for industry and farming. Included in the projects set out and adopted were the expansion of housing, land settlement, the establishment of new industries,, including iron and steel, sugar beet, paper pulping, and rubber tube manufacture; The Minister referred to the possibilities of using , the timber resources of the country for the production of commodities for. internal use and for export. He also outlined plans for forestry, sawmilling, woolpack manufacture, and tobacco production.