NEW ZEALAND PROBLEMS

Greymouth Evening Star, 11 December 1939, Page 3

NEW ZEALAND PROBLEMS

PRIME MINISTER’S BROADCAST. Preparations for increased production in the Dominion and work being diverted to farms for this purpose were mentioned by the Prime Minister (Mr. Savage) in a broadcast on New Zealand problems last evening. New Zealand’s job. Mr. Savage said, was to make the best deal possible with financial authorities overseas, and increased production and purchasing power for the people were a means to this end.

The Minister for Labour (Mr. Webb), he said, had been giving special attention to production of goods for overseas. AL present 4000 men were employed on occupied farms making general preparations for increased production. The Minister hoped, moreover, to have twice that number employed on the work next year. An extensive scheme for new settlement was also under consideration, the proposal being to make full use of modern machinery.

Secondary industries were also receiving the Government’s attention, and the Minister for industries and Commerce (Mr. Sullivan) had work well in hand for increasing secondary production. Increased primary production must. assist to increase the overseas funds, and a substantial increase in secondary production must relieve pressure on the funds. Apart from increasing production, however, there was plenty of room for a more adequate and equitable sharing of the production by the people of the country. While he had no complaint against those who asked for a greater share, he was bound to say that the responsibility rested with the Government to see that justice was done to all sections. The present Government came into existence to protect the people from undue influence from abroad. G LI A RAN TEE I > PR 1C ESome had tried to make a joke of the efforts to insulate the country from this influence. Everyone knew, however, that protection had been I given to the dairy industry of the Dominion against violently fluctuating prices from which the industry suffered for years. It was true that the guaranteed price did not suit land gamblers, but ho knew what it meant

to the dairy farmers to know at the start of the season ivhat they could expect. To say that farmers should not ask foi;'more, Mr. Savage said, would be ridiculous; but their share had to be equitable in relation to the shares of other sections of the community. Trade unionists were in exactly the same position. Everyone had to draw income in some form, and the foundation of incomes here was in New Zealand’s total production. If some drew more than their share, some conversely drew less. “Perhaps I should plead guilty right away to having a strong leaning to the poorly-paid sections of the community,’’ he said. Raising the incomes of these sections helped to lay the foundation for the country's industry itself. No substantial increase in trade here or abroad could be made in any other way. Mr. Savage contended that when the poorly-paid sections had their wages or pensions it could be taken for granted that the extra money “was taken to the shop.’’ The fact that this was an age of machinery, he claimed, was a further argument in favour of the people’s incomes keeping pace with production. While machinery increased the supply of goods it destroyed the market for goods, that was,- unless the people were at the same time given more purchasing power through their incomes being increased at the same rate. A substantial case might also be made for shortened hours and increased rates of pay. “1 think it is generally agreed that the trade of this Dominion, internal and external, cannot exceed the purchasing power of the people of this country," Mr. Savage said.