NATIONALIST POLICY

Grey River Argus, 8 November 1949, Page 2

NATIONALIST POLICY

Privileges for Profiteers DISCIPLINE AND LESS PURCHASING FOR WORKERS Nationalists would lift lid off Profit Control: All the following quotations are from Mr. Holland, broadcasting National Party’s policy on 27th October, 1949—“ We find that price control is not price control, but it is an attack on profits “Its real purpose is to destroy the profit motive.’’ Allow Increased prices. Throughout his speech Mr. Holland emphasised his concern for those who live on profits, and he strongly condemned price control —“....The first step to the repeal of price control. We ‘ will suspend price control on those goods that are in plentiful supply.” Reduce Company Taxation. In addition to allowing increased profits through allowing prices to rise, Mr. Holland would like to taxation off profits too. He said—“We will reduce taxation so that manufacturers will be able to plough back into their industries and enterprises sufficient funds and moneys, for expansion, growth and modernisation.” Boost Profits as High as Possible — He apparently has additional plans for helping to increase profits, for he also said—“An industry that can earn reasonable profits....will receive the whole-hearted and fullest support that we as a Government can give..” Permit Unearned Profits of Land Speculation — Profiteering in land speculation will be permitted with the abolition of Land Sales control which Mr. Holland says “is no longer useful.” And he adds—“We want to take the controls 0ff....” “We will decontrol all building sections.” We will decontrol all commercial properties.” We will decontrol shopkeepers’ goodwill.” Alllow Increased Rents for Property Owners: —Profits of landlords will be increased through the ultimate abolition of the Tenancy Act—“As the supply of houses catches up on demand, then we will abolish the Tenancy Act applying to those districts.”

Nationalists would find more profitmaking schemes for their friends: — More avenues for profits would be made available by Mr. Holland to his big business friends. He would give back to private interests the monopoly of creating credit. He states — “ The Minister’s powers to dictate to the Reserve Bank and to direct it to produce credits—to create money —will be repealed.” He could have added-M.O create money like the private trading banks do, but he left that bit out.

Give Private Interest s Profits out of Workers' Mistimes: —Private insurance* companies were making increasing profits e.’ery year out of the misfortunes of workers. They paid less than half their premium income out to injured workers, yet Mr. Holland says:—“Workers’ compensation has been made a State monopoly. On our becoming the Government, we will restore private enterprise competition in competition with the State Fire Oilice, writing that type of business.” Effect of Nationalist Policy on I Workers. With his whole attention narrowed down to the welfare of the profiteers alone, Mr. Holland completely overlooks the disastrous effects his policy would have on the workers and their wives. The National Party wants to turn the clock back to the days when incomes were concentrated in relatively few hands. For fourteen years it has been Labour’s policy to redistribute purchasing power-fairly throughout the whole community. This not only benefits the workers and social security beneficiaries, individi/illy and directly, but it also ensures full employment by keeping up the demand by everyone for consumer goods. When excess profits are allowed to concentrate in the bands of a privileged few, too much of it tends to be saved and not enough spent on consumer goods because one person can only cat one meal at a time and wear one set of clothing at a time. Demand then lags behind supply and the downward .piral of recession and unemployment begins.

Lower Wages or Increased Prices. The increased profits that the Na- 1 tionalists are offering their friends must come from the margin, between workers’ wages and the prices charged for the goods. To increase profits, either wages must come down or prices must go up, or both. Whichever method is used the worker suffers a loss in purchasing power, either as a wage-earner, or his wife suffers as a buyer of consumer goods. Furthermore, as already pointed -out, the worker may also lose his employment because increased profits can only result in reducing effective demand for consumer goods. The Nationalist way is the old Tory way, of equating supply and demand by reducing the demands of the working people, so that the privileged profiteers can get the money and the goods too. Nationalist Policy Leads to this Result

Profiteers will gain through the ultimate liftin" of price control. Workers and their wives will suffer higher prices. Profiteers will gain through reduced company taxation. Workers must suffer a corresponding increase in taxation or else a corresponding reduction in Social Security and other Government benefits. Even the Nationalists can’t have it both ways.' Profiteering landlords will be able to increase rents through the repeal of the Tenancy Act. Workers will have to pay the highest Tents because it is mainly workers who live in rented houses. Profiteers will gain a greater share in the national income. Workers will suffer a corresponding loss in their share of income Their purchasing power will not be redressed by compensating taxation transferred from the profiteers. The reduced purchasing power in the hands of the workers can only result in reduced demand for consumer goods followed automatically by reduced demand for workers to produce goods. Nationalists Attack Workers Not content with indirectly depriving the workers of their purchasing power, the Nationalists intend to directly attack workers by weakening their unions, and to deprive them of the right to withdraw their labour, while still allowing employers to sack men... at will. Mr. Holland said: “One of our greatest needs in industry today is to restore discipline ” Nationalist Concessions Conditional: — In his typical patronising manner Mr. Holland stated —“Where we make provision that taxation on overtime earnings will be at the lower rate — the ordinary rate, not the overtime

rate —they lose their right to that if they go on strike. Ladies and gentlemen, that will be a reward for good conduct.” The Nationalists Want to Weaken Unions. “We will take power to freeze union funds,” said Mr. Holland. ... “Secret ballots will determine whether membership of unions is to be compulsory or whether it is to be voluntary.” Deny the Right to Strike:—“By far the greatest blot on our industrial system is the growth of a subversive element in New Zealand that knows no obligation to constituted authority.” “We will provide lessons that are enforceable at law to penalise unions, union officials, and all law-breakers; and we will make provision for the loss of privileges for those who defy the law and who go on strike.” Starvation for Workers, their Wives and Children.—“ If anyone declares a job black, the men declaring it black, and all of those who don’t work on the job, will be automatically declared black themselves; and the meaning of that is that they won’t be able to go and get another job.” ”We are going to have some discipline in New Zealand, and we are going to get it.” said Mr. Holland emphatically. Freedom for Whom? After these blatantly biassed proposals, M, Holland and his Nationalist Party can scarcely claim to be the workers’ friend. Nationalist Policy means freedom for a few wealthy business men, but rigid controls for the workers. It is this freedom to exploit the workers that is meant when Mr. Holland says:— “ Instal a new government on the Treasury Benches so that we may have more freedom.”