LABOUR POLICY

Hokitika Guardian, 12 July 1935, Page 4

LABOUR POLICY

ASSISTING THE FARMERS (Per Press Association, Copyright). • DANNEVIRKE, July 11. The Leader of the Opposition discussed guaranteed prices before a large audience at the Drill ,Hall hero this evening. Mr Savage seated that; it was neither possible, nor desirable,, to continue to help one section of the. people at the expense of the rest. Any policy, he said, which left out of account the raising of salaries'and of wages could not provide any substantial guarantee to the farmers. While it must be realised that the Labour Party’s proposal for guaranteed prices for the farmers as against the maintaining of the high rate of exchange, would involve control of public credit, that did not mean that; the Government of the clay should! assume,the direct responsibility for the administration of the money system. What it did mean was that the Government of the day should make itself responsible for such a system of production and of distribution as would remove for all time this spectre of poverty amidst plenty. The adminstration of the money, system, said Mr Savage would be entrusted to a National Credit Authority whose duty it would be to provide as. much credit and currency as would; be sufficient to carry out the Government’s policy. Money would then become the servant of industry; instead of being the master of industry, as it

was to-day. • He declared that, unless .the people were placed in the position to buy, as well as to produce, the real object of. production would not he accomplished. The raising of the Dominion's rate of exchange was an admission that the overseas prices being obtained were not sufficient to maintain theprimary production of„the Dominion; but this high exchange did not expand the purchasing power of the people as a whole; and therefore, it was not the solution of the problems that are facing the country. : Mr Savage added that the Labour Party proposed by the rise of the public credit to make good to the average farmer the difference between the external price levels and the amount that was necessary to continue farming in New Zealand. Mr Savage challenged the opponents of Labour to say that this should not he done.