THE FIRST YEAR

Kaikoura Star, Volume LVI, Issue 94, 30 November 1936, Page 3

THE FIRST YEAR

LABOUR IN OFFICE MR SAVAGE’S REVIEW I give my word that we will remain true to our principles and keep faith with the people. In these words, the Prime Minister (the Rt. Hon. M. J. Savage) concluded a statement he made to a Wellington Post representative to mark the first anniversary of the return of the Labour Government to office. Mr Savage reviewed the achievements of his Government during its first year of office and made some reference to what the future holds in store. 1 ‘The anniversary of Labour’s election to office provides a most fitting opportunity to make a survey of progress and to indicate the lines of further advance,” stated the Prime Minister. "During the General Election campaign it was made clear to the people that the immediate objective of the Labour Party, if elected, would be the restoration of fair and reasonable standards of living, and it has been the consistent aim of the Government through its legislation to improve the lot of the people on the lower income levels. A Solid Foundation "To meet urgent needs in this direction we have put into effect a programme of social improvement —a programme which involves a more just and equitable distribution of the national income. For the time being the limit of social reform is set by the taxable capacity of the country, but this is far from the objective of Labour. For the future our policy involves far-sighted planning and the direction of the economic activity of the State, and it is to this end we are working. Already as a result of the legislative measures of the first session solid foundations have been laid

for the fulfilment of Labours’ longterm objectives. “It is not easy to generalise concerning the legislation passed by the Government during its first session. Since finance is the key to the whole problem of administration, one of our first acts was to- place the Reserve Bank under State ownership, thus giving the Government complete control of the currency and credit mechanism, and making it possible to increase production. Having taken this step, we are in a position to formulate a financial policy which will serve the social and industrial stricture of the country. After all, economic and social welfare go together, and in exercising control over monetary policy and in regulating and co-ordinating production it will be the aim of the Labour Government to achieve such a measure of economic reconstruction that the people of this Dominion will enjoy a standard of social well-being that will make them the envy of the world. "I would at this point like to stress lhe fact that the guiding principle of the Government is social justice. If is our aim that economic organisation shall be adapted to social needs, and if any of the institutions of this Dominion fail in this respect then they must be changed. I need only cite a few examples to show that a big start had already been made towards removing some of these fundamental defects. Man On the Land "Because farming activities play so vital a part in our national economy the guaranteed price system has been introduced for the dairying industry —the industry which suffered most during the depression. Further steps are being taken towards putting the production and marketing system in order, and the Minister of Manketing is at present in London endeavouring to negotiate a reciprocal trade agreement. Under the Mortgagors and Lessees Rehabilitation Act it will be possible to make considerable progress towards a satisfactory solution of the old problem of mortgage indebtedness. The reorganisation of the Mortgage Corporation as the State Advances Corporation was another step necessary towards putting the whole question of mortgage finance on a sound ami satisfactory footing. "We have provided for special loans for new houses, and by next year as a result of the housing construction scheme it will be possible for workers to rent houses at rates they can afford. "Economic reconstruction in the field of manufacturing industries is another matter which requires far-sighted planning, and the Industrial Efficiency Act is a measure to this end. The Government’s policy has also been directed towards preventing the exploitation of the public and to prevent, wherever possible, economic waste. We intend to take effective measures towards preventing such well-known economic abuses as those connected with land speculation and the excessively high cost of land, and also faulty investment methods.

Social Conditions "It is with social conditions that our efforts in the past few months have been principally concerned, and we may claim. I think, that in this brief period considerable progress has been made towards raising the materia! standards of the people. Practically the whole body of industrial law hasbeen overhauled and amended. The compulsory arbitration principle in the settlement of disputes has been restored. The 40-hour and five-day week have been instituted. Pensions have been increased, and invalid pensions have been provided. The restoration of wage levels to 1931 standards, by putting increased purchasing power into the hands of the mass of the people, has been responsible for a marked return to business prosperity. Both the volume and the value of production have increased, and are increasing. Xo one will deny that conditions to-day are different from what they were twelve months ago. "There is, indeed, ample evidence that this country can afford the higher standards of living which the welfare and ahppiness of the people demand. Next year we intend to put into opera tion such further schemes as a system of national superannuation, national hoa 1 fieri n sura nee, and a complete overhaul vllUtie education system.

The National Income "I know of no better way of distributing fairly the national income than by the provision of necessary social services and the aim of the Government will always be directed towards achieving this result. "I do not expect that we can achieve this end at once, it will take time. We will, no doubt, make mistakes, but these will be rectified as soon as they become evident. I give my word that we will remain true to our principles and keep faith with the people.” In conclusion, Mr Savage stated that he wished to pay a tribute to his ' colleagues in the Ministry and in both I Houses of Parliament. They had worked together splendidly as a team and had not spared themselves in their efforts to serve the public interest. LABOUR PARTY CAUCUS Tin* caucus of the Labour Party has concluded. The Prime Minister (the Rt. Hon. M. J. Savage) stated that the caucus ha<l been a good one in every way. Valuable information as to the requirements of the electorates had I been given, and the Parliamentary Under Secretary to the Minister of • Finance (Mr J. A. Loe) had submitted a detailed report on the Government’s housing scheme. "Cabinet will give consideration to lhe question of developing new industries,” saiil Mr Savage, "with a view l to providing work for those still unemployed. A committer* of Cabinet has been appointed with other members of the Government party to go thoroughly into the question of promoting new avenues of employment. The reports of members as to the requirements of various districts will be submitted to ihe Public Works Department for consideration of details and costs.” The Prime Minister added that the next caucus of the partv would be held early in February.