PREMIER’S SURVEY

Manawatu Standard, Volume LVIII, Issue 121, 21 April 1938, Page 11

PREMIER’S SURVEY

LABOUR IN OFFICE. SURPLUS OF £BOO,OOO FOR TEAR. WF7 LINGTON, "April 20. A particularly enthusiastic reception was accorded the Prime Minister (Rt. Hon. M. J. Savage) when lie addressed a crowded audience in the Town Hall to-night in connection with the annual conference of the New Zealand Labour Party. The concert chamber of the Town Hall was also crowded, Mr Savage’s speech being heard there through loudspeakers. After being introduced by Mr J. Roberts, president of the Labour Party, who said Mr Savage personally had proved an inspiration to the Labour Party, the Prime Minister was greeted by the singing of “For He’s a Jolly Good Fellow.’’

Mr Savage said the present occasion was one of the pleasurable experiences in Parliamentary life. ‘One would fail to be human,” he added, “if he were not moved by such an enthusiastic reception.” Referring to the opponents of the Labour Party, Mr Savage said lie would let nothing get in his way or in the way of his party in giving service to the people. His opponents had tried every way of doing so, and had used both ridicule and misrepresentation, but had failed in their objective. It had made him say: “Thank Heaven for broadcasting.” Speaking of Labour’s intentions concerning the fanning community, Mr Savage said it was the Government’s objective to put more people on the land, not to induce them to leave the farms.

The Prime Minister continued by referring to the Auckland Freedom Association. He asked was it merely the “very old gang” dressed in new clothes. “The same old gang with a new name standing in the name of freedom and liberty and all that sort of thing.” “Liberty!” he said. “If some of the great liberators could only hear the propaganda that is going on to-day in the name of liberty tlie3' would turn in their graves. The people who are preaching to-day in the name of liberty are asking for liberty for usurers and exploiters. They are some of the people who refused the rights of civil servants to express their political opinions from day to day. These are the people who are talking to-day about freedom and liberty.” Mr Savage added that he did not know what the recently formed Constitutional Party was. He would give them up because he had always been under the impression that the Labour Party was “the constitutional party.” If liberty were not safe in Labour’s hands then Heaven help liberty. PREMIER’S HEALTH'. The Prime Minister, in the course of his speech, began by referring to a number of current misrepresentations .covering Labour’s policy and also himself. “It is probable,” he said, “that most of you have heard all sorts of rumours about my health because of a recent indisposition. According to my political opponents I am suffering from every known malady from ‘hiccups’ to hardening of the arteries. All kinds of stories are abroad. A friendly London editor has advised me by air-mail that I am to resign when the elections are over.

“Others have gone so far as to select my successors, but the political destiny of this country rests with the people, and only they have the power to remove me from office. I have never felt better in my life than I do tonight. Please take no notice of those who, for political reasons, are conducting a whispering campaign at my expense, but I will have something more to say about politics in a moment. “In the meantime let- us look at actual conditions in the country. The economic position of New Zealand is better to-day than it has ever been in the recorded history of this country. Trade has been buoyant ever since the Government came into office with a stimulating policy. Prosperity is morq widespread, more substantial, and more secure than it has ever been before in the Dominion. We have broken all records. Why have we broken all trade records ? Because the national income has been more equitably distributed than ever before. The rank and file of the people have been better able to buy and to pay their bills. “May I anticipate the editorial rejoinder to-morrow that w.e have also ' broken all previous records in respect of taxation revenue, which is a very different thing from increased rates of taxation. Of course we have, but at the same time we have excelled the records of all former Governments in spending the money to the best advantage of the people as a whole. What is taxation used for? Let me analyse the use which was made of the revenue. USE OF TAXATION. “For Labour’s first complete year of office, 193 C-37, the total revenue from taxation was approximately £31,000,000, £11,000,000 was for national debt services, of which £2,500,000 went overseas; £18,000,000 was spent, on social services (social services include health, education, pensions and unemployment relief). More than half the amount which is obtained from taxation is handed straight back to the people. £3,000,000 was for highways. The rest of the money went in. essential repairs,' defence and administration.

“Now, we hear a lot said about high taxation. But the test is : What have people left after paying taxation P Between 1935 and 1937- the aggregate private income increased by £37,000,000 and the yield from taxation increased by £10,000,000. The extra money left for the people was £27,000,000. It is too early yet to give full detailed results of the past financial year, which closed at the end of last month. A provisional report, however, shows that the year was again a notable one. In comprehensive evidence of progress and prosperity another substantial surplus has been secured, and I can assure you that my colleague, Hon. Walter Nash, will be able, as Minister of Finance, to present a splendid Budget to Parliament next session. SURPLUS OF £BOO.OOO. “The salient features of State finance last year are: There will be -a surplus of' approximately £BOO,OOO and the public debt will be less at the end of the financial year than it was at the beginning,” said Mr Savage. “This is a fact, in spite of critics who charge the Government with overspending. Surpluses are important, but not half so important as health and social security, and we will organise our finances and our economy so that the people will be secure in the benefits which should be theirs. Our opponents say we are spending a lot or money. Of course we are. Everyone is spending a lot of money. That is the reason why trade is expanding. There is no other way to expand trade at home or abroad. “What is the real the total value of production last year was the highest on record in New Zealand The cash increase in the two years of Labour was over £39,000,000, as compared with a production value decrease of fully £37,000,000 in the two blaclc-

est years of the depression Government. It does not require monthly bulletins to prove the difference in values but, while frankly admitting the gam and effect of oversea increases, I take leave to point out that the huge accretions to the volume of production are the direct results of the Labour . Government’s policy of the more eqrut- | ablo distribution of income. The ofh- , cial figures prove that the increase in the volume of production from field and factory was much lafiger after the first full year of the Labour Government than in any of the previous years recorded. BUSINESS COMPARISONS. “If that is not a convincing testimony of the wisdom of the Labour Party’s contention that the increased demand due to guaranteed prices, higher wages, pensions, etc., would cause increased production, then there can be no value in any kind of factual evidence at all. Let me illustrate from the prosperity chart the change which has taken place as a result of two “years of Labour rule, taking the latest available figures. First of all,' take trading. Exports for the year ending February, 1938, amounted to £48,360,000. and for the year ending February, 1938, £65,160,000, an increase of 35 per cent. Imports were £37,250,000 land £57,750,000 —-a 54 per cent, increase. ■ls that evidence of the ruin that our opponents predicted and still predict? “Then, take the banking figures as a further index to business activity. The cheque transactions (weekly average) for February, 1936. were £16,670.000; February.‘l93B, £20,950,000 an increase of 25 per cent. Bank notes in circulation (month’s figures) were £6.860,000 and £9,300,000, an increase of 35 per cent. “Not only are our people spending more; they are also saving more. Post Office Savings Bank deposit figures for the year ending March, 1936, were £25,600,000 and for the year ending March, 1938, £33,000,000, an increase of 29 per cent. “I would like to remind you at this point that we are charged with being spendthrifts and reckless visionaries. The perpetual cry of the Nationalists is that we should concentrate on saving for a rainy day. It is thus suggested that the Government has encouraged the community to become thriftless, to ‘eat. drink and be merrv,’ but thrift to-day is at a peak level. All records in savings have been surpassed under Labour. To-day there are over 1,130.000 depositors in the Post Office and trustee savings banks. Of that record total fully 880,000 are in the Post Office Savings Bank, with oVer £58.000,000 to their credit at the end of last year. Since the Labour Government restored J wages and quickened development arfd industrial enterprise, the deposits of leavings have exceeded the withdrawals by over £3,000,000 a year. “Labour came into office pledged to restore the purchasing power of the people. The statistics of wages and sal- : iaries paid, as revealed by the unemI plovment tax returns, show how this pledge has been fulfilled. "Wages for the year ended March, 1936, were £72,000 000 and for the year ended March. 1938; £100,000,000. an increase of 39 per cent. I ask: "Would that increase of £28.000,000 in the workers’ wages have occurred had Labour not been returned to power? Will it be maintained if Labour ceases to be in power? And. if the buying power of the peoplo is reduced, how will it affect the commercial life of the country? It is that extra £25.000,000, which has enabled the people to purchase more food, more clothes, more pleasure and still to put" more away in the savings banks for a rainy day.

UNEMPLOYMENT POSITION. “The next point I wish to refer to,” Mr Savage continued, “is unemployment. The registered number of unemployed in March, 1936, was 54,500 ; in March, 1938, it was 6695, to which must be added to make a comparison with the figure of two years ago 8000 men totally unfit for any work whatsoever. To-day there are over 20,000 men on public works and their output shows that they are not afflicted with the ‘leprosy of laziness.’ Public works havenever been more economical or more efficient. These 20,000 men are paid at living wage rates with conditions unsurpassed in similar work in any other part of the world. “Thousands of retailers, shop-keep-ers and manufacturers are all thriving as a result of the Labour Government’s expansion policy. In this connection I would like to refer to the social ser-i vices generally. The biggest increase in the Labour Budget is for social services. New Zealand is one of the richest countries in the world, and can afford social services. Next to the United States New Zealand has more motor-cars per head than any other country—this in spite of the fact that cars cost twice as much in New Zealand as in the United States. In two years the number of cars has increased by 27 per cent. “Seventy-four of every 100 homes lfave a radio set, * and the number of licenses is still increasing. In two years the number of radio licenses has increased by just on 50 per cent. In the last 12 months people could afford to invest £6jß40 5 000 on the totalisators, representing an increase of 101 per cent, over two years. There can be no question of the ability to pay for social services. Labour’s policy, ol increasing social services at a cost well within the capacity of a rich country to pay without any undue strain at all has raised the ire of the National*ists, but you may accept my assurance that, notwithstanding the bleatings of the daily Press and the selfish cry of big interests, the social security plan of the Government will be made the law of the land during next session of Parliament. • . “The newspapers have seized upon actuarial cahjulations of the probable cost in 10 and 40 years, but they are very silent about the inevitable increases in production that will take place during the same period. "be experience of the past is not without its value in this respect. In 1900 the value of production was £34,000,000 In 1937 the value of production was £136,000,000, an increase in value of 300 per cent. Of course, one has to to take into account also increases in population and the movement in prices. PRODUCTION TRENDS.

“A further comparison should, therefore, be made between the volume of production at the beginning of the century and the present day. This comparison of volume of production— reveals an increase of 110 per cent. During the last 10 years similar increases have taken place. In 1926-27 (one oi the best of the pre-depression years) the value of production was £120,000,000. In 1930-37 the value of production was £136,000,000. Over the same period the volume of production increased by 18 per cent., and that is only half the story. People are engaged not only in the production of goods, but also of services. These, too, have been increasing. “Of course, there are no precise figures, but we do know this, that in 1900 one-third of those actively engaged were producing services. To-day the proportion has increased to one-half of the working population, and we can expect this .movement to continue with the advance in the standard of living. But there are other vital factors in addition to this marked shift from the production of goods to that of services. The productive efficiency of labour has increased by approximately 28 per cent.

since 1901, and with the advance in scientific i>rogress and mechanical efficiency we can expect further increases. There is nothing static in the organisation of society, and to deny, the inevitability of future increases in production is mere prejudice flying in the face of reason and common sense.” Mr Savage, after referring to the increase in production at the present time, stated that the increases in the 1936-37 year were very large, ranging from 20 to 50 per cent., and if the increased amount paid in wages last year was any indication, the figures of industrial production would establish a new record. He then went on to the position of the farmer. FARMERS’ POSITION.

“Official statistics,” the Prime Minister said, ‘do not sustain many of the complaints made by the Press. On the contrary, the figures demonstrate a magnificent advance on the treatment he received from the Coalition Government. The fanners’ improved position is indicated to a remarkable degree by the greater use of fertilisers and agricultural machinery. The increase in the production of superphosphates in two years was 30,000 tons. The 1936-37 production was a record. The area top-dressed, which decreased under the Forbes-Coates Government by 430,000 acres, when the artificial depression was considered to be of greater benefit to the country than artificial fertilisers, has increased under Labour in two years by 650,000 acres

“The improved income of the farmers is also reflected in the increased use of agricultural machinery. In two years an additional 1700 dairy farmers have purchased milking plants, and so with agricultural tractors. Since 1935 no fewer than 1240 fanners have bought these machines, which reduce manual and animal labour. Farm prosperity has, in fact, been demonstrated in many ways. The farmer, like the prosperous townsman, has a perfect light to use his increased income as he desires, but it may be observed that last year the country people bought 30 per cent more brand new motor cars than they did in 1936. Is that a sign of bad times ? “Then there is the wonderful increase in totalisator investments at race meetings. The rate of increase ranged from 100 per cent to 430 per cent. The average increase in 17 country districts last year was twice as much, compared with the investments five ye!#s ago. The benefits of a guaranteed income to dairy farmers have been reflected in the official returns. These gains cannot be refuted. Let me remind the dairy farmers that, although they doubled production in the 10 years before the advent of tbe Labour Government in December, 1935, they did not get a penny extra as a reward for their splendid efforts. They were driven to the verge of bankruptcy, and yet they are invited to destroy the present system of guaranteed prices and begin all over again. “The Labour Government’s guaranteed price plan gives the dairy farmer justice and security. Are the-farmers likely to surrender the substance for the shadow? Every dairy farmer knows at the beginning of the season what prices he is to receive. He is entitled to his share of the total production of the country, and he has a right at all times to approach the Government to present his claims. POLICY FOR FUTURE.

“It may be that we all give too much thought to material things. What is to be New Zealand’s destiny ? After a 11, that is the most; vital problem com fronting the people of the' Dominion. Are we to go forward and make the most of the abundant life Providence offers in this beautiful land or are we to go back to the old ways of economic conflict, with no social security for the people? Personally, I am prepared to give the remainder of my years to making New Zealand a better country for New Zealanders and promoting, by full co-operation with the other countries in tbe British Commonwealth of Nations, a better world order, giving every citizen a fair chance to get happiness out of life, with social security in old age. .That is my philosophy. That, broadly, is the policy of the Labour Government and Party,” he said in conclusion. “All down the ages one truth has been fixed. It is this : ‘Where there is no vision the people perish’.” In conclusion, Mr Savage said that, so far as he was concerned, he did not want any other occupation. He had spent a lifetime working among the people, and ho wanted to spend the remainder of his days in the same manner. What could be finer than assisting the people and their children and making the future safe for the little toddlers ? Mr Savage added that he also wished to work with other parts of the British Commonwealth of Nations, for the peace of the world. He had not waited until addressing a New Zealand audience in stressing the necessity for peace. He had done so at the Imperial Conference, and would like to do so at a similar conference again. At the conclusion of the speech, which lasted for nearly an hour and 40 minutes, Mr Savage received an ovation before leaving for the concert chamber to speak a few words to the large overflow audience there.