Manawatu Evening Standard. THURSDAY, APRIL 21, 1938. THE PREMIER’S ADDRESS.

Manawatu Standard, Volume LVIII, Issue 121, 21 April 1938, Page 8

Manawatu Evening Standard. THURSDAY, APRIL 21, 1938. THE PREMIER’S ADDRESS.

The Prime Minister’s address at Wellington last evening, in taking credit for the measure /of prosperity now being enjoyed by this country, followed a path the Labour Party has defined for itself. The people generally, however, are not likely to be deluded by the claim. At the beginning of the year Mr Savage said “it could be fairly claimed that two years of a Labour Government iiad brought New Zealand to the highest level of prosperity ever experienced ... a record smashing number.” Again last evening he said the change which had taken place in this country was the result of Labour rule. That, however, is clearly a fiction, for there must be few _ people unaware of the fact that good or bad times in this Dominion follow closely on the prices for exports,- high or low. The Labour Party was returned to office just when economic conditions were brightening the country. It did not come just because there was a change in Government; it was inevitable, for better times were being enjoyed in other countries, particularly the Mother Country, and prices for primary products were rising. In the period since Labour -has been in power here the United Kingdom has been exceptionally prosperous, and under the stimulus of gainful employment through rearmament there has been a continued demand for our primary produce at a very fair price level. But have we made the same progress relatively speaking as the United Kingdom, Australia, and South Africa? On the contrary, has not Labour legislation with its restrictive force, denied to our people the right to a fuller measure of recovery ?

Tlie Prime Minister in liis address claimed that “huge accretions to the volume of production are the direct results of the Labour Government’s policy of more equitable distribution of income.” More than once he has proudly pointed to the record of production last year. To take field production, does not its value arise from the high level of export prices, and is not the increase the normal trend combined with good production years? Indeed the Government lias no claim to credit, for its industrial laws have made farm labour scarce and costly, raised the price of materials used on farms, and it has increased taxation. In the factory manufacturers have been burdened by much higher costs, labour laws and regulations that frustrate the natural urge towards expansion,' and weighty taxation. But for tliette faqtors

in both directions exports and imports might very well have been greater than they are to-day.

“Wo have broken all records.” said Mr Savage, and certainly in the matter of taxation. Ten years ago in a year of abundant prosperity the Government of the day took £17,836,234 from the people; in this current year the Labour Administration has budgeted for little short of twice this sum. It is this huge subtraction from the people’s spending power that places a great burden upon industry. The Government makes a great claim to have reduced unemployment to a mere trifle, but workers still pay their levy of one pound .and their wages tax of eightpence in the pound; and in spite of all this “prosperity from Labour rule” we still have 6695 unemployed registered (apart from 8000 unemployable) against an average of 2500 ten years ago. The Government’s record loses a lot of lustre in the light of these figures. Moreover, in prosperous times there is less need (or should be) to appropriate money for public works, but the Government is spending this, year £19,148,000 , against £8,332,000 in 1928-29. Mr Savage also makes much • of a surplus of £BOO,OOO. But had his Administration been prudent and not a spendthrift one, the country could have rejoiced in greater prosperity with less taxation and a greater surplus to be applied to reducing the national debt. The Government’s plan is to spend its way to prosperity. That is all very well when the national income is high, but the test must come if and when the prices of our primary^products fall on the overseas markets upon which we are dependent for our welfare.