Labour Leader in City

Manawatu Times, Volume 60, Issue 249, 22 October 1935, Page 7

Labour Leader in City

ir M. J. Savage Addresses Electors

The city was visited last night by Mr. M. J. Savage, leader of tho Labour Party in the House of Representatives, when he took tho opportunity to speak to Palmerston North electors on political matters. He had much in the way of condemnation for tho present Government and a good deal to tell of how Labour would navigate the ship of State if returned to power. “I wonder what John Ballance, Richard John Scddon, John McKenzie, Sir Joseph W ard, and others who played such a fine part during the early ’nineties, would say were they hero to-day?” said Mr. Savage in opening his address. “Those men had to face difficult times, but <• they faced them with a common understanding of tho problems to be solved. Jt is not so to-day. Royal Commissions and committees of various kinds are doing the thinking for the Government—and doing it very badly in many eases.” he added.

If the great men who led the way during the ’nineties were here to-day they would witness -the destruction of the last of the foundation of prosperity which they had laid so well.

Reactionary Forces At Work. The reactionary forces which wero destroying tho foundation laid by the big men of tho past began to operate in 1912, when the Reform Party assumed office, and from that day to Ihis —with the exception of the short reign of Sir Joseph Ward from .192 S to 1990 —the destroyer had been at work. The Reform Party reigned or were the dominant force without a break from 19J2 to 192 S and during that period over

£196,000,000 was added to the public debt, which meant that wc were spending in excess of the price received for cur production, not less than 510,000,000 per year. Not a voice was raised about inflation 'during that period, although wc were spending over ten millions a year in excess of the value of our production. All appeared to be well so long as we were getting into debt for the excess of expends ture. When it was suggested that the public credit should bo controlled by and for the people, and that buying power should equato production, tho reactionary forces cried inflation. During the next five years 1925-33, £33,552,22'2 was added to the public debt. For that increase tho United and Reform Parties must take the blame. What was tho Government’s policy in this matter? Were we to have debt in perpetuity, snowball like, gathering as it went? ho asked.

Equitable Distribution. Tho main problem facing tho Dominion was to devise Ways and means for the equitable distribution of tho country’s production. Ministers said, in effect, that although wc had almost unlimited means of production, our buying power must, of necessity be harnessed to overseas prices. We might double our production, as dairy-farmers did during the ten years ending in 1933, without any improvement in our incomes or standard of life. Everyone would admit that that- was substantial* ly correct so far as tho average citizen was concerned, and it called for far-reaching legislative action by the Government of the day. The fact was that unless fundamental alterations were made in the financial system so as to enable the people to get the advantage of every increase in production there was little hope for any forward movement. Labour said that, farmers and all others wore entitled to somo guarantee that they would receive an cquitablo share of the country’s total production. The Government said it could not be done because overseas prices had fallen. Labour said that, having taken overseas prices into account, equitable distribution of the country’s total production was still the main problem to be solved.

The Public Credit. Labour said the money service should bo sufficient to enable the people to purchase at economic prices tho full value of the Dominion 's lota! production. Unless that was provided the people could buy only at uneconomic prices and the result was industrial depression and unemployment. To provido an alternative to the present system, Labour said that the public credit should be controlled for the people by a national credit authority whose duty it would be to provido a money scrvie.o sufficient to give effect to the will of Parliament. One thing was clear to the student, viz., that the goods and services which were to bo exchanged, and the medium of exchange (purchasing power) must be brought into more direct and sympathetic relationship to each other. Unless purchasing power was sufficient to equate production—at economic prices —industrial development and higher standards of life would soon come to tin end.

“Not Our Policy.” What the Coalition Government had done, Mr. Savage summed up as follows:

(1) It had destroyed the foundation of trade and industry in New Zealand by reducing wages and peusions—wage reductions commencing with the charwomen who clean out public buildings and extending to all workers in add out of tho public service. (2) It had destroyed the usefulness of the Conciliation and Arbitration, system as a means of settling industrial disputes, and safeguarding wages and conditions in industry.

(3) It had created an army of unemployed ranging in number from 51,000 immediately after the formation of the Coalition Government, to over 79,000 in 1933—the present number being over 57,000. (4) It had destroyed the public

works policy of the Dominion and discharged thousands of standard-rate workers—re-employing them on relief rates of pay. (5) It had destroyed apprenticeship contracts and turned thousands of part-ly-trained apprentices into the street. (G) It had weakened the education system of the Dominion and excluded five-year-old children from the schools. (7) It had destroyed tho State 'Advances Department and substituted a semi-privately controlled Mortgage Corporation which was to be presided over by tho managing-director ox a competitive private lending company. (S) ' It had introduced a virtual dictatorship in the primary industries by the passing of tho Agriculture (Emergcnev Powers) Act, and tho appointment of the Executive Commission or AS (0) It had instituted the equivalent of a receivership in tho cases of farmers in financial difficulties by the pass0f the Rural Mortgages Final Ad iustment Act, which provided for enforced budetary conditions m the homes of producers concerned. (10) It had discharged hundreds oi juexi from public services and, by legislation. had interfered with the superannuation rights of a largo number of those who were dismissed. QP It had failed to honour its obligations under the Superannuation \et°and had postponed consideration of the difficulties arising theicfron, until after the General Elections (lon n hud extended the life of Parliament from three to four years without consulting the peoplc-thus striking a blow at the foundation of constitutional government. Wage Reductions. It was -no exaggeration to say that .face January, 1030, the aggregate amount of wage reductions was not le-s than £100,000,000, while the aggregate sum due to the reductions made under the Public Expenditure Adjustment Act in 1922 could not possibty have been less than another £100,000,000. When Ministers were enquiring as to the source of tho finance that, would be necessary to carry out Labour’s policy it was well that they should remember the total amount, destroyed by Acts of Parliament since 1022.

Planned Production The time was long overdue for proper planning of production and overseas trade. The present tendency was to restrict existing forms of production by means of tho introduction, of the quota. If Dominion exports were to be restricted there appeared to be only one logical alternative, namely, to build up the home market. That could be done only by the development of New' Zealand industries. New Zealand woollens were amongst the best in the world, and in many oilier lines Dominion products would- cornpart favourably- with the best imported. Children leaving school were entitled to remu'nerativo'positions in the work cif building industries in thh land of their birth. The planning o? external trade was of equal importance. "Hit or miss” methods belonged to a past age, and immediate steps should bo taken to enter into agreements with other parts of the British Commonwealth with tho object of exchanging. primary products for goods that could not economically be produced in the Dominion. Land Settlement

Land settlement must be an integral part of our national policy, but it was useless to talk of such a policy without first laying a financial foundation which would allow tho farmer to make a living. Unless those who were already on the land could be made secure it was hopeless to try to establish others. When tho farmer was encouraged to go on the land to provide n national service, he must carry witli him some guarantee of security. With complete control of our monetary system and proper planning of production such guarantee could be given, and further land development could bo undertaken.

Fear of Poverty The fear of poverty in old ago or invalidity was probably the greatest of all causes of worry, ending in sickness of body and mind, and even death. Under present conditions there was no security for anyone. The comparatively well-to-do person of to-day may bo a pauper to-morrow, after having spent a lifetime in attempting to prepare for old age. Able-bodied citizens below the age of, say, 60 years, should be prepared, with the aid of science, to accept the responsibility of providing everything that went to mate life worth living for all. That would mean superannuation sufficient to provide a high standard of living for all citizens who had reached the ago of sixty years, or who—through invalidity—were unable to provido for themselves. Sixty years of age, or invalidity, should be the test for ail citizens for superannuation or pension sufficient to place them beyond the reach of poverty. Wealth was already produced in sufficient quantities to provide for such a policy, and increasing production should mean increasing standards of life.' It -was a matter of organisation of production and equitable distribution of the product. If more production was nocessary to accomplish this, men should not be wasting their lives’ on relief works.

Mortgage Corporation Thi3 institution had been substituted for the State fending departments and to the extent that it had co-ordinated these departments it was justified. But the introduction of private capital (£500,000) which was a mere bagatelle and only an excuse for drawing dividends, together, with semi-private control, meant the end of State lending institutions so/ long as the present Government" existed. The Corporation was presided over by the' managingdirector of a competitive lending institution with mortgage interests all over the Dominion. Ho was also a director of other privately-controlled lending institutions. How could justice bo done by any person with con-

flicting interests to serve? The first announcement made by the Corporation was to the effect that money was to be borrowed at 3 3-8 per cent., and loaned at 4 1-8 per cent., which allowed 15s per cent, to cover overhead charges, losses, etc. Borrowers could obtain only two-thirds of presont-day valuations unless guaranteed by the Minister of Finance, when they might obtain SO per cent, of present-day values. How many farmers would receive any benefit from the Corporation under these conditions? Only the very best securities could bo considered at all, as the margin between the borrowing and lending rates was so small. Tho farmer who was in difficulty could not be considered. Tho Rural Mortgagors Final Adjustment Act provided no immediate relief for farmers in difficulties. It completed tho dictatorship provided for in the Agriculture (Emergency Powers) Act,. by placing all thoso seeking relief under ’ direct supervision for a period of five years in order to provide a basis for valuation for tho purpose of readjustment of equities in the securities involved. During that period the farmer would be subjected to budgetary control of a type apparently similar to tho inquisitorial methods of the Unemployment Board in dealing with relief workers. If a farmer happened to have a wireless set, decent furniture, or anything else that might make life worth living, he would bo treated as tho TCliof worker was to-daj r . What other ooject could there be in view? What Labour Will Do

Mr Savage summarised Labour's oojectivc as follows: — (1) Immediately to restore the cuts in ado in all pensions, and where full pensions are involved, place them on a basis of a reasonable standard of life.

(2) To establish a national system of superannuation which will be payable to all citizens beginning at sixty years of age, or invalidity, and extending in accordance with scientific development and increased production.. (3) To restore all cuts made in wages and salaries. (4) To safeguard superannuation rights of all civil servants. (5) To assumo control of the public credit and establish a national credit authority, whoso duty it will be to provide a money servico sufficient to givo effect to the will of Parliament. (G) To organise a national health service based upon -universal insurance, providing for payment for services rendered, whether in the home or public institutions, and. safeguarding rights of friendly societies. (7) To re-establish all able-bodied workers in the industries, public works and services of tho Dominion, at rates of pay that will enable them to obtain an equitable share of the country’s total production. (8) To guarantee economic prices to farmers and others who aro producing in accordance with the Dominion's requirements, and further, to exteud primary and secondary industries. (9) To provide adequate protection for secondary industries which can be economically developed in the Dominion. In this connection it is tho - intention of the Labour party to maintain customs tariffs where necessary, until industry can be protected by substantial.,, control of our external trade.

(10) To readjust mortgages on the basis of guaranteed prices, beginning at an average of prices ruling during tho past eight or ten years. (11) To extend the activities of tho Education Department in providing free education from the kindergarten to the university, including the reinstatement of five-year-old children in primary schools. (12) To co-opt the services of all members who aro elected to support Labour in order to obtain their full servico in the shaping and administration of the law.

Mr Savage concluded with an expression of confidence in Mr Hodgens as Labour’s candidate for Palmerston and Mr Hunter for Manawatu.

Mr V. Christiansen moved a vote of thanks and confidence in Labour, which was carried with applause and cheers. Mr P. T. Robinson ivas in the chair, and associated on the platform with Mr Savage were .Messrs J. Hodgens and C. L. Hunter, Labour candidates for Palmerston and Manawatu respectively. Mr Hodgens, in a short address to the assemblage, declared that the only way to get a change of Government was to vote for Labour. He claimed that vested interests were trying to split the vote of the workers in an endeavour to defeat the Labour party, which was the only organisation with the interests of the labouring classes at heart.