Labour Party Record Under Review

Manawatu Times, Volume 63, Issue 114, 17 May 1938, Page 7

Labour Party Record Under Review

Finance Minister Replies to Critics Housing, Pensions, and Guaranteed Prices Higher Level of Prosperity Per Press Association. WELLINGTON, Last Night. Hon. Walter Nash, Minister of Finance, commenced his speech at the King George Theatre, Lower Hutt, this evening by referring to the fact that the electors had sent 53 members to Parliament to support the Labour policy. It had been suggested that the Labour policy did not obtain the endorsement of a majority of the electors, and, in reply, Mr., Nash pointed out that two-thirds of the electors rejected the National Party, because the electors had had enough of cut pensions, cut wages, bankruptcy and destitution. Referring to the Government’s record over the past 29 months, Mr. Nash instanced the following achievements:— The Reserve Bank had been taken over. Overseas debt reduced by £2,707,000 (he compared this reduction with the previous Governments’ record of an increase of £119,477,000 between 1901 and 1935 and a £64,000,000 increase between 1920 and 1935—the average increase annually for post-war years being £4,270,000). Interest on overseas debt had been reduced by £450,000 and exchange thereon by £105,000. In spite of the efforts that had been made to discredit the Dominion in London the name of New Zealand to-day stood very high.

Mr. Nash charged the National Party with attempting to force up interest rates to local bodies and stated that for more than 12 months insurance companies and other lending institutions had refused to lend money at 3$ per cent., but in fulfilment of its policy iu maintaining low rates the Government had granted to local authorities loans at 3$ per cent., which since April 1, 1937, amounted to £1,011,000. If the Government had allowed interest rates t 6 local bodies to be driven up, all interest rates would be higher than is the case to-day. Mr. Nash proceeded to discuss what the Government had achieved in the field of regulated marketing. He asked the dairy farmer to think back over the last seven or eight years, during the course of which he had received as little as 9d for his butter and 9sd for cheese. In 1934 the Dairy Commission stated that one-half of the dairy farmers could not meet their liabilities. Between 1924 and 1934 th 9 output was more than doubled, but the return to the farmer was less for the double quantity. Farmers’ Finances. Compare this to the position to-day, said Mr. Nash, when the farmers were assured of an average butterfat return of 13.68 d and cheese suppliers of a return of 15.13 d. Mr. Nash said that the £300,000 deficit in the dairy industry account would be transferred to a special account and would not remain a charge against the dairy industry account. He added that it was not possible to say what the surplus would be at the end of the present season, but that whatever it was 'ft belonged to the dairy industry account. The Government had not yet decided what further distribution would take place, but it was expected that, when the National Dairy Association conference took place next month, it would be possible to announce what wcmld he distributed. If it was at all possible, the further special payments ought to be distributed early in July, said the Minister. The Government knew that cheese producers required a margin in pay Out! over butter payout and to meet this an extra payment sufficient to provide 2d per pound butterfat had been added to the price of cheese irrespective of the fact that to-day there was no margin in favour of cheese. In summing up, Mr. Nash stated that the farmer was better off to-day as a result of the guaranteed prices, of the mortgage adjustment procedure, of low interest rates and the low prices of fertilisers. It was recalled that rural housing conditions were not as good as they should be but tho Government’s policy to overcome this difficulty would be announced shortly on this subject. Compensatory Price. A passing reference was made to'the compensatory price. Mr. Nash stated that he had accepted the invitation to debate the respective merits of the guaranteed price and compensated pricu at Hamilton, but the compensated price advocate had refused to state the case for his proposal, and the occasion had been used merely to decry the Government. As an instance of the value of the German agreement he had been able to arrange, Mr. Nash quoted from a personal letter he had received to the effect that, when it became known that 20,000 boxes of butter would bo transferred to Hamburg, the price recovered by about 4s a cwt. Roads for Fanners. Next the Minister referred to the fact that 13,000 farmers had either no access by road durihg winter or that it was so bad that life for the womenfolk was unbearable. He stated that the Government was providing £5,000,000 to build 6000 miles of road for backblock farmers, of which 1000 miles was already completed, and it was hoped to finish a further 1500 miles this season. Concerning the Hawke’s Bay floods, Mr. Nash stated the Government fully realised the disabilities of farmers and others who had suffered and that everything possible to clear roads and farms was being done. In addition the Government was making provision to enable grass seed, fencing material and furniture to be available to those who had Buffered so heavily*

Reply to Mr. Hamilton. Mr. Nasli then proceeded to reply to various points raised by Mr. Hamilton during his address in Wellington recently. In reply to the statement that the Labour Government was returned at a time when the depression was past, he pointed out that in November, 1933, there were 57,246 unemployed, wages were 18 per cent, below the 1930 to 1931 level, five-year-olds were still barred from the schools, clothes drives were still in progress and nearly 2000 were in public works camps at wages of 15s per week plus keep. Mr. Hamilton had stated that during 1936-37 £5,000,000 had been added to the national debt, but he failed to say that £3,326,297 had been expended in taking over the Reserve Bank, the State Advances Corporation and the Southland Electric Power Board. Opposition Leader Twitted. The leader of the Opposition had said that the principle underlying compensated prices was that farmers who have to sell their products against the competition of tho world should have a comparative reward with the rest of the community. That, replied the Minister, was exactly the principle of guaranteed prices as set out specifically in the Primary Products Marketing Act, which compels the Government to take into account the costs of production and comparative living standards before determining a price that will ensure to the efficient producer a reasonable state of comfort. Mr. Nash referred to Mr. Hamilton’s statement at Invercargill on February 15, 1937, when he warned tho farmers strongly against compensated prices. “They were,” said the leader of the Opposition, "dangerous in theory and likely to bo so in practice.” Mr. Hamilton had criticised the wago standard of 10s 5d per day for farm workers. He forgot to mention, however, that these standards were fixed by agreement with the Farmers’ Union. Mr. Nash expressed the opinion that Mr. Hamilton’s reference to record losses aild expenditure on the railways Was uncalled for and not worthy of tho leader of a party. He suggested that the economies practised during the depression years, especially a failure to keep rolling stock up to tho peak of reliability, may have had something to do with the recent difficulties of the railway service. Land Tenure In reply to suggestions that had been made that the Government contemplated the abolition of freehold tenure, Mr. Nash stated that the farmer was entitled to the full aiid undisturbed possession of his own land. The Government, however, believed that the income of the farmer was the predominant factor and that freehold was only good when there was an incomu behind it. There had nbt been contemplated or discussed at any time, said Mr. Nash, any proposal to interfere with the freehold title of any farmer. The Minister proceeded to deny Mr. Hamilton’s statements that thrift and industry were being penalised. The contention that the Government superannuation proposals unduly penalised those with reasonable private savings was exactly what the Tories said when Mr. Seddou introduced his Old Age, Pension Bill in 1898. The National Party had indicated that they would abolish compulsory unionism. Did this mean, asked Mr. Nash, that compulsory membership of the Law Society and of the British Medical Association must go? % Flight of Money

It had also been suggested that record money had left the Dominion. In reply, Mr. Nash quoted the chairman of the Christchurch Stock Exchange, who had said that such statements were usually very indefinite and in most cases were purely political propaganda. Proceeding, Mr. Nash reviewed the work he carried out overseas in trade negotiations. This work was m:t'nly in negotiation with the British Government, covering New Zealand’s principal exports, in the course of which he mentioned his success in averting a levy being placed On imports of butter and cheese from the Dominion. The Minister emphasised, however, that vigilance was still necessary, and that there was a slight danger from the discussions at the Empire Producers’ Conference held recently in Sydney,

He stated: “It cannot be too strongly emphasised under the conditions that the policy of the Dominion should be to maintain direct negotiations with the Government of the United Kingdom. The Government’s policy is to expend as far as practicable the proceeds from the sale of exports in purchase of goods from Britain.” He pointed out that as a result of agreements made, Canada had taken 58,560 boxes of butter and Germany 58,120, which was taken off the market at the peak period of supplies and undoubtedly had an effect on London prices. Social Security Proposals Mr. Nash then proceeded to outline the Government’s social security proposals. He dealt with the benefits which it is the Government’s intention to grant in connection with sickness, disability, sustenance, invalidity, war veterans’ allowances, family allowances, miners’ phthysis, widowed mothers, widows and orphans. The money necessary for the financing of these benefits "was to be obtained by extending the present charge of 8d in the £ to Is in the £. This was estimated to produce £8,000,000, and for this sum every man, woman and child would be guaranteed security against the accidents of life to which they cannot normally prepare. “All these benefits are expected to cost approximately £18,000,000,” he added, “£8,000,000 of which come from the special social security contribution and the balance of approximately £10,000,000 from the Consolidated Fund. When these proposals are written into the law of this country and the difficulties of inauguration and administration have been overcome the name of Michael Joseph Savage will go in the history of this Dominion as its greatest Prime Minister and benefactor.” Economic Conditions. Mr. Nash next referred to statements made by a chamber of commerce that the increased income of workers had been absorbed by increased priced, and in reply pointed out that the wage rates since 1935 had increased by 23.3 per cent, and retail prices by only 12$ per cent. To illustrate the remarkable improvement in economic conditions, Mr. Nash quoted figures to show that sincu the Government took office the value of the total production had increased from £97,000,000 to £135,100,000, the value of farm production from £59,200,000 to £88,600,000, salary and wage payments from £65,700,000 to £100,000,000, exports from £43,000,000 to £65,000,000, imports from £34,300,000 to £58,100,000, and bank debits from £655,000,000 to £940,200,000. He stated that every worker and his wife realised their improved circumstances to-day compared with 1935, and that it was tho income that counted. On the cost of living prices the Minister quoted figures to show that such rises were not confined to New Zealand and showed that in the case of a number of commodities the percentage of rise in the United Kingdom was higher than in New Zealand.

Reference was made to the doubling of production of dairy produce in 10 years, although there were less people working on the land now thap. 15 years ago. Tho explanation was the increased efficiency by the use of fertilisers and machinery to give greater production with loss labour. This, continued Mr. Nash, raised tho serious question of what tho children of farmers were to do if less labour than formerly was required on farms. He stated the solution was to build up our secondary industries and services and that the Government intended to do so. He quoted the Government action in the direction of establishing the iron and steel industry, which is basic in any country building secondary industries. Internal Marketing. The Minister stated that one of the most difficult tasks the Government had undertaken was internal marketing and stated that previously unsatisfactory trade practices were in existence and that farmers had to bear the full cost of useless production in which thousands of pounds had been lost to them. He stated that tho factories now supplied the local market under orderly conditions and butter was sold to the public strictly on grade and on true merits. Both wholesalers and retailers were now on an equal basis, and tho large retailer had no advantages over tho smaller man. Tho consumer was now assured that the butter he pays for is true to grade.

Reference was also made to the importation of fruit. It was formerly handled by private importers on the basis of scarcity values, which the Government could not tolerate and so placed the responsibility for importing of all fruit on the internal marketing division. The result was that to-day oranges and bananas were cheaper than they had been for many years. Further, country districts also got the full benefit of the organisation, as regular quantities of imported fruit were sent directly to country towns. Concerning honey, the Minister stated that for ten years beekeepers had appealed to successive Governments for some measure of security through orderly marketing, but that the present Government had been the first to come to their assistance by establishing a central blending and packing depot and by offering all beekeepers an immediate guaranteed price for their honey. The central depot blending and packing had reduced these costs for the benefit of the consumer, who was also safeguarded by the knowledge that the grading was rigidly supervised for quality. Government’s Record.

Beneficial Effects. They stimulated demands for clothing, boots and household requisites far in excess rtf what could be met by local manufacturers. The effect of this redistribution was relatively beneficial. Production was stimulated and factories were working overtime to meet the demand firti only from the pensioners and the restored wages and salaries but public works were extended and the added incomes meant that thousands of our people were buying goods that they had not been able to buy for years. The possibility of a home instead of a room became a reality. The marriage and birth rates went up because young people had been waiting for years owing to lack of income and mothers saw the chance of making ends meet. Next the Minister referred to the fact that decent wages inevitably meant mere houses and the prices and rents started to soar, but the Government stepped in to prevent exploitation of the snortage, and people were given some protection against being turned into tho street. He pointed out that the Government was -willing and anxious to cooperate in the building of houses and, provided the borrower had a reasonable sum however small and the price of the section and house is of full value, he could obtain loans at 4 1-8 per cent, on table mortgage from the State Advances Corporation. Big Housing Scheme. In addition to loans the Government was building houses in 62 towns. Tenders were called for 3777 houses, 2300 houses had been started, 17,530 were in the course of construction and 570 were occupied. Altogether 4582 men were working on the houses under 153 building contractors. The houses were the finest associated with a Government’s scheme in any country of the world, and the rentals for them ranged from 17s to 31s 6d per week. In these houses tenants were absolutely secure, as the houses were not for sale and the tenant might call the house his home so long as he paid his rent and kept tho place in order. The Minister emphasised that homes were not possible without houses and that tho Government would do all it possibly could to enable mothers and fathers to make homes. Towards a Better World. In concluding, Mr. Nash stated that those who were willing to work ought to be assured of a legitimate share of material needs and not be subject to the harraSsing fears of deprivation, debt and depression. To the extent that a government can help by organisation or otherwise in the production of things that are necessary or helpful to live, the Government should do it. If private organisation could do it better and was doing it the Government would help it to do so. We had a collective responsibility to make our contribution to the needs of all, "and in this way,” concluded Mr. Nash, "I believe we can build a better world, not to destroy or stultify individual personality, but to give it a better environment to develop to higher spheres. That, I believe, is the objective of the Labour movement in the Dominion to-day.” Rousing Reception PRIME MINISTER’S PRAISE Per Press Association. WELLINGTON, Last Night. Mr. Nash was accompanied by the Prime Minister, lit. Hon. M. J. Savage, and they were accorded a rousing reception by a packed audience, which sang “For He s a Jolly Good Fellow” when Mr. Nash rose to speak. There were a few interjections through the speech, these coming almost solely from one man who was apparently known personally to the Minister, who called him by name in replying. The Minister spoke for about one and threequarter hours. A motion expressing complete confidence in Mr. Nash as the member for Hutt and Minister of Finance, thanks for his address and pledging support for Mr. {Savage and the party was moved by Mr. H. Combs, Labour candidate for Wellington Suburbs, and carried without dissent. “It has just been delightful to have been one of the audience,” said tho Prime Minister when prevailed upon by the audience to say a few words at the close of the address Mr. Savage was given an enthusiastic reception. “It does not come my way very often to be able to sit down and listen to an eloquent public address, and 1 want to praise my colleague for the brilliant exposition of the Labour, Party’s position he h*is given here this evening. Whatever may be said about us, you can keep on believing in us—not believing that we are infallible or anything like that, but we are part and parcel of you, and if you must go down, wo want to go down with you. But there is no need for that. We have the country here, and if we have to tread on tho corns of vested interests, well, we gannot help it.”

Towards the conclusion of his address Mr. Nash reviewed some of the history of tho past 2$ years. He poineed out that in the first year of the Labour Government pensions were restored to the pre-cut period, the old age pension was increased to 22s 6d per week, the qualifying period was reduced to 20 years and since to 10 years. Widowed mothers were given £1 per week instead of the previous 10s, invalidity pensions were introduced, £1 for the invalid and 10s for each dependant, and salaries and wages were restored to the 1931 levels. These changes had a profound effect on the economy of the Dominion.