Trade Restrictions Not Wage Reduction Is Labour’s Policy

Northern Advocate, 16 May 1939, Page 8

Trade Restrictions Not Wage Reduction Is Labour’s Policy

—Mr Sa vage'

•[Special to “Northern Advocate”! WELLINGTON, This Day. REFERRED TO THE PRIME MINIS TER, THE HON. M. J. SAVAGE, IN AN INTERVIEW TODAY, WAS A SUGGESTION THAT CERTAIN DRASTIC ECONOMY MEASURES HAD BEEN RECOMMENDED TO THE GOVERNMENT FROM RESPONSIBLE QUARTERS.

“Recommendation has been made from many different sources that the Government should rigidly curtail expenditure,” said Mr Savage in reply. “I took it that these recommendations meant that the Government should reduce wages, retrench the civil service staff, and stop all major Public Works. I can say now that the Government has not the faintest idea of putting any of these suggestions into operation. If we fail in the policy we have been carrying out, we will have to make room for someone else.

“Recommendations of that sort point the way to the destruction of the foundation of industry, and that is not the policy of this Government,” added Mr Savage. “We want to build New Zealand by maintaining for the people that standard of living which was brought to them when the Labour Government assumed office.” An Easy Choice.

Mr Savage said the people of New Zealand had an easy choice. They had to make up their minds whether they would support the present Government with its forward policy, or go back to the old order of reduced wages. The Prime Minister Said that the Government had to make a choice, on behalf of the people, between making a reduction in wages all round, with substantial cuts in the Civil Service, and operating a policy of selecting its imports to bring about a needed readjustment of its overseas trade balance.

“We knew that ultimately we would be faced with difficulty as a result of this policy,” continued Mr Savage, “but we went as far as we could with it. It is now necessary for the Government deliberately to plan selection of the country’s imports. We have chosen for ourselves a method of importation that will assist us to adjust the trade balance of New Zealand, and at the same time develop in this country those industries that are necessary for its progress.

“We might have chosen another way cut. We might have imposed high tariff barriers, but that would have been a breach of the Ottawa Agreement, and would not have given us the right of selection that we have under the present system. Industrial Development.

“The safe course, and the only course that will maintain the standard of living in this country, is to develop -lie Dominion’s secondary industries. The people of New Zealand demand a reasonable standard of comfort, and there is no reason why they should not achieve that standard by their own ■efforts.”

Mr Savage said that numerous complaints had been made to the Government against delay in bringing in its policy of restriction of imports. The suggestion was frequently made that the policy should have been put into operation much sooner than it was, and it should have been put into operation by easy stages.

“That sort of suggestion locks very well on paper, but only on paper,” added ihe Prime Minister. “What a popular thing it would have been to restrict imports with £40,000,000 lying in London!

“Why, it was not even popular in i December last year when the first ro- : sti ictions were introduced. Trade was ■ good, but there had to be a stoppingplace somewhere. Everyone realises : that, but at the same time I say it would have been madness to restrict imports while our overseas trade j balance was so favourable. Two Big Issues. ( “To-day the Government is facing 'two big issues. One is to meet its ! obligations overseas, and the other is

to maintain the strength of New Zealand’s secondary industries. Realising this, the Government will turn a deaf ear to those who are advocating wage reductions.

“The only borrowing that I would favour would be borrowing to obtain a supply of raw material for use in New Zealand factories,” continued the Frimo Minister.

Mr Savage declared that curtailment of Public Works employees would not bo considered. The Government intended to shift men from Public Work? to secondary industries when opportunities were available, the object being to bring about a better balanced production.