LABOUR’S POLICY

Nelson Evening Mail, Volume LXX, 21 May 1936, Page 10

LABOUR’S POLICY

A BIRD’S EYE VIEW CONTROLLED ECONOMY BUFFERS AGAINST WORLD 'BUILDING PROSPERITY” Amid (die welter of new Rills and statements that lias filled the newspapers for weeks past, the ordinary man or woman, may quite well iind, trouble in grasping the Labour Gov-! eminent's legislative and administrative programme as a whole, and understanding how its Parliamentary measures relate to one another and /it into the scheme (says (he “N.Z. Herald”). Labour's objective, in the words of the Prime Minister, Mr Savage, is to 'build prosperity in this country.” It. pins its faith to a State-managed internal economy, which it hopes to | insulate in a large degree from world J economic influence by a system of Stale export marketing, reciprocal. trade agreements, and State control of currency, credit, exchange and imports. Considering New Zealand’s dependence upon overseas markets for (lie sale of most of what she produces, commentators in Rritaiu have expressed doubts whether these measures will lie able lo cope with wide, fluctuations in world prices. MON ETA lIY DOMINATION The purpose of the managed internal economy has been described by the Minister of Finance, Mr Nash, as "the organisation of natural resources so as to ensure their maximum utilisation and (lie distribution of production in such a manner as to ensure the highest, standard of living to all who render service.” As a primary measure, (lie Reserve Bank lias been reorganised and converted into wind, may be described as a State super-bank, an instrument, of Government policy under the direct and complete control of the Minister of Finance. Tim bank controls credit and currency, and the London exchange credits representing tile proceeds of the sale of New Zealand produce. By its powers to suspend tlie convertibility of its own notes into sterling it can stop or restrict' (lie transfer of its funds lo or from London, and so is in a position to ration exchange, regulate imports and prevent the flight of capital. It is empowered to make advances to the Government on over-

draft, by discounting Treasury and produce hills, or by the purchase of long term securities.

STABILISED DAIRY PRICES

Reserve Bank overdrafts are lo he used to finance the new dairy produce export marketing scheme. Alter Ist August next tiic export dairy produce will become, the property of the Governmcni as soon as it lias been placed on board ship, and the factories will receive forthwith a "guaranteed" price, lixed for llie first season on the basis of prices for the past eight lo ten years, and thereafter on certain general principles. The produce will be marketed by the Government, and the proceeds will be paid into the Reserve Bank. If there is a surplus, it will lie held for tlie benefit of the dairy industry. Kindred schemes for other staple exports are contemplated, but will probably not he launched for some lime. Details of them are, lacking, Imt they will be different from the dairy produce scheme, inasmuch as certain export products, notably wool and livestock for freezing, arc already for tlie most part sold in New Zealand by tlie producers.

Mr Nash, who as Minister of Marketing, is to visit London very shortly, places great faith in the Government’s ability to make reciprocal agreements, first- with the United Kingdom and later with other Empire and foreign countries, for (lie exchange of goods. Tins implies the regulation oi' specific imports, and perhaps of primary production as well. WAG E-RATSING MACHINERY The measures to increase tho spend-ing-power of tlie public are comprehensive, bin they directly affect only wage, and salary-earners and dairyfanners. The latter, it is promised, will receive an improved return this year from guaranteed prices. All wages, whether under the control of tlie Arbitration Court or not, are shortly to Lo restored to tlie 1931 level by general order. The Court is directed to fix. within three months, minimum rates of wages for adult male and female workers in all industries within its jurisdiction. The wages for males is to bo sufficient to provide lor a mail, wife and three children, instard of one child as in Australia. It lias been estimated that (In's will require payment, for more than 200,(101! children ..ho do not -;xist Higher minimum wages are provided by Statute for workers in factories and shops. MORE WORKERS AND MORE Amendments to the Industrial Conciliation and Arbitration Act encourage Hie unionising of nearly all unorganised classes of workers, including clerks. The formation of Dominion-wide "big unions is facilitated and where a union exist all workers in the industry must belong to il or lose their employment. Compulsory arbitration is restored, and unspecified employers may he automatically joined as parties to an award. Tlie Government has made it clear that it will not, stop at restoring the 1931 level of purchasing-power, but- will go on increasing it as production increases. In order to spread employment and provide more leisure, the 40-iiour working week lias been made the standard for the Public Service ind practically all industries, without reduction of wages, it is imposed by legislation upon factories unless exemption is granted by the Arbitration Court, w.uch must state its reason for including a longer week in any award. The maximum in factories and shops is to be 41 hours a week. MILLIONS FOR PUBLIC WORKS Farm employment is to be made more at tractive by increased wage rates based on the, guaranteed price and liberal annual holidays oil ir.li pay. A three years’ programme ot i. i.blie works, absorbing £17,500,0(10, is planned as an immediate source of “productive” employment. The wage basis is to be £4 a week for a labourer. Wages on relief works and sustenance rates will be substantially increased, hut renewed efforts to place the unemployed in industry are promised. Rates of interest cm mortgages having already been reduced, the Government intends to lighten the debt rf farmers and house-owners by writing down rural mortgages to the presmL productive value of the land on the basis of tlie guaranteed price, and homo mortgages on that of current properly v - { .lues. Borrowing is to be avoided in financing all flic various schemes, but tlie exact method to be used lias not been disclosed, and bow far it may involve inflation is ;i matter for conjecture. Another open, question 'is whether an attempt will be made, to control tlie

“wages” of capital in industry. The Government has already declared that more of (he enhanced profits from machine production will be passed on to the workers.