NEW ZEALAND'S POSITION

Nelson Evening Mail, Volume LXXII, 31 December 1938, Page 8

NEW ZEALAND'S POSITION

IN New Zealand the outstanding event of the year has been the electors’ endorsement of the Labour Government’s policy of Socialism. That policy included the passing of legislation giving the Government control of the Reserve Bank and of currency, of marketing—including the guaranteed prices scheme for dairy produce—and of all business, under the Industrial Efficiency Act. Only this month the Government exercised its powers to control all exports and imports. Both are made the subject of licenses or permits. In the case of imports permits are obtainable only for selected goods. The Government has taken the power to make the selection. The Minister of Finance explained that the decision to take this action was due mainly to the diminishing total of our sterling funds in London, the objective being to reach equalisation. The Prime Minister has declared that the step taken was part of a permanent policy to insulate New Zealand, in order that the country would be more self-contained and less subject to overseas influences. Economists and business people have outspokenly condemned the insulation policy as likely to have grave repercussions on the country’s interests. It is generally admitted that the economic position called for some drastic action, but critics of the Government have emphasised that the unsatisfactory position was created by the Government’s legislation and heavy expenditure. It has been strongly advocated that Government and citizens alike should live within their income. A legislative measure which gained many votes for the Government when the election was held, earlier than usual, was the Social Security Act, providing for free universal health services, increased pensions at a lower age, and gradual superannuation. Criticism of the scheme was not aimed so much at the objective of improved social service but at the failure of the Government to demonstrate that the country could afford to carry the extra burden involved. In the matter of free health services, the medical profession was quite willing to provide them for those who could not afford them, but it objected to regimentation and emphasised that the Government’s scheme made no provision for preventive treatment. Although the scheme, which necessarily involves additional taxation, was designed to come into operation on Ist April next, and the co-operation of the medical profession is essential on the health side, there has been no indication of any attempt at detailed planning. It was announced this week, however, that a meeting with the B.M.A. has been arranged for the end of January, that there will be greater freedom for the public and the doctors, and that the commencement of health benefits will be deferred temporarily. There is a lot of preparatory work to be done.

Summed-up, it may be said that neither internationally nor in our local domestic conditions is the outlook as bright as we should like it to be. Nevertheless, there is no occasion for undue pessimism, and we trust our wish to all for a Happy New Year, will be fulfilled. As Mr Savage said in his Christmas message, the greatest needs throughout the world to-day are peace, social happiness, and religious and political freedom.