POLICY OF LABOUR.

New Zealand Herald, Volume LXV, Issue 19924, 18 April 1928, Page 12

POLICY OF LABOUR.

CRITICISM OF GOVERNMENT.

ADDRESS BY MR. J. A. LEE.

Various aspects of the Reform Party's administration were criticised by Mr. J. A. Lee, M.P. for Auckland East, in an address in the Parnell Library hall last evening. Mr. Lee dealt chiefly with taxation, unemployment and immigration. Referring to finance Mr. Lee said the Prime Minister had assured the country in a recent speech at Dargaville that he perceived a "silver lining" to the dark clouds which had in the past marred tho economic outlook. It appeared tho Government had had tho country turning the proverbial corner for years. The Labour Party had fought strenuously against the recent taxation revision on the ground that under the new scale persons with large incomes were not taxed in proportion to those with small incomes.

Criticising tho Government's borrowing policy, Mr. Lee said New Zealand would be called upon to repay or renew £14,000,000 in 1929, £41,000,000 in 1930 and £21,000,000 in 1931, a total of £76,000,000 in three years.* Such a state of affairs could not be justified, and was no tribute to the financial policy which had brought it about. The present Parliament had not met after tho general election before the Government gave its consent to the raising of the rate of interest on State Advances loans from 4£ per cent, to 5J per cent. The State Advances Department was the largest money-lender in New Zealand, and its interest rates regulated advances from every bank and private firm. As a result of the increase tho whole countfy had suffered either directly or indirectly. The Government had done nothing effectively to remedy the unemployment problem. During the past four years 13,581 employees had ceased work on farms and over 200,000 acres of land had been abandoned. The Post Office Savings Bank indicated that the workers were not enjoying prosperity, for withdrawals had exceeded deposits for tho past three years. In face of this immigrants continued to arrive to help swell the total of unemployed. Tho present parties in tho House of Representatives were referred to by Mr. Lee, who characterised tho Liberals' as an army after a battle possessing a number of marshals and no men. Sir Joseph Ward and Mr. Wilford were likened to retired generals, Mr. Forbes to a leador holding a command over no one in particular. and Mr. Veitch to an independent marshal. Tho young Liberals were turning toward Labour, and he believed tho coming election would result in an oven greater number of votes being cast for tho Labour Party than had been the case beforo.