BALANCING THE BUDGET

New Zealand Herald, Volume LXVIII, Issue 20820, 12 March 1931, Page 13

BALANCING THE BUDGET

LABOUR PARTY'S POLICY.

DEATH DUTIES AND SUPERTAX

WAGE REDUCTION OPPOSED. [BY TELEGRAPH. —PRESS ASSOCIATION. ] WELLINGTON. Wednesday. Increased death duties and a super tax were advocated by the Leader of the Labour Party, Mr. 11. E. Holland, M.P., in an address in the Town Hall to-night as a means of securing revenue to make up the anticipated shortage of £4.500,000 at the end of t the next financial year. Explaining Labour's attitude toward the Government's economic proposals Mr. Holland stated that tho Labour Party would fight wage reductions to tho last ditch and use every form "bhe House of Representatives allowed to achieve that end. The Labour Party stood for a special moratorium that would givo some measure of protection to mortgagors during the present crisis.

Generally speaking Mr. Holland received an attentive hearing, his remarks being frequently punctuated with applause. A few persistent interjectors made their presence felt, and one made such a nuisance of himself that he was removed by the polico. At tho conclusion of Mr. Holland's address Mr. R. Sernple, M.P., moved a motion expressing confidence in the Labour Party's policy and pledging support for the party in opposing the Government's wage and salary reduction policy. This was seconded by Mr. R. McKeen, M.P., and carried amid applause. Government's Change ol Policy.* "It is open to any party to review and revise its programme," said Mr. Holland, "but no party is entitled to continue in office when it has jettisoned almost every plank in the programme on which it was elected." Mr. Holland mentioned that the Hon. E. A. Ransom had told the House less than a year ago that it was not tho policy of the United Government to cut salaries or discharge employees. Before his departure for the Imperial Conference the Prime Minister, Rfc. Hon. G. W. Forbes, had said there would bo no wage reduction, but on his return Mr. Forbes proclaimed a wage reduction. The reason was that Sir Otto Niemeyer had come to New Zealand with a message from financial dictators to reduce the wages of workers. When Mr. Forbes was at Home lie had that message supplemented there.

"Apparently interest is to be sacred," continued Mr. Holland, "but no agreement between employers and employees is to be treated as such. The Labour Party agrees that the Budget should be balanced but wo do not agree that the wages of workers should be levied upon to make up the shortage. The Public Service is to bo asked to find £1,500,000 out of the £4,500,000 shortage. The Labour Party holds that the proper method to make up the necessary money is a super tax and substantial increases in death duties." Position of Interest Rates. Mr. Holland added that while 'the Labour Party did not favour wage reductions it was fair to suggest that even if reductions were necessary it was a lopsided arrangement that would tako 10 per cent, off every salary without making a raid on high salaries first. Mr. Holland said he ventured to say there was not a working farmer in his constituency who wanted to see reduced wages. When it came to wage reduction the Prime Minister was definite and emphatic, but it was in a different tone that he talked about interest rates. Apologetically Mr. Forbes had made what ho termed an earnest, appeal to the banks and moneylenders to review each individual case. •

A reduction of two per cent, or even one per cent, in the rale of interest would bring an enormously greater measure of relief to the bona fide working farmers than any system of wage reductions could give. The Labour Party stood for a special moratorium. Legislation should bo passed during the short session which would give some , protection to debtors. Conditional legislation should be passed which would include authority to set up a tribunal which would be representative of the Government and other interests involved. such a tribunal to have the power to deal with cases on their merits. Labour Party's Objective. "It is not the desire of the Labour Party to assist people in evading their legitimate financial obligations," said Mr. Holland, "but it will be obvious to everyone that we are passing through abnormal times which demand special efforts on our part to save the people from immediate disaster. A moratorium alone without any other objective would be useless, probably harmful. In the meantime, legitimate cases of hardship should be carefully and definitely dealt with." The Labour Party held that th,e Dominion's credit should he mobilised. It was done in the days of the war. The Labour Party stood for a State hank for the purpose of controlling credit and finance, and for the purpose of reducing interest rates.' It aimed at the nationalisation of the banking system. Public control of the organisation of credit was far better than a dictatorship of the banking institutions.

Referring to railway losses, Mr. Holland said his party was out for the coordination of the transport services, particularly the railway and motor services. Neither tho Coates nor the Forbes Governments had shown any capacity for coordinating these services. Mr. Holland contended that there could be no nonpolitical control so long as Parliament had to vote money for the railways.