LABOUR POLICY

New Zealand Herald, Volume LXXIII, Issue 22461, 3 July 1936, Page 13

LABOUR POLICY

REPLY TO ATTACK

THE PEOPLE'S SAVINGS

PAST GOVERNMENT'S RECORD

CLAIMS BY MR. SAVAGE

[BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday

"1 think that the leader of the previous Government should be the last man in New Zealand to talk about penalising the people or about the new tyranny," said the Prime Minister, Mr. Savago, in an interview this evening, when commenting on criticism of the Labour Government's policy, which was voiced at Auckland by the Leader of the Opposition, the T?t. Hon. G. W. Forbes.

"1 notice that Mr. Forbes has mentioned the savings of the people," Mr. Savage said, "as now being absolutely under the control of the Government to do what it likes with them. Let me say this in reply, the savings of the people are safer to-day than ever they wore during the last four or five years. When it comes to preserving the rights and savings of the people this Government will compare more than favourably with the last.

" Trying to Create Panic "

"By deliberate Acts of Parliament the previous Government-destroyed well over one hundred million pounds of the wages of the people. Tho people did not have any chance to put that money into tho banks. It was simply taken away from them deliberately by legislation which wo as an Opposition then opposed. "The savings which are already invested in the people's bank are guaranteed by the State. The whole assets of tho State are behind the savings bank deposits. That will always be the case and instead of the Leader of tho Opposition trying to cast suspicion on the Government and to create ill-will and panic among the people about their savings it would not bo too much to expect from him that he should confine himself to tho actual facts of tho situation.

"The Leader of the Opposition refers to the welfare of children. Ho was not so much concerned with tho welfare of the children when he was head of a Government which made it impossible for five-year-old children to bo admitted to tho State schools. It is only since this Government has come into power that these children have been able to get into tho schools. Old Tyranny Alleged

"It is true, as Mr. Forbes has said, there are big issues at stake, but we are just as capable of handling big issues as our predecessors were. I think we will compare more than favourably with them in fact. Mr. Forbes also says that there is 110 doubt about tho power of the purse the Government has got—tho power of the purso and the power to inflict penalties. I think that the Leader of the Opposition should be tho last to talk about penalties or the new tyranjiy in New Zealand. "All we have to do is to look at the Public Service of this county to see, not a new tyranny, but an old tyranny. Tho public servants of New Zealand were afraid to speak above a whisper, they were not even allowed to take a citizen's part in political affairs. It is only since this Government has como into power that the old tyranny has been broken down. The new Government has made it possiblo for public servants to express themselves directly and to play an intelligent part in the government of their own country. Unions and Politics "Mr. Forbes says that every man in tho country has to line up and join a union, and tho unions can be called

on to subscribe to the funds of the Labouh Party," continued Mr. Savage. "No one knows better than the Leader of the Opposition that this is a misstatement of the position. We want men in unions, not only to protect the advantages they have gained up to now, but to help in the intelligent development and control of industry. The Leader of the Opposition knows that it is for unions to decide whether they should affiliate with the Labour Party, the National Party or any other political party. The majority of union members must always decide these things by voto. "Mr. Forbes also says that the Labour Party can call up half a' million pounds sterling to assist them in a political campaign," Mr. Savage concluded. "That is pure anjl unadulterated rubbish. The unions will decide what they will do and what they will give to any political fund. What we will have in tha way of political funds will be small compared with that of our opponents. That has been the experience up to now, and we do not expect much 'change.''