LABOUR'S POLICY

New Zealand Herald, Volume LXXIV, Issue 22853, 7 October 1937, Page 13

LABOUR'S POLICY

ATTACK BY ME. COATES dangers emphasised TAXATION AND UNEMPLOYMENT [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Wednesday "Official undertaker to the Government, ' was the title bestowed on the Minister of Finance, the Hon. W. Xash, by the Rt. Hon. J. G. Coates (Opposition—Kaipara) during the Budget debate in the House of Representatives to-night. It was the first occasion that Mr. Coates has taken part in a formal debate since last session of Parliament, and he was paid the compliment of crowded galleries and a good-humoured reception from the Government.

"When I read the Budget," said Mr. Coates, "I could not help thinking that the Minister of Finance has qualified for the position of official undertaker to tho Government. In times like the present, with world conditions better than they have been for many years, we had a golden opportunity to allow some of our citizens to enjoy some of their own money in their own way. He has denied them that right. "Government's Funeral Notice" "I don't think anyone could imagine a more wordy and drawn out document than the Budget which ho presented to this House and with the Minister as the official undertaker the funeral notice of the Government will shortly be written all over the country on income tax forms." The Budget in its actual form was a most unwise departure from precedent, Mr. Coates continued. For many years it had l)oen regarded as the annual statement of the country's finances, but the present Minister had made it straight-out political propaganda from beginning to end. With regard to taxation it was significant that the Prime Minister had said that the Government had gone only part of the waj-. This year the country was to be taxed to the extent of £'39,000,000, but apparently further taxation, was in store. Burden on Average Man It was not really tho people with large incomes and the wealthy institutions that were disgorging the extra money required by the Government, Mr. C'oatcs said. There were not sufficient of those individuals or institutions to meet the demand. The bulk of taxation was paid by the average man—the farmer, the wage and salary earner, the small business man and the man on a fixed income.

It had to be recognised that industry provided the great bulk of employment, in the Dominion and when a huge additional impost of taxation was placed on the country there was less money available for industry. The ultimate result was that the added taxation rendered insecure the employment of thousands of people. Through its taxing policy the Government was merely creating unemployment.

"I have no fault to find with the sending of money on pensions," Mr. Coates said. "In good times like the present the country can afford it and it is only right that the aged people and others suffering from hardship should receive some consideration. However, the Minister, right through his Budget, deliberately attempts to take credit for every pension that is paid in New Zealand. With the exception of the invalidity pension every form of pension was in force before the present Government gained office." A Serious Position The same argument applied to wages, Mr. Coates added. The last Government had taken the earliest opportunity of making wages restorations as it was realised that the wage earners should be the first to share in improved conditions. However, when increased wages were allied with shorter hours, irrespective of particular conditions, the position became serious. "As to a general application of the 40-hour week," said Mr. Coates, "I must disagree with the policy of the Government. There is a statutory obligation on industry to pay higher wages and to work shorter hours. It is all very well for the Government to say that the 40-hour week is governed by practicability, but the fact remains that the Arbitration Court has to take notice of definite indications of Government policy. The workers do not have to prove their case. The employers have to disprove it." The policy of Labour, Mr. Coates continued, appeared to be governed by the idea of bringing all possible funds under the direct supervision of the Government, which was to be the sole arbiter of the manner in which the money should be spent. The result of that attitude could be seen in the unemployment position. In New South ; Wales, . where freedom Was given to private enterprise, unemployment had been reduced to the figure ruling in 1029. If that same result had been achieved in New Zealand there would be only 6000 unemployed, instead of 38,000 as at present. Sense of Responsibility Needed

The Government was jubilant over the tremendous rise in the value of total production and in the export inconie during the past two years, Mr. Coates said. Apparently it was thought that present conditions would continue. However, figures quoted in a recent issue of the Kconomist showed that wholesale prices in England since March of this year had shown a decline. The Government would do well to develop a sense of responsibility and to pause and consider whether the peak had not been reached. It was not suggested that any severe fall in world prices was imminent, but there was a definite downward tendency overseas. Mr. Nash: New Zealand stocks arc going, up. .Mr. Coates: New Zealand won't be able to escape if world prices begin to fall. We are living right up to our income. Use of People's Savings "Secondary industries in New Zealand to-day are facing one of the most difficult periods in their history,'' .Mr. Coates continued. "Many are experiencing difficulty in getting a sufficient volume of orders to enable them to maintain their staffs. The Government may be forced to ration imports or raise the tariff, but I am inclined to think that the. procedure to be adopted will be the commandeering of all exchanges and sterling balances in London."

Discussing the housing situation Mr. Coates said building costs had risen to an alarming extent under the Government's scheme and this was reflected in the rentals to be charged. An examination of figures supported the statement that the average wage worker in New Zealand could not afford to pay more than 15s a week in rent. Government rentals would be nearly double that figure. "And now I want to have a word with the Prime Minister about the use of the public credit," said Mr. Coates. "That term can mean on!y one thing —the use of the people's savings. The people should understand that it is their money which is being used to finance the Government's schemes."