LABOUR RULE

New Zealand Herald, Volume 78, Issue 24104, 24 October 1941, Page 9

LABOUR RULE

AUSTRALIAN OUTLOOK SETTLING DOWN WELL PLEDGED TO WAR EFFORT SIR K. MURDOCH'S VIEW "The Australian people are not alarmed at having a Labour Government at the moment," said Sir Keith jH'urdoch, managing director of the jlelbourne Herald, yesterday. He is in Auckland on his way to the United States ami Britain on a business trip, and wili have conversations in London with the Minister of In formation, Mr. Brendan Bracken. Sir Keith was formerly Director-General of Information in Australia, and was met in Auckland nv Mr. J. T. Paul, New Zealand Director of Publicity. "The Curtin Government is settling down very well," Sir Keith said. '-The Australian war effort lacked sharpness in certain directions, particularly in economic internal adjustments. The diversion of private spending was never properly tackled, and we got into trouble' with petrol rationing. The public has been restless, and wants to give.Mr. Curtin a chance. He is a splendid type of Australian. Heavy Taxes Expected "The talents of the new Government may he in doubt, but it will certainly get a chance. It is pledged to a total war effort, and. Mr. Curtin's mind is clear on the issues. I think the Government will insist on producing the goods. The Labour Government is expected to handle the unions firmly end well." The public .of Australia expected very heavy taxation, and probably an attempt to expand bank credit, Sir Keith continued. He thought it was likely to get its Budget through the House in the near future. Income tax would no doubt be made steeply progressive, and there might be a move, wrongly in his opinion, to protect some from taxation.

"I think the new Government's future depends very much on what happens in the Pacific/' lie said. It was a fully belligerent Government, but no doubt would- strike difficulties. Ona of these would probably be the question of extending conscription to cover the Netherlands East Indies and the Malayan Islands, as well as home defence, and this might cause differences within the party. Another difficulty would probably arise in connection with the use of manpower in Australia and its • diversion to munition works. Social Programme When asked if the Labour Government was expected to embark upon an ambitious social programme in wartime. Sir Keith said he did not think this likely. The Government generally was expected to confine itself in this direction to the extension of_ pensions and to providing more machinery for settling industrial disputes. One would expect the Labour Budget to demand three times as much for war as for internal expenditure, although it had to be remembered that_ the State Governments were responsible for considerable internal costs. "The Australian public was strongly critical of .campaigns doomed from the first because of tlie lack of adequate aircraft, artillery and tanks, _ but it was never in the least defeatist." Sir Keith replied, when asked if Australians were convinced that the experience of their men in Greece and Crete would not be repeated. "They were just critical that such things could occur, and there have since been many assurances that the Middle East is strongly supplied with equipment. Intensely In the War "Australia is intensely in the war. Ho voice is ever raised against the t>elipf that we sink or swim with Britain. The grimness of the task is generally realised, although we have a good many democratic difficulties in waking the people up to it. The ■change of Government should achieve this. The spectacle of Labour's own leaders embarking on a total war policy, and speaking every day with conviction about the task, will have a good effect on those intensely freeminder] people who have_ been taking victory as assured,. This is one reason ~ay many people welcome the change ox Government."