THE LABOUR PARTY

Otago Daily Times, Issue 22204, 6 March 1934, Page 10

THE LABOUR PARTY

MR M. J. SAVAGE’S CAMPAIGN SOUTH ISLAND TOUR OPENED EXCHANGE TRANSACTION CRITICISED (Pn United P«*m Association.) • ASHBURTON, March 6. The Leader of the Opposition (Mr W. (9; Savage) opened his Sleuth Island ■ campaign to-night, addressing a large nesting', over which the. Mayor (Mr Woods) presided. Mr Savage said it appeared that the breakdown of the parliamentary system was due to the : : control being vested in those with large private interests to servo rather than ; the common good. Unless incomes were sufficient to allow the purchase of imports as well as domestic goods and ‘ services periods of industrial stagnation were inevitable. The present monetary system was largely based on external j prices and conditions should be -j transformedr into one having for its foundation goods and services produced j ■ in the Dominion. The world conditions ' made a national planning of production and distribution necessary if national ■ solvency sad the welfare of the people f:- were to.ibe considered. Wages and the benefits of machine and scientific processes must be available in the form of ■ purchasing power, shorter hours of labour, national health services and universal superannuation at the retiring age or Invalidity, prices for all forms of production and the purchasing power of people beinginterdependent. Guaran- ! ■ teed prices for goods and services were the only logical solution of - poverty Nunoag plenty. ■■■ a. Referring to-the exchange rate, Mr 'Bavage said it would have been more oquitable to grant a straigbtout subsidy ■ on exports payable to relieve the struggling fanners according to the circumstances. “’AU increase in the exchange ' always gave temporary assistance in the greatest Mncisure to those with the <■ .bnest turnover* who probably needed It least. It could not ho graded. On the other hand a straigbtout subsidy V could bo graded according to eircumstances. Attsnpts had been made to make people bellsve that the raising of the exchange rats would have the effect incteasiag the national income, when. .As a matter of fact it did not increase meats amount of the national B' bnt merely ‘ transferred part of :ieoal income from soiUe pockets jHmes, The , only redeeming about the exchange transaction . was that if Wae an admission that the external prices were not sufficient to maintain the primary industries in the Dominion and waa a substantial argument in favour of tfo Lahout policy of guaranteed prices over the whole Add ■of production. ■;