DEMOCRAT POLICY

Otago Daily Times, Issue 22710, 24 October 1935, Page 8

DEMOCRAT POLICY

MRS R. S. BLACK'S ADDRESS BORROWING SCHEME OUTLINED HEALTH INSURANCE PROPOSALS The parliamentary election campaign in Dunedin was set in motion last night when Mrs R. S. Black, the Democrat candidate for the Dunedin North seat, delivered an address in the George Street School Hall. The audience, which completely filled the hall and included a large proportion of women, gave the speaker an attentive hearipg, and, while she outlined her party's policy, the only interruptions were bursts of applause. Before she commenced her speech, Dr Siedeberg M'Kinnon presented her with a bouquet. The Rev. P. B. Eraser occupied the chair. REPRESENTATION FOR WOMEN Mrs Black, who was received with loud applause, claimed that if the real mind of the people were to be obtained the Government must be representative of both sexes of the community. Women's outlook on life naturally was different from that of men, and a combination of the two was what was really required. Alen, to a great degree, saw everything from a material standpoint, while women were more concerned with the human aspect, and in these days of stress and strain, surely the human touch was neces- | sary, and even sometimes of far greater importance. Women were taking a prominent pare in world affairs to-day, and their co-opera-tion undoubtedly had been for the betterment of mankind. No women wanted war, and their meeting together in world conferences- had done much to bring about a better understanding between the nations. Two countries that had put their women into the background—namely, Italy and Germany—were in a very unhappy state to-day, whereas Turkey, which under the present enlightened rule of Kemal Pasha, welcomed the co-operation and advice of its women, was in the reverse position, and was endeavouring to play a big part in the Eastern world for peace. During the 10 years of Turkish women's emancipation, 17 women had been elected to Parliament, so surely New Zealand women, the first in the world to gain the franchise, were entitled to some representation in the House. Stating that she first wished to bring forward some matters in which she was particularly interested Mrs Black referred to public health and stated that, if elected. she intended to urge the adoption ot methods which 'would ensure the purity of food. The provision of milk in schools should be a Government matter, and measures should be taken to import larger quantities of oranges from Australia. Some people might f-y that the growers of New Zealand c, us fruits must be protected, but whv should any industry be protected to such an extent that the whole community suffered for it? Mrs Black went on to deal briefly with prison reform advocating a greater tolerance towards criminals and more enlightened methods of dealing with them. She advocated the recasting of Acts pertaining to family protection so that inconvenience and hardship to women and children would be eliminated. It would appear, she said, that little consideration at all had been given by the present Government to women. They bad to pay the unemployment tax if earning a few shillings a week, and there was a very wide margin between the amount paid by women into the, unemployment fund and the assistance received in return by way of free meals, etc. Considei - - ing the large surplus in the unemployment fund, it seemed evident that there was no need to have taxed women so severely. It must not be thought that women were not willing to pay their fair share of taxation, but they were demanding that they should have better treatment. INTERFERENCE WITH BUSINESS " In New Zealand there have been many protests against what is commonly known as 'State trading' and 'State interference,'" she added. "We expect the ■ Government to undertake our major public works, to institute and maintain what we are pleased to call State services, such as the Post and Telegraph, education, and the police, but we do not expect the Government to interfere and compete with private enterprise. This is what is happening to-day. The Government endeavours to control the activities of nearly every business in this country. A very important point to remember is that a Government concern can never he run as efficiently or as economically as can a private business. With governmental red tape, its organisation becomes cumbersome and wasteful, and it is responsible to no one but that j vague and nebulous body known as the public. If we wish to perpetuate a strong, self-reliant people, then we must leave to private enterprise everything that can be done 33 well as, or better than, by a Government. "A Socialistic Government no doubt is the right Government for a country whose people are not sufficiently educated to progress individually, but in a country like New Zealand, where we can all take the advantage of a good education, surely, if we are sufficiently energetic and enterprising, we should be given the opportunity to make our way in the world. Further, Socialism, undoubtedly means far greater taxation, and ultimately the confiscation of the people's wealth. "It is a true saying that an ounce of constructive is worth a ton of destructive criticism. In criticising the Government one grants that it has carried out its policy with good intentions, but one wonders very much if the men who have framed its policy have sufficient knowledge of the renl conditions of the mass of our people." REDUCTION OF UNEMPLOYMENT Unemployment was the most vital problem to be faced to-day. Over £16,000,000 of direct taxation had been spent almost entirely on unprofitable work during the lifetime of the present Administration, and the present Minister of Employment had stated that he could not solve the problem, his board could not solve it,_ and the Government could not solve it. This was typical of the Government's defeatism. It could not solve the problem because it was attempting to do so by taxation, which was crushing industry. The more people were taxed, the less, of course, they had to spend. The numbers of the unemployed had increased oy 10,000 during the last four years, making a total of over 58,000. With their wives and families, there were at least 200,000 people dependent on the meagre earnings of the unemployed. At present huge sums were squandered on unproductive works. This way of expending money collected by taxation must cease before the Dominion could progress. The Democrat Party had sane and sound plans to carry out, some of which were for the encouragement of new primary industries and secondary industries. These included schemes for group settlement on the land, schemes for the bringing back to production of now deteriorating farm lands, schemes for irrigation, and schemes for the assistance to mining. Its policy would also encourage the stimulation of private investment by a system of guaranteeing interest or dividends on any projects which were considered sound. Her party intended to set up a National Development Council, which would consist of representatives of the Government and of citizens of the highest standing, representing local bodies, primary, secondary, manufacturing and financial interests. Its function would bo to examine proposals for the development of national, local, and private enterprise. It would advise the Government both on existing works and new projects. The test ot every proposal would be its ability to establish a permanent self-supporting and economic work or business. "Our people to-day are suffering under a burden of taxation unprecedented in our history, and we must recognise that the principle of providing capital works out of revenue, derived from crushing taxation, is quite wrong. To enable it to reduce taxation, my party proposes that £8,000,000, if necessary, could be borrowed for the first year on schemes which could become definitely self-supporting. If, however, a larger amount is required, it will be found. If to complete entire rehabili-

tation through these methods, a total sum, over a period of, say, four years of even up to £20,000,000 were required, it would be definitely well worth it. The interest and sinking fund on a total of £20,000,000 would be approximately £1,000,000 a year. This amount is only about one-fifth of the annual sum that has been collected by the Government by way of the unemployment tax. . " The charge to the people of this conn-, try, under the scheme of the Democrat Party would entirely disappear as the projects became self-supporting. If it took as long as four years for the whole scheme to be complete, and the works to become definitely self-supporting, the total cost to the community would have been less than the present taxation for one year. In addition, our policy would bring hope again to nearly 250,000 people who to-day are dependent on the unemployment tax. Men would be back at work at standard rates of pay. and the effect of so much additional money finding its way through the various channels of business, would benefit the whole com munity. Every idea and every figure in the programme of our party has been closely examined by experienced and competent men, and not only can every one of our proposals be carried out, but at the end our Budget will be balanced and confidence and prosperity restored to our country. By the adoption of our policy of borrowing, the unemployment tax could be reduced to 6d in the £. Part ot this tax also would form the basis ot a national health insurance and superannuntive pensions scheme, so that in reality the unemployment tax as known to-day would be reduced to about 2d, the other 4d being used for health insurance. At the present time, the unemployment tax alone is Sd. but where does it go? What good does it do? " THE EXCHANGE RATE Could anyone remember a greater stir in the political horizon than that creatci by the press of New Zealand, the Chambers of Commerce, and other public bodies on account of the raising of the exchange rate to 25 per cent? With the debasing of the currency, the cost ot living had risen greatly, and for £1 people could purchase only 12s Gd worth of goods at the present time. With the addition of the sales tax, this was equal to about a 40 per cent, cut in wages and incomes. "It is not a bit of use for Mr Coates to tell us that the cost of living has not increased with the exchange, she added. " We women, as housekeepers, know only too well that it has —(Applause.) The policy of the Democrat Party is to put an end to this vicious practice and to restore to the people of New Zealand the full value of their pound, thus enabling them to get the full value of the money they earn. The increased rate ot exchange may be giving some assistance to the man on the land, but there is no discrimination under the present system between the man in need and the well-to-do farmer. This injustice is causing a distinct barrier between the town and country, as we are all paying extra taxes to give to those fanners who are in good positions and in no need of assistance.— 'Applause.) Is it any wonder, then, that the present Government is called a farmers' Government'? " The policy of the Democrat Party was to bring the rate of exchange to its true economic relationship with sterling. If this were done the Dominion would restore its good name in the British •market and stimulate the absorption of New Zealand products with consequent increases in the prices of these products. SECONDARY INDUSTRIES Hand in hand with our primary products come our secondary industries. The Democrat Party would give the fullest possible encouragement to new industries of economic value. The secondary industries should be encouraged and assisted if necessary, to keep up to date in their methods of manufacture, as outside competition seemed to become keener year by year. ~.«»■ Going on to deal with tourist traffic, Mrs Black declared that the Dominions scenic and sporting attractions should be the people's greatest asset. She advocated the provision of better accommodation and more scientific advertising abroad. NATIONAL HEALTH INSURANCE New Zealand was one of the very few countries in the world where a national health insurance scheme was not in operation. Dr Adams, a medical practitioner and a candidate for the Democrat Party, had made a complete study of health insurance, and had propounded a scheme similar to that operating in Great Britain. Learning from the experience of others, he had avoided certain features which had proved to be undesirable, at the same time improving on others. There were three points which might be emphasised:—(l) The scheme was designed to co-operate with friendly societies and private insurance companies, so that there was no interference with their legitimate activities in any way. (2) The evils of the "panel" doctor system and all other restrictions on the medical profession had been eliminated. All persons participating in the scheme would have complete freedom in their choice of doctors or specialists. (3) No direct tax would bJ placed on employers in respect of employees. The system, based on contribution by employer and employee, was the one suggested by the present Government. The Democrat Party regarded that way. of financing a scheme as both irritating to the individual and inequitable. The Democrat Party proposed to finance its scheme by a contributory tax on the same principles as the unemployment tax, but without the levies imposed thereunder. The basis of the unemployment tax would be altered to include a contributory tax for the purpose of this scheme. The total tax, covering both the unemployment scheme and the national health and pensions scheme, would be reduced from 8d in the £ to 6d in the £. As stated under the heading of unemployment, this tax would work out at approximately 2d for unemployment and 4d tor health insurance. A very important point to be noted was that the public would receive a profitable return for the money contributed, which was more than could be said for the way the unemployment tax was expended at the present time. ( The principal features of her party s health insurance pensions scheme were medical, specialist, and hospital benefits, maternity benefits, sick leave pay allowance, and various special treatment services. All contributors to the scheme and every one of their dependents would be entitled to the full benefits, provided that their income was below £207 per annum. Those receiving an income above this figure would pay for hospital and medical treatment in the normal way but would be entitled to the free benefits if at any time their income fell below the maximum figure. „„,„f™ The votes of the women of this country were sufficient to put any Government out of office, and she appealed to ail women to exercise that power on November 27—(Applause.) She was pleased to be able to say that under the Democrats' national health and superannuate pensions scheme, pensioners of all kinds would receive an additional 25 per cent, increase on the amount they received to-day. Having to be 2o years in the country before receiving tiie old-age pension made life very hard for many old people. Her party believed m reciprocity, and would do its utmost to alleviate the position of many who were suffering under present conditions. Referring to returned soldiers, Mrs Black said the recent efforts of the Government to assist this section of the community were belated. It was generally agreed that the average life of a returned soldier was shortened by 10 years. In respect of pensions, the Democrat Party would put the onus on the Government to prove that the ill-health of all returned people was not due to war service. This was not the case at present, even under the new Act. ADVICE ON EDUCATION Turning to education, the candidate criticised the action of the Government in stopping all grants to kindergartens. The position of these institutions had been complicated by the fact that the five-year-olds were not permitted to go to school. She might add that the Democrat Party proposed definitely to revert to five years as the commencing school age for children. ■ —(Applause.) The Democrat Party proposed also to set up a National Education Advisory Council, which would act in an advisory capacity to the Government and the Minister on all questions connected with education. It was also the party's definite intention to bring into schools practical training in technical trades and callings and agricultural pursuits, so that the child might get the benefit, not only of general education, but of special education in the particular subject in which he proposed to earn his living. Under the present administration, classes were becojning too unwieldy and children were being passed through the schools in what

might be called "mass production." The result was that they were all more or less of a type and lacking in individuality. Mrs Black went on to urge the claims of Dunedin to a training college. PUBLIC ACCOUNTS Mrs Black stated that the Auditor-gene-ral had reported that there were discrepancies between the published accounts as published and the Treasury books This was an arresting statement and was a very good reason why the present Government should not be allowed to remain in office. The Minister of Finance, instead of Parliament, was constituted the sole judge as to the propriety of appropriating moneys of one statutory fund for the purpose of another statutory fund, and the Audit Office had no power to object. This meant that the Minister of Finance had the power to appropriate funds from one account to cover deficiencies :n another account, thus preventing the public from ascertaining the true position of New Zealand's financial undertakings. The following was a " tag" from the Auditor-general dated May 1, 1934: —"The foregoing accounts have been examined and found correct with the following exceptions—(l) the credit balances amounting to £19,882,839 19s 7d shown as ' cash' in the various recounts which constitute the public account are over-stated by an aggregate amount of £19.379,000. The latter amount represents sums paid from the public account by way of investment and was rot held as cash in the public account. (2) The total balances shown in the various accounts amounting to £24,144,831 13s 3d are over-stating owing to transfers made between accounts by way of investment having been used to increase the total balance of the borrowing account without decreasing the total balance of the lending account " To summarise the position she would give the following facts:—(l) That the public accounts could not be relied upon as a true and accurate statement of Government and departmental finance; (2) that the control of Parliament over expenditure had been delegated to an almost unbelievable extent to ministerial and departmental authority; (3) that there were grave irregularities and weaknesses in our system of public accounting; (4) that there seemed to have been a persistent endeavour to disguise the true costs of particular undertakings or services such as in connection with exchange and the losses on certain undertakings, notably State lending departments and electric-supply ventures; (5) that the Auditor-general had been pointing out these anomalies, irregularities and discrepancies for a very considerable period without avail. The Democrat Party would ensure that the public accounts of the future were presented in the same manner as were the accounts of other institutions, and also the effective control by Parliament over all expenditure would be restored to the fullest degree. CONCLUSION "With the removal of some of the causes of taxation, we can retore production, trade, and industry to their normal activity. With this object in view, our policy proposals have been carefully prepared and are actuarily sound, and I feel sure that they will be acceptable to the majority of the electors," said Mrs Black in conclusion. " I might further state that it is the intention of the Democrat Party to govern through Parliament and preserve the rights of the people against the. bureaucratic controls of boards and commissions. At the present time there are approximately 140 boards of various kinds run at the expense of the country. My party proposes to retain only advisory bodies such as the Education Council, the National Development Council, and the like. We shall not, therefore, be adding to the number of boards which our opponents would have the public believe, but re ducing them. " I would like to emphasise that a man's home is his castle, and it is the aim of the Democrat Party to give every man a chance to be the king of his castle and retain that freedom which is the heritage of the British race."—(Loud applause.) Further applause followed when the chairman stated that he thought the audience would agree that Mrs Black had given an address equal to any that it had heard from the political platform. When Mrs Black was askedwhether she was in favour of the legalising of bookmakers, she professed ignorance of the subject, but she added that, as the Government allowed betting on racecourses, she did not see why it should not allow the forwarding of bets through the telegraph office. " But they do allow bookmakers," cried a woman. "Do they? I don't know," replied the candidate. The audience showed no marked objection to the curtailing of "question time" when Mr F. .C. Cooper moved a vote of thanks to Mrs Black and confidence in the Democrat Party. His remarks were followed by loud applause, which was accepted as approval of the sentiments which he expressed, and the motion was not formally put to the meeting. (Extended report by arrangement.)