END OF NATIONAL MINISTRY.

Otago Witness, Issue 3415, 29 August 1919, Page 22

END OF NATIONAL MINISTRY.

SIR JOSEPH WARD RETIRES. OTHER LIBERAL MINISTERS FOLLOW. LIBERAL POLICY OUTLINED. MR MASSEY'S STATEMENT. WELLINGTON, August 21. Sir Joseph Ward Reader of the Liberal Party) tendered to-day to his Excellency the Governor-general his resignation as a member of the Executive Council and as Minister of finance, Postmaster-general, and Minister of Telegraphs in the National Government. bir Joseph afterwards made an important statement in reference to the political position, and out.ined ins pohcy for the future. tie had come to the conclusion, he said, that now the Peace Treaty was signed and the object lor which the National Government was formed had bean achieved the truce between the two principal parties hi New Zealand was no longer necessary, and he couid not now remain in a Government that had been formed for war purposes only. He had, after much thought and with the fuil concurrence of his Liberal colleagues in the Cabinet, come to the decision that the continuance of an Administration having naturally no real cohesion on any fixed principle save i'le winning of war was not in the best interests of the country. In retiring he had a duty to discharge to the people of New Zealand in his position as leader of the Liberal Party. "The world is passing through a new era," said Sir Joseph, " and all the dangers pnd difficulties besetting the old. countries as the result of four and a-half years of war are more or less in evidenoe in New Zealand. I desire, therefore, to let the people know my views, and it is for those who regard the well-being of the dominion as paramount to individual interests to give them careful consideration. " The great majority of the public and the press throughout the country were favourable to, and strongly supported, the formation of the National Government, and I and my colleagues, have in spite of many difficulties been loyal to the party truce throughout. I havo abstained both here and abroad from taking any part in party politics either by organisation, publio speeches, interviews, or otherwise. Peace has been signed, and the arrangement made between the two parties for the war. period must now be brought to a conclusion, and it is only fair to those to whom 1 am responsible that 1 should relieve them by my resignation from a position that I feel it is in the best interests of the country desirable to terminate. *' In retiring I think I should apprise the people of my views on important questions. The war has changed the whole world, and the statesmen of to-day must recognise the new age. What was good enough for yesterday will not do for to-day or to-morrow. We are in a transition period, and a good Government with a strong administration is vital to the country's weifare. New Zealand must be ruled constitutionally. The worker has just rights and undoubted claims to consideration, but he must not nullify these by demands which it is impossible to meet, nor must he forget his duty as a citizen of a great country. By recognising constituted authority he can assist the Stale, which has already done much for him to bring about those improved conditions which alone can keep the country safe and prosperous". As a citizen he has duties as well as rights, and ho must not exaggerate his rights by ignoring his duties. The capitalist, too, must take heed of the great duty which devolves upon him. Ho has a right to reasonable protection, but the changes that have been brought about by the world urheaval make it imperative in his own interests as well as in the interests of the worker arid the State itself that he should v'ew the altered circumstances from a broad and proper standpoint and mako such concessions and sacrifices as the new era demands. Briefly put, neither capital nor labour can hope to succeed without mutual recognition, and it is the bounden duty of both to take a fair and reasonable view of the reciprocal, needs and responsibilities of each and of the State as the final arbiter. STATE BANK:. "in my opinion the time has arrived when in the best interests of the country a fully equipped and complete State Bank should be established. It would have a wonderfully steadyinsr influence with all classes of people in the dominion agriculturally, industrially, and socially, and would also be a source of profit to the country and help us to meet the increased expenditure due to the war. The Bank of New Zealand is partly a State and partly a proprietary bank. It has been conducted with good judgment and on sound principles It has done well for its shareholders, and has been a source of strength to the dominion as well as to other similar institutions in this country, and in the departure which I now propose for the establishment of a State bank it would be fairly entitled to have an offer made to it to become the Stat? Bank of New Zealand. Its shareholder!! should bo treated with fairness, and I - would not propose to do anything unjust or unreasonable to them. They, too, should be reasonable. If in their wisdom they elected not to part with their interests in that institution it would then be necessary to look round elsewhere with a view to providing a State bank for this country. "Such an institution should be placed entirely clear of political influence, and this, I am satisfied, could be done. It should have a permanent head, with a reasonable number of experienced men as directors to control and administer it. The wholo staff should be brought under the Government superannuation scheme, and should be paid fairly and fully for their services. "It is not necessary for me to go further at the moment than to say that I should in the interests of both the country and the bank itself necessarily discuss all the details with the authorities, and I am satisfied that a powerful State institution, which would prove to be to the general good of the country, could be established under proper safeguards without in any way interfering with the commerce or industries of the dominion. Indeed, I am of the opinion that the general financial stability

of the country would be greatly strengthened by the establishment of such an institution on sound lines. "The banking note tax should be paid, as at present, by the proposed State Bank and by all other banking institutions in the dominion. I mention this because with the establishment of a State bank it micht be in 1 erred that the note tax would not be paid by such an institution. All the banks should be treated alike in this respect. "I am inclined to the opinion that it would be a useful change under proper and safe government to allow the banking institutions to have the right to substitute Government stock for gold as security for their note issue. Tin's would bo an incentive to them to invest from time to time in Government stock, and as for many years to come we are sure to be using Government stock, there is a good deal to be said in favour of this proposal. REDUCTION OF EXCHANGE. "New Zealand will always be a great producing country, and it is of the first importance that any difficulties in the waj of getting our products to market should be removed. In this category I place that of exchange to overseas countries. During the war period the rates of exchange have advanced materially. "The time has arrived when in the interests of the whole community there -should be a considerable reduction, and I would appeal to the whole of the_ financial institutions to help to bring this a-bout. This is one of the directions in which a State bank would prove of considerable value. It should not, of course, be -nart of its poiicy to carry on any section _ of business at a loss or withouo providing a fair profit for work done for its clients, but it would have a valuable influence in helping to keep the rates of exchange at a level where they would not be such a heavy tax as at present upon producers and exporters. BORROWING. "Anything in the shape of a large borrowing policy by this country outside of New Zealand for Government purposes would, in my opinion, be very costly, and for the next few years a sane policy of borrowing locally will be preferable, and will help to maintain New Zealand in her position of a self-reliant country. For that reason I think this policy should be pursued. There is a great deal of money in the country, and we are mainly dependent upon the products of the soil to bring to the dominion a large amount in excess of what we pay for imports. If the present prices for our exports continue, as they seem likely to do, for the next few years, we should be wise to obtain all that is required for Government purposes within our own shores. " I am of opinion that those lending money to the country for general purposes should be paid 5£ per cent, interest and be subject to the ordinary taxation of the country. The money that was needed for war purposes, and in extraordinarily large amounts compared with what we require annually for general purposes, was, in the matter of taxation, treated differently here, as was the case in most other countries, but I am of opinion that there should be no exemption from taxation on money lent to the country for general purposes. COAL MINES. "Coal is a most essential commodity in the daily requirements of the psople and in the transport service on land and sea, and it would be suicidal for the country if a recurrence of the troubles that have arisen from time to time were * allowed. The time has arrived when the whole of the • coal mines of New Zealand should be nationalised upon payment to the owners of fair and full terms in Government stock at a rate of 5£ or 6 per cent., bearing taxation. All the mines taken over that we required to operate should, where practicable, be worked under conditions similar to those of the present State coal mines. The administration and control of the mines should be placed under a good board of business men and representative miners, with a Minister responsible on their behalf to Parliament. The erection of improved dwellings for the miners should be part of the responsibility of the State, and should be carried out with reasonable expedition. With a system of superannuation, proper housing, and sanitation, there would be no excuse for strikes for the purpose of adjusting difficulties that might from time to time arise. Under these improved conditions it would be the duty of the miners to see that the mines were -worked to their utmost capacity and to give a fair and full return for the advantages which they themselves -would reap. There should be, further, a supply of miners sufficient to man and work the coal mines effectively. " I believe that what I am suggesting is the only effective way in which coal can be produced in sufficient quantities and at lower prices for consumers. COLLIERS. " With the nationalisation of the coal mines it would be necessary to have some of the colliers State-owned and worked in conjunction with the mines to ensure a proper and cheaper- distribution of coal throughout the dominion. TAXATION. " In dealing with taxation, it is, I think, fitting that I should say that the country which is able, after the conclusion of the great Avar, to keep its taxation down to the lowest limit is the one that will successfully develop and progress, and will be the country best able to maintain its industries and increase its avenues of employment and hold its own in the fight for progress. It is not in the interests of the country that we should impose extra taxation unless it is absolutely necessary. I havo already stated in the House of Representatives that there is no need to increase taxation. On _ the_ contrary, a considerable reduction in the taxation brought into existence to meet the war expenditure can be made when a readjustment is brought about, in the incidence of taxation in relation to death duties and higher income tax. It should be in the, direction of exempting smaller incomes from taxation and small estates from death duties, and placing the amount _ thus' lost to the Treasury upon the larger incomes and larger estates. As regards death duties, it is prudent, however, to wait_ for another six months or so, by which time the full annual provision necessary to meet the war expenditure under all headings will be definitely known. Then a recasting of the whole finances should bo effected so as to bear equitably on those entitled to pay it. Tho taxation of co-operative associations and other co-operative concerns requires adjustment. "Company income tax should be upon individual shareholders' income, and companies, should be taxed upon the undistri-

buted balances. Further exemption in our income tax system should be made in respect to the wives and children of'*'taxpayers. An adjustment of the tax on incomes from mortgages is desirable to give relief to borrowers. GOVERNMENT VENTURES AND TAXATION. "All Government ventures, including State bank, life insurance, Public Trust, accident and lire insurance, coal mines, and collieries should pay the. same taxation as other concerns of a similar nature. This change should, I think, bo permanently effected in connection with all Government business concerns —first, because portion of their earnings should undoubtedly come in as general revenue of the country, and secondly, because none of them has been established with the intention of driving other businesses or institutions out of existence. The Government trading departments will always have to meet an important bearing in keeping fair rates in operation, for publio and competitive institutions cannot hope to carry on their, business successfully unless they do so at rates as low as those of State departments. This matter has given me a great deal cf thought, and satisfied that no injury to the State departments will bo occasioned by applying to them the system of taxation that applies to similar institutions trading in this country. REDUCTION OF INDEBTEDNESS. "The indebtedness of New Zealand amounts to £172,778,469. This is a large sum of money for a country with a population of 1,250,000, and as a matter of common prudence a strong policy for a reduction of the indebtedness should be carried out. I have already crovided a sinking fund for ail loans in New -Zealand, but the aggregate sum now is so large that a strong policy of further reduction in such manner as to occasion the least possible disturbances to industry and to the country's credit is necessary. "For this reason I would suggest that the whole of the country's loans should be repaid in 65 years, and that to enable this to be done the whole of the present accumulated surpluses, amounting to £15,239,561, should be paid into separate sinking funds. We have fought a great fight—as much for posterity as for ourselves —and it seems to me unfair that the present generation, and mainly the adults of it, should throughout their lives bear the whole burden of that repayment which the war Indebtedness involves. The annual amount of interest from the sinking fund should be used for advances to soldiers, settlers, workers, and local public bodies, and the country would receive the benefit of the full amount of interest earned annually Ly the sinking fund if it were used by the people for their financial needs. It would to me be a sad, even deplorable, thing if any influences at this critical juncture in the country's history were exercised to utilise any portion of the present surplus for present-day expenditure. I would with all the earnestness in my power strongly urge the country as a whole to resist anyone attempting' to annex any portion of this money for any purpose excepting that of a sinking fund for extinguishing the war loans so generously and whole-heartecliy given by the people to help us to do our part in the great war struggle. ' AERIAL SERVICES. "There can be no question that aerial work is coming into general use in all important countries in the world, and New Zealand should not lag behind in this respect. I Jo not think we should establish an aerial branch for the sole purposes of defence, but I think the system should be brought into operation for postal and commercial purposes on a moderate scale, and that men should be trained for flying, so that if, unl appily, this branch, which during the wav became one of the most important for defence purposes, should again be required in that way,_ we would have a number of men in various parts of the country with the training that would enable them to tske up defensive duties in the air. "I believe that services established for postal purposes would be of great value to the people in various parts of the country I do not suggest that they should be carried out upon anything but a moderate scale. A trial for a year or two would enable Parliament and the people of the country to judge whether their continuance was desirable. I am of the opinion we should not tarry in bringing aerial services into operation. We must not overlook the fact that private enterprise, both in Auckland and Christchurch, has established flying schools, and these should be used, if not absorbed, in connection with any scheme put into operation. EDUCATION. "The ago of many of the school buildings throughout the country and the necessity for the erection of new buildings entail the provision of a large.sum. for this purpose. I suggest the expenditure of £3,000,000 upon buildings. All building operations and repairs should be carried out under the direction of the Public Works Department. A system whereby the Government provides the money and another body spends it is not satisfactory, and in the interests of the country, and with a view to economical expenditure, a change in the direction outlined would bo advantageous. "State education should be free from the primary school to the university, and kindergarten schools should be included in the national system. All inspectors should be appointed by the Government, and the powers of school committees should be extended. There should be an increase in the salaries of all school teachers, whether in primary or secondary schools, together with a dominion promotion scheme. All school books and requisites should be provided free. Vocational training should have consideration in the curriculum of all schools. I am in favour of evening continuation schools for technical instruction and training, and of adequate grants to technical schools. Free dentistry and medical service should be provided for all school children. The service for this should be fairly distributed among the medical profession. Free transh shculd be provided for all pupils under 16 years of age. MILITARY FORCES. "There should be no attempt to build up a large permanent military force in this "country. It is not required. We should not, however, shut our eyes to our present and future obligations, and I think there is much to be said for the restoration of the cadet system that formerly existed and for the continuance of the Territorial system under conditions similar to those prevailing in the dominion prior to the war. EXPEDITIONARY FORCES. "The war is happily over, and as there is now no need for the continuance of the Expeditionary Forces, their complete de-

mobilisation should bo carried into effect immediately LAis : i> SETTLEMENT. "The land question lies at the bas£ of fcnG political edifice. Our available land is limited in area, and subdivision is necessary. The soldiers must be repatriated. Land which is not producing its maximum should be subdivided. The large landowners rails' recognise that this country is destined to be one of small holdings, and they should, on fair payment for their lands, cut them up and subdivide them. If the owners of land fit for closer settlement do not subdivide, effective means of compulsion can I know, be found. Aggregation has been going on, and land is wanted for soldiers and civilians. More stringent provision against aggregation is necessary. All transfers and conveyances of land, whether subject to the existing limitation of area or not, should be sanctioned by the land boards or other reliable tribunals, and without such sanction no transfers' or < conveyance should be valid. The remaining ordinary Crown lands must be roaded and opened for settlement at. the earliest moment. It is of the greatest necessity that this country should increase its exports and do everything possible for the cheapening of transit and the elimination of waste, and co help us to work on successfully in the new era. LAND FOR SOLDIERS' SETTLEMENT. "Land for soldiers is a necessity, and it has to be remembered that the land purchased remains a permanent asset, and that the interest upon the amount advanced will SOt in any way bear upon the taxation of the country. Whatever money is required for this purpose should, and must, be provided. This does not call for increased taxation as the soldier settlers provide the interest upon their loans. To prevent unnecessary delays and to expedite soldiers' settlement a system of local land boards should be established for this purpose. CIVILIAN LAND SETTLEMENT. "While promoting land settlement for soldiers it must not be forgotten that there is a considerable section of the civilian population desirous of going upon the land, and the interests of these people cannot be neglected. I would suggest that £1,000.000 per annum be provided for civilian land settlement. I would again _ emphasise the fact that this means no additional taxation, as the settler on the land pays the interest upon the money, and is no burden upon the finances of the country. Indeed, he increases production from the land, and so helps to augment the amount being returned to New Zealand from the sale abroad of its primary products. STATE ADVANCES. "It is useless to place a number of soldiers on the land unless they have the wherewithal to enable them to work their properties, and with that object in view increased limits with -respect to advances to soldiers^—and they would also apply to settlers and workers —should be provided, with proper provision for advances on chattel and leasehold property securities. NATIVE LANDS. "There should be a more vigorous promotion of European settlement on unoccupied Native lands, while at the same time doing what is fair arid just to the Natives. I have already emphasised the need of eliminating material waste in all directions. This need should have our earnest attention, and in no direction more than in that of unused or wastefully used fertile lands, whether Native or European. EXPERIMENTAL FARMS. "Further experimental farms in each island, with instructors, should be established. Students should be taken into all euch farms, and should have a two or three years' course in practical as well as theoretical farming. DAIRY INDUSTRY, "It will be necessary to increase largely the number of dairy instructors. This industry is growing so extensively that it should in the general interests of the country be assisted in every possible way. REMOVAL OF RESTRICTIONS ON TRADE. "There should be no restriction on trade from New Zealand to any other country iu the world. As far as possible, however, we should try to conduct our trade within the Empire, and especially with the Motherland, and that is the spirit which has been predominating in this country for many years. It is a spirit that will continue, I nope, for all time. During the war this has been a compulsory system to a largo extent, but in peace times all compulsion should cease and this country, as was the case prior to the war, should trade freely to any part of the world that offers the best markets, as the producers are entitled to obtain the best prices offering. Individuals and companies in New Zealand oan be depended upon to carry on their business legitimately and if they are freed and protected from trusts and combines our trade should continue to develop year by year, as it has done in such a wonderful way during the last quarter of a century. "So far as inward trade is concerned I am of the opinion that we should impose additional duties against imports from countries which are not members of the League of Nations. I do not mean that those • countries within the league should be placed upon the same terms as countries within the British Empire under the system of preferential trade, but it is reasonable that countries outside the League of Nations should not be placed upon the same basis as those nationo which have shown a desire to prevent wars in the future and who are working for the peace of the world. PREFERENTIAL TRADE " We have long sinos in this country established a system oi* Imperial preference within the British Empire for all parts that reciprocate. This system should, in my opinion, be continued and expanded. Up to the present there has been no definite announcement by Great Britain as to what her fiscal system is to bz in the future. The settlement of that rests, of ccurse, entirely with the people of Great Britain, and it would bo out of plaoo for me to comment upon it except to say that until wo know definitely what iu to be the trcde system of the Motherland mutual trade upon a basis that helps the Empire is to a considerable extent limited. I am, however, warranted in saying that I &> not think that this country will weaken in its support of Imperial preference. ENEMY TRADE. "To prevent persons of late enemy nationality trading in this country by holding shares in a New Zealand company or

in a company doing business in New Zealand I would perpetuate the present war regulation and legislate to prevent them. Either directly or by proxy, having any interest or shared L*? -"ury business or company operating in New Zeaitu.^.. LOCAL INDUSTRIES. " The fact that 52 per cent, of the population of New Zealand now resides in cities and boroughs shows the importance of the development of the secondary industries of the dominion. A live Department of Industries should be established and the necessary funds provided for research regarding labour-employing industries in order to provide employment and keep within the dominion money which is now sent abroad for goods which we are able to manufacture. Our duty is to foster and encourage local industries. For example, protection and support should be given to wool top manufacturers to enable us to send away our wool tops instead of wool in the grease. To enable fishermen who are in places remote from freezing works to hold their fish for transport to the centres money should be advanced for the erection of cool stores. This would enable the people to have a more plentiful supply of fish in good condition. For long distance train journeys cool vrucks should be provided, as is done in ether countries. LICENSE OF FREEZING WORKS. "There should be State control by the license of all freezing works and the prevention of their use by trusts or combines. The prosperity of New Zealand is due mainly to the export of our primary products, and it is necessary in the interests ot producers and the country generally that our freezing works should not be financially ruined or made unprofitable by the operations here of any powerful organisations with large capital designed lo destroy the value of "our legitimate enterprises. The system of licensing all freezing works should be permanently continued, thus making it impossible for any combination or trust to interfere with what has been a great Icwal industry for many years. FLOUR MILLS. " During the war the price of the staff of life—bread —has increased considerably. With a view to reducing it the Government should purchase all the working flour mills, paying full and, fair values, and by amalgamations and economy in working get the cost of flour to the bakers down to the lowest possible figure. The price of bread should then be fixed by the Board of Trade, a fair percentage of profit being allowed to the bakers, with due provision for bad debts, etc. Payment for flour mills should be made in Government stock at 5g or 6 per cent., subject to taxation. The Government now guarantees the price of wheat to the gr< wer, and to be effective in cheapening the priceof bread it should control the wheat when it .arrives at the mill. There thould be no attempt to make a profit out of Ibis most generallv used article of food by nil cksses of people. OIL PRODUCTION. "To encourage efforts to obtain oil by boring or otherwise a subsidy should be provided at 6d per gallon up to £20,000 per annum for a period of 10 years. IMPORTED OILS. "The present price of imported oils compared with those ruling in America imposes a heavy tax on oil engine and launch owners and on motor users generally, the great majority of whom need their launches, engines, and cars for business and not for pleasure. The percentage of users for the latter purpose is comparatively small. I am of opinion, therefore, that the Board of Trade should be empowered to fix the price of imported oils, allowing a fair profit to importers and distributors. If this is not done the State should purchase all the imported oil for the dominion's requirements and sell at a moderate price to retailers and distributors, who should be allowed to make a fair profit. » GENERAL NATIONALISATION. " I am not in favour of a general nationalisation of all kinds and conditions of things. I have named those which.l believe to be essential in the best interests of. the country and which will be no burden upon taxation. All the existing State business departments have been worked most successfully, and so I feel confident will those I am now recommending. We are living in greatly altered conditions, and great changes are necessary to provide for a betterment of our social, industrial, and commercial life. It is _ the way to prevent chaos and a worse condition than exists at present arising in the future. It is for the people without prejudice carefully and fully to consider them. ENCOURAGEMENT OF INCREASED PRODUCTION.

"Labour should receive a, greater share of tho profits of industry, thus stimulating output. There should be financial assistance to new industries, and those already established should be fostered. For cheapening commodities to the consumer State encouragement should be given to volun-tarily-formed co-operative associations, en the best English models united by the Federal principle. This means a wide extension of the co-operative store system, which aims at the elimination of middlemen's profits. There should be an encouragement of the adoption of improved machinery and scientific methods with a view to increasing output and ensuring employment for all, and a department of industrial and scientific research should be established. Assistance and support to the farmers engaged in the production of products from the soil should be a material part of the country's policy. BEET SUGAR. " To encourage the production of beet sugar in tho dominion, a subsidy should bo provided at the rate of £6 per ton up to £IO,OOO per annum for a period of 10 years. 3 RAILWAYS. "After the limited construction carried ou during the war period it is desirable that there should now be a great speedingup in the building and completion of railways. It would bo a saving to the country to have the works in course of construction completed as soon as possible. The loss of interest upon uncompleted lines is great, and the loss to those who require to use the lines greater. I would urgo the provision of £4-,000,000 for tho active, prosecution of railways. Tho South Island Trunk Railway should be completed in two years, the North Island main extension in the same period, and the Otira tunnel, connecting Cnristchurch and the West Coast, with the least possible delay. All tho other lines in hand in tho country should bo finished within three years. This would afford great facilities to settlers and to the user 3 of tho lines generally, and the railways would be a much more valuable asset

to the country when in full earning power. As soon as the unfortunate difficulty in regard to coal has been overcome there should be a prompt effort made to restore the railway servico to the- pos'tion of efficiency ruling prior to the war. r: I'ree travelling for children up to seven years and half fares for children tct'.YCS'i seven and fourteen years should be established. This would, in actual operation, result in no loss, or at worst in only an infinitesimal one, and as well as being a valuable educational factor for the children, would be a great relief to mothers of families who are frequently prevented from travelling by their inability on account of the expense to take their children with them. Tho former system of school excursions from town to country and vice versa, should be re-established immediately the present coal trouble is over. SUBURBAN TRAINS. " Fast and cheap trains shouM be put on all suburban lines to enable homes to bo erected in the suburbs, where the workers can live in comfort and yet have ready access to the towns and cities. ■ There is unquestionably a need also for the general public to have the benefit of cheap fares to and from the suburbs. Short suburban lines should, as soon as possible, be electrified. The restriction against the extension of the tramways from Wellington to Hutt should be removed. ROADING THE COUNTRY. " It is not commonsense to place large numbers of people on the land unless proper facilities are provided to enable them to reach the centres of population and market their goods, and it must be remembered that many portions of the dominion tnat have been under occupation for years are still badly handicapped by the absence of proper roads and bridges To obviate these difficulties, a more vigorous policy of roadmaking, With provision for maintenance, should be adopted, a"d I suggest the expenditure of £4,000,000 upon Stst© roads and bridges, covering a period of fo i ."r years. The main arterial roads should be the care of the State. In countries that I have recently visited concrete roads are being largely constructed. These roads have gone past the experimental stage, and there is no doubt that their more general adoption throughout the dominion would be advisable. THE FERRY SERVICES. "The time has arrived when the ferry services should form part of the railway system of the Dominion, with railway rates and freights applying to them. The necessity for good communication between the two islands makes it very desirable that the system which exists in many other parts of the world should be applied here. It is evident that when the South Island Trunk railway is completed a more frequent service between the two islands will be necessary, and I think that oil-burp in<r steamers should be used for this purpose. MOTOR LORRIES. "In connection with branch roads, it would be rdvantageous to have a service by modern motor lorries. The Government could obtain these and supply them to local public bodies as required at cost price. WATER POWER. "There should be no unnecessary delay in establishing further hydro-electrical power schemes throughout the dominion. 1 have for years been strongly in favour of such -a policy. In my opinion £6,000,000 should be expended within a period of three years upon the principal works, which should be put in hand simultaneously and pushed on vigorously. When in London recently I arranged for £2,000,000 to be raised for the Southland and Otago schemes at satisfactory rates. The loans were underwritten by an important financial London firm in association with a leading bank The loans are to be put upon tho market to be subscribed by the public when tho boards of the Southland and Otago Leagues have the necessary authority for this to be done. This would leave £4,000,000 out of the £6,000,000 to be expended in carrying on the other works. It is certain that their earning power would be more than sufficient to pay interest and sinking fund, and no burden would be placed upon the people by the adoption of this proposal. PARLIAMENTARY REPRESENTATION. "The first past the post system which permits of minority rule in the representation of the people in Parliament should be altered, and the unquestionable right of the people to s-elect candidates by a system of proportional representation should be recognised in city and suburban electorates as a commencement. This should be followed by the same system in other electorates, when the growth of population renders it practicable. WOMEN'S RIGHTS. "The fine services rendered by women in every branch of work connected with the war have entitled them to the best consideration of the people of the dominion, and the disparity in the treatment of women should, as far as possible, be removed. To this end they should be entitled to stand as candidates for seats in Parliament. "The distinction between the rates of pay for men and those for women should be removed, and there should be equal pay for equal work. Work must be regarded more and more as a social seivice,. and, if equally efficient, its value is the same, whether done by a man or a woman. COST OF LIVIMG. " With a view to reducing tho cost of living the Board of Trade should be given extended powers. Legislation should be introduced rigidly controlling the profiteer and restricting all commercial trusts, rings, and combines, with provision for fine or imp:isonmens. There should be an elimination of waste by bringing down the cost of distribution. Relief should be given as tar as possible by the removal of duties on and taxation of all commodities, including clothing 'and other articles, in general use. Duties on luxuries should at the proper time be imposed; indeed, a general revision of the Ouftoras tariff will at no distant date be necessary. FREIGHTS. "Freights from New Zealand abroad must be in the interests of cur producers be reduced to what in the altered conditions due to the war is reasonable, and they should not be higher than those riding on similar produce for the distance .carried fiom other parts of the world. The same applies to coastal freights for coal, goods, and general produce. Extended powers should be given to the Board of Trade to deal with this most important matter. What is fair and reasonable should be done, but nothing in the snap*-) of extortion should be permitted. It is in the best interests of 6ettlers, traders, merchants, and the people generally that this matter should be

dealt with emotively -and that adequate legislative provision should be made io make the Board of Trade's doe"6-r5 operative. POWERS! OF BOARD OF TRADE. "The Board of Trade should have power to prevent profiteering and the car;ymg on of trusts, rings, or combines in the dominion. Monetary penalties or imprisonment for breaches of the law should be provided. Amongst many other dtities the board should be encouraged to regulate tho percentage of profits on food and clothing within tho dominion, allowing fair profits to tho sellers and taking into account losses by bad deb f s, sales on credit, or for cash. INDUSTRIAL PROBLEMS. " The difficulties that have aricen in tho industrial world in the 'ast 15 years have been principally connected with the coal mines arfd the work on harbour fronts. Speaking generally, • labour in other respects throughout the dominion has, with the assistance of the Conciliation Council and Arbitration Court, been upon the whole satisfactory. There must be some cause for the trouble in connection with the two branches of workers to which I have referred. A stoppage of the work from,time to time affects more or less every other industry and occupation throughout the dominion, and a rational effort should be lr.ade to find a remedy to .prevent recurrences of the difficulties. It is certain that the State cannot, without ignoring tne interests of the people aa a whole, continue to stand a passive spectator of these gravely wasteful industrial conflicts. Strikes at the best are not only unsatisfactory to the people who are not immediately concerned, but they involve for the men themselves, their wives, and children much hardship and financial loss, which, in my opinion could, with their co-operation, be avoided. LABOUR—THE HUMAN ELEMENTS. "There can be little doubt that the future welfare of this country requires the cooperation of sane Labour in every branch of its occupation to ensure good government on safe and progressive lines in the general interests of the community ae a whole. The national and industrial estimate of the nature of Labour lias undergone a radical change in recent years. The conception of it merely a 3 a commodity to be paid for, like other commodities has almost disappeared, and the human elements —the condition, health, comfort, and natural rights of the worker—liave come into clearer and clearer national recognition. This is a profound and most beneficial change, as it makes for the physical, mental, and moral advancement of the great mass of our people. In the promotion of this . change of view we must in determining wages look more and more first _ to the value of the work in. question as a social service and secondly at its hardship, discomforts, and risks. A proper appreciation and application of' this principle would solve many of our present labour troubles. LAW AND ORDER. "T'he" Liberal P~rtj stands for law and order. «It will facilitate by the amplest legislative provision the will of the majority translating itself into law, but it will ~ive no countenance to any movement, organisation, or party which seeks to secure redress of labour grievances by direct action or any other methods outside the law. I recognise the right of every man to discuss any public question during a time of peace. It is different when war is raging, but whilst saying this I recognise no right of any person to either incite or encourage violence, lawlessness, or disorder when the freest constitutional methods are open to him. INDUSTRIAL MACHINERY. "To ensure smoother working between employers and employees, improved industrial machinery, having closer application to the requirements of the various trades, should be adopted. In doing this there should be no interference with the present system of industrial unions. There is a good deal to be said for the proposals contained in the Whitley report, and it seems desirable that a similar course should be followed here to that adopted in England—the setting up of a committee on relations between employers and employees to go into the whole auestion and report to the Government. The committee in England consisted of 15 members representative of various industries, and_ one woman was upon it. I foal that a similar investigation should be made in this country in the interests of both employers and employees with a view to reconstruction upon a basis that would enable the employer and the worker to have better conditions than is the case .now. Something of the kind is very desirable, as neither this country nor any other country can hope to go on successfully unless there is good feeling exiting bstween those representing the respective interests. I recommend the course indicated about for the consideration of the country. WATERSIDE WORKERS. " An effort should be made to establish permanent employment for a large proportion of the waterside workers, and also to provide comfortable housing and a contributory superannuation fund for the benefit of the men, their wives, and children. Such a system cannot be operated effectively for casual employees, but it should be possible, with a spirit of co-operation among the shipping interests, tho harbour boards, and the men themselves, to have a satisfactory system established on the lines indicated. It would surely be worth while for all the parties interested to agree to the establishment of a representative commission to bring about something of the kind. If this were done, public opinion throughout the dominion would ba opposed to any stoppage in the trade of the country by the men on the wharves through want of consideration

being shown tc thorn. The system of detaining ships in port unnecessarily should not be continued, as expedition when competing with other countries is .absolutely essential. If some scheme on the lines suggested were brought into operation the workers would have something to look forward to which should be an incentive to them to help tho country along the path of progress. WORKERS' COMPENSATION. ''More generous provision for workers' compensation is necessary. There should bo a revision and amendment of .the schedule of the Workers' Compensation Act. Th-a State should pay the compensation fixed by Statute when an injured worker or the dependents of a killed worker are unable to obtain it through the insolvency of the employer or through any flaws in tho law. WORKERS' HOMES. "The housing problem demands urgent solution. There is a great and pressing demand by the wage-earners throughout tho dominion for better homes, and houses must be provided at the lowest possibl'3 price' and upon easy terms to those requiring them. In addition to the authority already provided in our Statutes relating to workers' dwellings and advances to workers, there should bo an amount of £4,000,000 specially provided for the erection of workers' homes where required, tho expenditure being spread over a period of four years. Local public bodies should bo associated with the Government in carrying out this sotaemo on plans and specifications furnished by the Government. The present limit provided for the erection of these homes is too small under the altered conditions due to the war, and the advance should be raised to £6OO per home. This important proposal can be carried out on safe lines. We have already lent settlers and workers £21,518,440, and this has been done most successfully and profitably to the borrowers and to the State. SOLDIERS AND THEIR DEPENDENTS. " New Zealand i 3 under a big debt of gratitude to the men who fought for her during tho groat war, and there should be a proper recognition of the rights of discharged soldiers, and soldiers' dependents* and a provision regarding gratui=> ties, allowances, pensions, eto. These important matters, require to ba generally recognised by tho people through the Government. It is the country's duty to help the men fairly and reasonably. They and) their families have to live in the country, and whatever we finally do should bo on a general basis that wo can uphold and maintain. The granting to discharged soldiers of the right _to have then- definitelyformed grievanoas investigated in a court of civil jurisdiction is, in my opnion, desirable. In making this statement, I am not in any way reflecting upon the military, bull there can be no doubt, looking at tho question from a broad standpoint, that tho system" suggested would be more acceptable than the present one to the men. themselves, as well as to the people of this country, for whom they have fought. -.. MAIMED SOLDIERS. " Special provision should bo made for those soldiers who, unhappily, have been wholly or partially incapacitated as the result of their services during the war. PROSPECTING. ''A great deal of wealth has been obtained in this country from gold and other minerals, but the dominion has not by any means been thoroughly prospected. It would pay New Zealand to provide a sum of £20,000 per annum for _ the _ next ten years to carry out prospecting in various parts of the country on a thoroughly systematic basis. In all probability further mineral deposits, capable 1 of being worked on a profitable basis, will be discovered. If so, the money expended would not be lost, as everything that is taken from the bowels of the earth is practically found money, and adds to the general wealth of the country, OLD-AGE PENSION. "There is now no reason why old-ago pensions should not be granted irrespective of incomes or capital up to a reasonable point. The limit should be raised, so that' the ownership of a home or a limited income from savings should not be a bar to receiving the full pension. WIDOWS AND ORPHANS. " Better provision should be made for widows' pensions and for cases whero children are left, both parents having died, and the wife having pre-deceased the husband. SUPERANNUATION. "The Public Service Superannuation scheme should be extended, giving larger benefits to widows. NATIONAL PROVIDENT FUND. "An extension of the National Provident Fund is required, making it universal in its application and ensuring larger benefits to all on a contributory basis. The payment under this scheme of £6 to mothers p,t maternity should be made without the restrictions at present existing. This is a wise course in order to help to increase tho birth-rate. PUBLIC SERVICE. "The question of pay, privileges, eto., in the public service should come under -review, proper regard being paid to the purchasing power of salaries. .The pay in all branches should be such as will enable tho members of the service to live in adequate comfort and make suitable provision for their old age. UNITY OF EMPIRE. - "It is impossible to over-estimate tho value of the service which the Motherland has throughout our existence rendered to this country, and we should do all that is possible to' promote the unity of Empire in council and defence and the development of the Empire's resources and_ improvement in social and industrial conditions.

NAVAL POLICY. "It would, in ray opinion, be a great mistake for this country to undertake tne burden of anything - in the shape of a local navy. We must, however, be prepared to support a suitable scheme for our protection in the Pacific. The visit of Admiral Lord Jellicoe is important and opportune, and the country will aw-i.it with much interest his report upon this question before finally deciding on any definite policy. COST TO THE COUNTRY. " I wish to point out that in regard to the whole of the principal proposals I am suggesting only the expenditure on soldiers for gratuities, allowances, etc., educaiion, roads, and bridges are a direct charge on the 'the whale of the others <ire revenue-pro-ducing, and more than pay their own way. 'i Ley will result in increased prosperity io the country and provide work for all. The exceptions above-mentioned are of a.nature that every right-thinking person will recognise we must, as a matter of duty, provide. CONCLUSION. " I repeat in conclusion that the need for a National Government created to help the country during the period of a great and uftparxlleled war does not now exist, nor do I think it can be .carried on with advantage to the country. It is true that there are difficult matters still to be dealt with, and the aftermath of war calls for a strong Government and firm administration, with definite, plain, determined views on the main issues. The risk of divisions in this country, is great, and presents a grave danger to the well-being of the people as a whole. There is a section of extremists whose sole object is to take anarchic charge of the country. They have in many instances shown that they would press, it they had the power, the abominable and disastrous doctrine of force and direct action. The inconvenience and suffering caused to the general public do not con'cern them. Force, -strike methods, and other similar means affecting our food and fuel supplies, including the vital necessities of the poorest and the weakest, have been their resource. These methods will not preserve a great country for the use and benefic of its people. The will of the people expressed by constitutional .means- can alone bo recognised. This is a time for the best brains tfxnd the brightest intellects of the country not only inside, but also outside Parliament, to cope with the many and varied problems that have to be solved and, to help in the work of government on strong progressive lines, dealing justly with the poorest and helping them in tneir trials, acting fairly to the more fortunate classes, and calling upon them to assist in making adequate sacrifices and in meeting the claims arising from the conditions of those not so well off as themselves. 4 ' The price of the food and clothing of the people is a problem of grave importance. The profiteer must be stopped from imposing- unfair and arbitrary prices on the masses of the consumers. At this same time care must be exercised so that the legitimate general trader, either wholesale or retail; is net hampered or harassed in the legitimate carrying on of his trade. It is not in connection with the legitimate trader, who is entitled to fair profits, that action is neeessaiy. It is in connection with any section that is from motives of avarice abusing its opportunities and charging extortionate prices. This is what is, and has been, adding to the difficulties of the people in the altered conditions due to the war. Producers must be protected from excessive freight rates, and trade should be freed from any shackles that now impede and hamper it. Competition and a spirit of legitimate and vigorous rivalry are the surest and safest means to secure the best results for the public. Personal ambitions at this grave juncture in our country's affairs should be subordinated for the common good. The party who. elected me as their leader will •short the opportunity to consider the whole situation quite irrespective of any consideration for me and to come to, I hope, sound conclusions, calculated to promote the best interests of the country. " I have no desire from personal ambitions to undertake a task heavy enough to tax the nerve, skill, and judgment of any man, however experienced he may be. I should only consent to do so with the full approval and assistance of all who wish to see this country placed in a position for solid and safe progress. A leader who is endeavouring to give his best services to his country requires the full support and co-operation of all who believe in the policy he submits. New Zealand is a glorious country —a priceless heritage worth working for—and whatever assistance can be rendered should be given whole-heartedly by all who desire it to become still greater and who wish to see it handed on to the coming generations as a constitutionally-governed country in which people of all classes and creeds can live as free citizens, with their rights and privileges respected and protected by its laws —a country, in fact, which will be an example to the world. " It is to the moderate section only of all classes that I feel the destinies of this country can be entrusted, not to extremists from either side. It is for the people to choose from all sections of the community men of ability and wide sympathies to represent them. Only by having the House of Representatives composed of such men can the people expect to have the present difficult problems effectively dealt with. If the people do not choose well it is useless for them to cry out in complaint or dismay after the elections, as Parliament is only what they themselves make it."