Poverty Bay Herald. PUBLISHED EVERY EVENING GISBORNE, FRIDAY, OCTOBER 23, 1931 COST OF SOCIAL SERVICES

Poverty Bay Herald, Volume LV, Issue 17606, 23 October 1931, Page 4

Poverty Bay Herald. PUBLISHED EVERY EVENING GISBORNE, FRIDAY, OCTOBER 23, 1931 COST OF SOCIAL SERVICES

Of all the developments leading up to the recognition by the Labor Party leaders of the seriousness of the present crisis in Britain, none is more outstanding than the conversion of Mr. Snowden from the rigid views he had held and publicly espoused with such vigor for upwards of a quarter of a century. It would not be fair, perhaps, to say that Mr. Snowden’s recent remarks are tantamount to a complete repudiation of the ideal's of socialism he has so staunchly advocated, but it is undeniably true that he has 'completely abandoned the main principle which he sought to use ns the foundation of the new social structure he planned to build. It is probable that Mr. Snowden is just as anxious as ho ever was to assist in improving the living conditions of the working classes, and as determined as any man in the Labor ranks to promote measures with that end in view; but there is this difference: Mr. Snowden has learned from bitter experience and the burden of responsibility that the methods lie proposed to employ are not only economically unsound but actually inflict further hardships on those it is sought to benefit. Those members of the Labor Party who have refused to follow their old leaders are where Mr. Snowden was twenty years ago—blinded by their own visions, lacking in personal experience, and refusing to acknowledge the truth of uncontrovertible facts. Should they ever be entrusted with the management of the complex affairs of State they, too, would be forced to realise the impossibility in practice of the theories they 3° glibly expound. The inundation of Mr. Snowden’s politics prior to his recent recantation was that the rich should bo taxed in order that more might lie given to the poor. After little more than twelve months in office he told Parliament quite plainly that this doctrine had limits which he had not previously comprehended, and he warned his own followers that further taxation "that fell upon industry" would actually penalise the workers themselves. Tips ■week he has uttered a similar warning, but he lias omitted the qualification and states bluntly that all tnxa•t ion must come from industry. Such a complete change of front by a statesman of Mr. Snowden’s calibre contains a lesson that should be heeded in every quarter of the globe; and Mr. Snowden is not content to leave the question at. that. "It is appalling ignorance or wilful deception," he says, "to tell unthinking,electors that there are enormous resources from which to continue spending." H is difficult, indeed, to realise that such words should come from the Labor Chancellor, l'or they are a condemnation of almost everything lie has stood for in the past. Air. Snowden, however, has learnt his lesson well, and having done so has the courage to admit his past mistake and endeavor to prevent his erstwhile follows from perpetuating a policy, which can only result in their own undoing. All taxation, he says, must come front industry, and since industry is merely an agglomeration of the workers, the workers, and not the rich, are paying for whatever is provided by means of taxation. Mr. Snowden’s original ambition was to give concessions to the poor by way of social services. Now he complains that it is these very services that have placed such a heavy burden upon the taxpayers, or. in other words, the workers in industry. The generalities with wluch Mr. Snowden deals, the new principles he has adopted, and the stern warning he gives to the working classes and their leaders apply with equal force to New Zealand as to Great Britain, but if consideration is given to the basis upon which he constructs his argument it will be soon that the situation in the Dominion is even worse than at Home. Air. Snowden states that the burden of taxation — tho workers’ burden —is largely due to the increasing cost of social services, yet these services in Great Britain, excluding the "dole," cost less than £2 I.os per head of the population, whereas in New Zealand, without allowing for the provision for unemployment, the cost is £5 per head, nearly one-third of the total State expenditure, compared with little more than one-eighth in Great Britain. In 190(» social services cost the Dominion £1,300,1100, or £1 10s Od per head; by 101 J, tho figures had increased to £2,133.000, or £1 17s per head; but. last year the total, excluding payments for unemployment, reached £7,530,000, and if the unemployment funds aro includes, over £10,000,000, or nearly £0 15 per head of the population. New Zealand's taxation jumped from £5 10s per head .in 10.14 to £l3 3s 7il in 1030, and of this tremendous increase nearly £5 is solely duo to the additional social services which havo been provided. Whether tho country can afford to maintain these services on their present scale is.very largely a matter for tho people themselves to decide. Their inauguration and extension in tho past has been tho result of n public demand for them, but it has never been fully understood that the public pays for everything it receives. ..Politicians, lavish in their promises,

have created an impression that all these things can be provided for by funds from some limitless source; that the great mass of the people can indulge their desires at the expense of the wealthy few. Air. Snowden subscribed to this view for half a lifetime, and his disillusionment is revealed in his own words. If only the electors as a body will be convinced of the truth of his statement that all taxation must come from industry—from the workers themselves; if they will appreciate the-fact that the taxation burden, their burden, cannot be materially reduced except by a curtailment of social services; and if they will realise that these services in this country are costing tho average family, directly and indirectly, no less than 10s a week, then there will be a more general demand for allround national economy.