COALITION ENDS

Southland Times, Issue 18623, 22 August 1919, Page 5

COALITION ENDS

SIR JOSEPH WARD RESIGNS. STATEMENT OF LIBERAL LEADER’S POLICY. NATIONALISATION OF MINES AND FLOUR MILLS. PROPORTIONAL REPRESENTATION. (By Telegraph.) WELLINGTON, August 21. Sir Joseph Ward, leader 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. Sir Joseph afterwards made an important statement in reference to the political position and outlined his new policy for the future. He had come to the conclusion, he said, that now the Peace Treaty was signed and the object for which the National Government was formed had been achieved, the truce between the two principal parties in was no longer necessary, and he could not now remain in the Government that had. been formed for war purposes only. He had, after much thought and with the full concurrence of his Liberal colleagues in the Cabinet come to the decision that the continuance of the administration, having naturally no real cohesion on any fixed principle, save the winning of the 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. “Ther world is passing through a new era,” said Sir Joseph, “and all the dangers and difficulties besetting the old countries as a result of the four and a-half years of war are more or less in evidence in it, and 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. “It is necessary for me to say at the outset that I was unanimously re-elected by the Liberal Party as its leader in 1913 and my position has since been three times confirmed by my party. After the general election of 1914, the parties were so close numerically, that neither of them was strong enough to carry on the Government of the country satisfactorily during the war period. The Liberal Party, from a political point of view, had everything to gain by remaining out of the National Government, but after full consideration, although there were differences of opinion at the time, the party finally agreed unanimously to sink party and help to form a National Government, with an equal number of Ministers representing each side of politics in the Cabinet and with the leaders of the two parties retaining their positions as leaders in the Cabinet. “The great majority of the public and 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 have abstained, both here and abroad, from taking any part in party politics, either by organisation, public speeches, interviews or otherwise. Peace has been signed and the arrangements made between the two parties for the war period must be brought to a conclusion now, and it is only fair to those to whom I am re. sponsible that I should relieve them by my resignation from a position, that I feel it is in the best interests of the country 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 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 welfare. New Zealand must be ruled constitutionally. *rhe worker has just rights and undoubted claims I 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 this great country. By recognising 'constituted authority, he can assist the State, which has already done much for him to bring about those improved conditions that alone can keep the country safe and prosperous. As a citizen he has duties as well as rights, and he must not exaggerate, his rights by ignoring his duties. Thjs capitalist, too, must take heed of the great duty that devolves upon him. He has a right to reasonable protection, but the changes that have been brought about by the world upheaval make it imperative, in his own interests as well as in the interests of the worker and the State itself, that he should view the altered circumstances from a broad and proper standpoint and make 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. “All banking institutions have been of great service to the people throughout the war period and it should be a source of great gratification to the country as a whole thtft the cost of money in New Zealand during the war has been cheaper than it has been in most other countries, not excluding the Motherland. The strain of war finance has, however, in all parts of the world shown the importance of Governments having associated with them their own banking institutions. New Zealand, which has done so well, is no exception in this respect, and the establishment of a State Bank in this Dominion would give additional stability to the country as a whole and be a source of strength to the producers and traders in the Dominion. 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 steadying influence with all classes of the 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 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 State Bank of New Zealand. Its shareholders should be 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. 1 It should have a permanent head, with a i reasonable number of experienced men as directors to control and manage it. The whole staff should be brought under the Government superannuation scheme and be paid fairly and fully for their services. It is not necessary for me to go further at this moment than to say that I should, in the interests of both 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 ing 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 bank 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 might be inferred that the Note

Tax would not be paid by such an institution. All banks should be treated alike in this respect. I am inclined to the opinion that it would be a useful change under proper safe government to allow banking institutions to have the right to substitute Government stock for gold as securiy for the note issue. This would be 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 first importance that any difficulties in the way of getting our products to market should be removed. In this category I place the subject of our exchange to oversea countries. During the war period the rates of exchange have advanced materially and the time has ar-; rived 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 about. This is one of the directions in which the State Bank would prove of considerable value. It should not, of course, be part of its policy to cany on any section of its business at a loss or without a fair profit for the work done for its clients, but it would have a valuable influence in helping to keep 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 the same 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 able to obtain all that is required ,for Government purposes within our own shores. I am of the opinion that those lending money to the country for general purposes should be paid 5J 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 the opinion that there should be no exemption from taxation on money lent to the country for general purposes. * , COAL MINES. Coal is the most essential commodity in the daily requirements of the people and in the transport' sendee on land and sea, and it would be suicidal for the country ii a recurrence of the troubles that have arisen from time to time were allowed to continue. The time has arrived when the whole of the coal mines of New Zealand should be nationalised, upon the payment to the owners of fair and full terms in Government stock at the rate-of 5% or 6 per cent.,' bearing taxation. AH 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 representatives of the miners, with a Minister responsible on their behalf to Parliament. The erection of improved dwellings for miners should be a 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 the 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 lull return for the advantages they themselves would reap. There should be .a further 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 a sufficient quantity and at thfr lowest prices for the consumers. COLLIERIES. With the nationalisation of the coal mines, it would be necessary to have some of the collieries stationed 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 a great war to keep its taxation down to the lowest limit is the one that will successfully develop and progress arid will be too 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 have already stated in the House of Representatives that there is no need to increase the taxation on the country. A considerable reduction in the taxation brought into existence to meet the war expenditure, can be made. If a readjustment is brought about in the incidence of the 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 toe 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 our war expenditure under all headings will be definitely known. Then a recasting of the whole of the finances should be effected, so as to bear equitably on those entitled to pay it. The taxation of co-operative associations and other co-operative concerns requires adjustment. Company income tax should be upon the individual shareholder’s income and companies should be taxed upon the undistributed balance. Further exemption in our income tax system should be made in respect to the wives and children of taxpayers and an adjustment of the tax on incomes from mortgage is desirable to give relief to borrowers. GOVERNMENT VENTURES AND TAXATION. All Government Ventures, including the State bank, Life .Insurance, Public Trust, Accident and Fire Insurance, Coal Mines, and collieries, should pay the same taxation as other concerns of a similar nature. This change should, I think, be permanently effected in connection with all Government business concerns; first, because a portion of their earnings should undoubtedly come in as the 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 an important bearing on affairs in keeping fair rates in operation for the public and competitive institutions cannot hope to carry on their business successfully unless they do so at rates as low as those of the State departments. This matter has given me a great deal of thought and I am satisfied that no injury to the State departments will be 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 a million and a quarter people, arid as a matter of common prudence a strong policy for the reduction of indebtedness should be carried out. I have already provided a sinking fund for all loans in Net? 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 disturbance to industry and to the country’s credit, is necessary. For

—— ■ ~ ■:.s this reason I would suggest that the whole v ? of the country’s loans should be repaid in J 65 years and that to enable this to be done the whole of the present accumulated sur- i pluses, amounting to £15,239,561 should be paid into a separate sinking fund. We have 3 fought a great fight as much for posterity j as for ourselves, and it seems to me un* fair that the present generation, and mainly' the adults of it, should throughout their lives bear the whole of the burden of that repayment 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 by the sinking funuds, if it were used by the people for their financial needs. It would to me be a sad, and even deplorable thing, if any influences at this critical juncture in the country’s history, were exercised to utilise any portion of the pre*. sent 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 the sinking fund for ex* tinguishing the war loans so generously and wholeheartedly 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 the important countries in the world and New Zealand should not lag behind in this respect. Ido not think that we should estab-„ lish an aerial branch for the sole purpose of defence, but I think a 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 unhappily this branch, which during the war 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 take up defensive duties in the air. I believe that air 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 ft, moderate scale. A trial for a year or two would enable the Parliament and the people of the country to judge as to whether their continuance was desirable. lam , of the opinion that we should not tarryih bringing our aerial services into oper-~ ation. 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 age of many school building® throughout the country and the necessity for the erection of new ones 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 oat under the direction of the Public Works Department. Th® 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 be advantageous. State education should oe free from the primary schools to the university, and kindergarten schools should be included in the national system. All inspectors should be appointed by th® Government and the powers of school committees 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 requisitions should be provided free. Vocational training shoujd 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 schoolchildren. The service for this should be fairly distributed among the medical profession. Free transit should be provided for all pupils under 16 years of age. MILITARY FORGES. 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 future and the present and future obligations, and I think that 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 eimilur 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 demobilisation should be carried into effect immediately. LAND SETTLEMENT. “The land question lies at the base of the political edifice. Our available land ia limited in area. Sub-division is necessary. The soldiers must be repatriated. Land which is not producing its maximum should be subdivided. Large land-owners must recognise that this country is destined to be one of small holdings, and they should on a fair payment for their lands cut them up and sub-divide them. If the owners of land fit for closer settlement do not subdivide, an 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 Land Boards or other reliable tribunals and without such sanction no transfer or conveyance should be valid. The remaining ordinary Crown lands must be roaded and opened for settlement at the earliest possible 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 so help us to work on successfully in th® 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 not 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 hoards 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 th® fact that this means no additional taxation, as the settler on the land pays the intei«at upon the money and is no burden upon th® 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 placing 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 fo soldiers —and they would also apply to settlers and workers—should - be provided, with a 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 tJmf doing what is fair and 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 whether native or European.

EXPERIMENTAL FARMS. “Further experimental farms in each island, with instructors, should be established. Students should be taken into all such farms and should have a two or three j 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

j .should, in lhe general interests of the country, be assisted in every possible way. REMOVAL OF RESTRICTIONS ON TRADE. “There should be no restrictions on trade from New Zealand to any other country in 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 hope, for all time. During the war this has been a compulsory system to a large 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 can be depended upon to carry on their business legltiirtately 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 not members of the League of Nations. Ido not mean that tfose countries within the League should he placed upon the same terms as the countries within the British Empire under the system of preferential trade, but it is reasonable that the countries outside the I league of Nations should not be placed upon the same basis as those nations which have shown a desire to prevent wars in the future, and who are working for the peace of the world. PREFERENTIAL TRADE WITHIN THE BRITISH EMPIRE. “To all parts of the Empire that reciprocate we have long since, in this country, established a system of Imperial preference. This system should, in my opinion, be continued and expanded. Up to the present there has been no definite pronouncement by Great Britain as to what her fiscal system is to be in the future. The settlement of that rests, of course, entirely with the people of Great Britain, and it would be out of place for me to comment upon it, excepting to say that until we know definitely what is to be the trade system of the Motherland, mutual trade upon a basis that helps the Empire is, to a considerable extent, limited. 1 am, however, warranted in saying that I do not think this country will weaken in its suonort of Imoerial nre-

ference. ENEMY TRADE. “To prevent persons of late enemy nationality trading in the country by holding shares in a New Zealand company or in a company doing business in New Zealand, 1 would perpetuate the present, war regulation and legislate to prevent them, either directly or by proxy, having any interest or shares in any business or company in operation in New Zealand. LOCAL INDUSTRIES. “The fact that 53 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 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 manufactuifrs to enable us to send away our wool-tops instead of wool in 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 trucks should be provided, as is done in other countries. STATE CONTROL BY LICENSE OF FREEZING WORKS. “There should be State control by license of all freezing works and the prevention of their use by trusts or combines. The pros'perity of New Zealand is due mainly to the export of our primary products, and it is necessary in the interest of the producers anil the country generally, that our freezing works should not be financially ruined or made unprofitable by the operations here of any«.,powerful organisation with large capital, designed to 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 local 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 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 bakers, with due provision for bad debts, etc. Payment for flour mills should be made in Government stock at 5-t or G per cent., subject to taxation. The Government now guarantees the price of wheat to the grower and to be effective in cheapening the price of bread, the Government should control the wheat when it arrives at the mill. There should be no attempt to make a profit out of this most generally-used article of food, by all classes of the people. OIL PRODUCTION. “To encourage efforts to obtain oil by boring or otherwise, a subsidy should be provided at Gd per gallon up to £20,000 per annum for a period of ten years. IMPORTED OILS. 1 “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 the 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 im- i ported oil for the dominion requirements, j and sell it at a moderate profit to retailers and distributors, who should be allowed to make a fair profit.

GENERAL NATIONALISATION. “I am not in favour of the general nationalisation of all kinds and conditions of things. I have named those which I believe to be essential in the best interests of the country, and in which nationalisation 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, in-

dustrial and commercial life. To prevent chaos and a wiWse condition than exists at present arising in the future, it is for the people without prejudice to carefully and fully consider them. ENCOURAGEMENT OF INCREASED PRODUCTION. “Labour should receive a greater share

of profits of industry and thus stimulate output. There should be financial assistance to new industries and those already established should be fostered. To cheapen commodities to the consumer. State encouragement should be given to voluntarily- ■

formed co-operative associations on the best English models, united by the federal policy. This means a wide extension of the co-operative store system, which aims at the elimination of the middlemen’s profits.

There should be 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 Industry and Scien-

tific Research should be established. Assistance and support to the fanners engaged in the production of products from the soil should be a material part of (he country’s policy. BEET SUGAR.

“To encourage the production of beet sugar in the Dominion, a subsidy should be provided at the rale of £6 per ton up to £IO,OOO per annum for a period of ten years. RAILWAYS. “After the limited construction carried

on during the war period, it is desirable that there should now be a great speeding up in the building and completion of railways. It would be 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 is greater. I wculcl urge the provision of £4,000,000 for the active prosecution of the railways. The South Island trunk railway should be completed in two 3'ears and the North Island Main Extension in the same period, and the Otira .tunnel, connecting Christchurch with the West Coast, should be finished with the least possible delay. All the other lines in hand

in the country should be finished within three years. This would afford great facilities to "settlers and of the lines generally and the railways would be a much more valuable asset to the country when in full earning power. As the unfortunate difficulty in regard to coal has been overcome, there should be a prompt effort made to restore the railway service to the position of efficiency ruling prior to the war. Free travelling for children between seven and 14 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 expense, to take their children with them. The 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 should be put on all suburban lines to enable homes to be 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 common sense to place large numbers of people on the land, unless prol>er facilities are provided to enable them to reach the centres of population and market their goods. It must be remembered that many portions of the Dominion that have been under occupation for years aiO still badly handicapped by the absehce of proper roads and bridges. To obviate these difficulties a more vigorous policy of roadmaking, with provision for maintenance, should be adopted and I suggest the expenditure of £4,000,000 upon State roads and bridges, covering a period of four 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 bo advisable. NATIONALISATION OF 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-burning steamers should be used for this purpose. MOTOR LORRIES IN CONNECTION WITH BRANCH ROADS. “It would be advantageous 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 £0,000,000 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 vSouthland 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 the market to be subscribed by the public when the 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 select 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 othei; electorates, when the growth of the 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 I 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 service, and if equally efficient its value is the same, whether done by a man or a woman. COST OF LIVING. “ With a view to reducing the 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 imprisonment. There should be an eliminaion of waste by bringing down the cost of distribution. Relief should be given, as far as possible, by the removal of duties on and taxation of all commodities, including clothing and other articles, in general use. The duties on luxuries should, at the proper time, be imposed. Indeed, a general revision of the Customs tariff will at no distant date be necessary. FREIGHTS. “Freights from New Zealand abroad must, in the interests of our producers, be reduced to what, in the altered conditions due to the war, is reasonable, and they should not be higher than those ruling on similar produce for the distance carried from other parts of the world. The same applies to coastal freights for coal, goods, and gen-

eral 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 shape of extortion should be permitted. It is in the best interests of settlers, traders, merchants, and the people generally, that this matter should be'dealt with effectively and adequate legislative provision should be made to make the Board of Trade’s decree operative. POWERS OF THE BOARD OF TRADE. “ The Board of Trade should have power

to prevent profiteering and the carrying on of trusts, rings, or combines in the Dominion. Monetary penalties or imprisonment for breaches of the law should be provided. The Board should be empowered to regulate the percentage of profits on food and clothing within the Dominion, allowing failprofits to sellers and taking into account losses by bad debts, and sales on credit or for cash. INDUSTRIAL PROBLEMS. “ The difficulties that have arisen in the industrial world in the last fifteen years have been principally connected with the coal-mines and the work on harbour fronts. Speaking generally, labour in other respects throughout the Dominion has, with the assistance of the Conciliation and Arbitration Court, been upon the whole satisfactory. Them must be some cause for the trouble in connection with the two branches of workers to which I have referred. The 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 made to find a remedy to prevent a recurrence of the difficulties. It is certain that the State cannot, without ignoring the interests of the people as 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 and their wives and children much hardship and financial loss, which, in my opinion, could with their co-operation be avoided. LABOUR—TH!E HUMAN ELEMENTS. “ There can be little doubt that the future welfare of this country requires the co-operation 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 as i whole. The national and industrial estimate of the nature of labour has undergone £ radical change in recent years. The con ception of it merely as a commodity to b« paid for like other commodities, has almosl disappeared and the human element, the condition of health, the comfort and natural rights of the worker, have come ink clearer and clearer national recognition This is a profound and most beneficia change, as it makes for the physical, menta and moral advance of the great mass ol our people. In the promotion of thischangi of view, we must, in determining wages look more and more first to the value oi the work in question as a social service, and secondly at its hardships, discomforts, and risks. A proper appreciation and ap plication of this principle would solve manj of our present labour troubles. LAW AND ORDER. “ The Liberal Party stands for law and order. It will facilitate by the amplesl legislative provision, . the will of the majority translating itself into law, but it will give no countenance to any movements, organisation, or party which seeks to secure redress of labour grievances bj 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. Tt is different when war is rag-

ing, dud wmiSD saying wus, i recognise nt right of any person to either incite or en courage violence, lawlessness, or disordei when the freest constitutional methods are open to him. INDUSTRIAL MACHINERY TO ENSURE SMOOTHER WORKING BETWEEN EMPLOYERS AND EMPLOYEES. “ Improved industrial machinery, having a closer application to the requirements ol the various trades, should be adopted. Ie doing this there should 1 be no interference With the present system of industrial unions, There is a good deal to be said for the proposals contained in the Whiteley report, and it seems desirable that a similar course should be followed here to that adopted in England, namely, the setting up of a committee on the relations between employers and employees, to go into the whole question and report to the Government. The committee in England consisted of fifteen members, representative of various industries, and one woman was upon it. I feel 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 employers and the workers 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 existing between thosa representing the respective interests. I rcommend the’ course indicated above 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. Siir-h a Rvstpm e.nnnnt he. nnerated effec-

lively for casual employees, but it should be possible, with a spirit of co-operation among the shipping interests, the harbour boards, and the men themselves, to have a satisfactory system established on the lines indicated. It would surely be worth while for all 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 be to any stoppage in the trade of the country by the men on the wharves through want of consideration being shown to them. The system of detaining ships in port unnecessarily should not be continued, as expedition, when competing with other coun-

tries, 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 the country along the path of progress. WORKERS’ COMPENSATION. “ More generous provision for workers’ compensation is necessary. There should be a revision and an amendment of the schedule of the Workers’ Compensation Act.

The State should pay> 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 the law. WORKERS’ HOMES. “ The housing problem demands urgent solution. There is a great and pressing demand by wage-earners throughout the Dominion for better homes, and houses must be provided at the lowest possible price and upon easy terms to' those re-

quiring them, sin addition to the authority already provided in our statutes relating to workers’ dwellings and advances to workers, there should be an amount of £400,000 specially provided for the erection of workers’ homes where required, the expenditure being spread over a period of four years. Local public bodies should be associated with the Government in carrying out this scheme 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 is under a big debt of gratitude to the men who fought for her during the great war, and there should be a proper recognition of the rights of discharged soldiers and soldiers’ dependents and a generous provision regarding gratuities, allowances, pensions, etc. These important matters require to be generally recognised by the 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 1 and whatever we finally do should be on a general basis that we can uphold and : maintain. The granting to discharged 1 soldiers of the right, to have their definitely * formulated grievances investigated in a 1 court of civil jurisdiction is in my opinion ’ desirable. In making this statement, I am ! not in any way reflecting upon the military, ' but there can be no doubt, looking at the ' question from a broad standpoint, that the system suggested would be more acceptable 1 than the present one to the men them- : selves, as well as to the people of this country, for whom they have fought. i MAIMED SOLDIERS. ! “ Special provision should be 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 1 would pay New Zealand to provide a sum i of £20,000 per annum for the next year i to carry out prospecting in various parts i of the country on a thoroughly systematic basis. ' In all probability further mineral i deposits, capable of being worked on a ’ profitable basis, will be discovered. If so, i the money expended would not be lost as ; everything that is taken from Ike bowels ! of the earth is practically found money ■ and adds to the general "wealth of the 1 country. OLD AGE PENSIONS. “There is no reason why Old Age Pensions should not be granted irrespective of ini come or capital up to a reasonable amount. 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 i the full pension. WIDOWS AND ORPHANS. “Better provision should be made for widows’ pensions and for cases where 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. The 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 at maternity should be made without the restrictions at present existing. This is a wise course in order to help to increase the birth rate, PUBLIC SERVICE. “The question of pay, privileges, etc., in the Public Services should come under review, proper regard being paid to the purchasing power of the salaries. The pay in all brunches should be such as will enable the 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 the value of the service the Motherland has throughout our existence rendered to this country. 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. LEAGUE OF NATIONS. r “ With a view to promoting the peace of the world and preventing future wars, the League of Nations, recently agreed to in the Peace Treaty, should be supported. If the League is responsible for the prevention of only one great war in the years to come it will have fully justified its creation. NAVAL POLICY. “It would, in my opinion, be a great mistake for this country to undertake the 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 await 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 of the whole of the principal proposals I am suggesting only the expenditure on soldiers for gratuities, allowances, etc., education, roads and bridges, are a direct charge on the State. The whole of the others are revenue-pro-

ducing and more than pay their own way. They will result in increased prosperity' to 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 regret in conclusion that the need for a National Government created to help the country during the period of a great and unparalleled 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 a firm administration with definite, plain determined views on the main issues. The risk of division 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, if they had the power, the abominable and disastrous doctrine of force and direct ac-' tion. The inconvenience and suffering caused to the general public do not concern 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 benefit of its people. The will of the people expressed by constitutional means can alone be recognised. This is a time for the best brains and 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 their 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 otf as themselves. The price of 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 the same time, care must be exercised so that the legitimate general trader, either wholesale or retail, is not 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 necessary. It is ifi 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. 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 decure 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 shortly have 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. 1 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 the best services to his country requires the full support and cooperation 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 whiph the people of all classes and creeds cap, 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 the 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. The Parliament is only what they themselvea make it.