LABOUR’S RECORD IN POWER

Southland Times, Issue 23306, 16 September 1937, Page 6

LABOUR’S RECORD IN POWER

MR THORN CLAIMS SUCCESS

CONDEMNATION OF SYSTEM OF SOCIETY (From Our Parliamentary Reporter) WELLINGTON, September 15. The achievements of the Government during its two years of office were reviewed by Mr J. Thorn (Lab. Thames) in opening the Address-in-Reply debate in the House of Representatives tonight. Mr Thorn claimed that the Government had been faced with a -problem of great magnitude resulting from a thoroughly defective system of society, in which the economic and financial organization naturally caused insecurity and collapse. The previous Government, said Mr Thorn, had aggravated the 1931 depression by adopting a policy of re * ducing costs mainly at the expense of wage and salary workers and of poor people dependent on social services. It was possible to balance the Budget by such a policy, but another result was that thousands of people would be condemned to misery and destitution. That was precisely what had happened in New Zealand under the former regime. The Labour Party had prescribed a

cure in its election manifesto and no Government had a better record in the performance of its pledges. In the matter of State control of currency and credit over £11,000,000 of public credit had been made available through the agency of the reserve bank foi national purposes, £6,000,000 to finance the payment of the guaranteed price and £5,000,000 for the building of houses. In both cases credit was issued against the means by which it could be redeemed, so that it could not be said that the administration of the bank had been inflationary. Even the newspapers had admitted that the low rate of interest charged by the Reserve Bank on advances to the Dairy Industry account had saved exporters about £150,000 last year.

The pledges for the payment of guaranteed prices and for the restoration of salaries and wages had also been faithfully carried out Mr Thorn said, and the promise for the development of industry in company with the provision of better industrial conditions for the workers had succeeded to such an extent that last year the number of factories registered increased from 16.434 to .17,126 and the number of factory workers from 102,275 to 111,041. IMPROVEMENTS IN PENSIONS

The Government had improved the position of the pensioners, Mr Thorn continued, and was completing its plans for national health and superannuation schemes. The party’s election manifesto had made no reference whatever to taxation and the only reason for which taxation was increased last year was to finance improvements in pensions.

“Now I wish to ask the Opposition,’’ said Mr Thorn, “whether it intends to reduce old age pensions and take away something from the invalids and widows in order to give a reduction in taxation to its wealthy friends. I think it does. The statements of the Leader, of the Opposition suggest this definitely. He has asserted that this Government is dominated by sentiment and sympathy. We are too sympathetic. Our hearts are not hard enough.” Mr Thom also mentioned Labour’s promises about education. Most of them had been fulfilled already, he said, and it only remained to carry out a general reorganization, which would be effected this session. The promises of Labour were to have been implemented in a three-year Parliament, hut most of them were on the Statute Book already. Members of the Opposition pretended to be very concerned about rising costs, however. Several of their speakers said they did not intend to repeal the legislation providing for reduced hours of work and increased wages. If the Opposition accepted those measures and did not intend to repeal them it could not logically complain about the increase in costs allegedly due to them. NEW COMPANIES REGISTERED In any case, Mr Thorn added, the talk about rising costs did not amount to much when there was overwhelming evidence of confidence and prosperity. In the 18 months of Labour rule 1349 new companies had been registered with a nominal capital of £13,361,000. That did not look as if the Government’s legislation had stifled enterprise or brought industry to the verge of ruin. The revenue from the sales tax during the first half of this year showed an increase of 25 per cent, on the figure for the first six months of last year and luxury expenditure also showed a marked increase. At the same time savings had reached record heights. People were spending more and saving more. They were happier and more confident. “Then there is the socialist bogy raised by members of the Opposition,” Mr Thorn said. “Personally, I want a root and branch change in the present economic system to a system of industry and trade owned co-operatively and organized solely for the use and benefit of all people. That is the aim of the Labour Party and this Government. However, we are democrats. We believe in constitutional government and in education and persuasion. Nothing for the application of our principles in law and in our industrial life will be done until we win the support of the people and receive their mandate.