PRESENT PROSPERITY OF NEW ZEALAND

Southland Times, Issue 23548, 30 June 1938, Page 6

PRESENT PROSPERITY OF NEW ZEALAND

CREDIT CLAIMED FOR LABOUR’S POLICY

(From Our Parliamentary Reporter) ' 'WELLINGTON, June 29.

The contention that while improved export prices were certainly responsible to some extent for the present prosperous condition of the country, credit was also due to the Government’s policy of i edistributing the national income was made by Mr D. Barnes (Lab., Waitaki) when speaking on the Imprest Supply Bill in the House of Representatives tonight. Mr Barnes said that by comparing the increase in the value of primary products with the rise in the national income, it would be possible to determine to some extent just how much the Government’s policy had been of benefit to New Zealand. Between 1935 and 1938 the national income of New Zealand (not on Mr Colin Clark’s figures) had risen from £103,000,000 to £165,000,000. That had not been due entirely to the increase in the price of primary products. The income tax last year had yielded more than £9,000,000, compared with just over £6,000,000 in the previous year. Mr Barnes quoted figures to show that between 1935 and 1938 the value of New Zealand’s exports had gone up from £46,000,000 to £65,000,000, showing an increase of over £18,000,000 as against an increase in the national income of over £60,000,000. That showed that prosperity was not wholly due to the greater value of the produce exported. He suggested that the policy of the Government had a great deal to do with the better times enjoyed by all sections of the people because of the redistribution of the national income.