LABOUR’S AIMS

Te Awamutu Courier, Volume 53, Issue 3840, 30 November 1936, Page 8

LABOUR’S AIMS

SOCIAL CONDITIONS IN NEW ZEALAND. "ENVY OF THE WORLD.” “There is ample evidence that this country can afford the higher standards of living which the welfare and happiness of the people demand,” said the Prime Minister, Rt. Hon. M. J. Savage, in- an 'interview in Wellington. “It will be the aim of the Labour Government to achieve such a measure of economic reconstruction that the people of this Dominion will enjoy a standard of social well-being that will make them the envy of the world.” “The anniversary of Labour’s election to office provides a most fitting opportunity to make a survey of progress and to indicate the lines of further advance,” Mr Savage continued. "During the general election campaign it was made clear to the people that the immediate objective of the Labour Party, if elected, would be the restoration of fair and reasonable standards of living, and it has been the consistent aim of the Government through its legislation to improve tho lot of the people on to the lower income levels. “To meet urgent needs in this direction we have put into effect a programme of social improvement—a programme which involves a more just and equitable distribution of the national income. For the time being, the limit of social reform is set by rhe taxable capacity of the country, but this is far from the objective of Labour. For the future our policy involves far-sighted planning and the direction of the economic activity of the State, and it is to this end we ai'e working. Already as a result of the legislative measures of the first session solid foundations have been laid for the fulfilment of Labour’s long term objectives. CONTROL OF CURRENCY AND CREDIT. “It is not easy to generalise concerning the legislation passed by the Government during its first session. Since finance is the key to the whole problem of administration, one of our first acts was to place the Reserve Bank under State ownership, thus giving the Government complete control of the currency and credit mechanism, and making it possible to increase production. Having taken this step we are in a position to formulate a financial policy which will serve the social and industrial structure of the country. After all economic and social welfare go together, and in exercising control over monetary policy, and in regulating and co-ordinating production, it will be the aim of the Labour Government to achieve such a measure of economic reconstruction that the people of this Dominion will enjoy a standard of social well-being that will make them the envy of the world.

“I would at this point like to stress the fact that the guiding principle of the Government is social justice. It is our aim that economic organisation shall be adapted to social needs, and if any of the institutions of this Dominion fail in this respect then they must be changed. I need cite only a few examples to show that a big start has already been made towards removing some of these fundamental defects. FARMING AND INDUSTRY. “Because farming activities play so vital a part in our national economy tiie guaranteed price system has been introduced for the dairying industry —the industry which suffered most duting the depression. Further steps are being taken toward putting the production and marketing system in order, and the Minister of Marketing, Hon. W. Nash, is at present in London endeavouring to negotiate a reciprocal trade agreement. Under the Mortgagors and Lessees Rehabilitation Act it will be possible to make considerable progress toward a satisfactory solution of the old problem of mortgage indebtedness. The reorganisation of tiie Mortgage Corporation as the State Advances Corporation was another step necessary toward putting the whole question of mortgage finance on a sound and satisfactory footing. We have provided for special loans for new houses, and by next year, as a result of the housing construction scheme, it will be possible for workers to rent houses at rates they can afford. “Economic reconstruction in the fieid of manufacturing industries is another matter which requires farsighted planning, and the Industrial Efficiency Act is a measure to this end. The Government’s policy has also been directed toward preventing the exploitation of tiie public and to prevent, wherever possible, economic waste. We intend to take effective measures toward preventing such well-known economic abuses as those connected with land speculation and the excessively high cost of land, and also investment methods. IMPROVING SOCIAL CONDITIONS “It is with social conditions that cur efforts in the past few months have been principally concerned, and we may claim, I think, that in this brief period considerable progress has been made towards raising the material standards of the people. Practically the whole body of industrial law has been overhauled and amended. The compulsory arbitration principle in the settlement of disputes has been restored. The 40 hour and five day week have been instituted. Pensions have been increased and invalid pensions have been provided. The restoration of wage levels to 1931 standards, by putting increased purchasing power into the hands of the mass of the people, has been responsible for a market return to business prosperity. Both the volume and the value of production have increased, and are increasing. No one will deny that conditions to-day are vastly different from what they were 12 months ago. “Next year we intend to put into operation such further schemes as a system of national superannuation, national health insurance, and a complete overhaul of the education system. I know of no better way of dis tributing fairly the national income than by the provision of necessary social services, and the aim of the Government will always be. directed toward achieving this result. “I do not expect that we can achieve this end at once. It will take time,” added the Prime Minister. “We will, no doubt, make mistakes, but these will be rectified as soon as they

become evident. I give my word that we will remain true to our principles ami keep faith with the people.” In conclusion, Mr Savage said that he wished to pay a tribute to his colleagues in the Ministry, and in both Houses of Parliament. They had worked splendidly together as a team and had not spared themselves in their efforts to serve the public interest.”