WAITOMO SEAT

Te Awamutu Courier, Volume 79, Issue 7137, 25 November 1949, Page 6

WAITOMO SEAT

THE LABOUR CANDIDATE SPEECH AT KAWHIA The control of currency and credit by the Government, and not an organised body not responsible to the Government and therefore not representative of the electors’ vote; also the absolute necessity of the guaranteed price to stabilise the country’s economic future, was the yardstick of comparison in policies of the Labour and National Parties made by Mr F. J. Kitts, Waitomo Labour candidate, when he spoke to an audience/ of about 40 electors at Kawhia. Mr G. G. Jonathan, President of the Kawhia Chamber of Commerce, presided. Governmental Control Mr Kitts contended that it was essential to retain Governmental control of the issue of currency and credit—any country could control its internal economy as far as the goods produced within its own borders were concerned. On guaranteed price, he said that the National Party said it would remove the price fixation and rely on bureaucratic control and “healthy competition” to keep prices at a reasonable level. “Prices are not controlled by competition, but by big business, cartels, trusts and price rings, which made agreements among themselves,” said, Mr Kitts. Price Control Upheld

Mr Kitts, outlining his party’s view’s on price control, strongly attacked the National Party’s attitude towards it, and that the abolition of the control and also the level of 1942 values would mean that internal prices would soar,’but the price for exports would remain reasonably stable—a rise of only 7£ per cent. First to be hit would be the farmer. His costs would rise while his income would remain level. The only way the farmer and all other sections of industry could be guarded against the shortages caused by the pressure of purchasing power in the people’s possession would be by maintaining similar level of State control—guaranteed price. “The National Party don’t want it,” Mr Kitts commented.

The speaker said that the validity of price control was successfully contested in Australia. It was lifted with the result that prices rose 30 per cent. The rise was worse in other countries that followed suit. Tn United States of America in one year the savings of an ordinary man dropped to one-third of the original figure; he was unable to live on his wages. Wages followed prices—not vice versa, Mr Kitts reminded his audience.

Inflation Checked Speaking on inflation Mr Kitts said that the National Party talked of preventing inflation but the Labour Party had alredy checked inflation through operations by the Price Tribunal. Major deals were ca’rried out by currency. The Labour Party- had issued some £45,000,000) which had almost been used solely for the payment of wages, Mr Kitts said. “Some say there is too much money in circulation, but if we were to reduce the circulation, then we would have to reduce wages and only one thing could possibly result—there would be a big drop in purchasing power, and then would follow unemployment. “That is what the National Party offer by the abolition of price control and handing over the currency and credit control to an organisation not responsible to the country,” added Mr Kitts. He said the whole basis of the Labour economic works was based on the currency formula. Nationalists’ Financial Blunder

A total of 97 per cent, of New Zealand’s exports go to Great Britain and 3 per cent, to other countries, this 3 per cent, leaving a door open for further exports to other countries. With the accumulated balance in London three years ago the Government was enabled to import new agricultural machinery—‘more than ever before. Before the war New Zealand was importing 1000 tractors a year. The figure was much larger now.

“The more goods we export to Great Britain means Britain can export to the United States of America, and therefore the greater dollar import to Great Britain; this enables Great Britain to export more agricultural equipment to New Zealand and so New Zealand can reply with a larger export to Great Britain,” explained Mr Kitts.

Mr Kitts held that in the ’twenties the National Party had made a huge financial blunder. They were supposed to possess the shrewd, hardheaded businessman, yet to balance their budget they were forced to borrow huge sums at a ridiculous rate of interest—-“this was considered sound finance.” Had their example been followed by the Labour Government it would have taken New Zealand’s total exports to pay for the debts incurred by the National Party,” stated Mr Kitts. Truman’s Ten Points

Connecting New Zealand to President Truman’s ten-point programme, Mr Kitts claimed that New Zealand had been given all ten points of the programme by the Labour Party during their fourteen years of government.

He said that farmers, like businessmen, had been given a fair price for the products they sold. He said that at a recent international conference 153 farmers representative of 23 countries had favoured stabilised price for security. Workers were entitled to good wages and equality of bargaining power with their employers. Mr Kitts said that Labour had promoted this long ago, they could say yes they had—but if the National Party gained power the answer to that item would be in the negative. Small business and co-operatives should have a fair opportunity to achieve success, and should not be smothered by monopolies—Mr Kitts stated that the Government had encouraged more small businesses than ever before. “For Benefit of All” Great natural resources should be protected and developed for the benefit of all people, and not exploited for private greed. On this point Mr Kitts reminded listeners of the great advances made in the coal mining industry of late. Old people and the disabled should have an assured income to keep them from being dependents on charity. He said the Labour Government had ans-

wered that item many years ago. Families should be protected against loss of income resulting from accident, illness or unemployment. Mu Kitts said that while America was still pondering over this need, the Labour Government had solved the problem years ago with Social Security. Citizens should have decent housing at prices they could afford—Mr Kitts quoted state housing construction figures in New Zealand. Educational opportunities should be assured for all young people so that they might be enlightened citizenry. The speaker said that this was an import ant item and that under the Laboui Government children had been given boarding allowances and transport subsidies. There should be better health and medical care: “Social Security largely covers that item, and free dental services is included in the Labour manifesto,” Mr Kitts stated. All New Zealanders were entitled to equal rights and equal opportunities under the law, and to equal participation in New Zealand national life, free from fear or discrimination,” Mr Kitts reminded his listeners. Written Constitution Mr Kitts scathingly denounced the proposal of the National Party to nave a written constitution for New Zealand. The Dominion’s self-govern-ment was founded on the British system of an unwritten constitution, which gave flexibility and permitted the people to govern themselves and not be hamstrung like other countries, notably Australia and United States, where the superior crush and veto the will of the people expressed by their elected representatives. Thanks and Confidence Mr Frank Bush proposed and Mr N. Brown seconded a motion thanking Mr Kitts for his address, and expressing confidence in him. The motion was carried unanimously.