WHAT LABOUR WOULD DO

Taranaki Daily News, 30 November 1932, Page 9

WHAT LABOUR WOULD DO

LEADER ENUNCIATES POLICY

ABSORPTION OF THE UNEMPLOYED

STIMULATION OF INDUSTRIES.

SCHEME FOR STATE BANKING.

By Telegraph.—Press Association. • Nelson, Last Night.-

Several months back Mr. Forbes and Mr. Coates had been declaring that they had turned the corner, said Mr. H. E. Holland, Labour leader, in an election speech in the Motueka electorate. Now Mr. Forbes was' of the opinion that the coming months would be the blackest in the history of the Dominion, he continued. That was a bad advertisement for the Forbes Government. ' '

Unemployment was the supreme problem because it grew out of and conditioned all other problems. Men categoried as relief workers should be transferred to economic undertakings with the standard rate of wages. Steps Should then be taken for the gradual return of all unemployed for full working time, which would itself stimulate industry. ■ • There was ample room for a highly progressive policy of closer settlement, said Mr.. Holland.- New Zealand would Carry 10,000,000 people. The unemployed should be engaged in bringing in at least 1,000,000 acres of Crown and other suitable land. There should also be a vigorous public works policy. Far more attention should be paid to thte industries of New Zealand and the building, of local markets.

Labour was definitely opposed to any withdrawal of subsidies from primary producers. They should seek definite trade agreements with Britain and then other countries/ As matters now stood —and the Ottawa Conference had not materially altered tho position—the producers had notjcnown from year to year what their approximate income would be. This Was because their marketing arrangements were, on the whole on an anarchical basis without any planned system. It was the duty of the State to make provision for the issue of State banknotes and the establishment of their validity as effective legal tender' against goods produced. They had the goods and should have no difficulty about getting the mopey. He doubted whether they would require any very large increase in the available currency. If it was found that the currency was insufficient for the .volume .of .production it should be provided. What had happened ‘ now was that with wage reductions, etc., the velocity of the circulation of money had been artificially slowed down. Restoration of the purchasing power was the only way in which a remedy could be effected. This would come only as the result of a policy of industrial rehabilitation on both- the primary and secondary fields of production. To this end Labour advocated the establishment of a State, bank, with the sole right of note issue for the purpose Of effectively controlling both credit and currency. This was not on the lines of the Bill before the house.