POLICY OF LABOUR PARTY

Taranaki Daily News, 7 March 1934, Page 7

POLICY OF LABOUR PARTY

LEADER TOURING SOUTH ISLAND.

ATTACK ON VESTED INTERESTS.

By Telegraph—Press Association. Ashburton, March 6.

Mr. M. J. Savage, Leader of the Opposition, opened his South Island campaign last night by addressing a large meeting. The Mayor, Mr. W. H. Woods, presided. Mr. Savage said it was apparent that the “breakdown of the parliamentary system” was due to control being vested in those with large private interests to serve rather than the common good. Unless incomes were sufficient to allow of the purchase of imports as well as domestic goods and services periods of industrial stagnation were inevitable. The present monetary system was based largely on external prices and conditions and should be transformed into one having for its foundation goods and services produced in the Dominion. World conditions made national planning of production and distribution necessary. If national solvency and the welfare of the people were to be considered, wages and the benefits of machine and scientific processes must be available in the form of purchasing power, shorter hours of labour, national health services and universal superannuation at retiring age or invalidity. The prices for all forms of production and the purchasing power of the people being interdependent, guaranteed prices for goods and service was the 'only logical solution of poverty among plenty. Referring to exchange, Mr. Savage said it would have been more equitable to grant a straightout subsidy on exports payable to relieve struggling farmers according to circumstances. An increase in exchange always gave temporary assistance in the greatest measure to those who, having the largest turnover, probably needed it least. It could not be graded. On the other hand, a straightout subsidy could be graded according to circumstances. Attempts had been made to make people believe that the raising of exchange would have the effect of increasing the national income, when, as a matter of fact, it did not increase the aggregate amount of the national income but merely transferred part of the national income from some pockets into others. The only redeeming feature about the exchange transaction was that it was an admission that external prices were not sufficient to maintain primary industries in the Dominion and was a substantial argument in favour of the Labour policy of guaranteed prices over the whole field of production.