DEMOCRACY ON TRIAL

Taranaki Daily News, 7 June 1934, Page 6

DEMOCRACY ON TRIAL

CURING ECONOMIC ILLS LABOUR PARTY’S PROPOSALS. ADDRESS BY MR. M. J. SAVAGE. The Leader of the Opposition, Mr. M. J. Savage, M.P., addressed a large meeting in the Empire Theatre, New Plymouth, last night. Mr. P. E. Stainton presided and apologised for the unavoidable absence of the Mayor, Mr. E. R. C. Gilmour, and the DeputyMayor, Cr. F. J. Hill. At . the conclusion of the address a motion expressing confidence in the ability of the Labour Party and Mr. Savage as its leader to remove the cause of the economic depression in New Zealand and restore prosperity was carried by acclamation. The mover was Mr. W. Falconer and the seconder Mr. J. Walsh. Mr. Savage said he would commence his address with a reference to the Parliamentary machine. Though as an institution Parliament was not perfect, it was a combination of men (and one woman, a member of the Labour Party) with ideals and methods the country could ill-afford to discard. “There is,’* he said, “a movement abroad to try to discredit the Parliamentary machine. Judged by results, one may be entitled to think that there is something wrong with the machine itself, but when it is realised that Parliament is complete master of its Standing Orders and may even alter the methods of election of members, or the number of members to be elected, it is not difficult to see that the fault is not with the machine but with those who have controlled it in the past.” Some of them thought, for instance, that it was time Parliament grappled itself with the problems that came before it instead of delegating its work to others, like Royal Commissions. For whatever the recommendations of any commission it was the responsibility, of Parliament to pass any legislation brought about by such recommendations. He considered that it was a dangerous procedure to extend the' life of the present Parliament beyond the period for which it was elected, but so long as democratic rule existed the people had the opportunity of correcting such errors, and he hoped the people of New Zealand would never give up the right of self-government. Democracy was being challenged in various countries, but it would not fail because of the principles which underlay democratic rule but because those who held authority lacked intelligence. THE ONLY ALTERNATIVE. The only alternative to Parliamentary rule was some form of dictatorship. “But,” continued Mr. Savage, “any form of dictatorship would be a dangerous experiment, and if dictatorial powers were taken from the source from which the present Government derives its powers the people would get about the same results without being able to make any change unless by revolution. Edmund Burke once said in the House of Commons: ‘I sincerely hope that no member of this House will ever barter the Constitution of his country, that eternal jewel of his soul, for a wild and visionary system which can only lead to confusion and disorder.’ Burke’s warning might very well be taken notice of today.” Referring to the economic conditions of the Dominion Mr. Savage said his travels had shown him a general state, of depression in the Dominion. With record production the whole country was hard up. Men and their families who had spent money and years of hard work on their farms were on the brink of 'bankruptcy and would be ruined unless something was done to deal with the present mortgage system and to improve prices. THE DAIRY INDUSTRY. As regards the dairy industry, continued Mr. Savage, there was only one rational method of handling the problem and the industry, and that was to determine what they wanted the dairy farmer to produce and then pay him a price for his product that would cover the cost of the materials used in production, and payment for. labour. This payment must cover a legitimate return for all those who usefully employed their time on or off the farm in connection with the industry. Brought down to simple propositions, the Labour Party would introduce the following methods to maintain and extend the dairy industry:—(l) A guaranteed price for but-ter-fat; (2) security of tenure to farmers competently using their land; (3) readjustment of mortgages and land costs on a basis of guaranteed prices; (4) negotiated agreements with Great Britain and other countries for the marketing of dairy produce with reciprocal contracts for the importation of goods which cannot be economically produced in the Dominion. HOME AND FOREIGN TRADE. “In discussing the raising of prices,” said Mr. Savage, “it is well that we should realise that a country’s home and foreign trade cannot, for any considerable time, exceed the purchasing power of its own people. The people of a country must be in a position not 'only to purchase what is produced and kept for consumption in that country; they must also be able to pay for goods and services that are imported in exchange for exports. If one industry alone is selected for the raising of prices that industry will benefit at the expense of all others, including those with fixed incomes. Prices cannot stand unless the people have the money to pay those .prices. “The only means that can be used for the expansion of trade, either at home or abroad, is to expand the incomes of New Zealand citizens. There can be no expansion of trade while the people’s buying power remains stationary or continues to fall. When the countries which constitute the British Commonwealth of Nations give their attention to that aspect of the question they will be moving owards an expanding market within the British Commonwealth itself. “The British Commonwealth should not aim at occupying an insular position, but the people should begin in earnest to build in the various territories that they occupy with the object of exchanging goods and services under conditions which will be mutually beneficial and which will safeguard their ideals and living standards. 111-advised action might easily transfer a large part of our trade with Britain to the East, and with disastrous consequences to the British people and ourselves. We cannot have one-way trade; we must buy from as well as sell to the East if we trade there at all, and so long as the incomes of our people remain stationary Eastern trade cannot be made complementary to our British and Dominion trade. The machine is rapidly displacing the wage-earner, and unless the wages of the machine reach the people in the form of increased purchasing power there must be periods of industrial depression. While production continues to increase and purchasing power continues to fall, industrial stagnation must be intensified through falling prices. PLANNED PRODUCTION. “The time is long overdue for proper planning of production and overseas trade. The present tendency is to re-

strict existing forms of production by means of the introduction of the quota. If Dominion exports are to be restricted there -appears to be only one logical alternative—to build the home market. That can be done only by the .development of New Zealand industries. New Zealand woollens are amongst the best in the world, and in many other lines Dominion products will compare favourably with the best imported. When that is so there is no reason for waiting for other countries to move before beginning to put our own house in order. “Children leaving school are entitled to expect remunerative positions in the work of building industries in the land of their birth. If we cannot exchange primary products for the manufactures of other countries there is only one reasonable thing left for us to do—that is to exchange a greater percentage, of primary products with additional manufactures and services of our own country. The time has come for stocktaking, and after having considered natural resources and external commitments we should begin a national plan of reconstruction. - “With an annual expenditure of well over £4,000,000 on questionable forms of relief work, on which all kinds of skilled labour are at present employed, it is not difficult to form some estimate of the real cost of a large part of our imports which might have been produced in the Dominion. A visit to the factories and mills that have already been established will convince an unbiased person of the almost unlimited possibilities of industrial development in the Dominion. The planning of external trade is of equal importance. Hit or miss methods belong to a past age, and immediate steps should be taken to enter into agreements with other parts of the British Commonwealth with the object of exchanging primary products for goods that cannot be economically produced in the Dominion. There is no logical argument in favour of tariffs on goods that must be imported from the British Commonwealth, and these" goods should enter New Zealand duty free. THE MORTGAGE SYSTEM. “If the present mortgage system; with its high rates of interest, is allowed to continue a big crash in the near future is inevitable. The position in which thousands of farmers and others find themselves to-day makes it imperative that immediate action should be taken by the Government to prevent the unnecessary sacrifice of producers, who through no fault of their own are on the verge of losing their holdings. The savings of lifetimes are in the melting pot through the ill-advised actions of those who have had the responsibility of government during recent years. “Instead of aiming at a policy of stabilisation of internal prices and conditions the Coalition Government had insisted upon carrying on a policy of rigid deflation which has landed thousands into a position which is little short of serfdom. The State must face the responsibility of complete control of the mortgage system and the readjustment of mortgages on a basis which will allow production to be carried on. Any piecemeal policy of helping a section of producers will not meet the situation. The need of the moment is the complete control of the Dominion monetary and mortgage system with the object of saving a large number of producers from bankruptcy. “Guaranteed prices for produce, sufficient to enable producers to meet their obligations on the new basis, is the only logical way out of the difficulty. The only problem to be solved is how to distribute the national income “on an equitable basis. External influences should not be allowed to play any part. The application of the quota system to New Zealand exports means in effect the restriction of Dominion production unless an alternative policy can be devised. There can be no serious thought of restriction of production while a large number of people are getting less than a fair standard of life. “Labour asks for a minimum wage below which no wage earner should be asked to work, and is prepared to carry the same principle into effect by guaranteeing prices to producers. Conscious planning of national activities with a guarantee of a standard of living for the people in keeping with the productivity of Dominion industries is the prerogative of New Zealand citizens, and if given a mandate by the electors a Labour Government would lose no time in putting such a policy into operation.” SOCIAL SERVICES. ■ “During recent years,” continued Mr. Savage, “serious inroads have been made into pensions, superannuation, the National Provident Fund and a number of other social services. The Government of the day has, during a period of prosperity, been remitting taxation, to the wealthy and declaring surpluses while at the same time failing to meet its obligation to the superannuation funds. Financial agreements with public servants and superannuitants have been ruthlessly smashed. All forms of pensions have been reduced, and in many cases the old people who have done the pioneering work have been reduced to a bare existence. Labour will completely reverse that policy and extend the benefits of a generous superannuation system to all citizens. “Education and public health services also have been attacked, and it is the duty of Labour to strengthen the Education Department and to establish a health service in the Dominion that will guarantee the best that medical science can provide for every man, woman and child irrespective of income. “The fear of poverty in old age or invalidity is probably the greatest of all causes of worry ending in sickness of body and mind and even death. Under present conditions there is no security for anyone. The comparatively well-to-do person of to-day may be a pauper to-morrow, after having l spent a lifetime in attempting to prepare for old age. Able-bodied citizens below the age , of, say, 60 years should be prepared, with ] the aid of science, to accept the respon- | sibility of providing everything that goes , to make life worth living for all. “That would mean superannuation sufficient to provide a high standard of living for all citizens who had reached the age of 60 years, or who, through in-

validity, were unable to provide for themselves. Sixty years of age, or invalidity, should be the test for all citizens for superannuation sufficient to place them beyond the reach of poverty. Wealth is already produced in sufficient quantities to provide for such a policy; and increasing production should mean increasing standards of life. It is a matter of organisation of production and equitable distribution of the product. 1 NATIONAL HEALTH SERVICE. • “The policy of Labour,” continued the speaker, “is to deal with disease in all its forms, wherever it is found, according to the physical circumstances of each case. To do that it will be necessary to have a completely co-ordinated national health service based upon universal insurance. In the matter of coordination of medical services the parent body of the British Medical Association has given considerable attention to that phase of the matter, and in a comprehensive report covering the whole question of medical, dental, nursing and kindred services has provided an outline of a scheme that would be helpful in the development of a national health service. “In a report to the International Labour Conference held at Geneva in 1927 it was shown that 17 of the principal nations voted in favour of compulsory sickness insurance, while seven other nations voted in favour of a voluntary system. The present method of raisir.*j revenue for hospital upkeep is. inequitable in its incidence, as a substantial sum has to be raised from rates irrespective of the incomes of the ratepayers. ‘ “A national health service should provide full medical, dental, nursing and kindred services to all citizens; a financial foundation for such service based upon universal insurance; payment for services rendered; training of students for all branches of the service. UNEMPLOYMENT PROBLEM. “The growing problem of unemployment is due mainly to improved methods of production plus lack of purchasing power, and should be met by reduced hours of labour and increased buying power for the masses. Unless the purchasing power of the masses keeps apace with increasing production there can be no legitimate object in more/production. “In the long run economic production cannot extend beyond the people’s power to buy. Production may temporarily extend far beyond the people’s purchasing power, but the gap that exists between production and purchasing power will be the deciding factor in establishing the periods of industrial crises and consequent unemployment. “Unemployment insurance will be necessary to bridge the periods of time which will be occupied in the transfer of workers from one occupation or place to another, but to have an army of ablebodied citizens in a state of chronic unemployment and being' maintained by taxation levied upon themselves- and their fellow countrymen is unthinkable. “The immediate employment of all workers on work of first-class importance must be taken in hand if we are to save the Country from bankruptcy. Land is awaiting improvement and settlement; public works—including certain railways—are awaiting completion; the construction and maintenance of national and secondary highways, ■ backblock roads and approved local body ' works will find employment for thousands of men at rates of pay that will enable them to again establish some degree of independence and become useful , purchasers in the markets of their own country. LAND SETTLEMENT, “Land settlement must be an integral part of our national policy, but it is useless to talk of such a policy without first laying a financial foundation which will allow the farmer to make a living. Unless those who are already on the land can be made secure it is hopeless to try to establish others. When the farmer is encouraged to go on the land to provide a national service he must carry with him some guarantee of security. With complete control of our monetary system and proper planning of production such guarantee can be given.” If, said Mr. Savage in conclusion, the electors were satisfied with conditions as they were in the Dominion they would know what to do when the next election came. But if they felt that along with the production of an abundance of all that went to make life worth living many were getting less than their share he would ask them to make a change in the next Parliament. The times were too serious to let matters drift. The Labour Party had pledged itself to the programme he had detailed, and it would not shrink from the task if it received the people's authority to act. After the resolution quoted above had been carried a vote of thanks to the chairman was carried on the motion of Mr. Savage.