A YEAR IN OFFICE

Timaru Herald, Volume CXLII, Issue 20586, 27 November 1936, Page 8

A YEAR IN OFFICE

THE LABOUR PARTY PRIME MINISTER LOOKS FORWARD By Telegraph—Press Association WELLINGTON, November 26. In a statement to-day the Prime Minister (Rt. Hon. M. J. Savage) said that the anniversary of Labour's election to office provided the most fitting opportunity to make a survey of progress and indicate the lines of further advance. During the election campaign it was made clear that the immediate objective of the Party, if elected, would be the restoration of fair and reasonable standards of living, and it had been the consistent aim of the Government through its legislation to improve the lot of the people on the lower income levels. For the time being the limit of social reform was set by the taxable capacity of the country, but this was far from the objective of Labour, for its future policy involved far-sighted planning and the direction of the economic activity of the State, and it was to this end that they were working. Already, as a result of the legislative measures of the first session, solid foundations had been laid for the fulfilment of Labour’s long term objectives.

Social Justice

Reviewing what had been done, Mr Savage emphasised that the guiding principle of the Government was social justice. Its aim was that the economic organisation should be adapted to social needs and if any of the institutions of the Dominion failed in that respect they must be changed. A big start had already been made towards removing some of these fundamental defects. In this regard he cited what had been done for the dairy farming industry in guaranteed prices, and said further steps were being taken towards putting the production and marketing system in order, and the Minister of Marketing was in London endeavouring to negotiate a reciprocal trade agreement. Under the Mortgagors and Lessees Rehabilitation Act it would be possible to make considerable progress towards a satisfactory solution of the old problem of mortgage indebtedness. He also mentioned the reorganisation of the Mortgage Corporation and housing loans. In regard to the manufacturing industries, Mr Savage said the policy had been directed towards preventing the exploitation of the public and to prevent, wherever possible, economic waste. It was intended to take effective measures towards preventing such well-known economic abuses as those connected with land speculation and the excessively high cost of land, and also faulty investment methods. He claimed that considerable progress had been made towards raising the material standards of the people. Practically the whole body of industrial law had been overhauled and amended, compulsory arbitration restored, the 40 hour and five day week instituted, pensions increased, invalid pensions provided, wages restored and purchasing power increased with a marked return to business prosperity. There was ample evidence that the country could afford the higher standards of living that the welfare and happiness of the people demanded. Next year it was intended to put into operation such further schemes as national superannuation, national health insurance and a complete overhaul of the education system. He paid a tribute to his colleagues in the Ministry and both Houses. They had worked splendidly as a team and had not spared themselves in their efforts to serve the public interest.

Currency and Credit

Mr Savage said it was not easy to generalise concerning the legislation passed by the Government during the first session. Since finance was the key to the whole problem of administration, one of the Government’s 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 it was in a position to formulate a financial policy which would serve the social and industrial structure of the country. Economic and social welfare went together, and in exercising control over the monetary policy and in regulating and co-ordinating production it was the aim of the Labour Government to achieve such a measure of economic reconstruction that the people of the Dominion would enjoy a standard or social well-being that would make them the envy of the world. After referring to social conditions, Mr Savage said: “I know of no better way of distributing fairly the national income than by the provision of necessary social services, and the aim of the Government will always be directed towards achieving this result. I do not expect that we can achieve this end at once. It will take time. We will no doubt make mistakes, but thjse will be rectified as soon as they become evident. I give my word that we will remain true to our principles and keep faith with the people.”