THE LABOUR PARTY

Wanganui Chronicle, Volume 79, Issue 278, 24 November 1936, Page 9

THE LABOUR PARTY

MR. ORMOND WILSON’S ADDRESS I AT MARTON How the Labour Government, if returned to the Treasury Benches often enough, will accomplish the complete socialisation of credit in New Zealand was explained by the Labour member for Rangitikei, Mr. Ormond Wilson, M.A. (Oxon), in the course of a public address to electors in the Civic Theatre on Friday evening. Already, he said, under the Reserve Bank Act, the Government had power to lend itself almost unlimited I amounts, for which it was paying a ; very low rate of interest. Eventually, jit was intended to abolish interest rates altogether. Never again would New Zealand borrow overseas. Mr. Wilson’s large audience gave him a most attentive hearing, there •being not a single interjection. At the conclusion, when questions were invited, there was a long silence until somebody remarked “We’re satisfied." However, three questions, all relating to hours and wages were then asked and answered. The meeting closed with a vote of thanks to the speaker, and to the Mayor, Mr. F. Purnell, who presided. Introducing Mr. Wilson, the Mayor recalled that a little over 12 months ago the Labour Party was returned with a large majority and was entrusted with the forming of a government. In the intervening year, many of Labour’s election promises had been fulfilled and were now on the Statute Book. Mr. Wilson would be pleased to review what had been done, and his Worship was sure the speaker would be accorded a good hearing. Kir. Wilson prefaced his address by saying that although a great deal had been accomplished, it was not nearly as much as he would have wished —not that he, or the Government for that matter, wanted to “turn things inside out,” but that there was still so much that required to be done. Much was in preparation for the most important legislation of the next session, health insurance and State superannuation. Referring to guaranteed prices, Mr. Wilson said he was sorry that, the legislation had not been extended to include wool and meat. Perhaps the most far-reaching legislation enacted thus far had been the 40-hour-week. There were Inconveniences as a result, he admitted, but surely the advantages of added leisure in this machine age, far outweighed the small inconveniences caused. Undoubtedly, moreover, the measure had meant the absorption of many unem-

ployed into regular avenues of industry. “Everything that we have done," he said, “we said we would do. The only unpleasant thing we have done that there was a reasonable inference would not be done, was to increase taxation; and I for one would have been sorry had taxation not been increased. It was perfectly legitimate, and it would have been very unfair, for example, if those who benefited by the removal of the graduated land tax in the depression—the big landholders —should have been still assisted to that extent as things improved. The re-introduction of the graduated lan I tax was perfectly just and reasonable.” Mr. Wilson intimated, when conceding that the incidence of taxation was not. altogether equitab’e, that Mr. Savage proposed to introduce important amendments next year. Education, housing, improved reading. traffic control, radio control, health insurance and superannuation were among matters still to be attended to. “The Labour Party has always insisted on the importance of education,” Mr. Wilson said, “and that interest is not confined to economies that might be made. If only, instead of economising as it did. the past administration had seen to it. that the youth of this country was being better educated and trained, all those boys and girls with nothing to do would have been better fitted for life. Instead. most, of these young people have lost chances that they can never recapture.” It was the proposal of the Labour Government.that. everyone when incapacitated by sickness or accident. or on reaching the age when they should be able to retire, should receive sufficient payment to live on, from the State. That was the idea being the compulsory health insurance and superannuation schemes still to be dealt with. Concerning Public Works, Mr. Wilson considered that “Bob” Semple had done a “pretty good job” in putting 60,000 men to work, earning good wages and giving excellent returns, It was nonsense to say that the market had suffered in other directions as a result. The placemen l office, for example, had not yet failed to find farm labour when it was wanted, yet there was a great crj about the “drift from the land." The Industrial Efficiency Bill had been another far-reaching piece ol legislation, and had received the whole-hearted support of the Manufacturers’ Association, though the j Press had preferred to feature the criticism. “It has been said again and again," said Mr. Wilson, “that the increased wages have been more than cancelled out by the increased price of living. 1 Actually, while wages to-day are at the 1930 level, prices are at the 1928 I level, and manufacturers are unable j to cope with the demand of orders r from the retailers.” The profits of the Railway Department, despite—or per- - haps rather because of—increased z wages and the employing of hundreds I more men, was showing still better returns. At. the moment, wages had . reached the norm—the level of production. There was every reason to f hope, however, that production could j be much more increased as time went \ on, and wages could go on rising aci cordingly. The increased cost of im- - ports, moreover, was probably every bit as much responsible for the rise : of prices in New Zealand as was the - increase in wages. Another important I. economic factor at the present time s was the buoyancy of the overseas - markets for the Dominion's products. b Marketing was far more important to the Dominion than the fixing of the ' price of the farmer’s products, said ) Mr. Wilson, turning to the Marketing ■ of Dairy Produce legislation. Much ; organisation was needed to cope with I the steady improvement of the quality I of Australian produce and likewise that from other competitors. Distribution at the least possible cost on the i London market was a primary factor, and this was now being dealt with satisfactorily and apparently with the approval of Tooley Street. That was the result being achieved through the Products Marketing Act and

that was why it was so important that, meat and wool should be included with ■ dairy produce in the near future. ‘‘Surely,” the speaker said, "the farmer can see the value of stable prices. The day may yet come when meat and wool prices drop, that farmers will beg Mr. Nash to let them come in on the guaranteed prices." (Laughter). What had to be guarded against was the effects of another slump, and fixed prices provided that guarantee. “To-day," he said, “the meat trust has such a hold in this country that there is only one body big enough and strong enough to cop ? with it—and that is the Government. /And I don't, think it will be very long before the meat trust will realise it." Turning to mortgages revaluation, Mr. Wilson said that the outcome would be that the farmer, once put on a sound footing and with fair returns for his produce as a basis, would have to rely on his own efficiency. That was surely a reasonable attitude. “We have always said that our desire is to bring down the rate of interest and hold it there,” said Mr. Wilson, referring to the interest rate of 3 per coni, offered for the 13 millions conversion loan. "In the end, our desire is that interest shall go altogether. To-day, of course, that is impossible, and to utilise the savings of the people, we must offer interest. Using all the funds—and the Government has thousands of millions at its disposal—so that, there shall be na waste, is our objective.” To-day the Government was utilising the funds of the State Advances, the Post Office Savings Bank, Life Insurance and other State institutions, obtained at the lowest possible rate of interest on the soundest possible security, for public works and State advances, on as efficient and economic a basis as possible. "Never again," Mr. Wilson said, “will New Zealand borrow overseas. We don’t need to. If the lime comes when we need more money, we shall come on the country again. If the public do not subscribe to conversion, we have the power as the Government, under the Reserve Bank legislation. to lend the money to ourselves. ’ With that money, the Government was creating State assets and by coordinated effort, doing so as economically as possible. As the years went on the Government would more and more utilise the Reserve Bank as the people less and less needed Io save up against old age and ill-health. "This," Mr. Wilson added, “would not come in the next two years, but we are preparing the way." Nobody seriously questioned the Labour Government's sincerity, ho said. Mr. Coates, in reply to Mr. Sullivan in the House at the close of the session, had said he did not do so. That being so, and admitting the wisdom of the policy Labour was effecting, what alternative could be offered? Doubtless the National Party was very busy preparing one. “I cannot believe that' any programme the Opposition will bring down will be a direct negation of all we have accomplished," Mr. Wilson concluded. “The criticism that hurts us most, because it is untrue and unjust, is that we, lhe Labour Government, are aiming at dictatorship—that we are going to end democracy. I come to you to-night as I came to you six months ago to take you into our confidence. I shall come to you again two years hence in the same spirit. Surely nothing could be more democratic. Your attendance here to-night is evidence of a keen interest in the affairs of the day and a spirit of true domocracy.