DOMINION POLITICS

Waihi Daily Telegraph, Volume XXXVIII, Issue 9362, 17 April 1939, Page 3

DOMINION POLITICS

NEW ZEALAND PERSONALITIES SOCIAL SECURITY CONFIDENCE AND FEAR (By John Stone) The Hon. Walter Nash, Mr J. A. Lee, the Hon. Adam Hamilton, the Right Hon. J. G. Coates and Professor R. M. Algie are the visible personalities in New Zealand politics today, although the last named, after a stout effort on behalf of the National Party, disclaims any political intention. The Prime Minister must take the responsibility for the creaton of the Nash Dictatorship. Mr Nash is reputedly the author of the Nash Policy. Mr Savage is his publicity agent and smoke screen. No one knows, least of all, it is said, does Mr Lee, reputed leader of the Left Labour wing, know where Mr Nash is going, and the “have nots” do not care while the money lasts. Mr Hamilton, Nationalist Leader, is respected by his own followers, but he does not inspire. The followers of Mr Hamilton rather fear Mr Coates who has the colourful personality which appeals to the younger generation at least. A “not popular” myth surrounds Mr Coates. Every second Nationalist says “Coates is the man, but he is not popular.” If all who said so got together he would be immediately popular. THE HAVES AND HAVE NOTS The contest ahead lies between the “haves” and the “have nots,” with the latter in control. The wealthy conservatives look forward with real hope to a financial crisis. Then, they think, the worker will come to his senses which, in their minds, means that the worker will come to them. They are quite unaware that a revolution has taken place in New Zealand. They do not for a moment, recognise that, as the shoe pinches, a Socialist Government will move from excessive taxation to confiscation, rather than discipline the worker. They actually believe that Socialist leaders will sacrifice the worker first, or that the crisis will waft their Government to the Treasury Benches. If a crisis does come, the worker perhaps will blame gangster finance, and go further left with Mr Lee. If, in the meantime, the alteration of the country quota gives more seats to the towns, Mr Lee may be the next Prime Minister of New Zealand. To do that he will have to reverse Labour confidence in the Nash policy. Mr Lee is regarded by many of his followers as “a genius” —but he lacks the human appeal of Mr Savage, and despite his virtual dictatorship, may never be Prime Minister.

MR J. A. LEE’S MIND Mr Lee is the great protagonist of Labour’s Plan. To understand it, is to see where Mr Lee would lead. His booklet “Money Power for the People” may be taken as revealing his mind. But, before considering the Left Wing policy upon which there now appears to be some division of opinion in Labour ranks, it may be wise to consider the creation of the framework for the socialist dictatorship, about which there appears to have been complete unanimity. In his booklet abovementioned, Mr Lee says “There is a golden age of Government wherein it should attempt to make the fundamental changes that are necessary to its administrative continuance in office. That age is after the hour of victory and before an electorate grows sceptical and disillusioned at unfulfilled promises.” Labour in New Zealand caught the middle section of the people with promises of tax reduction and exchange reduction; but those promises were later forgotten. It took advantage of the golden age, however, to effect the most rapid and startling legislative revolution enacted within the British Empire in recent times.

TRADING BANKS

Although the trading banks remain to outward appearances untouched, they were effectively brought under control by the New Reserve Bank Act. Indeed, a chief complaint of the Left Wing is that the powers of control were not used to prevent what is termed the raiding of our exchange funds by gangster finance. This power to dominate the trading banks, together with the powers of taxation, can be used in such a manner as to leave the banking companies no more than managers of their own pioperty for the benel't of the State. Why, then, bother to take them over? The same domination actually achieved Labour’s first, major objective, “the complete State ownership and control of the macl - inery r f currency and credit.’’

NO APPEAL TO COURTS The second major objective lay in altering the machinery of Government by taking ministerial control of all phases of production and distribution. You will remember how Mr Semple fitted running shoes to the Railways Board with unseemly haste. Transport is a key factor in distribution. A series of acts, chief of which were the Industrial Efficiency Act, the Primary Products Marketing Act and the Transport Licensing Act, gave the Ministers the powers they desired. The golden age was rounded out by tlie regimentation of the doctors (still, by the way, only achieved in theory), the introduction of compulsory trade unionism, and the provision of tlie right to vote trades union funds to party purposes. Later came import and export licensing. These have welded the party machine into a financially strong dictatorship with powers as wide and effective as a Hitler might desire. There is little or no appeal to tlie courts from ministerial

'ecisious. The golden age was well :sed. Labour bought its second erm of office with its universal Social security Plan and its promise of milions—many millions for public vorks. The National Party offered he public a modified Labour policy, t bid sixpence where Labour bid a .'.hilling. Labour won.

“IT MAY YET BE TOLD” The most spectacular achievement o far in “social security” centres around the destruction by fire of the irst home for social security and the illeged world's record in building on i. new site. There appears to have been no inquiry into the causes of the lestruction of the partly competed first building. It just went up in unoke, and Mr Semple, with all the grandeur of the financial magnate ,vho removed a hill that blocked his view simply ordered another buildng. “Go to it.” lie is reported to have said, and 10, by magic, they went to it and a building was raised in a manner to astonish mankind. Then, with much modesty on ail udes, it was opened, for indeed, at all costs, and chiefly at the public •ost, the Government can and must and will keep faith with its supporters. That is. it has kept faith as to lie building and the taxation incidental to social security. The benefits seem to present a little difficulty. No masterly command “Go to it,” has yet appealed to the doctors and their struggle for liberty may only just be commencing. The inside story of the negotiations between (lie parties would be interesting if it could be told—it may yet lie told. DONE ITS JOB

There is, however, one way out. Social security as an election bait has done its job as in the past did monetary reform, taxation reduction and anti-borrowing. Mr Savage can now go back lo one of his basic principles, namely that if the Government finds it’s wrong, it will change. Mr Nash now agrees that lie will be at least £2,000,000 wrong in tlie matter of social security finance, and Mr Webb has to solve some problems of employment incidental to Hie extinction of his unemployment promotion fund. We may expect some changes, to right wrongs that have outlived their election usefulness.