LABOUR’S POLICY.

Waikato Times, Volume 110, Issue 18478, 5 November 1931, Page 7

LABOUR’S POLICY.

I MR HOLLAND’S OUTLINE. I i | i | THE UNEMPLOYMENT PROBLEM. I I VARIOUS OTHER PROPOSALS. (By Telegraph.—Press Association.) WELLINGTON, Wednesday. Labour’s election policy was enunciated by the Party Leader, Mr H. 0. Holland, this evening at the Wellington Town Hall. He dealt with a wide range of subjects, including unemployment, land settlement, taxation, finance and credit, interest charges, and the Arbitration Court. The rehabilitation of industry, he contended, was the only solution of the unemployment problem. Mr Holland said the policy of the Labour Party was one of constructive processes making for rehabilitation. The Labour Party held that the only solution of the unemployment problem was the rehabilitation In industry of all who were now unemployed or working part-time, and this should bo done on wages that would provide a reasonable standard of living. Labour would make an Immediate further provision for the unemployed out of the Consolidated Fund and additional grants would be made to hospital boards for the relief of distress arising from unemployment. To meet the general situation, they would organise the industrial resources of the country on modern lines. A courageous policy of primary and secondary industrial development would be undertaken with systematised productive effort and planned output. For this purpose internal credits would be i arranged with the Government, the' people and the banks cooperating. The work undertaken would be of a productive character and their credit facilities would be organised so as to fit in with the volume and value of production. Wages and Salaries. The purchasing power of tile people depended upon the level of income received by the wage and salary earners. Wage reductions meant a depreciated local market and consequent trade stagnation, hence there could be no return to prosperity until there was a restoration of purchasing powe". There could be no restoration of purchasing power without a return to the living wage standard. The evidence of wholesalers, manufacturers and retailers before the special Econ-\ omy Committee abundantly proved that the cuts already made had reduced their turnover, and in consequence had increased their cost per unit of output.

The first task to be undertaken by a Labour Government would be that of getting the unemployed back to productive work. An equally important task would be the restoration, especially of lower wages and salaries, to the purchasing standard before cuts were made.

The Labour Party wrnuld retain the method of industrial conciliation and compulsory arbitration, not because they were satisfied with every decision of the Court, but because the Labour movement in politics subscribed to the principle of arbitration as somewhat better than the lock-out and the strike.

It was imperative that the State should take a more effective part in controlling currency and credit, To this end the Labour Party would take steps to establish a central bank'under the control of the State.. This bank would have the sole right of note issue. Pending this change, regulations governing the issue of notes by private banks would be extende.l and under the existing banking laws the Labour Party would raise sufficient credit for immediate industrial purposes, employing methods somewhat similar io those adopted during the war. In that period there was no difficulty in raising money.

Economic Rehabilitation. The Labour Party proposed now to use national credit for the purposes of economic reconstruction and rehabilitation. The present hanking laws would permit this to he done. The sum of £25,000,000, spread over a three-years’ period, would be sufficient to put the Dominion once again on its feet. The evidence of bankers to the Economy Committee indicated that this money could be raised. In administering its policy of land settlement the Labour Party would give careful attention to the selection of suitable men, In addition to those who were already employed, for the work of preparing for immediate settlement of large areas of Crown and other lands. Men taking part in such work and willing to become permanent settlers w r ould have preference in taking up land when ready for settlement. , To facilitate the development of secondary Industries of the Dominion, an industries development board would be appointed to co-operate with tho Government. Every encouragement would be given to the upbuilding of such industries. Provision would be made for the regulation of importation into New Zealand of goods the like of which were being produced in New Zealand. Immediate inquiries would be instituted for the purpose af arranging definite trade agreements between the Dominion and other parts of the British Commonwealth and oilier countries in order to increase tho market for Dominion exports. Investigations would also be made into the possibility of arranging with primary producers to co-operate with the Government for a guarantee of tho prico for primary products. The Labour programme provided for an extensive scheme of main and secondary highways construction, and particularly the construction of roads to hack-block districts now without adequate road access. The Government’s decision to subsidise the pur- ! chase of fertilisers was a solitary i move in the right direction, but the ‘ present subsidy did not go far enough ■ It, covered only certain classes of fertilisers. Income Tax. While conditions demanded it, the Labour Parly would impose an additional super-lax on higher incomes and a super-tax on dutiable goods which could he produced in New Zealand. They would also place a special emergency tax on investment incomes that were free from taxation. They would remove Hie primage duty and also abolish all indirect taxes oil foodstuffs and other necessaries not produced in New Zealand, Dealing with the wheal, question. Mr Holland said the Labour Party waul. l I institute a comprehensive investigation into llic whole question of production and distribution of wheat, tho wheat and Hour duties and Hour pro(Continued in next column.)

duction and distribution (including the operations of Distributors, Limited). Their object would he to ensure tho production of wheat and flour in sufficient quantities and the supply of bread and also of animal foods at reasonable prices, while at the same tirmguaranteeing an adequate return to the wheat farmers and standard wages for workers employed in wheat areas. Wheat-growing was an industry natural to New . Zealand and they could not allow it to be destroyed. Provisional Moratorium. The Labour Party's proposal was for a provisional moratorium to prevent foreclosure and machinery for mutual adjustments. If within three months of the passing of the legislation no agreement should he arrived at, a 20 per cent, reduction wouU operate with the right of appeal by the mortgagee or lessor, as the case might be. Tracing the wage and salary reductions of 1021-22 and the legislation of 1930-31 and the years in between, Mr Holland made the prediction that if the Coalition should retain the Treasury benches there would be either wholesale dismissals or further heavy wage and salary reductions, or both, covering economies totalling from £1,000,000 to £1,500,000, that all classes of pensions and allowances would be cut down, the wages tax increased and every industrial award and agreement placed in jeopardy, together with substantial tax reductions to wealthy landowners and men with larger incomes. A STATEMENT DENIED. REDUCTION OF INTEREST. ATTITUDE OF STOCK EXCHANGES. (By Telegraph.—Press Association.) WELLINGTON, Thursday. Mr E. Bucholz, chairman of tho Wellington Stock Exchange, commenting on the slalemcnt by Mr H. E. Holland, Leader of the Labour Party, in Hie Town Hall last night, that the evidence tendered to the Special Economic Committee on behalf of Hie Stock Exchanges favoured interest reductions, -said the statement was inaccurate. The Wellington Stock Exchange expressed to Hie committee a reverse opinion, more especially in regard io a reduction in interest, on Government securities. Mr Holland was a member of that committee.