THE LABOUR PARTY.

Waikato Times, Volume 112, Issue 18804, 28 November 1932, Page 8

THE LABOUR PARTY.

POLICY OUTLINED

LABOUR AH D DEPRESSION.

STABILISATION, NOT INFLATION. (By Telegraph.—Press Association.) WESTPORT, Saturday. The Leader of the Opposition, Mr 11. E. Holland, last evening addressed a meeting at Karamea, in support of the Labour candidate for the Motueka seat, Mr P. C. Webb. Mr Holland contrasted the statements of Mr Forbes and Mr Coates of a few months ago, to the effect that we had “ turned the-corner,” with Mr Forbes’ latest declaration that the next 12 months will be the worst in the history of the Domlnon. He outlined the Labour Party’s policy, which he said was one of economic reconstruction and the rehabilitation in industry of men now on relief works, and said the Labour Government would provide whatever money was required to finance works of real value to tiie country. Mr Holland contended, however, that the amount of additional currency needed would not be large. There was quite as much money in New Zealand now as prior to the depression, but the Government’s policy of deflation had aggravated the consequences of the slump in prices overseas and had slowed down the velocity of both legal tender currency and the cticque sysem. Witli the restoration of purchasing power She velocity in circulation would return to normal, but if additional currency should he required it would be provided. Ho was not advocating inflation, but stabilisation. The Labour Party, said Mr Holland, stood for a planned system of production, distribution and marketing, with arrangements for a guaranteed price to primary producers on, say, a five-yearly moving average.