ONLY BEGINNING

Waikato Times, Volume 124, Issue 20774, 6 April 1939, Page 8

ONLY BEGINNING

GOVERNMENT'S PROBLEMS PRIME MINISTER’S VIEW HOPES FOR SUCCESS (Special to Times) WELLINGTON, Wednesday The Prime Minister, the Right Hon. M. J. Savage, and the Minister of Finance, the Hon. W. Nash, addressed the New Zealand Federation of Labour at its annual conference in Wellington today. The result of the general election, said Mr Savage, had increased latb.er than diminished the responsibilities nf the Government. Immediately alter the election it had been necessary to tackle, one of the most thorny problems, the insulation of New Zealand against shocks from overseas. Unless it could succeed in that task the Government could not substantially lift the standard of living above the standards of other countries.

The Government's difficulties to-day were beginning and not ending, said Mr Savage, referring to the fact that in the two months of September and October, 1938, the Reserve Bank credits in London declined by £7.000,000. New Zealand industry would have to fill the gap created by import and exchange control, and local industries could not be developed unless they were provided with raw materials, a considerable amount of which had to be obtained from overseas. Financial Position Mr Savage declared that the Government would not fail, and asked for the full co-operation of workers, stating that the standard of life did not come out of banks but out of fields and workshops. Mr Nash outlined in detail the financial position of the country. He said that in the last three years the volume of wages had increased by £33,000,000, and the volume of other income by £30,000,000. In the same period retail prices had increased only 13.3 per cent. If the Dominion produced more and was able to attain an element of stability in the next 12 months, by 1941 progress undreamt of in New Zealand or any other country would have been made. Mr Savage and Mr Nash were thanked for their addresses and asked to convey to the Government an assurance of the loyal and enthusiastic support of ihe federation.