NEW ZEALAND ON DOWNWARD GRADE? SOCIALIST POLICY NOT PROGRESSIVE SAYS MR W. SULLIVAN

Bay of Plenty Beacon, Volume 13, Issue 82, 4 May 1949, Page 5

NEW ZEALAND ON DOWNWARD GRADE? SOCIALIST POLICY NOT PROGRESSIVE SAYS MR W. SULLIVAN

“During the last ten years Socialists claim they have made this country. In fact, some may think that New Zealand was an unknown land before they took office. In comparing our position today with that ten years ago, it is clear we are not progressing. We are decidedly on the downward grade,” declared Mr W. Sullivan, M.P., addressing delegates of the Bay of Plenty Electorate Committee of the New Zealand National Party at Whakatane on Saturday night.

“A group of people, obsessed, with, the idea of socialism, think they can build a better State. They have regulated and interfered with every phase of New Zealand’s life, and have created a situation that is now almost out of hand. Electors now realise that Socialism in theory, is one thing, whilst Socialism in practice is another.

“Let’s have a look and see where we are heading,” Mr Sullivan continued. “During the last seven years, taxation has increased £27 per head of population. Our total taxation has increased during the last 10 years by 84 millions. Direct and indirect taxation are now so high, that earners have difficulty in making both ends meet. They have very little left of their weekly earnings. Big State Losses

“Losses on State undertakings increase yearly, on the railways, tourist hotels, land development, State coal mines, housing, Public Trust Office, shipping, and almost everything the State sets out to manage. These losses, plus the ever increasing cost of State management, mean increased taxation to the taxpayer. Earners have so little left that the incentive to work, earn, produce, and to expand business is lessened every day. Earners are driven to demand more and more wages or salary to keep themselves solvent.

“Workers now work longer to purchase their needs than was necessary in 1948. At that time a skilled worker could buy a bedroom suite for £2o—requiring 133 hours of work at 3/- per hour: today, he has to work 165 hours at 4/- per hour to get the same suite. In 1938, he worked 200 weeks at £6 per week to purchase a £I2OO home. Today, he has to wqrk 300 weeks at £8 per week to buy the same home,” Mr ’Sullivan asserted.

“The same yardstick could be applied to any commodity required: the result is the same. The Socialists condemn private enterprise (the Capitalist System), but lean more heavily upon it every day. The great United States of America, because of its free competitive system, today the supply store of the world. Socialists everywhere sought help and assistance from her in goods and credit. To Socialists, the capitalist system is evil, all wrong—but no one can commence business without capital, either private, or State. Both kinds of capital must earn sufficient to cover outgoings, or the loss would fall somewhere—on the private capitalist—dr the State. State enterprises create losses which must be made up by increased taxation.

‘Heads I Win’ “With Mr Nash, it was ‘Heads I Win’ all the way. His policy had created loss of production, and had robbed New Zealand of many much wanted goods. Harsh import restrictions were imposed because Mr Nash was obsessed with the desire to pay off the London debt. “We reduce London debt by 94 millions and increase New Zealand internal debt by 270 millions. By paying off 94 millions London debt, Mr Nash took an equal amount from the total amount of British goods we could purchase. “If New Zealand is to expand, we must have more production,” Mr Sullivan concluded. “To change the ownership of farms does not give us this. We must have more people, more settlement, more small businesses, more owners and more small capitalists. We want less socialistic control, planning, and less interference in our daily activities.”