“ON THE ROAD TO SOCIALISM”

Press, Volume LXXIV, Issue 22513, 22 September 1938, Page 12

“ON THE ROAD TO SOCIALISM”

Z'R FORBES’S VIEW

QUOTATIONS FROM MR

J. A. LEE’S NEW BOOK

LABOUR’S POLICY EXAMINED

“The big issue before the electors Is plainly this—Socialism versus pri-\-ate enterprise.” This sums up one of the salient points emphasised by the Et. Hon. G. V/. Forbes, when opening his campaign as National candidate for Hurunui at Waikari last evening. Mr Forbes had an audience of about 130 electors, and was given an attentive hearing. In support of his argument that Labour was “on the road to Socialism” Mr Forbes quoted passages from a new book by Mr J. A. Lee, the Undersecretary for Housing, on “Socialism in New Zealand.” in which direct reference was made to Socialism as being Labour’s aim.

"It is no good for the Minister for Hallways, the Hon. D. G. Sullivan, to try to side-step the issue, which is the big issue for electors on October 15,” Mr Forbes said. “That is, whether we are to have Socialism, with complete control by the State, or control in the ordinary way with freedom for private enterprise. The Opposition stands for private enterprise—to enable the people carry on their work and in their own interests. Of course there must be some attention to the Interests of the State. But when it ‘‘comes to the institution of Socialism—to pairing the State the sole employer —then we join issue with them, arid ‘because of this, we consider that the present issue before the electors is the rhdst important they have ever been asked to face.

“They say that they are not Socialists—that Socialism is not their objective. But the objective of the Labour Party is, the socialisation of the means of production, distribution, and exchange. That objective was reaffirmed at *the last Easter conference of the Labour Party. Now the Minister f r Finance, the Hon. W. Nash, calls this conference the ‘Parliament of the labour Party.’ That is their objective.” Mr Lee on Socialism Asserting that Mr J.. A. Lee, M.P., was the leader of the Left Wing in the New Zealand Labour Party, Mr Forbes quoted Mr Lee in his new book. “Socialism in New Zealand,” as saying: “New Zealand during the next few years should tell to what extent the State .could speed towards Socialism along a democratic road. For speed to ; Socialism we will.” “Mr Lee says that there is a Socialist Government in power for the first time, and described the trade union movement as a device to fight capitalism,” Mr Forbes said. He quoted other passages in the book in substantiation of his claim that the Labour Government was “out to socialise the country.":- /-.? Mr Forbes emphasised that he made no apology for .the actions' of the; last . Government l ctnrlng the> depression. ; The Government had no alternative, ihe claimed, beyond an arbitrary re- . auction in the numbers of State employees. , “yp-,: had to do two . things—reduce i * reduce the number the State ! emjjgQyed.” he said. “Our National £7gWf manifesto says that we will not reduce wages or have a mandatory increase in the number of hours worked. But at the same time we must all realise that- if we had a depress'on again and wages were fixed at a rigid level, then the only way to meet the situation would be to reduce the number of employees. Business has to carry on. The only way we could -carry on in the circumstances I talk of would be as I say. I hope we do not have a depression; but we must realise that we cannot always expect to carry -on smoothly and always experience boom years.”

Hallways Maintenance Mr Forbes took strong exception to 4116 J ?, st Government •ri Y ne glectmg railways maintenance, been responsible tor some of the aondente in recent years on the railW - Inquiries held into those acci--i.i£ maintenance was cause. Mr Forbes said; but still the allegations were made. However the annual Railways Statement had showed that in. 1935, for instance more was spent a 100.000 miles in maiSten®?ce than in 1938. Mr Forbes quoted T.aJvfii^ S^? es - in * H 3 c laim that under Labour administration it had been railwa ys the mire Dusiness done, the more monev wa« lost.* He claimed that the nlevihus &tt,Tt! nt had h3d a b ®«*?”Sd charged the Labour t v, Wlt u be “ g antagonistic to aUeged that Mr Savage himself had asserted that the individual ought not to save, and that the Gorormnent was going ? to m£t any “But Social Security Schema - under this scheme, you will re®«ve £lO next year for your monel rising Allowing years u 10 a - year to a total or £7B, which, you will get when vou 9 3- how* telTtaS to meet their policy of not saving but pending everything you have"* The Government’s P i an for “insulating” tb “ o co n ntr y against a depression or ?ther trouble overseas was mentioned but > he said, it Hi -f le w° any information ? boa t *t- He did not think it wise ° n any such promise. wni-^lJ >een cb arged that because r^f^ d provisions °f the sociai ty were not sympaJtS P rin oiples,” Mr Forbes sam. That is far from right. I have been interested m every scheme for «nl^tv 0ratl ?? ° f People in need. 1 bell ,e ve that we should steadily improve the position of the weaker ri “eeommunity, the sick and the «*gpd. The name of R, J. Seddon has rl n i5 entloned often - I remember R. J. Seddon speaking on the old-age pensions. He was asked to increase them; but he emphasised that such measures must be kept within the capacity of the country to carry them. What we nave had grave doubts about is whether this Social Security Scheme is financially sound." Mr Forbes quoted some of the figures used by the Government in considering the scheme, and alleged that its financial provisions had been based on too optimistic, estimates of revenue by' the Minister for Finance (the Hon. W. Nash). Could anyone in his sober Knses say that we could add another £8,000,000 next year to the present taxation revenue, he asked. Indications already were that taxation revenue was going down. The National Party’s plan was to provide a “®*«h service for those who could not word to pay for it privately. The Government's scheme, Mr Forbes said, T PRfcgmg doctors under a panel, tjjHPV in' the opinion of the doctors, •teg** the incentive to advancement Matte profession, and improvement in toe nature of the service, and reduce tbe service to a common level. Mr Forbes, who was listened to twnout interruption, answered some |WBgMons (all by one man) at the end HJb JBpeting. He was accorded a and given, three

LABOURS POLICY

CONDEMNED

“ Spending . Back To

Prosperity ”

MR BURNETT DISCUSSES

PRODUCTION PROBLEMS

A warning that New Zealand would be troubled if farming costs were not checked and the downward trend of primary production arrested was issued by Mr T. D. Burnett, the sitting member for Teriiuka, at Milford last night. Mr Burnett expressed strongly his misgivings on the financial policy of the Government, and condemned the extent of taxation and the public works programme. More than 50 electors, presided over by Mr R. A. Lyall, listened attentively to Mr Burnett’s address. Not one interjection was made, and the candidate, who was given a hearty vote of thanks, was asked one question only. Since representing Temuka from 1919, his mission had been to make South Canterbury more productive and to make the farmers more secure, Mr Burnett said. The capacity of the people to produce wealth was greater now. Of all importance was that good relations .should be maintained with England, for New Zealand was literally’ carried on the back of “the old cow, the old ewe, and the old sow.” No other country was so dependent on its primary products, with their annual value to New Zealand of £64,000,000. He never wanted to see New Zealand again in the position it was in in 1932, when world prices collapsed. The policy of “spending back to prosperity” was rampant, and in the United States a crash was ,pre r dieted by authorities. In its last year of office, the Coalition Government made an appropriation of £31,000,000, while Labour’s last appropriation was £61,000,000, an astronomical figure required for running the country. Taxation for unemployment amounted to £5,300,000 in a time of unparalleled prosperity, while £20,000,000 was being spent on public works. New Zealand was the heaviest taxed country in the Empire, with taxation amounting to £23 a head. He was concerned with the effects on the population of 43,000 in South Canterbury. When he saw money being spent on big schemes, he exerted himself to obtain schemes for the district in the hope that more population would be attracted. Though he questioned the Government’s huge public works programme, he considered that the vitalising schemes of the DoWnlands water supply and the MidCanterbury irrigation scheme were absolutely necessary."

Lower Production

The knock-out blow to New Zealand might be the deterioration of stock, and the losses of stock might be a big factor on the revenue of the country from production.^which he felt might wane. He feared that the lower production would have a serious effect on the expectations of the Minister for Finance, so far as they concerned social security, and cause jthe. collapse of the present pensioii scheriles.

Income tax in New Zealand was excessive, and was hitting the man with moderate means. On an assessable income of £2so, v a- man. in New Zealand paid £9 6s Bd, as against £1 14s 8d in New South Wales, the latter figuring including Commonwealth tax; on £3OO, the comparative figures were £ll and £4 2s 4d, and on £350, £l2 13s 4d and £6 18s Bd. Even the Queensland income tax rates were lower than those of New Zealand. Evidence of the rise in the cost of living was collected in Wellington, said Mr Burnett. Coal which cost £3 in 1934 now cost £3 Bs. Firewood had increased from 3s to 3s 9d a bag. Shoes of cheap grade for woman went up from 9s lid to 12s 6d, men’s boots from 19s 6d to 24s 6d, and children’s shoes’ from 8s 9d to 9s lid, and from 9s 9d to 11s 9d. Some said: “Oh, yes. We have the extra money - to buy these things as a result of the advent of the Labour Goverment.” But how long did the money last in their pockets with the increased piling on of taxation and household expenses? Everything required by the average man and woman had gone up to such an extent that ‘ the benefits of increased wages were wiped out. The Wheat Industry The -wheat-growing industry had become only a family concern because costs had piled up. Some figures were that ploughmen’s wages were increased by 33 per cent., harvesters’ by 33 per cent., while binder twine cost 10 per cent, more, and farm implements 15 per cent. more. The Hon. -D. G. Sullivan had personally done his utmost for the industry; but he was hopelessly entangled in the Government’s general policy, under which the more wheat grown locally the more the Government lost, and the more imported from Australia- the more it made. Mr Burnett said he believed there was something in giving a local price, and, certainly, a price on grade. Three years ago, 255,000 sacks of wheat were shipped from Timaru. The export had fallen to 124,000 sacks, and down to 111,000 sacks last year. The only probable shipment this year was some fowl wheat. It was a tragedy. “Everything is Lovely”

“You can call me a gloomy prophet or a Jeremiah; Between the Rangitata and the Waitaki, 70,000 hoggets have perished through pulpy kidney and the bad winter in the back country will result in a light clip. The wool cheque for New Zealand is down by £7,000,000, yet we are asked to say that everything is lovely. Everything is carried on the backs of the farmers —there is no getting away from that. Can you say everything is right with the country? I say ‘No.’ The social security scheme was beautiful in theory but the financial structure was top heavy. The Government would have been wiser to have .taken the scheme in sections. For years some members of the Opposition had been spending time and thought on the realising of a universal superannuation scheme, where three parties—the State, the employer, and the employee —would contribute—and they had asked the Government to separate superannuation and put it into a watertight compartment in which it %ould be absolutely solvent and apart from the influences of any rise or fall of the economic barometer. He could assure the electors that things were not right. The experience of every country was that public works were not a solution to unemployment. England had made available cheap money to start industries and the south of England had become a great factory. New Zealand’s solution lay in ■ placing the men on the farms, and then in industry. When investors, mostly small and thrifty, found taxation too oppressive, they became resentful and class animus was developed. Costs would also make-the development of poorer classes of land impossible. If a subsidy were given farmers' for labour employment, a vicious circle would be continued and the hearts and the backs of those who were producing and cultivating would be broken. It was farcical that the people should be taxed—the policy of the Government was to extract to the bones—for unemployment, which, according to the Minister for Labour, was non-existent. A total of 35,096 men was being directly helped through the employment fund, although labour was required for production. The National Party’s policy was also briefly reviewed by Mr Burnett.

BULLER SEAT

ADDRESS BY MINISTER FOR MINES

GOVERNMENT’S “UNEQUALLED RECORD OF DEEDS”

[From Our Own Reporter.]

WESTPORT, September 21,

“We want to be judged by deeds, not promises,” said the Minister for Mines (the Hon. P. C. Webb), giving his first and probably only address as Government candidate for Buller in Westport to-night. “We go to the electors with a record of deeds unequalled' by any other Government in the history of New Zealand.”

The Theatre Royal, where the Minister was filled to capacity. The audience gave the Minister an enthusiastic reception, punctuating his address with frequent applause. Mr E. R. Fox (acting-Mayor) presided. Mr Fairbairni president of the Buller branch of the Labour Representation Committee, explained before Mr Webb spoke that it had been agreed that tlft Minister should be freed to allow him to speak for the cause of Labour in other electorates. Mr Webb said the Forbes-Coates-Hamilton Government thought it could end the depression by reducing wages. Yet from the time the cuts began in 1931, until the depth of the wage cuts, the number of unemployed rose with each cut from 22,000 to 79,433. The way to’ end a depression was not by cutting wages, and the spending power of the people; but by increasing their spending power, and giving them joos and security. In 1932-33 the Coates Coalition Government reduced wages by £23,000,000, a reduction of 28 per cent. Business became stagnated, and men, women, and children thrown out of work. Then when the Labour Government came in, the wages bill was, by 1937. increased by • more than £95,000,000, having a stimulating and revolutionary effect on industry. State Housing

; The Government, was determined to see the people properly housed, and to this end was providing houses in more than. 100 towns. There were 5300 men employed in building State houses, and every 40 minutes of every working day a completed house was being handed over for occupation. It was hoped by the end of this year to have more than 6000 homes built. In some cities' people were forced to- live in rooms in which others would not put dogs, and with these- conditions in view, the Government was going to establish a great lot of . flats for workers. He looked forward to the day when men and women who had no hpmes .would be able to have them m these flats. He visualised a large restaurant, where people could be given good meals. Since the Labour Government came into power 600 new factories had been registered, and they were not State factories. The number of . employees had increased by 8700, and since 1935 1000 more shops had opened. That did hot ■ look as though - the Government was shattering private enterprise. The Government - wanted to be judged not on promises, but in deeds. The National Party,- in ■ drawing up- its pplicy, had Pbyiously taken the Labour policy, ' and'said; “Let’s-pick what we can out of it, without making ourselves look too ridiculous.’*', Why then, did they oppose Government legislation when it was put through the House? The Minister reviewed the improved conditions provided for miners under the Government’s legislation, which included a 40-hour week and Christmas holidays on full pay. The production of coal in Buller had been increased since Labour- came into office by more than 30 per cent. Never in the history of the mines had miners earned more than they were doing now. Westpbrt Harbour

The Minister described the Government’s work for the development of pakihi lands in the Buller district, 2000 acres of which, he said, were now under grass, as a demonstration of what could be done. The Government was determined also to improve the Westport harbour, which would cost not less than £150,000, or proba’.’y £200,000, but the job would go through. The Minister said the Government had been determined to provide better educational facilities for children, and, to " care for the health of the nation. The social security scheme was the best in the world. Some young people complained at paying Is in the £, but they had to remember that they paid that at the depth of the depression, when wages were at their lowest. The security scheme provided benefits which would prove a great and wonderful blessing to the nation. There were many older people who had never voted Labour in their lives, yet were now looking forward to April 1 next year, when they would receive the benefits of the Social Security Act. If they voted out Labour they voted away the assurance of their benefits. He would day to the Nationalist?: “Advocate the repeal of the Labour Government’s legislation if you dare. If you don’t, then what are you kicking up all the fuss about.” The meeting carried a unanimous vote of utmost confidence in Mr Webb and the Government, and pledged itself to see him returned to Parliament.

MR WEBB ON THE WEST COAST

[From Our Own Reporter.] WESTPORT, September 21. The Minister for Mines (the Hon. P. C. Webb) continued his tour of the West Coast and northern South Island electorates to-day. Leaving Greymouth in the morning, he travelled to Westport, where he gave an address as Government candidate for Buller. - On the way he met Borough Council and State miners’ representatives at Runanga, and inspected the playing grounds beiiig laid out by co-opera-tive voluntary labour with the assistance of the Mines Department. Tomorrow he will leave Westport for Reefton, to give an address there in the evening.

MR SEMPLE IN TARANAKI

(PBBSS 4890CI1TI0M TH.XOEA.iI.) NEW PLYMOUTH, September 21. The Minister for Public Works (the Hon. R. Semple) continued his tour cf Taranaki to-day. He was accorded a civic reception at Stratford, to which town it was his first official visit, in the afternoon, and he delivered an address to-night in the Town Hall, which was filled. He will visit New Plymouth to-morrow, and speak there to-morrow night.

RT. HON. G. W. FORBES SPEAKS AT CHEVIOT

The Rt. Hon. G. W. Forbes, National Party candidate for the .Hurunui electorate, opened his campaign at Cheviot on Tuesday evening, addressing a large gathering in the public hall. Mr J. T. Read presided. The speaker was given an attentive hearing, although there were several interjections. Mr Forbes was given a vote of thanks, and answered several questions.

MR A. S. LYONS AT RAKAIA

Mr A. S. Lyons, Independent candidate for the Mid-Canterbury seat, addressed a well-attended meeting at Rakaia last evening. Mr D. McNamara presided, and at the conclusion Mr Lyons was accorded a hearty vote of thanks.