“THE REAL ISSUE”

Press, Volume LXXIV, Issue 22515, 24 September 1938, Page 18

“THE REAL ISSUE”

Private Enterprise Versus Socialism LEADER STATES NATIONAL PARTY POLICY Enthusiastic Meeting in City “Although the two issues of _ social security and guaranteed prices are important, neither gets to the heart of things. By saying those are the issues at this election, the Prime Minister is not going to get away with that type of camouflage. It is not his right to say what is the real issue. We have the say in that. The real issue is private enterprise and British freedom versus Socialism and State ownership. Is New' Zealand gomg to throw overboard the economic system that has built up a wonderful country? The Prime Minister says the battle is between stupidity and plain common sense. If the Prime Minister insists, I shall agree—but the common sense is on our side, not his.” Setting out the issue in this form in a public and broadcast address in Christchurch last night, the Hoh. Adam Hamilton (Leader of the National Party) made a full survey of the political situation and expounded the policy of his party- His address created great interest, and half an hour before the hour of the meeting the doors of the St. James’ Theatre had to be closed and rush arrangements made for a relay of his speech by loudspeaker to the crowd of several hundreds unable to be admitted. The enthusiastic support given to Mr Hamilton’s views outweighed the minority disapproval. The expression of disagreement continued incessantly, and the countering applause of his supporters was also undiminished throughout. At the end of his two hours’ address Mr Hamilton was cheered. The audience sang “For HeVa Jolly Good Fellow,” and a hearty vote of thanks, confidence in him as Prime Minister, and a pledge to work whole-heartedly for the return of the National Party was declared carried overwhelmingly on the voices by. the chairman (Mr T. Milliken). The tenor of the meeting was one of good humour, and Mr Hamilton had no difficulty at any stage of making himself heard.

“It is alarming to note the rapid increase in the total Government expenditure over the last three years,” said Mr Hamilton. “The years 1927-28 and 1928-29 compare somewhat similarly as ta prosperous conditions, with the three years that the Labour Government has been in office—the total Government financial requirements (for those two years) averaged £29,000,000 a year. For 1935-36 (the year before this Government took over the responsibility) the total require-' meats were £30,670,000 —or £ 1,500,000 up in eight years.' In the'first year of Labour’s office the total requirements jumped up from £30,000,000 to £42,400,000. In the second year of Labour in office, the amount rose to £54,000,000, and for the session that has just closed, the Appropriation Bill embodied the huge vjexpenditure of more than £61,000,000. . During the three years of Labour rule, the total Government requirements of money has jumped up from slightly more than £30,000,000 to more than £61,000,000, almost exactly double. Taxation Increases The National Party, ; on the other hand, stood for a reduction of taxation. It believed that the smallest amount of taxation possible should be collected, consistent with the efficient carrying on of the proper functions of a democratic government. As a beginning, and to show its determination to reduce taxation, it promised to reduce, or abolish, the following taxes:— 1. Unemployment tax on women with income limit of £230. ' 2. Gold duty, to help gold mining. 3. Petrol tax by at least Id a gallon. 4. Badio licence fees from 25s to 15s. SOCIAL SECURITY No measure .bad -been so hacked about with alteration and major amendments than the Social Security Act. said Mr Hamilton. Perhaps no major measure in recent years had been ot such wide, direct interest to the community. He was fully aware that the Government had emphasised the “benefits” side of the bill and bad consistently soft-pedalled on the financial side. When there had been any evidence of disquiet in thq minds of the public as to financial aspects of the proposal, the retort of the Government on each occasion had rather suggested that those who

bothered about that were merely “umbrella” people; foolish, careful and thrifty people who would not take risks. Financial Aspects Some people had been misled into ‘thinking that the taxation was paid by the banks, insurance companies and by the wealthy people. Those who thought that the worker does not have to pay these large taxes were under a stfd delusion. The big trading concerns were merely collectors of the extra taxes on behalf of the Government, : but- the worker and all the people had to pay; there was no escape. All taxation came out of commodity prices—that was exactly what happened when housewives had to pay .an extra -penny here, sixpence there, or a shilling or a half-a-crown somewhere else, on almost everything they bought; these extra costs were merely the additional load people paid because of" the -increased taxation imposed by the Government. - “Mr Nash has publicly stated that no additional taxation will ibe Necessary because, be says, the* country will be so prosperous that the present rates of taxation will give him, increased revenue.” Mr Hamilton continued. “That would not have been so bad, had not the same Minister—the same Mr Nash —written the 1938 Budget, because, in that document, be has placed his signature to a statement that he estimates the Government’s revenue to be £214,000 less than it was last year. He cannot be right both ways. Superannuation “In speaking of the phases of social security, I would like to divide them into its two natural headings of superannuation and health insurance. The correct definition of superannuatioh is a contributory system which provides a stated amount at fixed periods, at a certain age. regardless of any means test. The Government’s proposal will not measure up to any such 'Standard." The proposals submitted to the Select Committee merely changed the name' of the existing old age pensions and called them “superannuation.” The same old means test was applied, ,as previously. Thousands were * disappointed.. The Government had to do something tp repair that damage. Thus, when the Social Security Bill wqs introduced, ' the najne for pensions was changed to “age benefit” and an addition was made of a “superannuation scheme” under which every person 65 years of age—not 60, as .promised—would receive the magnificent sum of 3s lOd a week for the first year, 194041. There was a general desire by the people for a properly thought-out superannuation scheme that would provide an . income in a person's old age, regardless of other resources. The present scheme was entirely unsatisfactory and utterly failed to meet, the peonle’s desire.

“The National Party has a plan to meet the desire,”, said Mr Hamilton. “It holds that superannuation funds must be administered in a separate trust, independent of Government finances. The scheme should be financed by direct contribution entitling every person to the benefit without a means test. Those persons, including State employees and others in -■ private superannuation schemes who have made provision for their own old age—provision at least as adequate as (that provided under the State scheme—shall be exempt from any compulsion to subscribe to the State scheme. They may enter the scheme voluntarily if they wish-. The best that the present Government can give by way of a superannuation scheme is £lO a year for those 65 years of age in 1940-41, and it rises by £2 10s a year to a maximum of £1 10s per week.” Friendly Societies

There was not one word in the Social Security Act to ensure that the Government would co-operate with the Friendly Societies. The Prime Minister said that the Government would co-operate, but the wording of the act was the final test, and that contained no provision for co-operation. People could not reasonably be expected to pay into a friendly society while they were being forced to pay for similar benefits into a Government scheme. The act sounded the death knell of the friendly societies. Pensions to be Retained “The National Party will not operate the present Social Security Act on becoming the' Government but every pension or other benefit that ! s payable to-day will be continued at the present rates,” said Mr Hamilton. “In, addition to these, we will make provision for a free maternity service for all, as well as providing pensions for widows without children and pensions for orphans. The family allowance introduced by a previous government, which still remains at 2s a week, will be liberalised by increasing the rate to 4s a week, for all children in excess of two. “The special wages tax of Is in the £ will not be charged, and the existing rate of 8d in the £ will continue. This also means that the 16 to 20-year-olds will not pay wages tax, women and children will not have to register and pay registration fees, domestic workers will not have to pay, and women will be 'entirely exempted from tax on their wages and salaries.

and also on their income other than Wages and salary, provided it does not exceed £250. Relief workers, sustenance men and pensioners will also be exempt from wages tax, and I want to remind you that, as the act now stands, as it passed both Houses of Parliament, there i no exemption whatever from wages tax, and, unless the law is altered, everyone—pensioners, relief workers, children over 16 years, women—in fact everyone, Maori and pakeha, must register and pay the levy and also pay Is in every £ they earn. 'Nothing that the Minister for Finance can say can alter the fact that what I have said is strictly correct, and the Minister and his colleagues actually voted against amendments moved by the. Opposition to make provision for exemptions from wages tax on women and children, domestics, pensioners, relief workers, sustenance recipients, subscribers to existing superannuation funds, as well as for members of friendly societies. All the Labour votes were cast against the amendments to exempt these people from taxation. - “If the Minister ever really intended to exempt the people, then he has had his chance and voted against exemptions. Already the Minister is showing that he is running away from his bill, and, as a death-bed repentance, he is promising exemption for this, that, and the other person.

LAND SETTLEMENT “New Zealand is still a country whose export wealth comes almost entirely from its farming industry. When we consider that for the year ended June, 1938, exports totalled the enormous record of just on £62,000,000, and that almost £59,000.000, or 95 per cent., of that amount came from our farms, it is not difficult to realise the great value that our farming industry is to our economic wealth.” “We will also pursue a policy of subdivision of suitable areas of classified holdings. We will encourage voluntary subdivision by reducing, or removing, many of the costs at present to be paid by those who subdivide their holdings for closer settlement. There are large numbers of young * men with small amounts of capital who to-day are anxious to make a home for themselves on a piece of land. We will provide every assistance, both with finance and finding land, to see that these people obtain suitable areas. We will co-operate with and assist land owners so that increased settlement through Subdivision will be accelerated.” Group Settlement Group settlements under proper supervision would also be provided for the purpose of training prospective settlers. After gaining the necessary experience, but as soon as possible, each settler would be given, on an economic basis, a suitable title to his own area. Successful farming could be carried on only by farmers owning their own piece of land and being free to manage their own holdings according to their own judgments from day to day, and also to carry their own responsibility with the least Government interference except by friendly co-operation and advice. GUARANTEED PRICES

“We have now had two full years experience of guaranteed prices for dairy produce,” said Mr Hamilton. It is necessary, when discussing this subject, to understand fully just what is involved. The subject naturally falls into two parts. First, the commandeer of the farmers’ dairy produce at a fixed price by the Government its e lf, and second, the system of marketing. When the Government members speak of guaranteed prices, they conveniently say nothing about the commandeer at a fixed price, and speak only of the marketing system. It as the commandeer at a fixed price that exception is taken to. The Government claims that the system gives justice and stability to the dairying industry. We say that it has brought neither. How had the farmer actually fared in cash paid during the two years the system had operated? Figures were quoted by Mr Hamilton t<) show that it could'be said that for the two full years ending July 31, 1938, the farmers had. got at least £500.000 less than their produce actually brought in the world s markets. On top of that, the farmers had had to carry all the added costs burden—estimated at • millions of pounds—that the Government placed on the industry. It was because of this, that the committee set up by the Government to recommend what the price this year should be, recommended a rise of 2d per lb. The dairy farmers therefore had a very costly experiment forced upon them. The further fact that, for this year, the Minister refused to grant the recommended by his own committee, proved that the Minister was not prepared to stand up to his much vaunted insulation theory, but, instead, related the guaranteed price to the market price, and cut the committee’s price down by £1,289,000 less than the price recommended by the committee.

ing the principles of the League of Nations, or deprecating the ideals of the system.it represents, I am apprehensive of any blind faith in those principles and ideals which can be maintained only at the expense of Empire and national safety. Nothing must be allowed to happen to-day which will make our preparation for emergency inadequate or unbalanced. No action can be justified which has the effect of prejudicing the nation’s unity at a time when unity of mind and purpose can so valuably influence foreign, opinion.” Responsibility for Defence

“I believe that Mr Chamberlain is making a real effort to prevent war and it is the duty of New Zealand to assist him by every means in its power,” said Mr Hamilton. “Mr Chamberlain made the responsibility of each Dominion clear in his speech early this year when he spoke in the House of Commons on the British programme of expenditure on defence. It contained more than a strong hint to the Dominions—New Zealand no less than any other. —that an emergency might arise, the nature of which would make it impossible for Britain to detach naval forces for overseas defence. In plain language, we must look more to ourselves. Are we preparing adequately for the eventuality which Mr Chamberlain clearly indicated?

“It should be the New Zealand Government’s duty to review its defence system in the light of the change in the strategical situation in recent years. The National Party will co-operate in that review, which will include every branch of the military forces —not merely one section. Although some credit must go to the Labour Government for its attention to certain factors, particularly air defence, that is only part of the picture. Our defence policy should be based on the assumption that in a last resort we might have to defend ourselves until assistance from overseas arrived. Other sections of the Empire are playing their part well. Australia has responded magnificently to the appeal. South Africa has also responded. New Zealand must respond through its naval military, and air forces. When the National Party becomes the Government it will see that this all-round provision is made immediately.

HOUSING SCHEME When he dealt with housing, said Mr Hamilton, he dealt with it from an angle that the purchase of a home would be one of the best day’s work- a man did for himself and his dependants. The natural desire of man in all ages and in all countries had been to become the owner of the place he had made his home. That spirit was not dead in New Zealand. There was no better security f.?r one’s old age than owning one’s own home. Owning a home should be the very essence of any real social security because rent was perhaps the largest fixed charge which depleted the resources nrovided for that time. As in other matters, the Social!-1 Labour Government, after failing to establish a State scheme to meet more than a small section of to-day’s pressing needs, was endeavouring to- discredit the National Party’s announced determination to put housing on its former sound footing. It was, unfortunately, necessary when dealing with this subject to publicly denounce misleading statements made against the National Party by the Under-Secretary for Housing (Mr J. A. Lee). He had made two very remarkable allegations —so fantastic, but at the same time, mischievous in their effect if they were allowed to go unchallenged. At Christchurch on August 8 of this year,,Mr Lee said: “Were Labour beaten at the poll at this election, then the next day the timber mills on the West Coast would close down.” This attempt was not isolated. During the t previous week, Mr Lee was reported in a newspaper in Levin as having stated that to-day 5000 people were employed on State houses, but that if the National Party were returned at the election these workmen would all receive notices to quit. . . ~ “Emphatically I state to-night that there is not an ounce of truth in these statements,” said Mr Hamilton. “When the National Party is returned as Government at this election, it will not scrao the whole housing* scheme and throw thousands; of men out of work. Let me put the National Party’s housing plan plainly. We will approach the housing problem from the standpoint that—a home owned is far bett :r than a home rented. The Socialist Labour Party believes that the State should own the houses, and that the people should be State tenants. ■ The National Party stands for private ownership of the houses as the basis of our national life."

Right of Purchase The right of purchase would be given to tenants of State rental houses, and in other cases, liberal advances of up to 90 per cent, w’ould be made available to home builders, while every encouragement would be given to building societies to provide the necessary capital. “Realising the responsibility of the State to see that adequate housing is available for the people, we, aim at a programme of 5000 houses a year,” he continued; “An indication of how the Labour Government has retarded house building and killed private enterprise is shown by . these figures taken from the Official Year Book. Under orthodox Government, through private' enterprise, in 1926, there were 6850 houses built, and in 1927 there were 7179. Under the Labour Government, with so-called greater prosperity in 1938, there were 4140 houses built and, in 1937, 4555. Reduced to simple terms, that means that the

TRANSPORT The policy of the party on transport would be to encourage and, make possible in every way that it. could the evolutidn of the most efficient type of service. The party stood for the protection of the public interest through the watchfulness of the Government, but this would be maintained on a definite policy of a minimum of Government interference. The aim would be to develop a spirit of cooperation within the - industry. The fundamental difference between the policy of the present Government and the National policy would be that the National Party would aim to give the greatest measure of freedom ,to all operators in, the industry consistent with the adequate protection of the public interest. It would not pursue a policy which in any way savoured of regimentation, restriction, or suppression, nor would operators be disturbed in the carrying on of their businesses except in the case of clearly-shown advantage to the public interest. r The keynote of the policy would be service to the people, and that cou'il be obtained in its fullest measure ' only by developing the initiative, experience, and ability" ox cwery section of the industry, road, rtil, air and sea.' The State would stand, not as, a monster seeking to devour everything within ks reach, but as a guide and friend helping everybody in the transport industry to develop along sound and serviceable lines.

EDUCATION “I am certain that democracy can only be maintained by a free, independent and educated people and that the children are the greatest asset of every nation,” said Mr Hamilton. “After the environment of the home, the part played by the teachers in shaping the destinies of children and young people is of paramount importance. In recent years there 'has been a wonderful awakening of. interest in culture in New Zealand, and this has been directly and largely the result of the efforts of our teachers to improve, amend, and advance a system of free and compulsory education evolved from that established by. the pioneers of this Dominion who struggled and. sacrificed to make resources available to themselves and posterity. “It is our duty to-day to see that opportunities knock at the door of each child and knock at the door of' each adult too. My party will continue to co-operate with the educational workers to carry on the magnificent development of to-day’s facilities so that tomorrow always offered a higher goal.

DEFENCE “We have been concerned a, great deal in discussing social security for ourselves, but there is .a more pressing and important need for national security—defence,” said Mr Hamilton. “The principle has been laid down for many years that each of the Dominions is responsible for its local defence. With the world situation as precarious as it is to-day it is impossible to escape the impression that the danger of a European crisis threatening the safety of the Mother .Country and the . Dominions is not- so remote as i has been imagined. .Without question-

Labour Government’s scheme under State domination produced more than 5000 houses fewer than the scheme of the orthodox Government of 1926-27. And people to-day in the city, town, and country still endure the harc.jhip of house-hunting which is an almost hopeless task/ Every man and woman knows that to be true.” _ “The building industry is second only to farming in importance in our country, and it must be recognised that any legislation or administration that seriously disturbs the equilibrium of such a large industry must inevitably have a serious effect on our whole economy,” he said. “Social security begins in the home. The horns provides environment for the family., Fundamental Difference “There are fundamental differences between the two contending parties,” said Mr Hamilton. “On the one hand the Labour Party is out to break down and destroy the existing economic order, and substitute in its place a system based on the philosophy of unadulterated, revolutionary Socialism, with State ownership of property and of industry and trade, and direction of its operations by the workers themselves. They seek to destroy private investment in industry by taxing it out of existence, and removing all incentive to invest money in industry. “On the other hand, the National Party believes in the present system of private enterprise and seeks to develop it in accordance with the philosophy of personal freedom, initiative, thrift, and private ownership of all property, with the right of investments to earn a reasonable return commensurate with the nature of the investment and the risk involved. The National Party regards the Government as the authority to §ee that reasonable i conditions are observed in the conduct of trade and industry, and that abuses, inimical to the public interest, are not ipermitted.- Wherever possible, the 1 Government should co-operate with .private enterprise, with a view to providing an even beter service to the ■people. “The real issues are private ownership or State ownership, individual [freedom or State dictation.

WAVE OF ENTHUSIASM “In the issue to-day of British de.mocracy against State Socialism, there arises the fundamental issue of race preservation which can only be based on family life. It has well been said that ‘the family is the little nation.’ Socialism seeks to replace the family iby the State, and, in so doing, ignores a matter of basic loyalties. Family spirit and family loyalties have been of supreme importance in shaping the character of the British race, and you all know it is true that if family loyalties and family responsibilities are allowed to die—killed by State dictation—then the race will die. The Country’s Founders “I believe that no propaganda, however cleverly camouflaged its exaggeration, can convince , the New Zealander to depart so far from the principles of his forefathers as to accept Socialism. The country was founded by a people who came halfway round the world; who braved all the discomforts of travel and the dangers of colonisation of those days and who hewed their homes from the bust* They came so that they might win a stake in the country—own their own homes and farms anij provide for their future and that of their children. From their efforts and the work of those after them, this country enjoys a standard of living second to none in the world. It is a country that has been famous for its humanitarian legislation. You know, and I know that the Labour Government is responsible neither for the standard of living, nor for that legislation. “The National Party will legislate throughout, on a basis of freedom, opportunity and justice for the individual and for his family. As the Leader of the National Party, I appeal to you all here —and to all those, young and old, listening in homes throughout New Zealand, to provide it with the opportunity of restoring this nation’s heritage.”' “An Outstanding Address”

“Tkis has been an outstanding address by an outstanding man,” said Mr S. G. Holland (candidate for Christchurch North). Mr Hamilton had conducted his examination of the political issue on a high ethical plane. There had been no mud-slinging, and personalities had been conspicuous by their absence. Amid uproar, Mr Holland, who was supported on the platform by Messrs Gladstone Ward (Christchurcn South), Hiram Hunter (Avpn), H. S. S. Kyle (Riccarton), and K. Armour (Christchurch East), the party’s candidates, moved: — “That this mass meeting of citizens of Christchurch accords to the Hon. Adam Hamilton a hearty vote , of thanks for his outstanding address on the present political situation and pledges' itself to work ' wholeheartedly to ensure the election of the National Party. This meeting also accords Mr Hamilton a resolution of its opinion that it had confidence in him to lead the country as Prime Minister.” The motion was declared carried, in continued uproar, by the chairman, and "For He’s a Jolly Good Fellow” was sung and cheers were given.