MORE SOCIALISM WANTED

Chronicle (Levin), 4 September 1948, Page 7

MORE SOCIALISM WANTED

Dr. Finlay's Cure For N.Z.'s Troubles WELLINGTON, Sept. 3. • Wlien the Rouse of Bepresentatives i'esumed the .Budget debate this morn ; ' rng Dr. A. M. Finlay (Lab., Nortli Shore) continued his overhight' contribution with the introdiicti'qn .of a ' iiye sutrject in the. f oroi of tlie relation- . sliip of~ workers' incoiues' to eurrent priees/.(and the earnings pf othsr seetions pf- thp community. Dr. Finlay said the time was: oppoiv tuue to assess the progress so far made in New Zealand toward Eocialist economy. Tliere was some doubt as to whetlier the workers' share of nationai income was increasing raiiidly enougii in relation first to prices, and secondh to the income of other secti'ons of the community. That was oue reason foi restoring New Zealand's c-urrency to sterling parity, but it would not bo sullicient to see that the intention to reduce prices imniediately was carried out. What was now required was a speciiic increase in the workers' share of New Zealand's nationai income. On available statistics, he said, tliai increase should be transferred from the employers, and eniployers generally could alford.it, altliough some employers were less prdsperous than others. The particular aim during the transitional period following tlie exchange move should be to abolish anomalies within the preseut wage struclure by iifting tlie incoines of lower paid workers and by allowing increased niai1gins for skill. This involved iirst an increase in the present basic wage. The next step to adjust the wage system uiore thoroughly might call for a reconsideration of the wliole Arbitration Court system as it now operated. Dr. Finlay said that whatever was done to lift wages or the workers' lower incomes, and then to increase tio workers' total share of the nationai income, must be done at the cost ot' tio omployers concerned. If an employe: could not alford, by increasing hiproductive elliciency, to pay a reason able wage he should go, and make his stalf available to more eflicient units Oi production. Where necessary a direet Government subsidy should be paid to essential undertakings wlilcli could noi o.tiierwise alford to pay higher wages. or, better still, tliey should be carrieo 011 by the State as a public monopoly. New Zealand's properity was now such tliat the time was ncver more suitable for further systematic. uieasurcs oi |danned Democratic Socialism. He thouglit tlie best prescription t'o> New Zealand was "the mlxture as be iore"— a continuation of those pruden doscs of Socialism wl;ich tlie Gpvern meiit had admiuislered in the past, and •vhicli had made the patieut tlirive. An Opposition voiee: lleaven for bid! Mr. J. Ilanan (Nat., Invercargill said Dr. Finlay should be coiniueiidril loi sUch a frank discJosure of hi oltfiuate ifjiipis. *D,r. FinkiyiilHUtl said that the whole Laliour Party wer left-u ingers ' ' but he was very mueJi to the Jeft of the left, in fact, almosi "over the edge." His .claim that tli pabour, Partv was the true inhoritu ot the Liberal trndition was . aii audacious, grotcsque hallucinatioii. Twe 1 iindaineiitaJ eoncepts of Libera-ksiii wcre the preservation and. extensio: ut personal liberty and Ihe suboi'dj'iia tion of ..class interests to those oi the community. Dr. Finlay sincerely believed ii possible to build Socialism within a tree Dcmocracv. Mr; G. F. ' Sim. (Nat., Waikato; that s lus new belief. Mr. Hanan said that if Socialism "eie to go beyond a certaui punu . could be achicved only wilhin a democracy" as tlie Iiussians uiuler •stood it at tlie sacrilieo of poraonal roedom, vvliich coald uot survive in tij;« torm of Socialism envisaged bv D--Finlay. J The Budget gave no fncentive to farmcrs in tlie way of taxation relief ulnch the Government could alford bv cutting down some of its own expenUiture, espeeiaily in tlie Prime Mini8!e"s Depai'tmeut, which now had a staff oi 221, and by curtaillng Mini s eiia and other official visits overseas said Mr K. G. Gerrard (Nat., Ashburton). Apart from Ihe exeliange ques tion the Budget was the same drearv uuJl unimaginative document as was presented last year. It paid iip service only- to increased production and it was tane there was a cliange in the occu: pancy of tlie Treasury benehes. Mi. 1. Omana (Lastern Maori) said in any iarmers thouglit last season's prices for wool were too high and a was anticipated in- the coming season. He lioped the farmers ' leaders would seriously consider the proposition of a guaranteed price for wool. It was pleasuig to note that Maori ex-servicemen were continuing to take advantage ot rehabilitation assistanee, but it would be only a matter of time . betore the number of Maori nien eiiglbie for trade traiuing would be exhausted. He lioped tliose eentres would be letained for future use of younger Maori trainees. " .. Mr. J. K. McAlpine (Nat., HeJwyn) «aid meinbers of tlie Opposi tion had given their ovyn personal opiuions 011 tlie adjustment of the exeliange rate and no oue had attempted to spcalc for tlie partv as a whole. He had the gravest diiHeuity to be quite sure that the opinion he had reached would not' be iufluenced by the fact that the removaJ of tlie exchange- was a detrimental step so far as he was personally con^ccrned, but in consideriug the questioh he had tried to set aside his own particular eircumstances. • Mr. McAlpine said he thought the removal of the exeliange ra'te must inevitably react adversely on the people of New Zealand. It was, when all was said and done, a question of inflation and deflation and the removal of the exchange rate had the elfect of deflating the eountry's curreney. Tiriies of deflation J and, inflation were the two oceasions on ) whi£h the spending power of the -working nian was redueed. The two main elasses vvho would sufier from the removal of the exchange were the sheepfarnier and the manufacturer who were prnbablv concerned with fourfli'ths uf fhe total income of thc coun- •

try. Eeduction of the exchange krato was deflation and during such a period oue of two tliings had to be done — to reduce internai costs or reduce the number of men in industry. Dismissals had already occurred in the short time tliat had elapsed since the removal oi tlie exchange rate. ,He felt that the Government had not done the wrorkers any service in aitering the rate. In fact it had done them a disservice. Mr. D. W. C'oleman (L.ab., Gisborne) said the decision to alter the exchange rate was made by Cabinet without any advice from oUtside. He went on to ' say that the Labour Government had done more for the farmers than any other Administration. Mr. Holland: Why haven't you more farmers' seats? Mr.Coleman: Tlie farmer seems to be a pecuiiar kind of aninial, always "aginthe Government." . .