The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MARCH, 10th., 1931. A LABOUR DECLARATION.

Hokitika Guardian, 10 March 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MARCH, 10th., 1931. A LABOUR DECLARATION.

Because Mi- Savage M.P. is the Deputy Leader of the Political Labour Party, special interest attaches to his declaration of policy last week at Auckland regarding the general attitude of the Labour party to the present situation. As Parliament assembles immediately now, the load given by Mr Savage suggests what is Labour’s alternative to Mr Forbes’ proposals on behalf of the Government. Air Savage had a very large meeting in the Auckland Town Hall, and a capital hearing. His policy speech was summed up in the motion carried at the meeting (though the Chairman of the meeting refused an amendment) as follows:—“This meet-

img of Auckland citizens protests against the proposals put forward by the Prime Minister, to reduce wages and salaries in all services; expresses the opinion that such a policy is equivalent to a class tax; is uneconomic and will strike a fatal blow to trade and industry in the Dominion. -Vs alternative proposals, the meeting recommends: (1) 'That current nat:onal charges should be met by a surtax on incomes (2) That- the present industrial depression should be lifted by raising an internal re-construction loan, the proceeds of which should be utilised in the further development of approved industries, primary and -eeondaiy. Methods similar to those mbodied in the Discharged Soldiers’ lettlement Loans Act, 1920, to be dopted in raising the money.” Mr avnge it would appear like nil folk ho question the so called wages cut,” refuses to face the national ■ osition. They are 'blind to the financial drift in regard to the national income, and refuse to believe that there can be any serious halt in the country’s range of expenditure. It is a good ideal to maintain a high level of living if it can be done honestly. But a nation is like an individual who tries to go on living above his means, The day of reckoning will come, and when the impasse arrives, and the individual faces the bankruptcy court, he is punished because he did not attempt to retrieve his financial drift when he found he was going back. Very often eases of that nature arise with individuals through no fault of their own. They are overtaken suddenly and unexpectedly after a long period of success and fail to realise their obligations in such a situation. The drift in Australia at present is akin to that. The long run of high prices raised wages ami salaries and the style of living to a degree which cannot be supported to-day. But Labour as the ruling political power, refuses to face the position and cut costs in order to maintain the financial equilibrium. Air Savage seems to voice a similar policy for New Zealand. He would tax what capital there is out of the country, or appropriate it to the State to keep on paving high wages and salaries. That would he excellent while there was capital to so confiscate. But when the remnant that was left had gone—what then? The impasse within Australia would recur in New Zealand. and for that reason the people of this Dominion should not allow themselves to be misled by Labour at time of political crisis. As a northern paper adds, in referring to Mr Savage’s address, there are two aspects of the problem of wages and standard of living to which especially the attention of the Labour Party should he given. Farmers, whose industry is unsheltered, have suffered very severely. In numbers of case* their wages have been reduced to practically nothing, and their standard of living’ to a bare existence. Everybody hopes, of course, that this state of affair* will not last long, but there it is. While his country brother is being so affected, why should the town worker expect to remain on the same level of wages? In some cases the almost b^nkm

farmer must pay more for goods and services because town wages are what they are. Then there is the question of income tax. Tt. is the fairest of all taxes, but obviously it has its limitations. Mr Ravage proposed a surtax. on individual incomes for preference, and this preference shows wisdom. There are men in New Zealand who can afford to pav more in income tax, because the hulk of their large incomes is derived from non-taxable sources, and for years it lias been urged that this class should contribute more. But if the Labour Party really believes that taxation on incomes of professional men or industrial concerns can be increased to any great extent, it is making a profound and disastrous mistake. There is not the income to tax. The Labour Party seems to be still haunted by the old fallacy that wages and taxation are drawn from some mysterious and inexhaustible fund. It is neither mysterious nor inexhaustible. Just now it is very much less than it was, and we must alter our living to suit. The worker cannot expect to have it both ways, to see the State take more from the em-. plover, atnl himself to draw the same amount as before. With Parliament now assembling the economic situation will be well discussed, but where finance is involved two and two will always make four, and no amount of sophistry by the Labour lenders enn alter the facts which the country must face to meet its financial obligations.