LABOUR’S POLICY

Hokitika Guardian, 7 November 1931, Page 2

LABOUR’S POLICY

Commenting on the policy outlined by the Leader of the Labour Party on AVednesday night, the- Christchurch Times says the outstanding feature is its utter disregard of the plainest I facts of the financial position, Air Holland proposes to solve all our ■troubles by .the “rehabilitation in industry” of al) now unemployed or working part time, and at “wages that would provide a reasonable standard of living.” This would involve “im--1 mediate further provision for the unemployed out of the Consolidated Fund” and additional grants would be made to Hospital Boards for the | relief of distress. AVliere is this money to come from ? The Government is at iit.s- wits’ end to find even the present monetary provisions. It is increasing taxation to the stage ait which it has become a serious capital levy, and, even so, it is extremely doubtful whether the Consolidated fund will be able to carry the burden already laid on it. Air Holland, however, sees no difficulty in this direction. Nor, apparently, does he anticipate difficulty in “organising the industrial resources of the country on modern lines,” whatever that may mean. AVliat Air Holland means by it. plainly, is that it would provide a ovel.bsoutiding excuse for credit In flation, because lie proposes internal credits, which can come only from borrowing or from an increase in the note issue. He makes the amazing statement that the credit system in private hands has “practically broken down,” and after suggesting a central bank under State control he declares that the Labour Party, in addition to increasing the note issue, would raise credits by means adopted during the war, which, of course, means neither more nor less than a system of forced loans. AVe shall have other opportunities of discussing the Labour policy in detail, but in the meantime it is sufficient to indicate its broad character. It is really based on the Ideas of inflation on the one hand and penal taxation on the other, at any rate in its newer features, and it shows that the Labour Leader is /rather concerned with large promises than with the means of fulfilling them.