LABOUR'S POLICY

Rotorua Morning Post, Volume 2, Issue 445, 1 February 1933, Page 5

LABOUR'S POLICY

("Post" Special Commissioner) .

a definite challenge MR. SAVAGE OUTLINES THE PROPOSALS OF HIS PARTY. | A BOLD OUTLOOK

^Wellington, Tuesday. Labour's alternative to Government's policy, especially in relation to exchange infiation, was disclosed by the party's deputy -leader, Mr. M. J. Savage, in course of his secondreading speech on Banks Indemntiy (Exchange) Bill in the house to-day. The five main points enunciated by Mr. Savage were 1. Pending the constitution of the State as the sole issuing authority Parliament should authorise the Government to raise suffieient money within New Zealand' to suhsidise farmers according to their needs for legitimate current farm expenses, the subsidy to he paid direct to farmers concerned. 2. Co-operation between the Government and primary producers in arranging for a guarantee of the price Ijor primary products, based on a five-yearly or other pericdic ttioving average. 3. Definite action by the Government for the improvement of dairy herds ahd farming methods along the lines outlined before the inter-party commRtee in 1931. • 4. Definite planning along modern lines for the development of primary and" secondary indugtries with a view to establishing a more evenly-halanced industrial scheme within New Zealand. 5. A complete reversal of the policy of deflation through wage and salary reductions and a careful use of public credit through existing banking machinery for the purpose of national reconstruction. It was argued by the deputy-Lab-our leader that the State should be prepared to guarantee a reasonable standard to all who performed necessary service. That would mean guaranteed prices for primary produce and an average income for citizens suffieient to enable them to maintain that guarantee. Had guaranteed prices heen substituted for wage reductions the amount of money in circulation prior to those reductions would have been maintainea and trade and industry would have continued to prosper. If guarantees were to be of a lasting nature they must be universal in character. The House held the power to save the people of New Zealand from further unnecessary sacrifice. It could at once pass legislation authorising the Government to raise £10,000,000 at any rate of interest it pleased, or for no interest at all, to carry out a properly ordered plan of national development. Farmers would get permanent relief when relief came to all others. It would not come in any other way. Parliament also had power to compel, if necessary, all citizens to make ( their savings available according to I their ability for national reconstruction purposes. "Citizens will respond if we do our part," declared Mr. Savage, "it will be the provision of a means of livelihood for their children." j Contending that the nation should not fear to deal with the monetary problem, Mr. Savage maintained thai there was no monetary system whicb would benefit the people or increase the amount of currency in circulation excepting one which would keep pace with increased population and unless huying power was also increased.