Labour Party Policy

Sun (Auckland), Volume III, Issue 903, 21 February 1930, Page 10

Labour Party Policy

GOVERNMENT CRITICISED Finance, Land and Industry

Press Association WELLINGTON, Thursday. THE following statement representing the decisions of the Labour Party caucus, which has been sitting in Wellington during the past two days, has been handed to the Press by Mr. H. E. Holland, Leader of the party.-

The outstanding features of the present economic and political 'situation in New Zealand are the problems of finance and credit, land settlement and utilisation, unemployment and industrial depression, and the critical conditions which have developed in connection with New Zealand’s administration of the League of Nations mandate for Western Samoa. On all these questions the Labour Party finds itself at variance wiiji the policy and administration of the present Government. The Government in its policy placed before the electors specifically promised -that it would reduce mortgage loan money rates and would provide the credit required for farmers and workers at 4| per cent. While it has made more money available than the previous Government, yet it has signally failed to keep its promise. HIGH RATES FOR LOANS

The fact that high rates are still being charged by the Government for loans to farmers, settlers and workers and that difficulties are now being placed in the way of obtaining legitimate amounts from -the State Advances Office, followed by the Government’s offer of 5§ per cent, interest on its own gilt-edged securities, have all contributed to the position which has helped private banks to demand higher overdraft rates. The Reform Government’s action, continued by the present Government, in reducing the amount which could he placed in the Post Office Savings Bank at interest has also strengthened the control now being exercised by the private banks.

The action .of the hanks in raising the minimum overdraft rates to 7 per cent, has been detrimental to every local body, farmer, manufacturer and trader and will add to the prevailing unemployment. Other than the maintenance of the high dividend rate to shareholders no purpose is served by the increased charge for accommodation to either farmers, traders or local bodies. The amount the hanker will advance on overdraft is not affected by the rate of interest charged. The

Labour Party is of opinion that the industries, primary and secondary, and the commerce of the Dominion can only be fully developed by a better organisation of credit under public control. ASSISTING THE PRODUCER The powerful buying interests now operating in and for overseas countries render it essential that the primary producer should be assisted to the fullest extent. The main market for our produce is Great Britain and the policy of the British Labour Government is clear and definite. It is willing to co-operate with Governments and producers’ organisations for the purchase in bulk of the produce of Dominions. This method would secure to the primary producer a better return for his commodities, would free him from the activities of the organised buyers and speculators and ensure a measure of stability to production and price which cannot be obtained under existing circumstances. The Labour Party in New Zealand will co-operate with the producers in New Zealand and the British Government in the carrying out of this policy. The progress of the Dominion is dependent upon the full use of the land. To meet immediate requirements the Labour Party's policy is: (1) The roading, preparation and settlement of all suitable unoccupied Crown lands. (2) The bringing into use of all land held, but not cultivated or developed. (3) Encouragement of cultivation of native lands. (4) The subdivision of suitable large estates where necessary for closer settlement. (5) Stimulation and extension of the activities of the Department of Agriculture. (6) The revision of the incidence of land and income taxation to remove existing anomalies. (7) The classification of lands for taxation purposes. (S) Graduation of the land taxation to relieve and encourage the smaller farmers.