GOVERNMENT’S AIM

Wairarapa Times-Age, 22 July 1938, Page 5

GOVERNMENT’S AIM

ACCORDING TO OPPOSITION LEADER OVERTHROW OF CAPITALIST SYSTEM BY MEANS OF BORROWING AND TAXATION (By Telegraph—-Press Association.) WELLINGTON, This Day. The conviction that it was the Government’s intention to break down the capitalist system by adopting the simple method of borrowing and taxing was expressed by the Leader of the Opposition, the Hon A. Hamilton, when opening the financial debate in the House of Representatives last night. Mr Hamilton said that the issue was becoming more clear every day. It was for the electors to say whether they desired the present economic system to be scrapped so as to switch over to State ownership and control. No mention of the Government’s land policy was made in the Budget, said Mr Hamilton. The objective was being hidden for the time being. It would be interesting to know just how many freehold titles had been granted during the last three years compared with how many had left the land. Farming was essential to the life of New Zealand, and no doubt the farmers would make that clear to the Government before very long. s - CHOICE BEFORE ELECTORS The Budget was perhaps more significant for what it left out than for what it contained, said Mr Hamilton. It was a borrowing and spending Budget. The question was whether the electors would respond to further borrowing and spending, or whether they preferred to get back on to a safe' course. Labour’s objective, in plain language, was the socialisation of the means of production, distribution and exchange. That meant State control of industry, State ownership of homes, State ownership of production and marketing, State control of prices, State-owned factories, State ownership of land. The Government’s method was to increase costs in order to stifle private enterprise. The State would then step in and take over. Already there was control over foodstuffs. The Prime Minister had declared they were going the full journey. Government members: “Hear, hear.” Mr Hamilton: “That means complete State dictatorship. If you want to start in business you must get a licence from the State. If you disagree with the Government they will delicense you,” “STRANGLEHOLD ON INDUSTRY.” Compulsory unionism was putting a stranglehold on industry, added Mr Hamilton. The employer no longer selected his labour. Output had been seriously reduced. Costs were rising all the time. A disturbing feature was that they had been told there was a lot more yet to come. The immediate result of the Government’s policy was to increase prices of nearly all commodities. The merchant’s costs were going sky high. The farmer was finding that his producing and handling costs were putting him on the wrong side of the ledger. The manufacturer was finding himself unable to meet the new awards and compete with Australia or even England. Mr J. Hodgens (Government, Palmerston): “Or China.” Mr Hamilton: That is the hon gentleman’s psychology. The Prime Minister says the Government is helping the poorer people by distributing the national ■ income in a better way. There are thousands of people living on returns from investments, and their purchasing power is gradually diminishing.