INTERNATIONAL AFFAIRS  The threat of nuclear destruction which today hangs over mankind has made the conduct of foreign policy more important than ever before.  We believe that the New Zealand Government should not hesitate to express an independent viewpoint in international affairs, especially on issues which bear directly on New Zealand's national interests and safety.  At the same time we recognise that in the modern interdependent world even the greatest powers can neither protect themselves nor prosper, in isolation - still less can a small country like New ZEALAND.  MEMBERSHIP OF THE COMMONWEALTH  This Party remains dedicated- to the principles of freedom and racial partnership which underlie the Commonwealth association and is confident that they will outlast any transitory differences among its members.  We will, therefore, pay special regard to the interests of other Commonwealth countries and will seek closer contacts and wider exchanges with them. We hope in this manner to give added meaning to a relationship on which we place the utmost importance.  The Commonwealth is evolving into a broad association of free and independent countries, and African and Asian members are now in the majority. The new Commonwealth is therefore a unique association with a common inheritance of traditions and experience which forms a bridge by which the ideas and influence of Asia and Africa can be brought to bear on Western Governments, and vice versa.  This expanding Commonwealth presents us with a challenge and an opportunity. Living as we do in a country in which two races live harmoniously side by side, we have a special contribution to make. New Zealand should therefore spare no effort to promote multi-racial co-operation and understanding in the wider field of the Commonwealth, and in turn we in New Zealand will gain from the widening of our horizons as the Commonwealth expands.  SUPPORT FOR THE UNITED NATIONS.  We regard the United Nations us the principal force for peace in the world today and as guardian and protector of the freedom and independence of the smaller nations. We will, therefore, continue to give the organization steadfast support and will seek to extend its authority and influence.  If we are to be able to grapple effectively with the world's pressing political, economic and social problems, there is no alternative to the development of international co-operation in all fields. The United Nations, of which New Zealand is a foundation member, represents man's best endeavour to achieve this goal.  We are not blind to its limitations and imperfections, and we recognise that changes may be necessary to take account of the organisation's rapidly expanding membership and the changing balance of forces in the world. But throughout its existence the United Nations has demonstrated a remarkable vitality and adaptability; crises which seemed to threaten its very existence have left it stronger than ever. Whatever adjustments are necessary in the light of changing circumstances should come out after calm and reasoned consideration, not as the result of truculence or threats.  We believe that the time has arrived when the United Nations should begin to build an international force of its own - a force to which all its members should contribute and one which would be used for the purpose of defending particular areas against aggression. Such a force would replace those of member nations and thus avoid the suggestion that outside powers are interfering in the internal affairs of developing countries, or are seeking by military forces to extend their own influence and power. We would be prepared to contribute our fair share to this.  SUPPORT FOR RENEWED GREAT POWER NEGOTIATIONS.  At present responsibility for negotiations to reduce tensions and resolve problems rests pre-eminently upon the great powers. We believe, however, that the smaller powers also have a part to play in blunting the edges of conflict, diminishing international friction and encouraging international understanding. The successful negotiation of the Antarctic Treaty, which provides for the permanent de-militarization of Antarctica and prohibits its use for war-like purposes, is an example of what can be achieved. We believe that every effort should be made to help create a favourable climate for the resumption of negotiations on crucial world issues.  SUPPORT FOR AN EARLY AGREEMENT ON DISARMAMENT.  The Labour Party, in Government and in Opposition, has consistently urged the early conclusion of an international disarmament agreement subject to adequate rights of control and verification. We shall continue to press for such an agreement both WITHIN and outside the United Nations.  NUCLEAR TESTS.  We have actively and consistently opposed nuclear weapons tests by all nations and will spare no effort to urge the nuclear powers and all other states to agree to abandon nuclear tests for all time. The impending French tests in the Pacific, to which we strongly object as a violation of the rights of all peoples in this part of the world, have brought home to us the dangers of radioactive fallout, and are a vivid reminder of the peril in which the whole world is placed through the continuation of these tests.  So seriously do we regard these tests, so anxious are we to save our people from becoming victims to radioactive fall-out and to save our pastures and stock from contamination, that, upon becoming the Government, we will take active steps to convene a Conference of all powers likely to be affected by these tests to encourage them to join in some effective and collective action to stop them. In this we would not be deterred by the fact that such action could involve some loss or sacrifice to us.  While the agreement by Britain, the United States and Russia to cease nuclear tests in the atmosphere, in the sea, and in outer space, is to be welcomed, it is unfortunate that no agreement could a reached on underground tests. Every new test conducted by any nation serves as an excuse for fresh tests by other nations. Disarmament is the most important problem facing the world today. Failure to make progress will not only mean that we will have insufficient resources to fight against hunger, poverty, disease and ignorance, but that we may also lose the battle for survival itself.  The goal must be a totally disarmed world in which no nation will retain the capacity to make war on others. But we recognise that in the prevailing atmosphere of international suspicion and mistrust, progress is more likely to be achieved in gradual stages where each disarmament measure is so controlled as to give all reasonable assurance that disarmament is being faithfully carried out by all.  The main thing is to make a start; and we believe that an agreement to end all nuclear weapons tests - in itself vitally important in view of the hazards of atomic radiation - would also show the way forward to disarmament itself.  In this connection we support the proposal that a nuclear-free zone should be declared in the Southern Hemisphere. Many of the great powers have already indicated their willingness to consider nuclear-free zones in South America and in Africa. It is difficult to see why such an agreement should not apply to the whole Southern Hemisphere. Labour will therefore use all its influence to secure such an arrangement.  ASSISTANCE IN THE IMPROVEMENT OF WORLD LIVING STANDARDS.   Trough the Colombo Plan and United Nations programmes, New Zealand has assisted the people of other countries to alleviate poverty, to improve their living standards and to expand their economies. Such an expansion will be reflected ultimately in a higher level of demand and greater and growing volume of world trade, to the benefit of all.  We believe that New Zealand should continue to help - but on a much more generous scale.  New Zealand's contributions of international aid may be small in relation to those of larger countries and to the scale of needs, but nevertheless they represent per head of population a level not matched by many other countries. At the same time, however, the total does not amount to a significant proportion of the national income.  We believe that the time has arrived when New Zealand should increase considerably her contribution towards aid for our South-east Asian neighbours. We believe that such increased contribution will at once do something towards alleviating the hunger and distress far too extensive in these areas and at the same time will build up a goodwill towards this country which may be of great value in the years to come.  It is, of course, correct that Colombo Plan aid has no strings attached. On the other hand, we believe that any increase over and above our Colombo Plan contribution should be conditional on the countries concerned taking the largest possible quantities of the goods which we can send them.  AID TO VIETNAM.  The Prime Minister recently announced that the Government has decided to send some form of aid to Vietnam. It is not yet clear what form that aid will take, but it appears that it is not intended that New Zealand should send a combatant force. If that is the position, we agree that non-combatant aid may well be justified under existing conditions - particularly if it is medical aid that is contemplated.  What has been said earlier concerning the need to expand New Zealand's financial contribution in this area applies particularly to Vietnam. Our Members who have been there report appalling poverty notwithstanding the apparent advances which have been made in recent times. We are sure that a contribution on New Zealand's part which helped to raise the living standards of these people would in the long run achieve really worthwhile results.  RECOGNITION OF COMMUNIST CHINA.  No question is more complex and none liable to arouse greater emotions than the problem of recognising mainland China. We believe, and indeed have for a very long time believed, that a country like China, containing as it does a very large proportion of the world's population, a population of immense resource and energy, and with an adaptability which has been demonstrated through the centuries, is not a country which should permanently be excluded from the United Nations organisation. Indeed, we believe that had the government of China been recognised as the de facto government, and had the claims or that government to a seat in the Security Council of the United Nations been recognised simultaneously, the drift in China’s relations would not have developed to the extent it has. There are two points, however, on which there should be no misunderstanding. The first is that recognition of any government does not imply approval of that government, its political philosophy, or its methods. It is simply a recognition of the fact that it is the government of the country concerned.  The second point is that recognition of mainland China does not imply recognition of the claim of China to sovereignty over Formosa. Whatever claims China may have had to Formosa - and her claims to sovereignty are not nearly as clear and definite as some of her supporters claim - there can be no suggestion that the people of Formosa should be handed over to domination and control on the part of the Peking Government. Surely the destiny of Formosa should be determined by the Formosan people themselves after a free, properly conducted and democratic election. Whatever we may think of the actions of the Chinese Government -and some of these actions in recent times are much to be deplored -the plain fact is that a country of the size, the wealth and the potentiality of China cannot for much longer remain outside the United Nations organization. Indeed, the name “United Nations" will cease to be appropriate if, outside its ranks, is a nation like China untouched by its associations and outside the range of its disciplines.  DEFENCE  DISARMAMENT  The Labour Party believes in ultimate world disarmament, and will work and advocate for this highly desirable end.  All opposing world forces have acknowledged that each has the nuclear capacity to annihilate the homeland of the other, and therefore such a conflict would amount to national suicide. The Labour Party has no intention of acquiring nuclear weapons.  Brush-fire wars, however, using conventional weapons, are not so unlikely and are possible in the area in which we have commitments.  As a Government, and responsible for the national security of the nation, the Labour Party will maintain a suitable force available for use under the United Nations, for the purpose of maintaining peace in any part of the world. In those areas where we have strategic and Treaty obligations, our forces will be integrated with those of our allies.  CIVILIAN USE OF ARMED SERVICES  Wherever possible, and consistent with the need for maintaining our career force in being, the fullest peacetime use of our armed services will be made in assisting our newly developing neighbours by means of technical, transport, medical and economic facilities.  MINISTRY OF DEFENCE  The Labour Party strongly favours the establishment of a Ministry of Defence. This will provide a co-ordination of the defence forces who today work much more in concert than ever previously. This follows the general defence reorganisation of other commonwealth countries. It will weld the military, strategic, diplomatic and economic aspects of defence in order that we may play our part properly in defending our way of life, as well as using these skilled people to advance the economic conditions of our neighbours in the strategic area that is of vital concern to us.  INTER-SERVICE CO-OPERATION  The nature of modern military operations, the expense and sophistication of weapon systems and the efficient administration of comprehensive highly mobile forces will demand a maximum degree of co-operation between the three fighting services.  RECRUITING  The manning of cur services is a matter of great concern today.  The Labour Party believes that some of the manning difficulties are due to administration anomalies and those will be investigated with a view to their early removal.  Provision of modern accommodation and housing for personnel and their families will be accelerated. A review of conditions of service and of pay will also be undertaken in order to attract the standard of recruit required to serve in the increasingly technical forces of today.  NAVY  As our whole economy is based on imports and exports it is vital that the oceans of the world must always be kept free for the passage of merchant shipping. The life and commerce of our trading societies depends on the unmolested movement of shipping on the high seas. For this reason we must have highly trained personnel, equipment, and ships that can be integrated into the Navies of our allies to fulfil this vital defence and economic role. Three frigates will by 1966 be our principal Naval strength.  ARMY  The Labour Party intends to make the Army an attractive career service equipped not only to play its military role in defence, but capable of fulfilling a social and economic role in the field.  We regard social and economic advances in the final analysis the best defence against those who would attack our territories and way of life.  The Labour Party agrees with those in the British Ministry of Defence that the existence in modern times of non-regular forces has created a host of problems for the administrative and training machine and have placed a considerable and costly burden on the regular element of the army. For the tasks which now lie ahead an all-regular army will be a much more efficient organisation. The training organisation can be recognised; there is a less turnover in manpower in units, longer service enables a higher standard of training to be achieved, and the intangible benefits that come from the fact that every man is a volunteer. In short, we believe that a career army can be brought up to an increasingly high pitch of efficiency.  CONSCRIPTION FOR TERRITORIALS  The Labour Party remains opposed to peacetime conscription. It will repeat the present birthday lottery army legislation, which provides for the sacrifice of the few drawn in the ballot. Such a move would bring us into line with all other Commonwealth countries.  The Volunteer Territorial Force of 1959 was a success. The numbers volunteering were in excess of Army estimates, but before this original volunteer plan had run its course the National Government substituted this very confusing unfair birthday lottery ballot system.  AIR FORCE  The Labour Party will take early steps to seek a solution of the problems of this important arm of our defence force.  A Labour Government will maintain the Canberra Squadron. It will increase the availability of new aircraft. It approves such editions to the transport fleet as are desirable to co-ordinate the activities of the Navy, the Army, and the Air Force. It will expedite the endeavour to find a replacement for our flying boats, which have played a vital role in communication with Island Territories in the Pacific.  An overseas rostered role to provide the necessary operational experience and training for our aircrews and ground crews will be introduced.  OMBUDSMAN  This important officer's jurisdiction will be extended to include the Armed Forces on other than matters of discipline.  CADET CORPS  The Labour Party believes that some review of this section of our services is required and proposes to take the following action:  (1) Where the school authorities desire it, a Cadet Corps may be established but will be limited to a maximum of 250 boys.  (2) Service in the Corps will be purely voluntary.  (3) Boys must contract in and not be required to contract out.  We further strongly suggest that schools should consider the organisation of our young people into units capable of being trained in methods of civil defence, both of a military and national disaster character.  CONCLUSION  The Labour Party is determined to take every step to make our forces highly trained, fully equipped, with high morale, capable of playing on effective defence role militarily, and of fulfilling an effective social and economic function in the area of our strategic in commitments South-East Asia.  This we believe is a realistic approach and likely to provide the best possible value for the millions of pounds of expenditure annually appropriated by Parliament.    TRADE AND DEVELOPMENT   New Zealand is a trading nation. We live by making and selling things. How well we live (our standard of living) is governed by the quantity of goods we have to sell and how much we get for them. Even in good times, to maintain our standard of living we have to keep on increasing the amount of things we make and sell. This is because our population is increasing all the time. If our individual shares in the nation's earnings (the national income) are to be maintained and grow, the nation's earnings have to go on increasing. If our nation's earnings do not increase, living standards will fall and unemployment will grow.  Our future depends on expanding both our internal and external trade. Sound expansion of trade depends on a number of factors. Important among these are - the achieving of an adequate economic growth rate within New Zealand; the maintenance at the highest level in traditional markets, and a significant increase in new markets of the sale of New Zealand-produced goods; encouragement to increase the production of those things for which in their present form economic markets exist; and encouragement to change some forms of production and/or to develop new products to meet new marketing opportunities.  The Labour Party' s policy has been carefully planned to bring about the growth in trade and development essential to New Zealand's well-being.  In framing its policy the Labour Party has been mindful of the need to restore as a national objective the maintenance of full employment; the need for balanced national development in which farm and factory have a harmonious place; the need to utilize to the full all New Zealand resources capable of economic development; and in external trade the need to create new markets as well as the need to take full advantage of existing markets.  It is a policy designed first to maintain, and later to provide the base for a better standard of living.  (a) Create a vigorous Export Development Agency to establish and develop new markets. This body  would replace the existing advisory Export Promotion Council.  This agency would consist of people experienced in New Zealand industry, both farming and manufacturing, in sales promotion and advertising. Its purpose would be to establish worthwhile new markets overseas and to extend existing markets. It would have products to sell and its overseas representatives would be able to act as salesmen for a New Zealand producer or any group of New Zealand producers. Its main objective would be to build the nation's overseas trade and earnings. It would also act in an advisory capacity to New Zealand producers with the object of having our products tailored to meet market needs rather than trying to make markets fit products. Sound business practice would be followed in promoting new markets.  (b) Study consumer needs in new markets.  Such a study is fundamental to establishing new markets. Information sought would include habits of diet, religious custom, the relative size of various income groups, the quality and capacity of local production, the quality and range of competitors in The export field, and The prospects of launching new commodities, and finally, likely trends in Government policy there.  (c) Encourage New Zealand production to meet the needs revealed in (b).  New market survey results, as well as being available to any New Zealand industry, would be referred to selected New Zealand industries together with information as to the extent of encouragement that would be forthcoming under the export incentive scheme. These industries would have available to them the services of export promotion officers in negotiating entry to the new market.  (d) Encourage improved, increased and diversified production within New Zealand.  Investment in development, incentives and services related to development and trade would be channelled having regard to the national need for quality, increases in specific forms of production, and the need to diversify production. These rules would apply equally in every field of New Zealand industry whether it be land development, changes in the form of farming, or manufacturing industry.  (e) Co-ordinate and intensify research.  To prevent wasteful duplication, to ensure that the priorities allotted research programmes was based on the national need, and to ensure that adequate facilities are available to enable adequate research to be carried out in a 11 fields related to national growth.  (f) Pursue every market big or small.  The prime importance of having New Zealand-made commodities on sale makes this aspect of trade development most important. This work would be entrusted to the Export Development Agency.  (g) Conduct negotiations on a Government-to-Government basis with the object of creating new  markets where none exist today, and of increasing the volume of trade in existing but under-developed markets.  These activities would relate to promoting trade agreements, treaties, and special arrangements aimed at securing the entry and sale of New Zealand commodities. This would include negotiating revisions of limits placed on New Zealand goods by Government policy in other lands. Also schemes envisaged under section (j) would be negotiated in this way. The co-ordination a far as is feasible of foreign aid programmes with trade possibilities is desirable. In such work the Government could be advised by the Export Development Agency.  (h) Extend the activities of the Trace Commissioner Service to other territories. This would mean both more trade commissioners and the re-distribution of existing posts. The work of the commissioners would determine the priorities to be pursued in establishing new markets.  (i) Operate an export incentive scheme. Exporters will receive, tax-free for three years, all increased export earnings from manufactured and processed goods additional to normal sales, and not in substitution for such sales.  The incentive would only apply in cases where thorn was a clear addition to the nation’s earnings. Thus there would be no fall in public revenue as a result of the concession, and there would, of course, be the ancillary gain from income generated in the course of production. Since problems associated with new markets are manifold, specific assistance which could also be classed as incentive would be operated. Full replacement of all raw materials or components used for export would be granted under the import licensing system, and it could be profitable to offer a percentage increase above bare replacement as en additional incentive.  Guarantees could also be involved in some cases where entry to a high value market would involve considerable quantities, i.e., woollen blankets and rugs to the American market. In every case the eligibility for obtaining the concession would be that the project meant a clear addition to the nation's earnings, and in the case of the applicant an addition to its normal trade. Such a scheme would probably be suitably named the "Pioneer Export Scheme". In every case emphasis should be laid on the importance to New Zealand of such increased trade.  (j) Actively promote extensions of foreign aid schemes having an emphasis on aid Through trade.  This proposal envisages New Zealand meeting her agreed commitments under the Colombo Plan and similar agreements, but that any additional aid should be negotiated on a Government-to-Government basis. Thus our foreign aid work, which is of vital importance, becomes also a direct investment in our mutual interest. The Colombo Plan prevents ties being placed on aid. One result has been that certain projects financed by New Zealand have provided outlets for our competitors’ products. This suggests that while maintaining our commitments under the Colombo Plan, we could invest in such projects but outside the Colombo Plan would then conclude with The Government concerned a long-term contract to purchase at an agreed price and terms New Zealand commodities to operate such projects. Such an agreement should be revised at agreed intervals. There are abundant opportunities for such projects.  This would first of all stimulate the economy of the recipient country to the extent of the impact on farm incomes, farm servicing, transport, and the building associated with establishing the plants. Roads and rail, as well as water-borne transport, could all be beneficially affected.  Above all, though, is the improvement in the well-being of the people. In Bombay such a scheme operated under the Colombo Plan gains for the farmers a better income, for the people better and cheaper milk, which means that more can afford it; and provides the basis for a milk-in-school scheme under which some 83,000 children receive a daily ration of milk.  This policy point combines humanitarian policies with good business.  (k) Implement an export credits insurance scheme.  Britain and other European countries have found that an agency which can offer insurance on export credits is a valuable tool in overcoming the difficulty of accurately assessing the reliability of prospective customers. Such an agency could easily fit within some of the existing state agencies.  (l) Explore the possibility of negotiating partial freer trade agreements in selected areas, and the development of bilateral trade where possible.  (m) Utilize all facilities available in solving transport problems hindering the opening up of new markets.  This would include the possibility of guarantees for private charters of shipping, the utilization where practicable of Government-owned shipping or aircraft, and the provision of adequate cool store and warehouse facilities.  (l) In selected circumstances grant credits (either short- or long-term) to developing countries.  The granting of credit could be the forerunner of negotiating a scheme under (j) above.   IMPORT LICENSING  New Zealand is dependent for her imports upon the overseas exchange derived from the sale of our exports - principally wool, meat and dairy produce. Overseas prices for wool and dairy produce are subject to sudden and serious fluctuations, caused by domestic monetary policy in the United Kingdom and elsewhere in the case of wool, and by seasonal factors and domestic policies in Northern Hemisphere countries in the case of dairy produce.  With this narrow and rather unpredictable base to our importing economy, the maintenance of an adequate level of overseas exchange reserves is of first importance.  On the other hand, New Zealand's internal policies of full employment, high internal demand, and rapid development generate a demand for imports sufficient to maintain constant pressure on the balance of payments even under favourable export trading conditions.  Having regard to these two fundamental factors, Labour believes that a flexible system of import control and exchange allocation is the best means of meeting the situation.  The system ensures that -  (a) Adequate exchange reserves are built up and safeguarded.  (b) The importing economy is protected from the violent swings of the past; and  (c) When prolonged falls occur in the prices received for our exports, reserves of exchange are available to sustain our level of imports.  DEVELOPMENT OF INDUSTRY  While fully safeguarding the necessary expansion of the primary industries, Labour will foster and encourage the establishment and expansion of worthwhile manufacturing industries - particularly industries using local raw materials and the most modern machinery.  Industrial development will receive preference where it can be financed by New Zealand capital and controlled by New Zealand citizens.  Where overseas capital is necessary in order to promote industrial expansion, steps will be taken to protect the public interest by ensuring that an undue proportion of earnings is mot absorbed by remission of profits.  A Labour Government will set up an Industrial Finance Corporation which will undertake the following broad functions:-  (a) To supply long and medium term funds to desirable new industries which cannot otherwise obtain  adequate capital on reasonable terms.  (a) To finance the reorganization or expansion of existing industries where adequate finance on  reasonable terms cannot otherwise be obtained.  Side by side with the proposed Industrial Finance Coorporation a Rental Factory Scheme will be so administered as to encourage the establishment of industries in selected areas.  Steps will be taken to ensure that New Zealanders participate to the maximum possible extent in the equity capital of overseas companies established in this country.  To protect the interests of New Zealand against takeovers, especially by overseas companies, Labour will not hesitate, either by use of the powers contained in the Trade Practices Act or by further legislation, to deal with monopolistic or other undesirable trends resulting from such takeovers.  The iron and steel industry, utilizing New Zealand iron sands, will be financed with the highest possible proportion of New Zealand capital, including Government investment in equity capital.  Other industrial development which will be encouraged during the present decade will include wool-top export, woollen yarn and cloth export; high quality fashion garment export; aluminium smelting, aluminium sheet, strip, flats, wire and extrusions; pharmaceutical and biological products for the medical and veterinary professions and for export; copper tube, sheet, strip, flats and rod; canned and preserved fish; motorcar components, including spark plugs, hub caps, coil springs, steering wheels, pressings, and the making of light cars and trucks with 70 per cent New Zealand content; and a wide range of other industrial goods.  The degree of protection granted to any industry will be determined by the prospects of such industry becoming competitive, the period of protection being, determined by the time estimated to be taken in establishment.  Labour will vigorously pursue its policy of encouraging industrial development in areas where circumstances warrant. It will, through the proposed Industrial Finance Corporation, the Rental Factory Scheme, and in co-operation with the local interests concerned, stimulate desirable regional developments. A policy of encouraging development in the South Island will be pursued, with particular concern for such regions as the West Coast and Otago and Southland. North Island regions in which more rapid development is necessary will be similarly assisted.  In promoting regional industrial development Labour will encourage suitable industries in centres of Maori population.  Labour recognises the need for an ever-widening range of industrial skill. It will therefore foster the increase of new industrial, manual, technical and professional skills, each with its appropriate educational and training background. Margins for skill and responsibility will be increased. Labour will continue to promote the jot classification and the educational and occupational training which will best enhance the productivity of industry.  Increasing' emphasis will be placed on technical and technological education with a view to improving the skill and efficiency of the labour force and to assist in raising productivity.  A substantial increase will be made in research expenditure, research activities being fully co-ordinated and rationalised.  The Government will provide additional finance for the establishment of further industrial development laboratories and the extension of present facilities.  A Council of Industrial Design will be promoted.  PRICES   Steps will be taken to sustain a rising level of effective local demand, including appropriate credit and fiscal measures, and the fostering of maximum farm and factory output. Through the Trade Practices Commission efforts will be continued to eliminate impediments to free competition, and prices will be held at reasonable levels. Where, due to absence of effective competition or other reasons, prices of goods or services become unreasonably high, Labour will not hesitate to use price control.   LAND  LABOUR will complete the review of New Zealand’s undeveloped land resources to determine their best utilisation in the nation's interests.  Legislation will be introduced to discourage land speculation. In determining whether a proposed purchase represents undue land aggregation the Court will take into consideration the likely effect of the sale on improved efficiency and increased production.  Local bodies will be assisted to acquire land in the course of town-planning for the purpose of sale or lease later.  A Labour Government will purchase land in and around expanding urban areas for the purpose of providing sections for housing and other uses.  The Valuer-General will be given power, where properties are solely used as "residential" but later zoned under town-planning as "commercial" and/or “industrial", to value those properties for rating purposes as residential as long as they continue to be occupied for residential purposes by the existing occupier-owner.  AGRICULTURE  As well as the proposals affecting agriculture in Labour’s Trade and Development Policy and Taxation Policy, these further steps will be taken;  The State Advances Corporation will be authorised to make loans at reasonable rates of interest for re-financing purposes and for farm development. In appropriate cases repayment of loans for fertilizer, drainage, fencing, etc., will be suspended until the assets so created are revenue producing  The Marginal Lands Board will be reconstituted and strengthened by the addition of practical farmers from various parts of New Zealand experienced in all aspects of primary production.  Marginal Land Committees will be strengthened by adding to existing panels farmers from districts not represented at present. The definition of marginal land will be liberalised to include all land where a potential for increased production EXISTS.  Funds available to the Board will be substantially increased and loan conditions liberalised to enable farmers to have access to loan capital for livestock, buildings, plant and equipment, fencing, fertilizer, drainage, weed-killing etc.  A rural section of the Bank of New Zealand will be established for the express purpose of providing adequate short term finance for farmers, particularly for developmental work. Trading banks will be encouraged to provide term loan finance. Dairy companies also will be encouraged to enter the field.  Any increase in the use of fertiliser and lime normally used above the average of the previous three years will qualify for a government subsidy at the rate of 50 per cent cost distributed on the farm.  While continuing existing irrigation schemes on their present basis, financial assistance up to one-third of the capital cost will be made available where privately financed farm irrigation schemes can significantly increase production.  With a view to eliminating the menace of noxious weeds, weedkilllers will be made available at reduced prices to counties who will be authorised to make them available to farmers at cost. Railways Department land will be made subject to the provisions of the Noxious Weeds Act.  Ratepayers will be given the right of appeal to the Local Government Commission against the decision of Rabbit Boards declining to exempt their properties from rating.  Whatever justification there may have been for the devaluation of rabbit skins, the Labour Party does not believe that the devaluation of opossum skins will achieve the object of eliminating this pest but that this would represent a national waste. There will therefore be no devaluation of opossum skins.  The valuation of farm land for rating end other purposes will be determined by the mean between the value of similar land recently sold in the area and the productive value of the land based on prices ruling for products normally produced on that land averaged over the previous five years.  Farm workers  The Labour Party recognises that the right type of worker must be attracted to and retained on the land and given reasonable opportunities for ultimately becoming a farmer in his own right. On attaining office a Labour Government will:-  Encourage incentive schemes and promote security for farm workers.  Improve standards of housing and accommodation.  Sponsor farm training schemes.  Ensure that farm workers' children and other country children who must attend schools away from their homes receive special allowances and bursaries.  Assist qualified farm workers to obtain their own farms.  Farm housing  It is true to say that in many rural areas of New Zealand housing conditions for farmers and for their employees are far from satisfactory, and that the opportunities for improving this situation are not as readily available to country dwellers as to those who live in urban areas. The existence of rural slums and of conditions which force hard-working families, which are frequently called upon to assist with farm operations for long hours, to live in surroundings below normally accepted New Zealand standards, are not conducive to the increased farm output necessary for improved living standards for the whole community. More important, such a situation is inconsistent with the social welfare policies traditionally associated with the Labour Party which recognises that special measures are now required in the rural housing field.  A Labour Government will -  Make funds available from the State Advances Corporation and the Marginal Lands Board to ensure that farmers who qualify under the conditions for 3% housing loans will become eligible for such loans.  Make funds available for the repair and renovation of existing farm homes.  Amend the Family Benefit Capitalisation Scheme so that farm mothers can take advantage of the scheme without jeopardising their legal and financial rights.  Abolish the penal bank charge on wool exports.  Consider the desirability of entering into long-term contracts with the United Kingdom or other governments for the purchase of certain farm products, after full consultation and agreement with the producer interests concerned.  Encourage farmers to establish co-operative units - the new sugar beet industry to be co-operatively owned to the fullest possible extent.  Freezing company charges will be thoroughly investigated in an endeavour to reconcile the  increasing difference between the schedule price of meat and the wholesale market price.  It is the policy of the Labour Party that any new freezing works erected in New Zealand should be  co-operatively owned.  Basically, however, it must be recognised that last year New Zealand sold overseas all the butter, meat and wool available for sale, and the most secure basis for rising export income is more farm production.   FORESTRY  LABOUR will increase the rate of planting, will extend State Forest areas, and will encourage the development of private plantations by the provision of financial and technical assistance where this is required.  Special attention will be devoted to the prevention of erosion by preserving indigenous forest in critical catchment areas and by replanting; steep hillsides. Sand dune reclamation will be accelerated.  The Labour Government will foster the development of manufacturing industries using timber as their raw material. It will stimulate particularly those timber-based industries producing for export.  A survey will be made into the timber resources and transport facilities of both islands to ensure that they are adequate to meet the future needs not only for internal consumption but for export.  Where land is unsuitable for economic farming, it will be developed for afforestation.  Farm forestry will be continued.  FISHING INDUSTRY  In co-operation with the interests concerned, Labour will carry through plans for the large-scale development of the fishing industry, catering for both domestic and overseas markets.  New Zealand fishing grounds and rights will be protected and the necessary steps taken to secure the enforcement of all laws, national and international, calculated to protect these rights.  The potential fish catch cannot be accurately estimated but sufficient evidence based on experience of fishermen, marine biologists and other scientists warrants the assumption that there is an abundance of various species of fish in the seas around our shores, especially in deep water, which has not been the subject of much exploration or research.  Whilst agreeing that the recent legislation is a step in the right direction, Labour does not believe that it goes far enough and the Board has not the necessary powers to really develop the industry.  WITH a view to supplying the home market with fresh fish at reasonable prices and developing the largest possible export market, Labour will, upon becoming the Government, take action to ensure the Fishing Board is given sufficient power and the necessary finance to achieve maximum results.  Having regard to the need of food for the undernourished peoples in many areas of the world, a Labour Government will seek the co-operation of the industry in a joint venture for the fullest utilisation and utmost expansion of our fish food potential, and to this end will conduct an extensive research programme in all fields of marine life, modern methods of catching, processing, packaging, hygiene, etc., until maximum efficiency is reached and export markets exploited.  FUEL, POWER & WORKS  To meet the demands of New Zealand's rapidly increasing population, and with it the urgent necessity to expand production on all fronts Labour recognises that it is essential to plan the development of the nation’s fuel and power resources.  With this objective in view the next Labour Government will establish a Ministry of Fuel & Power.  COAL  LABOUR will -  (1) Take whatever steps are necessary to ensure the fullest utilisation of coal, with a view to its continued use as a fuel for domestic and industrial purposes.  (2) Reduce freight rates on coal to ensure that it is sold at the lowest possible price.  (3) Establish a Research Council responsible for recommending to the Minister of Fuel and Power  any assistance necessary to expand the use of coal.  (4) Explore the possibility of using pulverised fuel in industry.  (5) Encourage the expansion of the gas industry through the Gas Council and give assistance to  gas undertakings to provide modern gas appliances.  (NOTE: A subsidy could be paid on certain appliances which are economic and this could reduce the price to the domestic consumer.)  ELECTRICITY  LABOUR will guarantee continuous development of electric power in both the North and South Islands to meet the estimated demand at the cheapest possible price.  LABOUR will retain the Power Planning Committee with representation from the distributing Authorities and the appropriate industrial Unions.  LABOUR will honour the commitments entered into by the National Government and will complete the inter-island transmission as planned but will not commit New Zealand to a second cable link until the initial connection has had a reasonable trial.  LABOUR will -  Complete Benmore and Manapouri as planned.  Proceed with the station at Aviemore in accordance with the power requirements of New Zealand  Matahina will be completed, and providing the engineering surveys prove satisfactory, Kopariki will be constructed.  Subject to satisfactory negotiations being completed for the supply of natural gas, LABOUR will construct  a 120,000 K.W. station on the Taranaki fields.  LABOUR initiated the development of our geothermal resources for power production. Last year 15 per cent of the North Island's requirements came from Wairakei.  LABOUR will -  Continue this development as recommended by the Power Planning Committee and will also consider the construction of an additional station on the new field opened up during the term of the second Labour Government.  LABOUR will not -  Proceed with the scheme to develop and divert the upper Wanganui and other rivers into Lake Taupo until  adequate measures have teen taken to protect tine lower reaches of the Waikato basin from flooding.  Rivers likely to affect the fish in the lakes and rivers of this district will not be diverted.  WANGANUI  LABOUR believes that the largest and one of the most attractive remaining schemes in the North Island is  the major scheme on the Wanganui River at Atene.  The National Government has not shown enthusiasm for this scheme and investigations have been slow.  LABOUR will (if necessary) call in the assistance of private consultants to ensure that this work is commenced as soon as possible.  The Ministry of Works’ latest investigations indicate that a station of 400 M.W. (that is, as large as Karapiro, Whakamaru, Atiamuri and Ohakuri on the Waikato combined) can be constructed on this site.  MARAETAI II  The second Labour Government commenced the construction of a special station at Maraetai to meet the peak demand in the North Island. The National Government continued the construction until September 1961, when a decision was taken to cease work. Over £4 million of the estimated cost of the civil works of £4.8 million had been spent. It is estimated that £.25 million was spent in closing the job down.  This station was urgently required to meet the peak demand of 1964 and 1965 in particular. Consumers in some districts are being penalised at present by the imposition of power restrictions and the situation will deteriorate until the Cook Strait cable is installed. However, when this connection is made the immediate urgency disappears and Maraetai II will not be required until 1968.  LABOUR will therefore complete this station to fit in with the programme of work on the Waikato.  POWER FOR INDUSTRY  To encourage the decentralisation of industry, Labour will in approved oases make blocks of power available at cheap rates. Special consideration will be given to those industries where electric power is a vital cost factor and where the products are chiefly for export.  ELECTRIC POWER DISTRIBUTION  The main objective must be relative uniformity of charges to consumers within districts and in districts with common community interests.  To achieve this Labour will establish a distribution Commission Comprising the existing Local Government Commission plus a representative from the Power Boards and one from the Municipal Distributing Authorities with the following functions:  (1) To determine whether any extension should be made to the boundaries of Municipal Distributing Authorities.  (2) To determine whether the boundaries of Municipal Distributing Authorities should be extended if and when adjustments are made in boundaries of territorial Authorities.  (3) To act as arbitrators in the event of disputes arising between Power Boards and Municipalities  concerning the on-charge made by the Power Board.  (4) To make recommendations to the Supply Authorities as to the system of retail charges to be followed -in a particular area.  A Labour Government will not hesitate to give the necessary power to this Commission to perform these functions.  Consumers will be given the right to petition for this to be done, and the decision of the Commission shall be final.  TRANSMISSION OF ELECTRIC POWER TO NORTHLAND  Rapid development of Auckland and Northland results in a continually increasing demand for electricity. Power generated in the Waikato is transmitted by high voltage overhead lines through Otahuhu and Henderson. These unsightly transmission power pylons have been the subject of considerable criticism, particularly in regard to their effect upon the attractiveness of the districts they traverse.  Fully recognising the necessity of meeting the electricity demands of Northland, and all other parts of the country, Labour nonetheless believes that serious consideration should be given to the generation of power in Northland. In this way the high cost of transmission, with consequent risks of breaks in supply, and the avoidance of a forest of pylons through the city of Auckland, may be avoided.  LABOUR will, therefore -  (1) Immediately investigate the geothermal resources of Northland, utilising to the full the  knowledge and experience gained at Wairakei to assess the prospects of generation of power from this source.  (2) Should the use of geothermal power prove impracticable, Labour will examine the possibility of establishing a modern gas turbine station adjacent to the oil refinery.  (3) At the same time investigations will be made into the possibility of establishing a base load thermal station utilising either coal or nuclear fuel.  ROADING  To meet the demands of the transport system and the growth of traffic arising from increased production,  Labour will continue the National Roads Board.  While the present revenue appears to be adequate to meet the normal roading requirements of the nation there has not been sufficient progress in some districts.  LABOUR believes -  (1) Roads Board revenue should be used in the districts where the need is greatest.  (2)The subsidy system to local bodies appears to be adequate to meet normal requirements.  (3) The National Roads Board should have greater freedom to assist in those districts which have special problems.  (4) To achieve this the Labour Government will ensure that the 2d. per gallon tax which is now paid to the Consolidated Fund is paid into a special account in the National Roads Board fund, to be distributed to Local Authorities for the purpose of meeting special expenditure on roads and streets, and alleviating the burden of local rates.  IRRIGATION  Irrigation schemes will be promoted in drought-susceptible areas where substantial increases in production are likely to follow.  HOUSING  1. The number of homes to be built will be increased to the fullest possible extent consistent with the material and labour available. Numbers of houses completed will be progressively increased until they reach 28.000 annually by 1970.  2. The number of houses built by the State will be increased both for rental and for sale, now houses for sale being made available at cost.  3. The number of sections to be acquired and serviced and made available to the public for sale will also be increased.  4. The number of high quality, high density and multi-storey flats will be increased substantially, first, to meet the increasing needs of pensioners and others who wish to live in the built-up areas, and, secondly, to avoid the misuse of valuable farm land for housing purposes.  5. Finance will be provided for the modernisation of older owner-occupied dwellings.  6. People with larger homes will be encouraged to move to smaller flats. In future the sale of an existing home will not be a bar against eligibility for a State flat.  7. The mortgage guarantee for the purchase of existing homes will be increased to 90 per cent, with provision for an additional amount in special cases.  8. The Trustee Act, the Trustee Savings Banks Act and the Building Societies Act will be amended to enable a higher proportion to be advanced on freehold property.  9. State Advances loans on homes may be transferred in the event of sale, either to the purchaser or to a new approved property.  10 The 3 per cent loan scheme will be continued for those earning up to £1040 a year, plus £50 for each dependent child. (Ordinary income only will be taken into account, overtime being disregarded.)  11. A 4 per cent loan scheme will be instituted for those ineligible for 3 per cent loans on account of their  income being above £1040 a year, providing, however, that their ordinary income does not exceed £1250, plus £50 for each dependent child. (Ordinary income only -will be taken into account, overtime being disregarded.)  12. State Advances loans will be available both for new homes and for reasonably priced older homes.  13. Capitalisation of the Family Benefit will be extended to include the purchase of approved existing homes.  14. Applicants for State rental homes will be eligible provided that their ordinary income does not exceed £850 a year (not including overtime) plus £50 for each dependent child.  15. State rentals will be sufficient to Cover the average cost of providing, maintaining and servicing homes, with reductions in accordance with the income of the tenant.  16. State tenants who do not wish to purchase their homes outright may be given a long-term lease at an adjusted rental provided they undertake the payment of rates and to maintain the building in good repair.  17. Urgent steps will be taken to accelerate the construction of pensioner housing both by local authorities and the State.  18. Those provisions of the Tenancy Act limiting the period for the protection of business tenants and tenants of dwellings to November 1964 will be repealed, dwellings and business tenancies at present subject to the provisions of the Act to continue to be protected.  19. Religious and charitable organisations will be encouraged by generous State subsidies to provide accommodation for the aged and infirm. The basis of Government subsidy will be either -  (a) 90 per cent of the total cost, or  (b) 100 per cent of the cost of the building, in which case land and furniture will be the  responsibility of the organisation.  20. To encourage families to care for their aped relatives a Labour Government will provide, through the State Advances Corporation, where sufficient space is available on the section, removable living quarters adjacent to existing dwellings, at a low rental.  LABOUR RELATIONS  The Labour Party adheres firmly to the principle of industrial conciliation and arbitration and will therefore repeal those amendments to the Act which have been passed by a National Government and which breach the spirit of the Act.  The Department of Labour will be charged with the responsibility of enforcing the provisions of all awards.  THe Labour Party believes that the system of General Wage Orders should be retained. It will therefore continue the Economic Stabilisation Regulations under the authority of which these Orders are made.  The Regulations will be amended to -  (a) Make it mandatory upon the Court of Arbitration to grant an increase to wage and salary earners corresponding to the increase in productivity which has occurred since the last Wage Order.  (b) Provide that any increase granted by the Court should apply from the first day of hearing of the application for such increase.  (c) Require the Court of Arbitration to increase the percentage of the national income paid to wage and  salary earners to a point which has regard to the increased numbers of such workers in the community.  (d) Require the Court of Arbitration to accept the principle of providing for women the same increase  as for men when an application for a General Order is granted.  Section 103 Subsection 3 of the Railways Act will be restored to provide for the automatic application of General Orders and other pronouncements of the Court of Arbitration to railway workers.  The Factories Act will be amended to provide for more suitable working conditions in factories with particular reference to temperature and humidity control, and special steps will be taken to ensure that the provisions of the Act are enforced. The Act will be extended to cover all workers not already covered, including employees of Government departments.  WORKERS COMPENSATION ACT  A complete review of the Workers' Compensation Act will be undertaken for the purpose of providing -  (a) More liberal compensation for injury or death either at work or while travelling to and from place of  employment.  (b) Rehabilitation to restore workers to industry.  (c) A lump sum payment and/or pension scheme for the totally incapacitated worker or, on his death, for his dependants.  The Waterfront Industries Act will be amended in the light of 10 years’ experience of the operation of the Act.  Proposed schemes for the training of workers to participate in management will be encouraged, particularly n State enterprises.  A Labour Government will carefully analyse the effects of automation on employment and will take whatever steps are necessary to protect the workers’ interests.  HOLIDAYS  In order to avoid further anomalies through the fact that many workers are in receipt of three weeks’ annual holiday, the Annual Holidays Act will be amended to provide for three weeks' annual leave for all workers.  IMMIGRATION  New Zealand requires suitable immigrants to maintain the labour force and keep employment reasonably balanced.  The free passage scheme for selected immigrants from the United Kingdom will be continued with the maximum encouragement to skilled tradesmen, farm workers and others with the required experience.  Immigration will be maintained at a level appropriate to our ability to provide worthwhile employment and satisfactory accommodation.  Subsidies will be made available to employers able to recruit skilled workers overseas provided such workers satisfy our normal immigration requirements.  FINANCE  1. Credit and Currency  The issue of credit and currency must be and will be controlled by the State through the Reserve Bank.  It has always been Labour's view that the volume of credit and currency should be related to the volume of goods and services available. In order to maintain this relationship in proper balance the control of credit and currency should be one of the important functions of the Government. Control should be exercised through the Reserve Bank acting under the authority of the Minister of Finance.  2. Reserve Bank Credit  Consistent with the needs of a sound economy the State should and will create and use credit at the cost of issue for purposes of approved capital development.  Labour is satisfied that the use of Reserve Bank credit, within the limits set out, is not only justified but has already contribute much towards the nation's economic well-being. The extent to which the Government should borrow from the Bank must have regard to a number of factors, including the extent to which labour and material resources are committed, the availability of goods and services, the stability of the price level, the overall level of bank advances, the level of overseas funds of the banking system, the volume of savings, the Government's loan programme (both internal and external), the level of taxation, and the terms of trade.  While it is not Possible to determine in advance the precise amount of credit the Reserve Bank can make available to Government, Labour is satisfied the Bank could from time to time issue credit for certain Government capital development works without any serious effects on the stability of the economy, and, indeed, to the advantage of the community.  3. Credit Issued by Trading Banks    Within limits authorised by the Reserve Bank, the trading banks should be empowered to issue such short-term credit as will meet the reasonable demands of an expanding economy; and the remuneration they receive for this service should bear a fair and reasonable relationship to the work done.  The Labour Party’s view has long been that under the present system in making overdraft accommodation to their clients, trading banks do not lend their deposits. On the contrary, every advance they make can in itself create a deposit. Banks in making advances are in effect using the public credit for their own private profit.  The extent to which they do so can have a profound effect on the economy, both inflationary and deflationary. The amount of their advances must therefore be regulated in the public interest and the advantage derived from them limited to reasonable compensation for their services.  4. Trading Bank Profits  To determine such a reasonable level of remuneration, the existing practice of taxing banks on past profits should be reviewed. A possible alternative would be a system of taxation based on the relationship between advances and fixed deposits. Such a system should be so devised as to ensure that trading banks will, over a period like other lending institutions, pay interest on their deposits and lend only to the extent that they have interest-bearing deposits to back their loans.  The public credit, which is the people's heritage, would then cease to be exploited for private profit.  5. Savings  Real savings must be encouraged to assist in providing funds for capital development by the State, local bodies and private enterprise.  Savings will not be stimulated by increasing interest rates, which would merely change the flow of savings from one channel to another and would benefit the big investor rather than the small saver.  Better savings-bank facilities and a larger volume of savings is imperative if New Zealand's economy is to grow in strength. The alternatives are to reduce our rate of growth or to borrow extensively overseas, neither of which we regard as desirable. Reinvestment of more of the earnings of industry, commerce and agriculture must be encouraged. Above all, the current of investment must be determined in the public interest by continual consultation between public and private enterprise.  Labour does not believe that a high interest rate in itself produces more savings. The rate of interest, therefore, must be sufficient to encourage the habit of thrift while at the same time avoiding the imposition of an undue burden on the State and other borrowers for the payment of interest.  6. Borrowing  As it is not possible to finance all Government expenditure from profits, interest repayment, departmental receipts and taxation, it is necessary to rely to some extent on borrowing, particularly for useful productive works which will shortly begin to meet the charges for interest and loan redemption. Some borrowing will therefore be necessary.  It appears that New Zealand tends to rely on borrowing for capital purposes to a relatively greater extent than most other countries, certainly to a greater extent than Australia. It must never be forgotten that at some time borrowed money must be repaid and that in the meantime interest charges must be met, usually from taxation. In the long run it costs twice as much to pay for works cut of loan moneys as it costs to finance the same work out of current income.  To the extent that it is necessary to borrow, loan moneys should be raised at the lowest possible rate of interest. Borrowing internally should be from the accumulated savings of the Post Office Savings Bank and, where necessary, from other savings institutions, from the Reserve Bank and from the public. Government overseas borrowing is only justified as a means of augmenting temporarily our overseas funds. Regular Government overseas borrowing should be avoided. There may, however, be occasions when overseas borrowing becomes imperative because of a sudden fall in the price of exports and a need to bolster New Zealand's overseas reserves for the purpose of ensuring an adequate supply of raw materials and other essential imports. Government overseas borrowing should be kept to a minimum, consistent with the maintenance of a reasonable standard of living and full employment - every effort to be made to ensure that payment for imports and other charges is kept within current export earnings. Whether loans are raised internally or externally steps should be taken to set aside annually the amount required for early redemption.  7. International Monetary Fund and World Bank  The Labour Party opposed the National Government's legislation empowering the Government to join the International Monetary Fund and World Bank, particularly as the National Party had given no indication in its Election programme of its intention to do so.  The extent to which the National Government has committed New Zealand either as borrower or as guarantor is not clear.  A Labour Government will, however, honour all commitments and obligations (whether publicly disclosed or not), properly entered into by the National Government, will not itself borrow either from the Fund or Bank, and will take steps to withdraw from these institutions.  8. Overseas Investment  The Labour Party believes that if industry is to expand for the purpose of providing a greater supply of goods within New Zealand and if full employment is to be maintained some overseas investment in industry may be desirable. Such investment should safeguard the interests of existing New Zealand manufacturers and of consumers, and steps should be taken to ensure that the profit earned is not unreasonable.  9. Take-over Bids  Recent take-over bids, particularly by overseas companies, show that the present Companies Act is inadequate to protect the consumer, the average shareholder, and the public generally.  A comprehensive review of the Companies Act will therefore be undertaken to prevent, wherever possible, those take-over bids which are inimical to the interests of the shareholders, to the country’s welfare, and to prudent business management, and which tend to create undesirable monopolies.  10. Hire Purchase  The Labour Party is concerned at the extent to which overseas and local investment is being channelled into finance and hire purchase companies - often at the expense of the producer. While A MEASURE of hire purchase is desirable and even essential to enable soME PEOPLE to obtain goods which would otherwise be beyond their reach and also to maintain production at a reasonable level, it appears that in some cases the charges made are higher than is warranted. Labour will therefore take steps to limit the effective annual return which can be earned on hire-purchase transactions and will encourage the trading banks to provide alternative facilities for personal borrowing.  11. Industrial Finance Corporation  The need for capital funds at a reasonable rate of interest to enable small industries to develop and expand has become increasingly obvious in recent years. The tendency to rely on bank overdraft accommodation for this purpose is not in the best interests either of the firms themselves or of the national economy.  An Industrial Finance Corporation will be established for the purpose of mobilising funds to assist in the development of industry, special consideration being given to the encouragement of small industrial units, particularly in districts where local economic and social problems could be alleviated by the development of industry.  12. Local Government Finance Corporation  Some local authorities experience difficulty in raising loan moneys for approved capital works. This difficulty is accentuated when only short-term finance is available, in which case the amount required has to be re-financed several times, with additional brokerage and advertising charges. I  The Situation has been ameliorated to some extent by the operation of the Investment Committee controlling the National Provident Board's funds which has made available usually on short-term, finance to local authorities which were experiencing difficulty in obtaining their requirements on the open market.  The Position which has developed is still unsatisfactory insofar as it gives no assurance to local bodies which have secured approval to their works from the Local Government Loans Board that finance will be made available for the approved term of the loan.  Another unsatisfactory feature of local government borrowing is that lending institutions have come to expect a higher rate of interest from local bodies than from Government itself. There appears to be no substantial reason for this differential, particularly with the more flourishing bodies.  A Government-sponsored Local Government Finance Corporation will be established for the purpose of utilising the surplus loan moneys of certain local authorities and also raising funds by the issue of local government debentures at the same rate as government loans.  13. Safeguarding the Public  Safeguards which have been found to be necessary in restricting undesirable tendencies on the part of trading banks will be extended, where appropriate, to quasei-banking concerns.  14. Trading Banks and Small Savings  Trading banks will not be permitted to enter the small savings field.  The Post Office Savings Bank and an extended number of Trustee Savings Banks will be used to mobilise and expand small savings.  15. Taxation  As taxation revenue, when rates remain uniform, tends to increase in proportion to national income, it is possible to reduce taxation rates while still collecting more revenue.  It is Labour's objective to increase substantially the national income.  This increased income will yield additional taxation (even with the reduction in rates of taxation (even with the reduction in rates of taxation which are proposed in our policy) which will be sufficient to cover the additional expenditure likely to be incurred when other policy matters axe implemented.  As soon as the economic and financial circumstances justify it, further reductions in the rates of direct and indirect taxation will be made.  16. Income Tax  Personal exemptions for income tax purposes will be increased to £10 a week for a single person and to £15 a week for a married man with a dependent wife.  The basic rate of income tax will be fixed at 3s. in the £1 on the first £1,000 of taxable balance (after allowing for personal and other exemptions). The rate will thereafter increase by 3d. for each £100 until a maximum of 13s.6d. in the £1 is reached (at £5,200 taxable balance).  Secondary employment tax will be collected at the rate of 3s. in the £1.  17. Provisional Tax  The Labour Party regards the present system of collecting tax from the self-employed and other provisional taxpayers as cumbersome and irritating.  It will therefore take steps to amend the legislation and procedure so as to require payment from this class of taxpayer in one sum, due in February of each year, calculated on the income accrued during the previous year.  No taxpayer will pay twice on the same income.  18. Depreciation Rates  All depreciation rates on buildings and machinery will be drastically revised with a view to encouraging the replacement of obsolescent plant by modern machinery.  19. Retention Tax  Retention tax on all companies will be abolished.  The Commissioner of Inland Revenue will be given power (subject to the right of appeal) to deal with companies where it appears that profits are being retained not to promote the expansion of the business but to avoid taxation.  20. Petrol Tax  The 2d. per gallon petrol tax which is now paid into the Consolidated Fund for general purposes will be paid into a special account in the National Roads Board Fund to be distributed to local authorities for the purpose of meeting special expenditure on roads and streets and alleviating the burden on local rates.  21. Farm Improvement Reserve  In order to encourage farmers to set aside, in specially favourable years, money for future farm development, farmers may establish a farm development reserve on which no tax will be payable if the money is used for farm development.  This reserve will be deposited with the State Advances Corporation and will earn interest at 3 per cent.  If it is not used for farm development purposes within a period of three years (or such longer period as the Commissioner may allow in special circumstances) it will attract tax at the appropriate rate for the year in which  it was earned.  22. Incentives for Increased Production  The need for a rapid and massive increase in New Zealand's export income is the major economic task in New Zealand today.  On its success rests the entire future of all New Zealanders' living standards.  It is therefore imperative to rapidly increase production of goods that will sell most profitably oversees.  It is equally imperative to process them inside New Zealand in a way that will make them most saleable overseas.  And it is essential for every possible exporter to take part in a widespread and vigorous export drive.  Therefore, apart from policies outlined under Labour's export programme, Labour guarantees the following steps to increase production - and particularly export production.  FOR FARMERS -  To encourage a rapid increase in profitable farm exports, farmers increasing production of most, wool, vegetables, milk products and all other products intended for export will receive half their extra income free of tax.  Not only is this designed to increase production of mutton, wool and dairy products, it is aimed at a major increase in beef and pork production - and in any other farming field that will prove most profitable to New Zealand as a whole and to the individual farmer producing the goods.  FOR PROCESSING FIRMS -  To encourage the maximum processing of export products inside New Zealand, plant and equipment for this purpose will be written off at specially favourable depreciation rates.  This is designed, specifically, to encourage much more processing of such export products as woollen goods, leather goods, fish, vegetables, meat and new forms of dairy products.  But it will also apply to the processing of other products intended largely for export.  EXPORT INCENTIVE-  Exporters will receive tax-free for three years all increased export earnings obtained by selling processed or manufactured products overseas.  This is subject to only one provision: there must be a clear addition to the nation's earnings - and therefore export goods are not merely being moved from one market to another or from one exporter to another.  This incentive is designed to encourage every manufacturer in New Zealand to join in the export drive and view the world as his market.  In this way, the New Zealand public benefits - not only by the imports that export earnings buy - it will also benefit, eventually, by the economies of larger-scale production based on much larger markets.  OTHER INCENTIVES FOR MANUFACTURERS -  Where manufacturers have their products sold through exporters, and the exporting firm exports the benefit of the three-year tax incentive, the manufacturing firm will receive tax free one half of the extra income that it earns from its export products.  This 50 per cent tax rebate on increased production will also be paid on such other goods as the Minister of Finance may from time to time decide - where a rapid increase in the production of such goods would be in the national interest.  EMPLOYEE BENEFITS -  To ensure this rapid increase in export income and productivity, Labour recommends that employers develop and enlarge incentive and bonus schemes to ensure that the fruits of this increased production are shared among their employees.  In addition, as covered under Labour's labour relations programme, as productivity rises in New Zealand, all basic wage rates will be increased automatically at each hearing of an application for a general wage order.  If productivity - or output per worker - increases 5 per cent, basic wage rates of all workers will also increase 5 per cent.  LOCAL BODY RATES  LABOUR believes that the Crown should pay full rates on all Crown property, with the exception of schools and hospitals and that, on these, full water, sewerage, stormwater, drainage and other special rates should also be paid.   EDUCATION  Principles  LABOUR believes –  That every child, whatever his level of ability, whether he be Maori or European, whatever his parents' income, and wherever his home may be, has a right to the full development of his powers. Labour also believes that our strength and adaptability as a nation, the raising of our living standards, our cultural progress, and the vigour of our whole democratic way of life depend as never before on a thoroughly adequate provision for education.  LABOUR will therefore –  Allocate progressively a higher percentage of the national income to education with a view to the expansion of educational facilities and to the attaining of the same standards as other advanced countries.  Administration  LABOUR agrees with the Education Commission that the principles of education administration should be -  (a) That education should continue to be centrally financed.  (b) That local interest in education should be preserved and strengthened by the further  development of local institutions.  (c) That a balance should be kept between central and local power; and  (d) That delegation of authority to the local institutions should be as great as possible under a system of central financing.  LABOUR will therefore -  Continue to give strong support to sound progressive educational developments at all levels from pre-school education to the University and adult education.  Staffing  The first objective of the next Labour Government will be to ensure the staffing of all classes, primary and post-primary, by qualified teachers. All efforts being made to solve the staffing problem will be intensified.  Recruitment of teachers both in New Zealand and overseas will be stepped up, married women teachers being encouraged to retum to teaching, either on a full-time or part-time basis.  Training of Teachers  Additional training colleges of modern design will be built as required and all those desiring entry to the teaching profession and having the necessary qualifications will be admitted. The standard of entrants into the training colleges will be raised progressively to university entrance level, and the extension of the training period to three years will be introduced along the lines suggested by the Commission. Opportunity will be given to complete a university degree.  Leave on Full Pay  The number of awards to teachers on full pay to enable them to complete university degrees will be increased and opportunity will to given to training college students of suitable calibre to attend university to raise their academic qualification.  Reduction in Size of Classes  The aim of a Labour Government will be contemporaneously with the achievement of the raising of the entrance qualification to training college and the extension of teacher training to three years to reduce the size of classes. The target size will be a maximum of 35 pupils in any one class.  Pre-School Education  Increased support will be given to kindergarten and nursery play centres. The salaries of these teachers will be reviewed.  Clerical Assistance  Clerical assistance will be provided for Grades VA and VB primary schools and for those district high schools not now entitled to it, and additional clerical assistance for the larger intermediate schools and district high schools, and for all normal schools.  Special Education  The Department of Education will be asked to co-operate with the Departments of Health, Labour and Social Security and appropriate voluntary bodies and private organisations in order to formulate a scheme for after-care training and employment of all children leaving special classes.  Plans will be developed for a longer period of initial training of certain groups of teachers. In-service training in various forms will be extended, and permanent residential staff colleges for in-service training will be established.  Teacher Pay  Recognising the need to attract the best of our young people to the teaching profession, Labour will take steps to increase the salary payable, particularly in the first years of service.  Rural Education  Further steps will be taken to give the country child educational opportunities equal to those of children in the towns. A new code for the secondary departments of district high schools will be introduced, with standards for building and equipment corresponding to those for the smaller post-primary schools. Boarding allowances will be increased, and a new type of bursary will be introduced for pupils with ability in mathematics and science who cannot be catered for adequately at their local schools.  Financial assistance for the establishment of hostels for post-primary pupils, teachers' college and university students, and for students who must live away from home to pursue technical studies, will be increased. The new  types of schools to meet rural needs having been established on an experimental basis will be extended or varied according to the measure of success experienced.  Correspondence Schools  An increased number of residential courses for Correspondence School children will be provided and mere finance made available for visits to primary schools.  Delinquency  Efforts to prevent delinquency and maladjustment among children will be intensified. The psychological service will be extended to districts at present only partially catered for, and the visiting teacher service to post-primary schools expanded  Handicapped Children  Assistance to handicapped children will be expanded where necessary, especially to the small groups of intellectually handicapped children.  Technical Education  To strengthen our economy in a competitive and increasingly scientific world, the Labour Party will, on becoming the Government, press forward with the vigorous development of technical education that is now taking place, especially at the "middle group" technician level. The growth of senior technical schools and technological institutes will be strongly encouraged. The range of technical classes and technical correspondence courses will be further expanded, and every effort will be made to provide the schools with fully qualified staff and the most up-to-date facilities and equipment.  Maori Education  Consultation will take place with the Department, Maori members of Parliament, and other leaders of the Maori people to ensure that the Maori children shall have equal opportunity with all other children to obtain the best education. In particular, Maori pre-school centres will be established in all areas where it is considered necessary to establish them. Consultations will also take place with the Department and the Trustees of the Maori Education Foundation to ensure the best usage of the funds available for bursaries and scholarships.  Libraries  More money will be provided for school libraries, especially the libraries of newly and recently established schools.  Buildings - Classrooms  The programme for the replacement of obsolete and temporary classrooms will be speeded up.  Gymnasia - A scheme for the provision of gymnasia in all post-primary schools will be introduced and the physical education already a part of the curriculum of post-primary schools will be extended under the aegis of the Education Department to enable the further use of these gymnasia by young men and women who have left school. Where possible, the services of the school physical education staff will be availed of, and where necessary further staff will be recruited.  Teacher housing - Further provision will be made for housing for teachers.  Higher Education  LABOUR will adhere firmly to the principle that all our young people who obtain the qualifications for entry to the university and who wish to undertake university study should have the Opportunity to do so. The urgent need of the country for more graduates gives added force to this principle.  In particular university fees will be reduced in order to encourage part-time students to attend University classes, the universities being recouped for the reduction of fees by an increase in Government grant.  The number of university bursaries will be increased and the level of boarding bursaries raised substantially.  Halls of Residence  Halls of Residence at universities will be Provided by Government, and where religious bodies and others wish to build Halls, generous subsidies will be granted. The Government will find 80 per cent of the cost of the building, and advance by way of loan 10 per cent of the cost. The responsibility for raising the remaining 10 per cent, finding the cost of the land, providing the furniture, and repaying the loan will rest on the sponsoring body.  PHYSICAL FITNESS  A physical fitness campaign will be inaugurated, under the direction of the Education Department.  Government assistance will be provided to -  (a) Encourage, co-ordinate and develop existing youth organisations.  (b) Recruit and train leaders.  (c) Initiate new recreation activities.  (d) Build gymnasiums in post-primary schools, for use by the scholars and those who have left school.  LABOUR will, in approved cases, contribute a £1 for £1 subsidy to local authorities for the building of gymnasiums to meet the needs of the community for these facilities.  STATE AID TO PRIVATE SCHOOLS  Labour adheres firmly to the principle of free, secular and compulsory education.  At the same time, it believes that, outside school hours, opportunity should be given for religious instruction by accredited representatives of any religious denomination.  It also believes that all those wishing to establish and maintain private schools should be free to do so, provided the teaching in these schools conforms to the standards laid down by the Department of Education.  It affirms that the children attending these private schools are entitled to the same amenities as are available to children attending State schools (such as books, milk, transport, dental care, etc.)  Where subsidies are available to State schools for equipment or facilities not wholly provided by Government, the same subsidies should apply to private schools.  Where classroom equipment, furniture, and services are provided for State schools, the same should be provided for private schools.  HEALTH  1. Payment from the Social Security Fund to general medical practitioners will be increased after negotiation with the New Zealand Medical Association to an amount which should cover the full cost of ordinary medical care without additional charge to the patient.  2. After negotiation with the profession a specialist service will be introduced covering, as far as is practicable, the full cost of providing specialist care, both medical and surgical.  3. Private hospital beds should be available for those who prefer private hospital accommodation, but Hospital  Boards will be required, either by the construction of more inpatient accommodation or by utilising to better advantage accommodation already available, to provide for all those who are entitled on medical grounds to admission to public hospitals.  4. Hospital Boards will be required to provide an adequate out-patient service for the purpose of ensuring proper diagnosis before admission to hospital and also to provide after-care for those requiring it.  5. Adolescent dental services will be extended to all children up to and including 18 years of age, provision first being made for those still dependent on their parents.  6. Orthodontic treatment will be incorporated in the Social Security Scheme, thus making this form of dental treatment available free to the patient.  7. Pharmaceutical benefits under Social Security will be continued for the purpose of providing all proper pharmaceutical aids to the patient on the proscription of his medical adviser.  8. School medical services will be improved and extended with a view to ensuring that every child has the opportunity a medical check at least once a year.  9. Mental health services will be extensively overhauled with a view to ensuring that adequate psychiatric services are available to patients either as in-patients at hospitals or as out-patients. Psychiatric beds will be provided at all public hospitals. Post-graduate training will be provided for doctors prepared to undertake and specialise in psychiatric work. With a view to eliminating distinctions between those who are mentally sick and those suffering from other illness, mental hospitals will be co-ordinated with general hospitals under a unified control.  10. In order to encourage girls to undertake a nursing career, nursing theory will be taught as a subject at post-primary schools, thus reducing to a minimum the need for theoretical study during nursing training.  11. While making full provision for the proper care of the sick, more active public health measures will be taken in the field of preventive medicine.  SOCIAL SECURITY MONETARY BENEFITS AND WAR PENSIONS  1. The rates of Social Security Benefits will be determined after a thorough investigation of living costs actually incurred by a representative sample of beneficiaries, either living alone or as married couples.  2. In the meantime the permissible income will be increased. There will be no deduction in benefit for earnings up to £3 a week, but thereafter one-half of the earnings will be deducted from the benefit until a total permissible income of £5 a week is attained, in addition to the benefit.  3. To meet the special needs of those who hove no additional earnings, minimum supplement of ten shillings a week will be paid in addition to the basic rate of benefit.  4. Sickness benefit will be payable for a maximum period of three months and at a single person's rate to men whose wives are working or to women whose husbands are working, provided that the applicant has been working full-time for a period of twelve months.  5. The age supplement payable to war veterans at age 65 will not be regarded as “other income” and will not therefore affect the rate of pension. Other permissible income will be extended beyond the present £3 a week, by counting one-half of any income above £3, as "permissible” until a total permissible income of £5 a week is attained, in addition to the pension and the age supplement.  6. The maximum war disability pension will be increased to £5 10s.  7. Merchant navy men of the first world war may be granted a War Veterans' Allowance at the discretion of the War Pensions' Board.  8. Mental hospital patients will be treated for Social Security monetary benefits purposes as if they were patients in public hospitals.  9. Special assistance will be liberalised to enable women to look after their relatives at hone who would otherwise have to be admitted to an institution.  10. Concession rail tickets, to be used in the "off-peak" travelling period, will be issued to those whose only income is the basic pension.  11. Sickness benefit will be payable to married men during the first week of illness, thus eliminating the "stand-down" period.  12. The qualifying period of residence in New Zealand before applicants are eligible for age benefit or universal superannuation will be reduced to fifteen years.   MAORI AFFAIRS  LABOUR will -  (1) Ensure that all legislation affecting Maoris as such will allow individuals the right to feel and express their Maori identity should they so desire.  (2) Appoint a Maori Member of Parliament to the Executive Council as the representative of the Maori people.  (3) Recognise the accelerated urbanisation of Maoris and provide for  (i) Extended facilities for hostel accommodation.  (ii) Pool houses for Maoris awaiting erection of houses.  (iii) Home financing to provide boarding accommodation for Maoris.  (4) Set up a Commission of Inquiry on Maori problems for the purpose of clarifying -  (a) Problems economic and social involving Maoris.  (b) Problems economic and social involving Maoris because of their Maori status.  and showing the required remedial action that needs to be taken.  (5) Investigate the unification of Titles of economic Maori lands which are unproductive because of ownership and setting aside the necessary finance to accomplish this.  (6) Extend rural Farm Training Cadet Schemes to provide for Maoris.  (7) Extend apprentice schemes to provide basic training to enable more Maoris to participate in the benefits of apprenticeship.  (8) Ensure the provision by Maori Trustees of financial aid or loans to qualified Maoris for business purposes.  (9) Undertake an investigation into the finance held on behalf of Maori clients by Barristers and Solicitors.  (10) Encourage proper practical and academic agricultural training for young Maori farmers.  (11) Place a greater emphasis on all categories of professional, occupational and skilled training for young Maori males and females.  (12) Make Waitangi Day New Zealand's national day and a statutory paid holiday throughout the country.   TELEVISION AND BROADCASTING  Labour believes that television, properly organised, is the greatest medium of information, education and entertainment the world has ever seen.  It believes that the national television service in New Zealand must be operated in a way that enables the best possible development in the public interest. It must not be operated in a way that allows the public to be exploited by cheap commercialism.  Labour is not satisfied that the present standard of television programmes is the highest possible Therefore it undertakes that -  (1) The radio and television service will continue to operate under the Broadcasting Corporation.  (2) Ministerial responsibility for the Broadcasting Corporation will be clearly established so that the Government will be, in fact, responsible to the public for the effective development of radio and television.  (3) The policy will be to extend television and radio coverage over the widest possible area as soon as practicable.  (4) To provide alternative programmes, second channels will be established where justified by viewer demand  (5) It will be the Corporation's responsibility to decide the precise details as to how these channels will operate.  (6) Every encouragement will be given to the use of local talent, both for radio and television.  Overall, it is Labour's policy to provide a television and radio service that informs, educates and entertains - and a service that gives the public the essential right of programme choice as soon as that is practicable  TOURIST DEVELOPMENT  Aware of the great upsurge in the travel industry throughout the world, Labour will see that New Zealand receives its fair share of this remunerative industry.  Every available medium of publicity, and the facilities of our overseas travel officers, will be used to attract more tourists to New Zealand.  Full advantage will be taken of increased air and shipping services as more companies show interest in passenger traffic to and from New Zealand.  Close attention will be given to catering for through passengers and tourists from cruise ships who spend a considerable amount of money during their brief stay in New Zealand.  To take advantage of new travel facilities, tourist amenities in both Islands will be expanded by the State, and private enterprise in this field will be further encouraged.  Special emphasis will be placed on tourism within New Zealand by New Zealanders. A campaign of “See New Zealand first” will be embarked on.  CIVIL AVIATION  The planned development of airports with supporting air navigation facilities and the provision of sealed runways will proceed as quickly as can be achieved with the resources available. This will be done in accordance with the established policy that the cost of such development is shared between the central Government and the local-authorities served by these airports in proportions to be determined in the light of the particular circumstances existing in each case.  TRANSPORT  Modern efficient transport services of all types are essential to meet the needs of the rapid expansion in New Zealand's economy which Labour has planned for the future. Labour will undertake periodic overhauls of the transport licensing system in the light of modern developments.  LABOUR will establish a Transport Council. This will mean savings in administrative overhead and bring the whole field of transport administration in line with modern requirements.  LABOUR will continue the modernisation of the Railways Departments facilities and services, and provide suitable and adequate transport for the expanding traffic needs of the Dominion.  GOLDEN KIWI LOTTERY  Labour will undertake a complete investigation into the administration of this lottery and the distribution of funds with a view to eliminating the atmosphere of political patronage at present all too evident.  Funds will not be frittered away on objects of doubtful value but will be channelled into projects serving a useful purpose. The basis on which grants or subsidies will be made will be clearly determined so that organisations making application will know beforehand the amount to which they are entitled.  INDECENT PUBLICATIONS  While ensuring that all publications likely to deprave and corrupt are prohibited, Labour will take steps to amend Section 15 and other obnoxious features of the Indecent Publications Act.  PARLIAMENTARY REPRESENTATION  Labour believes that to ensure that South Island electorates do not cover such a wide area as to make adequate representation impossible, the number of European seats should be fixed at 26, the number of Forth Island seats being increased to ensure that the quota of persons in electorates in both islands is approximately equal.