GOVERNMENT'S POLICY

New Zealand Herald, Volume LXXII, Issue 22139, 19 June 1935, Page 12

GOVERNMENT'S POLICY

MR. MACMILLAN'S DEFENCE HOPES FOR EARLY FUTURE [by TELEGRAPH —OWN correspondent] TAURANGA, Tuesday Speeches in which he explained and defended the Government's recent legislation were delivered by the Hon. C. E. Macmillan, Minister of Agriculture, and M.P. for Tauranga, at Te Puke on Friday night and at Tauranga last night. Mr. Macmillan explained the effect of the increased exchange on farmers' income. The raising of the exchange rate had somewhat restricted imports, but the position in that respect was improving. Speaking of the present position, so far as the exchange question was concerned, he said that there was some talk of tbe exchange rate in Australia going to 35 per cent, but the New Zealand Government folt that with the funds it now had in London, it could hold the position with the exchange at 25 per cent. Mr. Macmillan reviewed the action taken by the Government in reducing interest rates and the legislation passed to aid tho farmer. The public debt had not been increased, but actually decreased. Unemployment relief was done out of revenue and not, as in Australia, out of borrowed money. That might bo rather hard on the people, but they were certainly not piling up a debt. The Government had every reason to believe, said tho Minister, that as a result of its legislation there would, in a year or two, bo such a recoverv from tho depression in New Zealand as many people never expected was possible.