FALLING PRICES

Ashburton Guardian, Volume 50, Issue 268, 26 August 1930, Page 2

FALLING PRICES

EFFECT ON THE DOMINION, EXERCISE OF ECONOMY URGED. ' I (Per Press Association.) STRATFORD, August 25. “Australia’s position is so serious that it must have an indirect effect on New Zealand,” said Air W. J. Poison, M.P., in an interview to-day. “Public opinion cannot be top strongly directed to the necessity of profiting by Australia’s misfortunes. We cannot afford to drift a single hour. We must put our house in order- at once. Australia has a colossal public debt, a balance of imports over exports, and high taxation. What great difference exists between her position and ours? “Let us face the facts* We are balancing our Budget by piling taxation on this already overburdened community instead of attempting to economise. Political courage and a strong policy are needed if we are not to be cau°iit next year as Australia has been caught this year. If Sir Otto Niemeyer is right in his summing-up, the position of the primary producer not only s in Australia, but in New Zealand, calls for immediate consideration and statesmanship.” After setting out Sir Otto Niemeyew’s conclusions, Air Poison proceeded.: “This dark picture of Australia’s position may not interest thoughtless people, but can anyone say that the situation in New Zealand is very much better or likely to improve under the policy of piling up costs through the tariff and adding to the tax burden which is already uneconomic? Drastic and far-reaching economies are called for. This country exports nothing but . primary products. W r e have to export and maintain a balance of exports oyer imports that will pay our overseas interest bill if we are to retain a sound position. If world prices continue to fall and the primary producing goose fails to lay the golden eggs, nothing will save New Zealand fronj. a catastrophe not experienced since the ’sixties. , „ ~ “We are caught m the cogs of the political machine which we cannot control. Parliament might set about improving the situation, but no party has the backing to adopt radical remedies. The party spirit is too strong. The present Government cannot even tackle the job of reducing living costs through the tariff and putting substituted taxes on the shoulders of luxury users, yet we must apply this remedy, however unpalatable, or suffer worse results, and the sooner the country wakes up to the fact and insists upon its rulers acting instead of talking, the more liehtlv will we escape ■ Australia s fate.”