THE NEW REGIME

Ashburton Guardian, Volume 56, Issue 42, 30 November 1935, Page 6

THE NEW REGIME

SALES TAX AND EXCHANGE, REDUCTION TO BE GRADUAL. SAFEGUARDING BUSINESS. STATEMENT BY MR SAVAGE. (Per Press Association.) AUCKLAND, This Day. ■Both thO sales tax and the 25 pel cent, rate of exchange will be reduced gradually by the Labour Government. Mr M. J. Savage made this clear today, in an interview with a representative of the “Auckland Star.” “I want the people of New Zealand to understand that we are builders,” said Mr. Savage; “We are not out to smash things. Both the exchange rate and the sales tax must be dispensed with. There can be no question about that. But I realise as well as anyone in this country that sudden removal would be ruinous. Business people can feel assured on that point. - ' Mr Savage was asked whether he would consider giving the public notice of the policy to be followed. His reply was that he was in full sympathy with that idea. It was possible there was something in the way of adopting this course, but apart from that consideration, which would have to be looked into at the appropriate time, he could not see why the public should not be taken into the full confidence of the Government concerning the procedure to be adopted in gradually reducing the rate of exchange. Mr Savage said; the reductions would be effected as gradually as possible. At the moment he was of the opinion that periodic reductions of five per cent, would he too drastic. It might he that even 2| per cent; reductions might be too severe. That question would have to he considered by experts. Perhaps reductions of 2| per cent, would he most equitable, all things being taken into consideration, hut nothing would be done without careful survey of all the factors. DECISION OF THE CABINET. RESIGNATION ON WEDNESDAY. CLEARING UP ROUTINE MATTERS WELLINGTON, This Day. Members of Cabinet met here to-day to decide when the Government should resign and hand oyer the reins of office to the Labour Party. Mr M. J, Savage will arrive on Monday morning, and will have immediate consultation with Mr Forbes. The Cabinet, who met at 10. was still sitting at noon. Mr Forbes states: “A meeting of Cabinet was held this morning to consider the constitutional position arising out of the general election, and it was decided to tender to his Excellency the Governor-General the Government’s resignation at the earliest possible moment. “Many of the Ministers arrived in Wellington only this morning, and there is a necessity to clean up routine work which has accumulated during their absence from their offices during the last month. A short time is needed for the purpose of dealing only with routine matters, all important decisions being left to our successors. I am anxious that the administration should be handed oyer at the earliest practical moment, and I propose, therefore to tender our resignations on Wednesday.” LABOUR WINS ANOTHER SEAT. MR HUNTER FOR NIANAWATU. TOTAL STRENGTH NOW 53. . PALMERSTON N., November 29. As a result of the counting of further votes, the Manawatu electorate seat has been won by the Labour party, Mr Hunter displacing the sitting member, Mr Linklater, Details are: — 0. L. Hunter (Lab;) ... 2962 J. Linklater (Nat.) ... 2932 S. J. E. Oosey (I.) ••• 1273 M. H. Oram (D.) ••• ® 73 J. K. Hornblow (I.) ... Majority for Hunter ... 30 There are about 12 votes yet to be counted. THE KAIPARA SEAT. NO CHANGE ANTICIPATED. DARGAVILLE, This Day. There has been no alteration in the figures for the Kaipara electorate since the night of the election, when they showed: Caughey. 473, Coates 4427, Grounds 4219. There are still approximately 700 postal and absentee votes to count. These will not be touched till the official count commences on Monday

morning. The final result is not expected till Wednesday.

It is considered that the result of the election will not he altered by the official count. THE TEMUKA ELECTORATE. POSTAL AND! ABSENTEE VOTES’. All postal and absentee votes for the Temuka electorate are to hand, states the Returning Officer (Mr L. W. Parrant). The totals are: Absentee, 445; postal, 126. These 571 votes cannot affect the present position, (however, as Mr T. D. Burnett’s majority as it stands is 685. The results of these additions will not be known until after the official count takes place. The scrutineers will commence their duties on Mq|tday and the official count will begin immediately afterwards. COMMENT OVERSEAS. VIEWS OF BRITISH PRESS. THE PERIL OF INFLATION. LONDON, November 28. The “Daily Mail,” in a leading article on the New Zealand elections, says: “The result will undoubtedly encourage the extreme Labour Party in Australia and may induce it to adopt the same programme of lavish promises. In the background is the peril of inflation.” The “Scotsman” says: “The New Zealand Government’s record was good, better for instance than that of Mr Bennett in Canada. The fate of the Democrat Party, like that of the Reconstruetionists in Canada or even of the Liberals in Britain, seems to demonstrate a certain general impatience with middle parties which are known to he too weak to obtain office independently. The Labour programme abounds in obscurities and will possibly lead to inflation. New Zealand is on the brink of a hazardous experiment. The Government gave hope of steady, if not spectacular, improvement. The country, however, elected to follow a spectacular, possibly disastrous, course undeterred 1 by the history of Socialist finance in Australia.” SYDNEY PAPER’S OPINION. SYDNEY, November 29. The '(Sydney Daily Telegraph,” which publishes at length a radiophone interview with Mr M. J. Savage, comments: “The new Prime Minister made a significant statement which is more than a platitude in the circumstances. He says he hopes to have the co-opera-tion of the community in his legislation. It is safe to assume that he means that, andlthe Government whose declared policy is “begin where Seddon left off” will not dismay New Zealand.