STATE OF AUSTRALIA.

Auckland Star, Volume LXI, Issue 201, 26 August 1930, Page 5

STATE OF AUSTRALIA.

WARNING TO NEW ZEALAND. DRASTIC ECONOMY URGED. MR. POLSON DEPLORES '•'DRIFT."

(By Telegraph.—Press Association.)

STRATFORD, this day,

"Australia's position is so serious that it must have an indirect effect on New Zealand," said Mr. W. J. Poison, M.P., in an interview to-day. "Public opinion cannot be too 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 still higher taxation on this already over-burdened community, instead of attempting to economise. Political couragc and a strong policy are needed if we are not to be caught 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 in Australia, but in New Zealand, calls for immediate consideration and statesmanship."

After mentioning Sir Otto Niemeyer's conclusoiifl, Mr. Poison said: "This dark picture of Australia's position may not interest the 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. We have to export and maintain a balance of exports over 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 from a catastrophe such as has not been experienced since the Sixties.

"We are caught in the cogs of the political machine, which we cannot control. In Parliament, which might set about improving the situation, 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 luxuryusers. Yet we must apply these remedies, 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 tho more lightly will we escape Australia's fate."