FIRM STAND.

Auckland Star, Volume LXII, Issue 118, 21 May 1931, Page 11

FIRM STAND.

FACING ECONOMIC CRISIS

PREMIER DEFENDS POLICY.

NEED FOR READJUSTMENTS.

AVOIDING GREATER DISASTER.

So great was the interest in the appearance of the Prime Minister, tie Hi* Hon. G. W. Forbes, in the Hauraki byelection campaign, that over 1000 people were unable to gain admittance to the Orpheus Theatre, Otahuhu, last evening, when he delivered an address, in support of the Government candidate, Mr. E. Allan. Those outside heard Mr. Forbes' remarks through an amplifier. There was an organised band of hecklers present in the. hall, who punctuated the Prime Minister's speech with a sustained fire of interjections. Attempts at "counting-out" were ineffectual, but on several occasions Mr. Forbes' remarks were drowned in uproar. The efforts of the rowdy element were overwhelmingly countered by the applause of the remainder of the audience, who showed clearly that they were impressed by the etand the Prime Minister is taking to meet the present economic crisis. Mr. H. T. Clements, Mayor of Otahuhu, presided. He said the people of Otahuhu, irrespective of their individual political opinions, were pleased to see Mr. Forbes, because in him they recognised a man who was not afraid of his own opinions. "It seems I have struck the right note," said Mr. Allan, whea a chorue of "hear hears" greeted his announcement that the me&ting was assembled to hear Mr. Forbes and not himself, "and," he added, "we are going to keep on striking the right note till the end." (Applause.) The speech of the Prime Minister covered a wide variety of subjects, particular reference being made to the difficulties facing the country, and the steps the Government is taking to overcome them. The factors, so well known, which had so badly upset the Budgetry calculations for the last financial year, would Operate, he said, for the full period of the current year, with the result that the country "was faced with a , formidable problem in squaring the ledger. That had to be accomplished, however, if the country were not to drift into still more serious financial trouble. Sacrifices Essential. "I had to ask the people to make a sacrifice," continued Mr. Forbes. "If I had been studying our political safety do you think I would have asked the whole of the people of the Dominion to accept a 10 per cent reduction. Voices: Yes.

"No," replied Mr. Forbes. "I realise that unless we did what was necessary we were going to have far greater trouble. One thing I had to consider wa& the public service, the costs of which had to be reduced. The costs had been built up when revenue was far greater than it is to-day, but when the revenue was reduced, and I understood the deficit would be £5,500,000, the position had to be faced. AVhen one considers how the prices of our produce have brought down the revenue of the country—we are down fully £20,000,000 compared with two years ago —one can readily see that it was impossible to carry on the same overhead expenditure. It was either a question of making a cut in salaries, or cutting the number of people in the service. Voices: You are doing both. The Prime Minister replied that a certain amount of retrenchment had to be undertaken, but, if the 10 per cent cut had not been made there would have been wholesale dismissals from the Sublic service. To meet the altered conitions adjustments had to be made, and the aim of the Government policy was an all-round reduction in costs. Without a reduction in overhead and direct working expenses, it was clear that the farmers and the business community could not carry on, that unemployment must increase, and that there was no hope of obtaining stability in the public finances.

Election Promisee. Mr. Forbes said that Mr. H. E. Holland, Leader of the Labour party, was touring the country declaring that the Government Sad broken all its election promisee, and that it should therefore resign and face the elector*. "Anyone ■wiUi any common sen«e knows that when ft coun-try has stiKered the reverses New Zealand has it is futfle to talk about ■what you were going to do laet year," adde* Mr. Forbes amidst applause. "Nothing will be gained by talking about the mistakes of the pest. We must realise what we are tip against to-day and determine wliefc provision we must make for the future. Mr. Holland has stated that I promised that wages would not be reduced while the Government •Was in office. What an absord thing. How could any promise be given about what would happen next year? I don't care what I said last week, if things have changed to-day " The Prime Minister's remarks were drowned in booing and ironical laughter from the rowdy section. He proceeded to add, "If circumstances alter this week," when there was another outburst from the same quarter, accompanied by cries of "Twister." "If tircmn stances alter," insisted Mr. Forbes, "what sort of a manager would a man be if he did not readjust his management to the changed conditions? A Voice: Why promise, then? Mr. Forbes repeated that it waa only sanity to take cognisance of the collapse of primary produce prices, and only the blind or the deaf would proceed at the same rate of expenditure under those circumstances. A man who did that would be fit for a lunatic asylum. "I would be one of the last to suggest a reduction in wages unless it were absolutely necessary," he declared. "But I know it is better to be able to pay the workman at the end of the week than to offer him a big wage and not pay him it. (Applause and dissent.) Whatever we have promised we want to see honourably fulfilled, but it would only mean bankruptcy to ask the country to pay a greater rate of wages than it could afford. I think New Zealanders are willing to face the position and make necessary sacrifices so that the country will be kept in a sound financial condition." (Applause.) In the opinion of Mr. Forbes, people of eober judgment would realise that there was no other course open than that which the Government had followed.

Mr. Forbes referred, among other subjects, to the activities of the Economy Committee, the assistance given to farmers through the Mortgagors Relief Act and in the direction of fertiliser supplies, and to the acceleration of land settlement and development.

Vote of Confidence. At the conclusion of the address, Mr. F. M. Waters rose to read the following resolution:— "That this meeting thanks the Prime Minister for his statesmanlike statement of the Dominion's position, and expresses its appreciation of the coura-, geous manner in which he is facing the difficulties confronting the Dominion to-day. It strongly supports the declaration made by him that the time had arrived for all classes of the community to co-operate for the formation of the strongest possibly Government for dealing with the present serious financial crisis. Finally, this meeting expresses its fullest confidence in the Rt. Hon. Mr. Forbes as leader and the policy enunciated by him."

The speaker was not heard above the din created by the noisy section, but the chairman finally put the motion (which was seconded bj Mrs. Murdoch), and declared it carried.