THE ACID TEST.

Auckland Star, Volume LXVII, Issue 106, 6 May 1936, Page 10

THE ACID TEST.

FINDING THE MONEY.

FOR GUARANTEED PRICES. DISSERTATION ON GAMBIJNG. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday. Declaring that the last Government had saved the butter industry when it raised the rate of exchange, Mr. H. S. S. Kyle (National, Riccarton), in the second reading debate on the Primary Products Marketing Bill in the House to-night, asked how guaranteed prices could be carried on if butter fell again to 8d a lb. If the Government socialised the whole of the primary produce of the Dominion and another depression of the same magnitude as the one recently experienced came along a loss aggregating £30,000,000 a year wouia result. Who would find the money? That was the acid test.

It was ail very well, Mr. Kyle added, to talk of guaranteed prices at a time when prosperity was returning, when wheat and. wool were normal. Instead of the Government gambling with the people's produce at a time when Budget equilibrium had, been brought about, reduced taxation should be provided fov. That was what the people expected. It was known, however, that the people would be taxed but of sight to find the guaranteed price suggested under the bill. He would iake the risk of the gamble if he thought that the bill would epell success. As for the Minister of Finance, Mr. Kyle 'said he doubted whether he had ever been on a racecourse or had at any time put 10/ on a horee, but he did not

hesitate to gamble with the people's produce. It might turn out all right, but it was a case of "heads I win, tails you lose."

Mr. Kyle said economic conditions were improving, and it was hoped that an increased price would be obtained for the country's" produce. He believed the price of butter would rise. Mr. Kyle said he had heard a lot of eob stuff talked about helping the multitudes In Great Britain. What help could New Zealand give. That was Great Britain's trouble.

Mr. A. S. Kicnarde (Government, Roskill): Who said so?

Mr. Kyle: The Minister of Finance. When the Minister of Finance interjected, Mr. Kyle said he did not want to hear much rumbling from the Minister at the present time. He was to have another opportunity on the following day, again being on the air.

Mr. Kyle described the Labour party as political acrobats in view of their opposition to socialistic legislation of the last session. He voted in the same lobby as the Labour party on the second reading of the Agricultural Emergency Powers Bill because he was against the legislation. He wanted to know how the Dominion was going to fare in the event of a quota or levy being imposed by Great Britain, which had already taken exception to the embargoes and restrictions placed on its goods by New Zealand.