HON. MR MACMILLAN AT KATIKATI

Bay of Plenty Times, Volume LXIV, Issue 11865, 4 November 1935, Page 2

HON. MR MACMILLAN AT KATIKATI

DEFENCE OP GOVERNMENT POLICY. The Hon. C. E. Macmillan, Minister for Agriculture, the sitting member for the district, opened his election campaign at Oropi pn Friday night, where Mr S. Fleming presided, and spoke again at Katikati on Saturday night. ; ; Always assured of an attentive hearing at Katikati, the meeting on Saturday night was probably the best that Mr Macmillan has yet had in his home settlement, and for just on two hours his defence of the Government policy and explanation of the" steps taken to meet the exceptional conditions of the'past few years' was listened to: with close, attention. . . _

Mr E. Marshall occupied: the chair, and in briefly introuncing Mr Macmillan remarked' that the past four years was not a period that any Government, would have chosen to increase its popularity. He felt sure the Minister’s remarks wouiu be followed ,with interest. Mr Macmillan, on rising was warmly applauded. ’ He said the last four years had been such that no Government , could come through them without Ipss of popularity. Conditions had been unprecedented, with its consequent reflection on the income of everyone. Her outlined the financial difficulties of the Government at the outset, and the steps it was forced to take tf maintain the financial stability of the -Dominion. Dealing at length with the exchange question,- Mr Macmillan explained the position prior to the pegging of the exchange at 125. When the big fair in prices occurred .the Government had to face the serious drop of; £ 27,400,000 in our national revenue, an amount greater than the total Government income. To bring expenditure within the limits of the income available many drastic steps had to be taken such as reductions in salaries and wages; It was imperative, too, that the Dominion’s greatest asset, its farming lands, should riot be allowed to deteriorate. ■To ensure , this the farmer had to be ; assisted. ; Many people claimed that the Government had had. a care for one section of the community only—the farmer—and indeed that was still being urged in some directions. The farmer had been assisted, and rightly so, he claimed, in the. following principal directions;- • (1) Subsidising the purchase of fertilizer, thuh lowering the cost. (2 By lowering interest rates on mortgages by 20 per cent, with a limit downwards of 5 per cent. (3) Lowering-Counties’ interest on loans. (4) Lowering railway freight on farm produce, totalling £145,000 In the first year of- its oper- ; ation. (5) Assistance to farmers from the Unemployment Fund to the extent of £250,000 per annum. (6) Assistance to Counties from the Unemployment Fund totalling £900,000. (7) By raising the exchange rate from 10 per cent, to 25 per cent., .thus providing an additional 15 per cent, to the primary producers’ gross income. The beneficial effect of this policy of adjustment, he said, soon became apparent, with the ultimate result that the national budget had been balanced and a large measure, of restoration of the cuts in salaries 'and wages had been brought about. A clear indication of the Dominion’s recovery was afforded; by the Post Office Savings-bank returns, which showed that while the funds in that office had been depleted by over £12,000,000 in 1931, 1932 and 1933, they recovered by £5,000,000 in the year ending March 31st last. The recovery had been rapid, and very little of the increase at the end of the financial year was due to the enhanced prices for-our products overseas. During the past six months the deposits in the Post Office Savings-bank showed a record, a striking commentary on the assertions made in some quarters that the people had no confidence in the Government and were frightened to ,invest their money. As a further indication of returning prosperity Mr Macmillan pointed out that while the unemployment tax at Is in the £ for the year ended March 31st, 1933. yielded £ 4,027, - 999, the yield for year ended March 31st, 1935 was £ 4,623,560 although the tax was reduced to lOd in the £ for half of that year, indicating that £ 12,000,000 more were paid out in salaries and wages during that year. .

The yield from the sales-tax was 18 per cent, more in June, 1935, than it was-In June of the previous year, another ‘clear Indication of the increased purchasing power of the people.

That confidence In the future buying power of the community - was established was demonstrated by the fact'that imports from overseas had increased by £7,600,000 In the year ended June 30th, 1935, compared With the previous year. This confidence, this feeling of security, was what all nations had been striving to obtain, and having been obtained should be retained and not dissipated by any excursions in-

t& the realms of financial nostrums similar to those which had landed other nations in misery in the past. The Exchange and Ottawa. In rebuttal of the statements made by some that the raising of the exchange was a violation of the Ottawa Agreement, v Mr Macmillan read a verbatim - extract from a report of a debate in the House of Commons on April Hth, 1933, in which the Right Hon. J. H. Thomas, Secretary of State for the Dominions, in reply to a specific question, stated that there was a treaty between Great Britain- and the Dominion, but that the raising of the New-Zealand exchange rate was not a violation of it. > ■ British Preference. In reply to those who believed that New Zealand could obtain better terms for her products exported to the United Kingdom if we reduced our tariffs, he read a cablegram from the New Zealand Government to the United Kingdom Government on .October 25th, 1933, asking if this were so, and the reply dated December 23rd, 1933, stated clearly that this would mean a change in the dfefinite policy of the United Kingdom. and certainly could not apply to New Zealand alone. In a speech in the House of Commons the Right Hon. J. H. Thomas had emphasised this. Interest on Loans. Mr Macmillan characterised as outrageous the statement made by an Opposition candidate that in the past, even in prosperous years, the Government had' borrowed to pay interest on loans. The official accounts showed clearly and exactly how surpluses-were disposed of, and these surpluses could not exist until all accounts (including interest on loans) had been paid. Previous surpluses had quite rightly been used to offset any subsequent deficits.. Future Borrowings In rebuttal of the malicious statement that the Government proposed now to borrow further moneys overseas, he quoted the policy set out in this year’s Budget, as follows: “The complete capital programme provides for a net expenditure out of loan money of 33 millions. This amount- can be provided from 'Government Accounts, so no public issue will be necessary for the purpose.” Guaranteed Prices. Mr Macmillan pointed out the conflict of opinion that existed in leading - Labour ; circles as to what Guaranteed Prices meant and how they were to be financed, and maintained 'that until there - was - some definite proposal- the . idea could only be considered -as Y bait—of a different nature to suit deep or shallow waters; one thing in the country and ar other in the towns. Mr Macmillan commended the Government Manifesto to his audieiice for thoughtful consideration. In it they would find no vain financial dreams for improving conditions, but sound. practical proposals for the amelioration of: social and economic conditions in New - Zealand. Mr Macmillan -was heartily applauded bn resuming his seat. Several questions were then satisfactorily answered by Mr Macmillan. Mr A. W. Hyde, in proposing a Very hearty vote of thanks to Mr Macmillan for his address, said he felt justified in also making the motion a vote of confidence in Mr Macmillan as the parliamentary candidate for the district. He was confident that apart altogether from political opinions in Mr Macmillan they had a very sound man to repreI sent the true interests of the district. ■ ■ ■ ' , The vole of thanks and confidence, which was seconded by Mr W. H. Poole and Mr P. w. Hopkin, was carried with acclamation. A vote of thanks to Mr Marshall for presiding concluded the meeting.-' ';■ • ■ ' ■