PRIME MINISTER.

Press, Volume LXIV, Issue 19459, 5 November 1928, Page 10

PRIME MINISTER.

VISIT TO TARANAKI.

FACTS AND FICTION.

REPLIES TO MISLEADING

STATEMENTS

[THE PBESS Special Service.]

NEW PLYMOUTH, Nov. 4,

Having completed a successful tour of the Auckland province, the Prime Minister entered the Taranaki election field on Saturday, and the receptions accorded him at his inaugural addresses at Waitara and at New Plymouth were every bit as cordial and enthusiastic as those which were extended to him in other parts of the Dominion. Although there was little time available on the journey from Cambridge, where Mr Coates spoke on Friday night, he was compelled to stop for a few minutes at Otorohanga and Te Kuiti, where large gatherings of local residents and settlers from the surrounding districts had assembled in the hope that they would be able to have a few words with the Prime Minister as he was passing through. Mr Coates did not disappoint them, and after an informal. chat, he delivered brief addresses and was sent on his way with cheers and expressions of confidence in tho policy of the Government. As many people as could be crowded into the Coronation Hall, the largest building of its kind in New Plymouth, heard the Prime Minister traverse the works of the Government during the past three years, and. its policy for the future, and gave him an attentive hearing while he dealt with some criticisms which have been levelled at the administration by Opposition candidates. , , , . , A group of men at the back mteriected throughout the meeting, and tried to make demonstrations of disapproval, but their strength was revealed when they were called on to hold up their hands on a no-confidence amendment. The paucity of their numbers compared with their vocal strength, as revealed by the voting, greatly amused the audience, who burst into a furore of clapping to signify their approval of the motion of thanks, appreciation, and confidence. A feature,of the interjections at all of Mr Coates's meetings is their sameness, particularly those of Labour supporters, whether they be old or new. The Prime Minister is never put out. Bather he seems to delight in taking up a heckler, and leading him from a generality to a positive statement, and then silencing him with the facts and figures which he has at hiß finger tips. "This is typical of some of the loose and incorrect statements which are being made, from the platforms by some of the United Party candidates," said the Prime Minister, preparatory to deal? ing with the appointment of Mr H. H. Sterling as General Manager of the Railways. "It has been said that Mr Sterling could dictate the terms of his salary, that he is on a seven years.' contract, that his salary is free of income tax, and that at the expiration of the seven years, he can retire on £2300 a year. Mr Sterling left the service against my wishes, and he came back at my request," the Prime Minister continued. "He has to serve his full time of forty years before he can retire on superannuation. A voice: What about the superannuation of other men who have rejoined the service?

The Prime Minister: There are any number of men who have had their superannuation made up. When the railwaymen went on Btrike some years ago the Government would have been quite within its rights in taking away their superannuation benefits, but it did not do that. There is no man in the service to-day who bears ill-will. The railwaymen know that they have had fair and generous treatment from the Minister for Railways." (Applause.)

The Prime Minister said it was incorrect to say that Mr Sterling's salary was free of income tax. "lam sure," he added, "that Mr Sterling is going to put the railways on the map, and that he will give such service that he will be worth not £3500 a year, but £IO,OOO. (Applause.) Mr Coates said another statement being made was that Mr Goodfellow had induced him, when he was Post-master-General, to give Mr Goodfellow the sole rights of broadcasting in New Zealand. "The answer to that," the Prime Minister said, "is that at the time that contract was made I was not Postmaster-General, and I was not in the country. The loan for the erection of the station at Wellington was a perfectly legitimate one. The company was called on by the State to provide a bigger and better station than was proposed, anS it had to be financed. The security is quite good, for we have assets of £20,0p0, against the loan of £15,000.' The matter has been w«ll thrashed out in Parliament, which was aatisfied with the arrangement." Concerning criticism of the finances, Mr Coates asked why the Opposition did not state the position honestly by quoting the net borrowings of the Government, instead of the gross borrowings. The figures were available to them in the Budget, but seemingly they preferred to misrepresent the position to the electors. "The statement that the Public Service can spend eleven millions every vear without the authority of Parliament shows that the Opposition have a very limited knowledge of Parliamentary procedure," the Prime Minister continued. "That money is spent under the authority of Acts of Parliament for aoecific purposes, such as railway improvements, land drainage, irrigation, etc The works were approved by Parliament, and the monej for them voted hv it and the accounts are presented every' year for tht approval of the House Such statements reflect very little "credit on the men who make fhfim " (Applause.) After dealing with the sliding scale of wheat duties on the lines of previ„,™rpsses. the Prime Minister turned SattSr \ the suggestion .that the graduated land tax should be increased f n Xr to induce the cutting up of esm order makeg . that T?!«imt " Mr Coates said, "should be fsked always to specify the estate or lf!L which should be cut up. To say !ft the gradated land tax should v LnUed in all cases is not practical. be ft sise. Take the case of men n °L are working third class country, Wb \ %it hills. Increase their tax, and m ° iJi drive them, off it, and inTad oflncrTasing production, it would steaa oi . proper system is be r6d "l and reclassify all the land befoTthere %s talk of increasbg the ta *'" Prime Minister was given very tfnntion when he outlined the GoTernmit's land settlement proposals.