GOVERNMENT’S POLICY

Press, Volume LXXV, Issue 22767, 20 July 1939, Page 12

GOVERNMENT’S POLICY

' Strong Attack By 1 Hon. W. Hayward “ UTTER FAILURE ” Import Restrictions And London Funds IFrom Our Parliamentary Reporter,] WELLINGTON, July 19. The over-subscription of the recent internal loan was a generous gesture by the capitalists of New Zealand in appreciation of the Government’s re- • turn to orthodox finance, said the Hon. W. Hayward, speaking in the Address-in-Reply debate in the Legislative -Council to-day. Mr Hayward said that the country was labouring under most difficult conditions, financially, commercially, and industrially, and that the Government’s policy had. failed utterly. Mr Hayward said that New Zealanders overseas were being subjected to most humiliating situations because of ■the reluctance of other countries to accept New Zealand currency. Many (travellers to Australia, for instance, had found themselves in grave difficulty becausethey were unable to use New Zealand money. “New Zealand’s name and prestige in London to-day,” jhe said, “are established at a lower pevel than at any time during our his--tory. We all regret that this is how hve stand; but it is the result of the success and achievement of the Labour Government—a success which ■those who . understand finance can account as nothing short of utter failure.”

It was to be hoped, Mr Hayward said. ■ that .the lessons the Government had .recently received would have a lasting and salutary effect. There was now no pretence by the Government to a policy. Every action’ was taken as a matter of expediency to a degree unprecedented in the history of the country. New Zealand to-day was in a [state of utter chaos commercially, he [said. Because of the import' restrictions thousands : of firms and individuals had been forced out of business pnd had to discharge their employees. [There were' more 'empty shops in the towns now than there were at the [worst period of the depression. The [restrictions had failed to build up Lonfdon funds, and had resulted merely in making bad worse, and in drawing (retaliatory measures from Britain. New (Zealand’s best customer, from France l and other countries. “Lamentable Failure” “The restrictions have been a lamentable failure,” he said, “and are ; producing world-wide repercussions against New Zealand.” The amendment to the Industrial ..Conciliation and Arbitration Act passed flast evening, he said.-was simply a cry of distress from the Government, and ■ clear proof that industrially matters iwere not satisfactory. Strikes and stopwork meetings were so numerous that it was hardly possible to keep'count of them. Everyone would agree with •the sentiment expressed in the House of Representatives that the Government must govern; but the abolition of the Second Court of Arbitration, done openly at the behest of the Federation of Labour, showed that the Government was not governing; While there were thousands of unemployed, and while vast sums of money were heir'' spent - on unemployment, said Mr Hayward, it was necessary, in spite of the valiant efforts- of the Minister for Mines, to import coal. The truth was that men in few occupations now . were prepared to work for their pay. It was a desperate situation; but apparently was in accord with the spirit of the day. “Unemployment is not cured, said Mr Hayward. “The measures taken have been merely palliatives, and we are in a worse situation; to-day than ever before, with all the money spent. “I suppose I will provoke the usual Government rebuttal that in saying what T have I' am injuring the good name of the country,” Mr Hayward concluded: “but I make these statements in the public interest, and in an endeavour to make the Government pause and reflect before it is too late, if that stags has not already been reached.”