PARLIAMENT ADDRESS-IN-REPLY DEBATE

Press, Volume XCI, Issue 27628, 7 April 1955, Page 12

PARLIAMENT ADDRESS-IN-REPLY DEBATE

Mr Nash Moves Motion Of

No Confidence

(From Our Parliamentary Reporter}

WELLINGTON, April 6. The Leader of the Opposition (Mr Nash) this evening moved in Parliament a vote of no confidence in the Government’s administration. It came at the end of an hour-and-a-quarter speech in which he opened for the Opposition in the Address-in-Reply debate. The House will have to wait possibly a fortnight or longer until the debate is finished before the vote on Mr Nash’s amendment to the motion is taken. There was an immediate cry from Mr F. Hackett (Opposition, Grey Lynn) for an election, a question from Mr J. B Kent (Opposition, Westland) to the Prime Minister (Mr Holland): “What about your challenge?” and then a remark to the House, "His courage is gone.” The Deputy-Leader of the Opposition (Mr C. F. Skinner) seconded the amendment that there should be added to the motion before the House —That an address be presented to the Governor-General in reply to the Speech from the Throne—the words, “In conclusion, we deem it our duty to represent to your Excellency that your Excellency’s officers have forfeited the confidence of the country and of this Mr Nash claimed that the Government had failed to prevent inflation, reduce the cost of pving, lower the cost of houses, and institute leciprocity of pensions with the United Kingdom as was promised in 1949. ‘The potential prosperity given to us by high overseas prices has been mismanaged and maldistributed by the Government,” he said. The Minister of Labour (Mr W. Sullivan), the only other speaker in the debate tonight, said that Mr Nash had moved a vote of no confidence once before —he had come back to the House tw*o or three members short. Mr Nash interjected with a suggestion that an election be held now.

The Minister said that Mr Nash had not made one worth-while contribution to the management of the country during his speech. “He was trying to be miserable in a happy land,” said Mr Sullivan. New Zealand’s economic position was sounder than ever, and as Jong as the international situation did not deteriorate the present prosperity would continue. ‘Had Economy” The Press Association reports that Mr Nash said that at the end of the Labour Government’s term of office T’ r w Zealand had a lower price and cost-of-living structure than anv other country. That Government had reduced overseas debt and had reduced substantially yearly interest payments on overseas borrowings. But in the recent years of unparalleled prices New Zealand had fallen back in her internal economy. The present Government was borrowing at a time when prices were high. This was bad economy.

The value of the £ had decreased, and the people’s savings were consequents affected. Every £ invested in the Post Office Savings Bank today was worth 6s less than in 1949. Mr Nash said that the general cost of livins was 41.8 per cent higher than in 1949.

“The cost of some foodstuffs had risen almost 100 per cent. All this is in complete violation of the pledges made to the electors by this Government,” he said. Prosperity was maldistributed, some i beneficiaries being worse off than before. Prosperity was no use unless it was given back to the mass of the people as increased buying capacity. Land and’ property prices had doubled in four or five years, he said. “There are thousands of people who cannot find homes today within the scope .of their own income bracket,” said Mr Nash. Higher interest rates had also had their effect on would-be home owners. The housing position for old people was desperate. No housing problem would be solved until houses were built for all who needed them but , could not afford or raise the finance 'to build. There was no such thing as fair competition in New Zealand, continued Mr Nash, who gave examples of persons denied buying sources for goods because they had not sold those goods at fixed prices. The Minister of Finance (Mr J. T. Watts), he said, knew that in eight out of 10 cases goods were sold at fixed prices by retailers, who were told the price to sell at by the wholesalers. Mr Watts: I know it’s happening, but I don’t know about eight out of 10 cases.

"Dependence on Farming” Mr Nash said that New Zealand was predominantly dependent on agriculture, and if farm prices fall all were affected. “I think it is time we had a better method of marketing overseas, especially of butter,” he said. "At present we are working with Australia and Denmark, but I am certain we would get better results if we adver' ised our produce on our own.” Reciprocity of pensions had twice been pledged by the former Minister of Social Security but nothing had been completed yet, he said. The Minister of Social Security (Mr E- H. Halstead): Why did you not bring reciprocity in then? Mr Nash: We negotiated in 1949 and thought the scheme would have been completed in 1950, but the fact remains that the Minister twice pledged himself on this question, once in 1953 and again in 1954.

Mr Nash said that the Government had breached many of its main election r-nn’ises, including pledges to stop ir.r~'ianjto introduce a pensions reciprocity scheme with Britain, to reduce the cost of living, and to stop increases in the price of houses. The Minister of Finance, he added, would have a hard time to pull the Governmrfit out of a hole, particularly if prices for export produce fell. The present Government was in power on a minority vote, said Mr Nash. More persons had voted fori Labour in the last General Election, and 481.000 persons returned 45 National members, against Labour’s 484.000 votes for 35 members. Mr Sullivan’s Speech The Minister of Labour said that Mr Nash had only minor criticism to make of the Government’s administration. New Zealand’s economy was sounder than ever before, and everybody was enjoying the prosperity. Primary industry was expanding, and the living standards of the country had been increased. “Nobody will deny there have been increases in prices since we became the Government, but nobody can deny there have been increases in wages and salaries, which are keeping ahead of the rise m prices,” he said. Mr Nash had criticised the high cost o* property, said Mr Sullivan, but the only way values could be kept down was tod sales control—a method ?he Oppoeition said it would not use sales held values down, and as SSL? 5 c 2 ntr s ls were toen off, the ▼atoa naturally rose. There were so mtty black-market dealings and things hadbecome so bad in 194&49 that the trying to find a sales control itself. onl y method of down the values and prices,” Mr Sullivan said there was industrial contentment today, with very little interruption. There was great pressure icr more capital investment for works expansion. The Kawerau industry was • . i. .

one of the best that could be established. Manufacturing statistics for the 1 last five years showed that the output of every line had increased enormously. New Zealand’s labour force today had expanded to 786,000. The demand for labour was still strong. ! About 15,200 boys and 14,900 girls would reach the age of 16 this year, and would be seeking jobs in industry. “Now will anyone say we are not justified in going on expanding industry?” he asked. Immigration had helped to fill vacancies in industry. The Government had followed a careful programme of selection, and fewer than 2 per cent, of assisted immigrants had "given us any bother whatever.”

Mr Sullivan said the present indications were that New Zealand was likely to be asked to take less for her primary exports. "How soon that will come no-one knows,” he continued, “but we can anticipate adjustments on a downward scale. We’ve got to face reality, and if the reductions are equitably distributed no great harm can be done to anyone. What it emphasises is that today is not the time to go searching for increases in wages, salaries, and conditions.” Mr Sullivan said that conditions on the waterfront had never been better. In the last year there had not been one unauthorised stoppage. In 1946-47 wharf workers lost £72.000 in wages because of illegal stoppages. The rate of work had been increased considerably, and the average wage had risen from £ll Is 2d in 1946-47 to £lB 3s last year. The Government had made more progress in housing in the last two years than the Labour Government ever made. The chief barrier to further progress was the shortage of experienced labour. One pleasing thing, however, was the number of apprentices joining the building trade. "Of all apprenticeships 48 per cent, are in the building trade. We now have 6483 apprentices in the trade,” said Mr Sullivan.

The House adjourned at 10.20 pm. until 2.30 p.m. on Wednesday, when the debate will be resumed.