GOVERNMENT’S RECORD

Press, Volume XCI, Issue 27638, 20 April 1955, Page 14

GOVERNMENT’S RECORD

MR MCLAGAN URGES RESIGNATION

POLICY ON COALMINES ATTACKED

(From Our Parliamentary Reporter) WELLINGTON, April 19. The Prime Minister (Mr Holland) should be democratic and resign because he had lost the confidence of the electors, said Mr A. McLagan (Opposition, Riccarton) speaking in the AddreSs-in-Reply debate in the House of Representatives this evening. No fewer than 14 of the Government members held minority seats, he said; yet every Labour seat was held with a majority vote against the Government. The statement of the Minister of Mines (Mr W. Sullivan) that the coal situation had improved remarkably was one which would be remarkable even in places like Sunnyside, Seacliff, and Porirua, said Mr McLagan. What had improved about the situation? Had the output or the quality improved, or the price been lowered? Compared with the previous five years, production in the last five years had fallen by 1,800,000 tons, Mr McLagan said. The price had been put up foolishly and unreasonably, and was so fantastic that consumers everywhere had cut down consumption, and many commercial users had switched to oil or electric power. The losses and accounts of the Kaitangata colliery, which the present Government had socialised, were not to be found in the Public Accounts or the State coalmines accounts, Mr McLagan said. The Minister had wasted £40,000 on an open-cast mine which had not and never would produce a single bucket of coal. He had loaded the debt on a neighbouring sawmill to hide his folly from the public. The Minister of Mines: It’s an awful scandal, isn’t it?

What proposal had the Government to improve the coal situation? asked Mr McLagan. The Minister could only say that the situation would be worse this year than it was last ye,ar, he said. Was it his intention to try to I bring prices down? i Mr McLagan asked which Minister had been responsible for holding up | for five years a plan for disabled civilians in New Zealand. The Government, the Minister of Lands (Mr E. B. Corbett) had said, should hold the scales evenly for all sections of the community, Mr McLagan said. If one asked the Police Force, one would get the almost unanimous answer that the scales had not been held evenly. Was it holding the scales evenly when the Government refused to endorse a decision of the Arbitration Court when the decision was in favour of the employees. “bidictment of Government” Prompt action had been taken in 1953 by the Prime Minister to take away a large part of the increase in wages, Mr McLagan said. That was an indictment of the as a negation of the principles of holding the scales evenly. It had not held the scales between sellers and buyers when Mr T. C. Webb said at the same time that some supporters of the National Party had clapped 25 per cent, on prices. Was any effort made to hold the scales evenly when there was collusion by the Government with the lending institutions, when the moneylenders went on strike to get a higher rate of interest? asked Mr McLagan. He said the Government had tipped the scales against home builders by assisting to increase the costs enormously. A further indictment was the Government’s deliberate refusal to increase the family allowance to compensate for the grossly increased cost of living, said Mr McLagan. Had the scales been held evenly for the parents when the cost of living had increased by 42 per cent., and the family allowance had not been increased? It was a confirmation of the electors’ decision to vote no confidence in the Government. The Prime Minister had no confidence in himself, his party, or the Government, said Mr McLagan; and in the election campaign, the electors had endorsed that. From 1943, the Labour Government had ceased to borrow from the trading banks, and repaid £24,000,000 borrowed under the stress of war, he said. The Government had recommenced

borrowing, allowing the trading banks to create credit at the public’s expense. That was another justification of the electors’ vote of no confidence.

A new and amazing test of inflation had been given by the Minister of Finance (Mr J. T. Watts), speakng in the debate, said Mr McLagan. There had been more inflation than ever before. Bank advances were three times greater than in 1939, and twice as high as in 1949. Yet the Minister had the audacity to say .credit was tightly controlled. The Minister’s statement proved deliberate inflation through the Government destroying the credit controls imposed by Labour. The Minister was getting himself into the position of claiming that the battle of inflation had been won again. Mr McLagan said.