PARLIAMENT MR HOLLAND SPEAKS IN BUDGET DEBATE

Press, Volume XCII, Issue 27735, 12 August 1955, Page 12

PARLIAMENT MR HOLLAND SPEAKS IN BUDGET DEBATE

(New Zealand. Press Association)

WELLINGTON, August 11. | It should never be forgotten that conditions in other parts of the world had, a profound influence on New Zealand's i living standards and conditions, and that a very large part of those standards and conditions came from Britain, said the Prime Minister (Mr Holland) in the House of Representatives tonight during the Budget debate. Mr Holland reviewed many aspects of New Zealand’s economy, spoke on the progress and achievements of the National Government, and invited the Opposition to say whether it would interfere with any of the taxation reductions introduced to help the farmer to meet the obligation to produce ■ more. The Opposition had failed dismally in its criticism of the Budget, and had failed to offer any alternative to the Government's plans, said Mr Holland. There had been nothing but a “dirge, moan, groan, and a grizzle” from the Opposition speakers, who had some difficulty in offering criticism because conditions in the country were so sound. It was not claimed that the Government was infallible, and it had to be admitted that the economic breeze had been with the Government, which had set its sails to catch every puff for the benefit of the people. It should, however, never be forgotten that condiitons in other parts of the world had a profound influence on New Zealand, and that a very large part of the country’s standard of living came from overseas—particularly Britain.

The Labour philosophy, continued Mr Holland, had been given a fair trial in Australia, Britain, and New Zea—land, and in all three countries that type of administration had been rejected by the same type of people. It was a splendid Budget, and the Minister of Finance (Mr J. T. Watts) was entitled to the thanks of the country. The Budget was factual, realistic, fair, and courageous, and was better than it looked or sounded. Would the Opposition, if it were to become the ' Government, disturb any of the tax concessions given by the present Government? asked Mr Holland. Would it remove the tax concessions given to ***:the farmers? Through those concessions production had increased, and had continued to increase. Mr Holland said that the Labour Party did not understand the farmer and his problems, and therefore did

not understand the basis of the economy of New Zealand. The country depended for its prosperity on the well-being of the farmer, and for that reason the Government had set out to use every means in its power to induce and encourage increased primary production. It had succeeded to the degree that it had increased tremenously the livestock population and the acreage of developed laud, said Mr Holland. Another facto\ Hiat had contributed to greater production was the eradication of rabbits, on which had been spent £5,500.000. The Government, said Mr Holland, had given new life to manufacturers. I One million pounds more a week was ’ being spent on wages, and factory : production had reached the level of ' £ 147.000.000 a year. Trees were rotting and decaying at ! Kawerau before the National Government took over from Labour and established in a joint enterprise with private capital a great new industry. The geothermal steam power-generating and heavy water producing project was now well advanced after Labour's inactivity, and record housing levels were being reached. Since the present Government came into office, 83,900 houses had been built, and in Labour’s best five-year period only 62,000 had been built.

Grave National Airways Corporation losses had now been converted into profits; more cars were available for the people to buy; industrial chaos had been transformed into mutual respect. Mr Holland said that the Government had shown that subversion could and would be handled firmly. The people were entitled to look to the Government to govern, and no-one could say it had not. When the Government took office the industrial system was “riddled with subversion and a handful of men were holding the country to ransom,” he said. “The decent hard-working man was sick to death of the whole thing. The Government gave him back his self-respect.” Subversion had never let up, said Mr Holland. “Every weapon known and available to the Communist technique was employed. And we can look back and say we stopped it. We have rid New Zealand of this scourge.” Potential subversion was still in their midst, he said, and the moment it could it would raise its ugly head again. “Where is the man opposite who is capable of handling such a situation?*’ he asked.