Mr Nordmeyer Charges Government With Failure

Press, Volume CII, Issue 30168, 27 June 1963, Page 18

Mr Nordmeyer Charges Government With Failure

(New Zealand Press Association) WELLINGTON, June 26. The Leader of the Opposition (Mr Nordmeyer) made eight allegations against the Government when he moved a noconfidence motion in Parliament today. He charged the (jovemment with

(1) Failing to hold the cost of living; (2) Borrowing recklessly; (3) Failing to reduce the burden of interest rates; (4) Ineptly handling of vital matters affecting New Zealand’s trade; (5) Failing to give adequate leadership to primary industry; (6) Pursuing a vacillating policy towards the expansion of manufacturing industries; (7) Adopting an ineffective housing policy; (8) General inefficiency -in handling Government administration. The Prime Minister (Mr Holyoake) said Mr Nordmeyer was two and a-half years too late with his motion. A no-confidence vote in Labour had been carried by the electorate in no uncertain terms in the 1960 election. He said it appeared Labour could not get over the fact that the Government had got the country back on its feet.

“If any Government says that the price of groceries has not risen significantly, then it will have to convince the housewives of this country.” said Mr Nordmeyer. They would take a "dim view" of any statements indicating that such a rise had not taken place. Speaking of the Government’s decision to stabilise the price of sugar at 10d a lb. Mr Nordmeyer said this arrangement merely equalised the price paid by the companies. “So far as the Government is concerned, it makes no concession in this move.”

Mr Nordmeyer said the Government had made hints of tax concessions. What better use could have been made by any surplus money than to forego the duty on sugar which was Id a lb.

"Is there any reason why the stabilisation fund could not have been drawn on before the rise started?” Mr Nordmeyer asked. At 10d, the price of sugar was Still 2d a lb more than before the rises began. "Are the manufacturers expected to bear this 2d rise without any increase in the cost of their products?" Although the Minister of Industries and Commerce (Mr Marshall* had assured the country there would be no increase in the price of manufactured products using sugar, there was no compulsion for the manufacturers to do this. "The public may well find that a rise will occur." Mr Nordmeyer said Mr Holyoake had said that the last Labour Government had borrowed £44 mill ion overseas but he did not say, though he knew, that the Labour Government had repaid or set aside funds to repav the borrowings except for £11,200,000. “And this Government has already borrowed £39 million and every penny has been borrowed on long-term. No provision has been for early repayment,” said Mr Nordmeyer. He said that the Minister of Finance (Mr Lake) took the view that the more a

Government borrowed, the more successful it was. “That is the vital difference between the two parties,” said Mr Nordmeyer. “The Government thinks that it is a good thing to borrow. We believe that the £Bl million borrowed by the Government will be a burden on taxpayers and future taxpayers

New Zealand's interest bill had risen from £35.6 million from £31.7 million a year before. “Where will we get if this rate of borrowing continues?”

E.E.C. And Quotas Discussing overseas trade. Mr Nordmeyer declared: “1

believe that the Government's policy on E.E.C. brought us to the brink of disaster "

Mr Nordmeyer questioned Mr Marshall’s declaration that New Zealand wanted substantial compensation for the free entry of Danish butter to Britain, and his later statement that New Zealand would not be unsympathetic to waiving the 15 per cent on Danish butter.

"I. for one, am not at all happy about butter quotas,” said Mr Nordmeyer. He agreed a restricted supply would improve butter prices, but once the principle was admitted, there was no logical reason for New Zealand to object to meat quotas "The Government is not in favour of meat quotas, neither is the Meat Board.” he said.

Mr Nordmeyer said that the Government placed too much emphasis on the export of manufactures and not enough on the export of primary produce, which for a very long time would be the basis of the export trade. “The farming community is

waiting for a lead,” he said. “The average farmer does not know how to plan his production for the future, but. surely, the Government has some idea of what changes should be made in the structure of our primary industry?” Mr Nordmeyer said that some of the matters raised by Mr D. Maclntyre (Government, Hastings) last evening should have come from the Prime Minister or the Minister of Agriculture. [Mr Maclntyre suggested raising calves for baby beef and diversification of breeds.)

Prices For Glass Mr Nordmeyer asked whether the new owners of the Whangarei glass industry would be allowed to charge mure for their product than McKendricks would have been allowed to charge. Mr Nordmeyer charged thait the Government of businessmen had lost £2 million on the Railways in a year withoto charging any interest. He said it was hard to reconcile the amount to be paid to State servants under the February ruling rates survey with what the Minister of Labour (Mr Shand) had said during the debate on the State Services Bill last year. “There is a vast difference between promise and performance,” he said. Mr Shand: That is the sort of nasty insinuation I would expect. ■Temporary Wind” “Mr Nordmeyer is trying to score over temporary winds at present blowing over the country,” said Mr Holyoake. The rise in sugar prices is world-wide and can be only temporary.” If the increase had been met by using the stabilisation fund "or foregoing customs duty it would have meant the taxpayer would have to meet the increases.

The Government had been indicted over failing to hold the cost of living, said Mr Holyoake. The increase over the "last two years was only 4 per cent. Last year it was 18 per cent. “Everyone remembers that in 1958-59 the cost of living rose by 5 per cent, overnight through one document prepared by the present Leader ot the Opposition The total that year .was 6.5 per cent..” said Mr Holyoake. The laws of the country provided that money be set aside to repay loans. Mr Nordmeyer was well aware that war loans totalling £63 million had become due. Farmers At Talks

“All the producer' boards and Federated Farmers were represented at the recent export development conference The boards were also consulted on all decisions made during Britain's E EC. negotiations and the recent butter negotiations.” said Mr Holyoake discussing trade He said he had no doubt the Government would be capable of negotiating for

satisfactory markets for meat at satisfactory prices. Mr Holyoake said that in the two and a half years his Government had been in power. 259 new industries had been set up in New Zealand ft. a total capital investment of £lB million. All had required import licences for plant. “There are also other industries that have been set up which did not require imprrt licences and these, of course, are not included in my figure.” Growth Problem Mr N. E. Kirk (Opposition, Lyttelton) said that in spite of tire vapourings of the Prime Minister the Opposition's no-confidence motion would find the support of the people.

‘"the major economic problem in New Zealand is one of growth." he said, “and in no field has the Government failed so badly.” Mr Kirk said Mr Maclntyre ha< admitted that farming was "in low gear.” “This is just one more indication of the Government’s failure to promote the growth rate.” Mr Kirk said

Mr Kirk said most of the addition to the labour force during the Government's term had gone into the servicing industries rather than into direct production. “The effect has been a fall in the value and the volume of production.”

Other factors contributing to this run-down in production had been the Government’s action in increasing interest rates and other charges The Government had embarked on a deliberate policy of redistributing the national

income—rewarding the investor rather than the producer. Production Rises Mr Marshall said that last year factory production had increased 6.6 per cent, in value and the value added to raw materials in the course of manufacturing was £3lB million, a rise of 10.8 per cent, on the previous year. The number of persons engaged in manufacturing rose by 6233 and their salaries and wages rose by 11.3 per cent. Capital investment during 1962 reached £8.7 million and the value of production from that investment was £11.3 million. For the last halfyear, the investment was £5.5 million and the production from that was £7 milion. Mr Marshall said thait Mr Nash had seen all the cables thait passed between the New Zealand and British Governments on the subject, of Britain’s bid for E.E.C. membership, and the Government had arranged for Mr Nash to be in London during the Prime Ministers’ conference ait which the problem was discussed.

Mr Nash had ample opportunity of seeing that the negotiations were well handled.

The arrangements for the marketing of New Zealand’s butter in Britain were better than for many years.