—‘HONEST,’ SAYS P.M.

Press, Volume CIII, Issue 30481, 1 July 1964, Page 3

—‘HONEST, ’ SAYS P.M.

While the Federation of Labour was trying to paint a picture in the Arbitration Court of the country being in the most favourable trading position it had ever been, the Leader of the Opposition was painting a picture of gloom, said the Prime Minister (Mr Holyoake) replying to Mr Nordmeyer in the Budget debate.

Mr Nordmeyer was not helping his friends in the Arbitration Court, said Mr Holyoake. No-one could argue that, in general, tvage and salary earners had not fallen behind since the last General Wage Order two years ago, he said.

Mr Holyoake contested Mr Nordmeyer's comments on the taxation proposed in the Budget, contended that the Government was providing adequate incentives to production which would have a continuing effect, and argued that the Budget avoided inflationary tendencies. “This is an honest and a very appropriate Budget," said Mr Holyoake. “It has been well throughout the country and is a further step in the long-term orogramme of the National Government to increase production, to increase overseas earnings and to maintain a sound economy benefitting every section of the people of New Zealand. Strictures on taxation came

very strangely from Mr Nordmeyer, said Mr Holyoake. The Labour Party would be associated with high rates of taxation and particularly the wage earners would remember how unmercifully they were hammered by the “black budget” of 1958. “Practically no-one gets anything out of this Budget unless they produce more. Even death duties indirectly bring about increased production,” said Mr Holyoake.

“No Government can re: duce the cost of living,” said Mr Holyoake. The cost of living had gone up 2.2 per cent in the last year. It had gone up 5 per cent in the year of the “black budget.” “We did not need a new look to increase production,” he said. The Labour Party had estimated an annual increase of production worth £2O million. They were already two years out of date. There had been an increase of £4O million last year. “Our incentives will continue to have effect,” said Mr Holyoake. “The 422,000-toh increase in the use of fertiliser in the last three years is the best measure of the incentives we can give.”

DOUBT CAST Mr Nordmgyer had said last year had been a prosperous year, then cast doubt upon this, said Mr Holyoake. He had said it was prosperous for some people, but not for others, the wage earners. In 1960-61, the last year of the last Labour Government 52.8 per cent of the national income had gone to wage and salary earners, said Mr Holyoake. In 1963-64, they had received 54 per cent Company income in 1960 had accounted for 12 per cent In 1963 it was only 11.1 per cent of national income; “Wage and salary earners are correct and proper in making an application for a general wage order. It is two years since they received one. No-one could argue that in genera] they have fallen behind, except where award rates have been increased. “Social security beneficiar-

ies will be treated fairly and squarely,” said Mr Holyoake Opposition voice: Where is the provision in the Budget? Mr Holyoake: The honourable gentleman is not helping

his friends in their application in the Arbitration Court

by painting this picture of gloom. They are trying to paint the opposite picture. Mr Holyoake forecast that butter prices were not likely to fall in the “coming period.” It was not true to say that New Zealand had . spent more than it had earned overseas, he said. Mr Nordmeyer had confused the years to which he referred, the calendar year and the licensing year. LATEST FIGURES

“The latest figures are that exports produced £379 million; total receipts were £446 million; over-all payments were £435 million; and the over-all surplus was £ll million.

Mr Nordmeyer: What period is that for? Mr Holyoake: Our overseas assets today are over £lOO million, a build-up of over £4O million since the beginning of the calendar year.

The Government had passed legislation last year on take-overs without much help from the Opposition. In 1957-60 there had been between 50 and 60 take-overs each year, he said. “In 1960, there were 58; overseas companies took over eight companies, New Zealand companies took over 50. Why didn’t they do something about it?”

Defending the Government’s reduction of death duties, the. Prime Minister said this was of benefit to the whole community, as the money went into building and increasing production. BIG LOAN'S

The Leader of the Opposition had talked of the “big money” lender. “Who is he? It is just emotional talk “The big money” lenders are the Post Office Savings Bank, the trustee banks and the insurance companies.” Eighty per cent of the money had come from small savings, Mr Holyoake said.

The Government had borrowed £5O million in London at the end of last year. Mr Nordmeyer had said some was used to pay back loans and had asked why the residue was not invested by the end of March. “The loan was not collected in one instalment and not all of it was paid by then.”