FIRST SHOTS FIRED

Dominion, Volume 24, Issue 187, 6 May 1931, Page 11

FIRST SHOTS FIRED

Hauraki By-election

LABOUR’S CAMPAIGN

By Telegraph—Press Association.

AucUand, May 5.

The Hauraki by-election campaign, in which so far three candidates have been chosen, was opened last night with an address by Mr. C. R. Petrie, Labour candidate, , , Mr. Petrie said that the issue was clear . and distinct; it was approval or disapproval of Mr. Forbes’s policy, which had not only attacked the standard of hying, but also the social services. Mr. Forbes had not yet disclosed his full taxation policy. There was £2,250,000 to be found in the next quarter, and the worker, in addition to the 10 per cent, cut, would have to bear part of this. There would be fresh Customs taxation, including tea nnd SU Tlie country was faeeil with a fusion of the Reform and United Parties, which the candidate said was inevitable. The wages reduction meant n decreased purchasing iwwer of £13.000,000. The Labour Party was not in favour of inflation. He believed that the rapid deflation of to-day would lead thousands of workers, business people, and property owners to insolvency. It seemed that the country’s taxation powiyr would soon be insufficient for commitments. ■ ■ , . Mr. M. J. Savage. Deputy-Leader of the Labour Party, said that if Parliament had not destroyed millions of pounds ol purchasing power but had insisted on a reduction in the bank rate it would have done something to restore industry. There was more money at fixed deposit .in the banks to-day than ever before, and it was leaving industry, where it was needed. Rationing of credit for industrial purposes was overdue.