INTERJECTORS ACTIVE

Dominion, Volume 24, Issue 200, 21 May 1931, Page 11

INTERJECTORS ACTIVE

Prime Minister Speaks

ECONOMY PROPOSALS

Blight of Unemployment

WAGE REDUCTIONS

By Telegraph—Press Association.

Auckland, May 20. Justification of the Government’s economy measures was voiced by the Prime Minister, Kt. Hon. G. W. Forbes, in a speech at Otahuhu this evening in furtherance of the campaign of the United Party candidate in the Hauralri by-election. Interjections were active throughout the address.'

Mr. Forbes said in attempting to balance the Budget it would be realised that no half-measures would be effective if they were to preserve the country’s reputation. They had to set the country’s house in order. Much criticism had been levelled in regard to the 10 per cent, cut in Public Service salaries, but the Government had been faced with the necessity of asking the people to make sacrifices. It was not likely that he would have taken such a step if his own political safety were his only consideration. The cost of public services had to be reduced. The revenue of the country was fully £20,000,000 less than it- was two years ago, and the Government had been faced with the alternative of reducing wages or dismissing men. A Voice: You have done both. Mr. Forbes said they had to discharge some men as the public works on which they were engaged had been completed.

Fanners’ Lowered Income.

Over £2,000,000 was still required to balance the Budget, said Mr. Forbes. In addition to losses on exports farmers had received £10,000,000 less for their produce sold in New Zealand. The reductions in revenue were:—

Meat 30 per cent. Wool 73 per cent. Hides, skins, etc. 55 per cent. Dairy produce .. 35 per cent.

Mr. Forbes denied the statement of Mr. H. E. Holland that the Government had promised never to cut wages, and said it was no good talking now about what it was intended to do in the past. They had to realise the problems of to-day, and make provision for the future. The unemployment problem was one of the biggest difficulties with which they had to grapple; but after studying the measures adopted in other countries he was satisfied there was no place in the world that could offer a lesson to New Zealand. He had seen the effects of the dole in Britain and was satisfied the people of New Zealand did not want the dole.

It w*as hoped in future that some arrangement would be made with Canada for the removal of the high tariff against New Zealand butter, said Mr. Forbes. He had been in constant communication with Canada, but so far without result.

Wage Reduction,

With regard to a general reduction in wages, he was confident the people realised they had to adjust their expenditure to meet the times. He had sufficient faith in the commonsense of New Zealanders to believe they would realise the position. In connection with his proposal for a national party, Mr. Forbes said he realised that the utmost co-operation was necessary to avert disaster. He did not expect to bridge all the differences of opinion, but he was sure there were some points that could be bridged. The Labour Party did not offer co-operation in any economies, and it was no use talking further to them. The Reform Party, he was sorry to say, had declined his proposal, though he was still hopeful that something more satisfactory would be obtained from the Reform Party in the future. A "vote of thanks was carried for the manner in which Mr. Forbes was facing the country’s difficulties and of confidence in his policy and leadership.