PROSPERITY WAVE

Dominion, Volume 31, Issue 105, 28 January 1938, Page 12

PROSPERITY WAVE

High Export Prices The Chief Cause REPLY TO MR. SAVAGE “Entire Disregard Of Actual Facts” A reply to the recent statement of the Prime Minister, Rt. Hon. M. J. Savage, concerning the buoyancy of industrial and business activities in the Dominion, was issued yesterday by the Leader of tlie Opposition, Hon. Adam Hamilton. He said that when it came to painting a picture of prosperity lie did not think anyone could splash round with more lavish colours than the Prime Minister. In his passion for bright colours, the Prime Minister had overlooked tlie presence of large andmenacing shadows. “Mr. Savage states that two years of Labour rule have brought New Zealand to the highest level of prosperity it has ever experienced,” Mr. Hamilton said. "There is a typical lack of modesty about that statement, and there is also an almost entire disregard of actual facts. A moment’s thought is sufficient to prove that the most potent cause of our present wave of prosperity results from the high prices realised by our exports of primary products. In spite of what Government spokesmen have to say, it is obvious that even their complicated guaranteed price scheme for dairy exports has been made possible only by a rising overseas market. Lower Purchasing Power. “As for the rest of the Prime Minister’s statement,” Mr. Hamilton continued, “he lias quoted freely from returns published in tlie Abstract of Statistics, but he has been studiously careful to select only those returns and figures which suit his argument. For instance, lie talks about an increase of 40 per cent, in the value of production over two years, but be remains discreetly .silent concerning tlie extent to which overseas prices have contributed to that increase. He talks about the value of last year’s factory production, but omits to mention that it was achieved only by a titanic effort to increase production before higher costs brought about the inevitable decrease in purchasing power. He talks about wages and employment in factories, but confines himself to last year’s figures and ignores the fact that factories all over the country at present are faced with the prospect of shortening staffs or of working short time. “The Prime, Minister, in effect, has attempted to reverse the position of the dark cloud and the silver lining. He sees only what he wants to see, but the fact remains that, at a time of high prices overseas, New Zealand is living right up to its income, and possibly a bit beyond it. That factor alone does not inspire any great degree of confidence in the future. “Glib Talk Of Millions.” “In his parading of statistics and his glib talk of millions, the Prime Minister is merely trying to ‘paint the clouds with sunshine.’ ! However, the concluding paragraph of his statement contains conclusive proof that his personal brand of political paint will not stand up to the weather. The people, he says, are enjoying their prosperity. If he think's that that is the case, he is the' greatest optimist in New Zealand.

“Two facts alone are sufficient to wipe out the whole of Mr. Savage’s picture of lasting prosperity. The man on the moderate income to-day, supporting a wife and one or two children, finds that, in the payment of direct taxation alone, he is working for the Government for six weeks in every year for nothing. With the extension of the Government’s programme, tlie chances are that he will work even longer for nothing, and, at the same time, both he and his wife find that the purchasing value of every pound they have left is steadily decreasing. “Mr. Savage does not record the fact that organised labour is clamouring for higher wages,” Mr. Hamilton concluded. “Probably he does not care to think that the need for those higher wages is a direct result of tlie Government’s policy of endeavouring to spend its way into prosperity.”