INJURING NEW ZEALAND

Dominion, Volume 32, Issue 257, 28 July 1939, Page 8

INJURING NEW ZEALAND

Irresponsible statements continue to be made by members of the Socialist Party, in and out of Parliament, on financial matters likely to prejudice the credit of New Zealand overseas. No greater disservice could be rendered this country than the constant threats used against capital and the repeated attacks on financial interests in London. The member for Oamaru, a day or two ago, told the House of Representatives what he would do if “the London financiers attempted to dictate terms inimical to this country,” and indicated the seizure of overseas assets of private citizens and institutions here as a means to pay off our debt. He would buy or borrow these assets to enable the Government to meet its obligations. . Does Mr. Nordmeyer, or any of the other members of the Socialist Party, imagine that this sort of talk is going, to improve the standing of the Government in the eyes of those this country is dependent on overseas for its trade connexions? Do they believe that irresponsible ramblings of this nature will strengthen, our ciedit abroad and assist the Minister of Finance in his negotiations in London? If they do it merely serves to show how little real knowledge there is behind their loose talk. Complaint has been made by members of the Government of a flight of capital from New Zealand during the last year or two, and it is admitted that there has been a loss in this respect. But what has caused the removal of this capital ? It is largely due to just such utterances as that of the member for Oamaru. Capital has been frightened away by the policy of the Government and by threats of worse to follow. It is a mistake, however, to think that investments by New Zealanders overseas are a loss to the country. They, for one thing, serve a useful purpose in assisting to maintain our balance of trade. They earn funds which, in most cases in . normal circumstances, eventually find their way back to the Dominion, assisting the movement of trade and commerce and making for added stability.. In other cases investments abroad, more especially by large institutions, enable risks to be spread and a greater measure of security afforded to policy-holders and shareholders. Where would New .Zealand have secured the millions for its railways, for its Post and Telegraph services, for its roads and bridges and land development, for its hydroelectric power, if institutions and private investors overseas had not “spread their risks” by investing some of their funds in this, country? Are they to be condemned for this; and, if not, why penalize individuals or institutions in this Dominion for, in a smaller way, taking a similarly wise step? At the present time the Government is seeking to. develop local manufacturing industries and is urging the necessity.of increased production. This requires capital, and firms from outside New Zealand, with the-experience of years behind them, have been invited to come here and, with their capital, establish new industries. This Dominion needs the new capital, and it needs some of the new industries talked of to absorb its unemployed; but how can capital be induced to come to a country where the savings of the thrifty are held up to contempt and the control of their investments taken from them —or threatened to be taken ?