POLICY DEFENDED

Dominion, Volume 32, Issue 262, 3 August 1939, Page 10

POLICY DEFENDED

Mr. Sullivan Replies To Critics WAGES AND COSTS Balance Said To Be In People’s Favour The contention that increases in wages and salaries had more than cancelled out any rise in the cost of living was advanced by the Minister of Industries and Commerce, Mr. Sullivan, during the financial debate in the House of Representatives last night. The effective wage rate, he said, was better than it had ever been before. The margin over costs was higher and it was obvious that the policy of the Government had been to the advantage of the great mass of the people. For half a century, the Minister con tinned, the Labour Party has been fighting for the abolition of poverty. The party had made its case on constitutional action for the more equitable distribution of the national income. That policy was approved by the electors in 1935, and subsequently confirmed at the general election three years later. It was ridiculous to suggest, said the Minister, that the breaking point had been readied in taxation. During the evening he had been in conference with a representative group of business meu from the main cities, and they were in great heart. “They were enthusiastic and optimis tie,” said tiie Minister, “far more so than ever in tiie past. It is the same all through the community, and there is ample reason for it. Nothing can convince a business man more completely than his own balance-sheet, and most'balance-sheets of recent years have been completely convincing to business men that they are far better off.” Guaranteed Price. Replying to statements by Mr. Hamilton, Mr. Sullivan said it appeared that the Leader of the Opposition had a grievance against tiie guaranteed price whether there was a deficit or a surplus in the Dairy Industry Account. The Minister at the same time chided Mr. Hamilton for having dropped his advocacy of the compensated price scheme. “It seems to me that the Leader of the Opposition is very hard to please.” Mr. Sullivan said. "If there is a deficit in the account he becomes upset over that and wants to know who is going to pay for it, but if there is a profit he is equally upset. Thus he has a grievance whichever way it goes.” Mr. Sullivan said that Mr. Hamilton had made considerable capital during his speech by quoting past statements of the Prime Minister, Mr. Savage, and other members of the Government, but that, was a game that two could play. What, for instance, had become of Mr. Hamilton’s compensated price scheme, which lie had formerly advocated up and down the country, but winch he now neglected entirely. At. Martiwbdrough in 1937, tiie Minister added, Mr. Hamilton had warned a meeting against the theory of compensated prices, but til Morrinsville in 1938 he had said that, for years he had acknowledged the justice of the compensated price. Those were very contradictory statements, and Mr. Hamilton seemed to have spoken with two voices. He had advocated a reduction in costs as a way in which the compensated price should operate without ever telling the farmers or the people how be was going to reduce costs. Tiie Government had never heard how that was to be done from Mr. Hamilton, from his colleagues, or from his journalistic su ppo r t ers. Relations With Britain. "'To suggest that no one in this country should differ from the opinions and actions of British statesmen is carrying things altogether too far,” said Mr. Sullivan, when replying to Mr. Hamilton’s criticism of references by members of tiie Government to British foreign policy. "The Leader of the Opposition did not, give chapter and verse for his references.” Mr. Sullivan said, "but surely we are to be permitted to be interested in the welfare of the Empire and of the United Kingdom. I cannot recollect any member of the Government having made the criticisms he referred to. but I can assure him that ever since this Government came into office the relations between it aud the British Government have been of the most friendly character. "When our views have been sought/’ Mr. Sullivan added, “we have not hesitated to express our honest opinion. To say, however, that no one in this country shall be permitted to differ from British statesmen is carrying things altogether too far and is surely reminiscent of the position in the totalitarian States.” LAND TAX Abolition Urged By Mr. Hamilton An estimate that between 25,000 and 30,000 farmers will be affected by the proposal to abolish the exemption from income tax of farms with an unimproved value of less than £3OOO wa.made bv the Leader of tiie Opposition Mr Hamilton during the Budget de bate in the House of Representatives last night. All farmers now would pay double tax. lie said, and it would particularly serious for many small farmers, particularly dairy-farmers. “Land tax should be abolished,” said Mr. Hamilton. "This party is not against income tax as a tax, but the cost of collecting the levy from the small farmers will be enormous. It will probably need another Social Security Building to bouse the extra staff The benefit to the State funds is very doubtful, because an income of £365 where there are two children will produce only £l/10/2, and many farms do not show a profit as great as that The cost of collection will be huge, and the trouble to the farmer enormous."