DANGER AHEAD

Evening Post, Volume CX, Issue 49, 26 August 1930, Page 10

DANGER AHEAD

THE FATE OF AUSTRALIA

NEW ZEALAND BEWARE

(Bf Telegraph.—Press Association.)

STRATFORD, 25th August,

"Australia's position is so serious that it must have an indirect effect oa New Zealand," said Mr. W. J. Poison, MJ?., in an interview to-day. "Public opinion' cannot be too strongly directed to the necessity of profiting by Australia's misfortunes. We cannot afford to drift a single hour. We must put our house in order at once. Australia has a colossal public debt, a balance of imports over exports, and high taxation. What •great difference exists between her position and New Zealand's? Let us face the facts. We are balancing our Budget by piling still 'more taxation on this already oveorburdened community, instead of attempting to economise. Political courage and a strong policy are needed if we are not to be caught next year as Australia has been caught this year. If Sir Otto Neimeyer is right in his summing up of the position of the primary producer, not only in Australia, but in New Zealand also, the call is for immediate consideration and statesmanship."

After setting out Sir Otto JSTeimeyer's conclusions, Mr. Poison preceeded: "This dark picture of Australia's position may not interest thoughtless, people, but can anyone say that the situation in New' Zealand ia very much better or likely to improve tinder a policy of piling up costs through the tariff, and adding to the tax burden, which is already uneconomic? Drastic and far-reaching economies are called for. This country exports nothing but primary products. We have to export and maintain the 1 -slanco of exports over imports that will pay our overseas interest bill if we are to retain a sound position. If •world prices continue to fall, and the primary producing goose fails to lay the golden eggs, nothing will save New Zealand from a catastrophe not experienced since the 'sixties. We are caught in the cogs of the political machine, which, we cannot control. Parliament might set about improving the situation, but no party has the backing to adopt radical remedies. Party spirit is too strong. The present Government cannot even tackle the job of reducing living costs through the tariff and putting substituted taxes on the shoulders of luxury users. Yet we must apply these remedies, however unpalatable, or suffer worse results, and the sooner the country wakes up to the fact and insists upon its rulers acting instead of talking, the more likely will we escape Australia's fate."