"LATE IN THE DAY"

Evening Post, Volume CXI, Issue 41, 18 February 1931, Page 10

"LATE IN THE DAY"

LABOUR'S PROTEST

REPLY BY REFORM

MR. MANDER'S COMMENTS

A reply to the comments of the Leader of the Labour Party (Mr. H. E. Holland) in reference'to the statement issucil by the Prime Minister (the Kight Hon. G. AY. Forbes) has been made by the Dominion general secretary of the Iteform I'arty (Mr. A. E. Mander). Mr. Miindei- takes Mr. Holland (o task for protesting so late in the day about broken, election pledges, and goes on to sny that before the last election Mr. Coates and the Kcform Party realised that difficult times were ahead and endeavoured to take the necessary precautions. Mr. Mandcr's statement is as follows:— "A statement has been made by Mr. 11. E. Holland, M.P., on behalf of the Labour Party, which calls for outspoken comment. ' Referring to the Prime Minister's recent declaration of his Government's change of policy, Mr. Holland says that 'there has never been in. the history of any country such wholesale dishonouring of election pledges.' But surely Mr. Holland should be the last man in New Zealand to reproach the Government on that account in view of what has occurred in the political life of New Zealand during the past two years. We may recall the actual pledges made by the United Party in its election manifesto of 1928 .. . the pledge to borrow £70,000,000 at ±h per cent, and re-lend £60,000,000 in the form of advances to workers and settlers at 4J per cent. Did Mr. Holland and the Labour Party say anything about a 'wholesale dishonouring of election pledges' when that pledge was broken? No; Mr. Holland and t.hu Labour Party continued to applaud and to support tho United Government. Then we remember that the United Party pledged itself to 'a revision of the income tax scale, reducing the maximum amount'; and again the Labour Party made no protest—on the contrary—when that pledge was broken. There was another election pledge by the United Party to 'foster secondary industries by subsidy rather than a protective tariff; and once again Mr. Holland and his friends supported the United Government in. raising the tariff and thus increasing the cost of living, with never even a hint that they disapproved of the Government's breaking its election pledge. Finally, although the United Party's official election manifesto declared specifically that 'The Territorial system will bo maintained,' it was Mr. Holland himself who actually boasted of having forced the Government 'under pressure from the Labour Party' to act in a manlier exactly contrary to the manner in which it was pledged to act. In face of these and many similar facts, Mr. Holland is very nnwiso now to begin censuring the Government, so late in the day, for breaking its election pledges. KEFORM'S FORESIGHT. "Tho plain truth is that in 1028 the Reform Party, foreseeing our present difficulties (which were bound to follow Britain's adoption of a policy of donation) went to the country with a policy of making preparation in advance to meet the bad weather which was coming. Mr. Coates aud his colleagues believed that a serious crisis could be averted, and that readjustments could be- mado without undue stress or hardship, provided, but only provided, that the Government acted prudently hi taking all possible precautions before tho storm arrived and then dealing with tho situation as it developed. But the General Election of ID2B "resulted in the defeat of this policy of shortening sail and preparing for bad weather. The new United Government was elected on a programme of heavy borrowing and extravagant expenditure; and, with the support of Mr. Holland's Labour Part", for two years this policy of reckless extravagance has been pursued. For two years tho situation has been growing rapidly worse; and both tho United Government and the Labour Party have refused to recognise tho fact, but have instead done everything possible to aggravate and intensify tho difficulties of the situation. As late as May, 1030, at the Parneil byelection, Mr. Forbes himself declared that the finances of tho Dominion were in a thororghly satisfactory state, although, even at that time, ho had already seen the Treasury report which hu subsequently issued and which showed that a shortage of £3,000,000 was to lie anticipated. For tho remainder of that year the Government continued spending money lavishly in the construction of new railways, and in relief works (at. 14s a day). As. lalo as July last it seemed impossible to make either the Government a? the Labour Party realise that the Dominion was on the verge of a serious economic crisis. Even on 17th July, 19130, Mr. IT. E. Holland was scoffing and encouraging tho Government to scoff, at the idea that there was any considerable fall in export .values, and saying: 'I do not believe-Mr. D. Jones was right in stressing the serious financial position of tho country. . . Both gentlemen declared that the country's exports had fallen considerably. Well, have they?' After which exhibition of his lack of acquaintance with actual conditions in the country Mr. 11. E. Holland should be silent for a very long while! CAREER OF EXTRAVAGANCE. . "On 10th October, 1930, just before Parliament closed, Mr. Goates again emphatically drew attention to tho development of a serious crisis. 'I do not wish to appear as an alarmist,' he declared, 'but I do think it is the duty of over}r right-thinking person to face the hard facts. .. I am afraid the people generally do not even 3"ct realise the gravity of the situation.' But even then —in October last —it was impossible to check tho Government in its career of extravagance or to make it face the serious situation which was rapidly developing. . "Jt was not until the last day of the last session of Parliament that the Labour Party turned round on tho Government, refusing to support it further. Then, abandoned by the Labour Party, the Government was free at last to listen to reason, though many more months elapsed before any action was taken to cope with a situation which every week was becoming more difficult. On '21 si January, following a conference of tliu Keform'Party, Mr. Coates made an explicit public statement of the measures which, in tho judgment of the Keform Party, were urgently necessary. This statement was issued the day after Mr. Forbes returned to New Zealand, and it cannot bo otherwise than satisfactory to the Rellorni Party to note that, although there are some divergencies and some important omissions, yet. many of the suggestions preferred by Mr. Coates have now been adopted by tho Government. If Mr. Holland cares to describe this as 'an unconditional surrender to Mr. Coales and tho Roform Party,' that is a matter upon which lie, to whom the Government surrendered for the two previous years, may be left to judge. "So far as the Kofonn Party is concerned, there has never been any possibility of doubt ns to the line it would take. Mr. Coates has stated again

and again that if and whenever tlwjj Government, might bo persuaded to dS the right thing, it could rely upon thaj assistance of the Reform Party in pass* ing all measures which were in tlift real interests of the people as a whol* and calculated to help'the Dominion t« emerge from the present crisis.'* " 1