CAMPAIGN OPENS

Evening Post, Volume CXII, Issue 117, 13 November 1931, Page 8

CAMPAIGN OPENS

WELLINGTON NORTH

MR. TROUFS ADDEESS

THE PROBLEMS AHEAD

The official Coalition candidate for the Wellington North seat, Mr. G. A. Troup, opened the city election campaign in the Sydney street schoolroom last evening. The hall was filled.

The chairman, Mr. A. T. Markman, expressed great pleasure that so great an interest was being shown so early in the campaign. Ho counselled care to avoid vote-splitting between the official and the unofficial candidates opposed to Labour. Mr. Trow was accorded an attentive hearing, and. plainly had the hearty support of tho audience.

The coming election, said Mr. Troup, was in many ways the most momentous that had occurred during the last 50 years, and was a matter of great personal import to every citizen, for everyone would bo affected by the result. It was also of the greatest national importance, for New Zealand's future for many years would be determined by the decision of the electors.

New Zealand, in common with other countries, was passing through an unparalleled economic depression. While there were many common factors in the cases of all countries, certain of them had factors peculiar to themselves. New Zealand was in that position, being dependent upon overseas markets for her produce. Her capital was for the most part borrowed from outside, and her population was small and unable to consume the whole of her products, but notwithstanding those disabilities tho Dominion had many advantages and with, wise guidance should be able to find a formula or formulae which would give her the solution of her present difficulties.

Politics were now so interwoven with economics, continued Mr. Troup, that tho economic readjustment had become the dominant political question. Tho depression, as indicated by the number of unemployed in the Dominion, boginning in 1926, had each year become more and more intense, but had developed more suddenly about two years ago. On his return from England, where ho had attended the Empire Conference, the Eight Hon. Mr. G. W. Forbes saw how serious tho position was. He made an honest attempt to balance tho Budget, and later, with Mr. Coates and Mr. Holland, examined tho position from a national point of view.

JOINING OF FORCES.

"The outcome) of this," said Mr. Troup, "was a Coalition Government as between the Beform and the United Parties, and the determination to appeal to the country as is now being done, and to present to the country a united front. While one would havo desired to have seen all parties unite in one common, sustained effort to place tho Dominion again upon her feet, such has not been found under tho existing circumstances possible. Labour has stated that she was not invited to form part of a National Government, but tho Prime Minister from time to time clearly indicated that he would bo glad of the hearty co-operation of all tho parties in the House, and Labour did not show any inclination to cast asido for the time being party polities and to concentrate, along with tho others, iv finding common ground for tackling the problem. "In a House of three parties, each party with a following of from 20 to 30. members, it was clear that in a time of crisis such as exists at the present time, no satisfactory legislation could bo hoped for unless there was a Coalition of two of the parties so that the Government in power would have a safe majority and so be able to put through the necessary legislation to meet the occasion. The times were out of joint and unusual measures had to be taken to meet the unusually serious state of affairs. No apology need be offered for the Coalition of the two parties; it has met with wide approval from one end of Now Zealand to the other, and the Coalition Government now submits itself for the endorsement of tho electors."

A WIDE GULF.

Between the policies of the Labour Party aud the Coalition Government there was a great gulf, continued Mr. Troup. The Coalition Government had laid down a policy of readjustment of expenditure to meet the reducod incomo of tho Dominion, and to that end had passed legislation involving curtailment of services, stoppage of unproductive works, and reduction of salaries and wages. Labour had opposed all of those proposals in turn. "Labour's one idea seemed to be to go on spending at the same rate as formerly and to inereaso taxation, forgetful of the facts that tho farmer is making no income at tho present time, and most businesses are also making losses, aud very soon all of them will be," said Mr. Troup. "Additional taxation under those conditions would defeat tho end aimed at. Not only has our own Dominion Treasurer spoken clearly with regard to this matter, but Mr. Philip Snowden, the Labour Treasurer in tho British Parliament, has stated definitely: 'An expenditure that is easy and tolerable in prosperous times becomes impossible in a time of industrial depression. An increase in taxation under present conditions would bo the last straw."

TO BALANCE THE BUDGET.

To overtax' industry at the present time, continued Mr. Troup, would be the surest way to retard, if not to block permanently, all possible hope of an early recovery. Whatever remedies might be proposed, it was generally admitted that the one essential thing to be done was to balance the Budget. Fortunately the Government in the past had set aside certain reserves upon which the country had been able to draw during the past two yeais. When the Reform Government wont out of office about two million pounds were available, but that sum had been mopped yip in balancing the Budget of the past two years. Additional help had been given during the past year, freeing the Dominion of its annual funded payment of £870,000 iv payment of interest on war debts, but it could not be stated that that would bo continued in future years.

LABOUR LACKS EXPEKIEJTCE.

"It can bo seen," said Mr. Troup, "that Parliament has not balanced New Zealand's Budget out of revenuo alone. In futuro years this may have to be done, and if so, with no improvement in the price of our products very serious difficulties may yet be met, all of which goes to show how necessary it is to have the best and. most experienced financial brains in the House engaged on work of such tremendous difficulty. Let me ask the question: Who is there in tho ranks of Labour with tho necessary experience of financo to fill the position of Minister of Finance if Labour were returned to office? The Leader of tho Labour Party, from his utterances, has not given evidence of financial capacity to cope- with these difficult and involved financial problems. Ho has not yet shown us how he proposes to balance tho Budget. This the country had a right to expect from him. He recently stated that the spending power of the community depended, on the rate of

wages paid; this is a mistake. At the present time the spending power of the community depends- more than anything elso upon tho balance of trade,' which will bo spent by the community, whether wages aro high or low. The only difference will bo that if wages aro lower the money available will go further, employing a greater number. In any caso it will all be absorbed." Tho history of Labour parties in other countries in dealing with financial problems, continued Mr. Troup,_did not inspire one with any sense of confidence. . It had been characterised by an orgy of rash expenditure. On assuming office, Labour Governments had invariably promised to cure unemployment. In 1929 the Labour Party in England had promised a complete cure for unemployment; two months later the number of unemployed had more than doubled. Tho increase in expenditure in doles reached an annual sum of 120 millions. Small wonder was it that tho Bight Hon. Philip Snowden, after devoting his whole life to building up tho British Labour Party, was finally driven to the conclusion that the Labour Party of itself was unfit to govern tho country. In his final appeal on 25th October last, just prior to the General Eloction recently held, he broadcast the following message: "This is tho gravest occasion on which you have ever been asked to vote. I would not ask you to vote against tho Labour Party, which I havo done much to build up, unless I were profoundly convinced that its return would be irreparable disaster. I ani convinced that if the Labour Party is returned trade and employment and the people's savings will bo in the gravest jeopardy.''

In Australia, continued Mr. Troup, the Labour Government had again utterly failed to carry out its high promises, and under its guidance things had gone from bad to worse.

The meeting, by a very largo majority, passed the following resolution:— "This meeting of supporters of the Coalition Government heartily?endorses the candidature of Mr. Troup, and pledges him its support, and expresses confidence in his candidature."