POLITICAL ADDRESS

Evening Post, Volume CXV, Issue 92, 20 April 1933, Page 9

POLITICAL ADDRESS

ME: COATES AT EIXAWAI

GOVERNMENT'S POLICY

CURRENT PROBLEMS

(By Telegraph.—Press DABGAVILLE, A^ril 19. The position economically in New Zealand had been brought about to a very largo extent by conditions outside the country altogether, and it might ,be found on investigation that j although conditions here were difficult and distressing they wero probably better than those obtaining in most other parts of tho world, said the Kt. Hon. J. G. Coates, Minister of Finance, in an address at Ruawai yesterday. A programme of farm legislation had been embarked upon generally throughout the ivoi'ld, and he considered that the legislation enacted in the Dominion in an endeavour to meet the situation appeared quite /well by comparison with that brought down in other countries. '. . ■ . The Government elected at the last election had a clear duty and responsibility thrust upon its., shoulders, said Mr. Coates, and it was claimed that the present Government did represent the national outlook. Tho main cause j of Now Zealand's troubles was the fall in prices for primary produce. Had | costs fallen in direct ratio with prices | tho task of approaching an adjustment would have been an easy one. There were some who said that the problem was wholly a monetary one, but such a view was erroneous, since there.was | also an economic problem. The monetary difficulty was a factor in the situation, but it was not by any means tho whole problem. The Government had been forced to adjust expense to tho reduced revenue of tho country, said Mr. Coates, and 'to this end it had been responsible for tho reduction in Governmental costs by £9,500,000. PURPOSE AT OTTAWA. "When an iriterjector questioned the efiiicacy of tho Ottawa Conference, Mr. Coates said by way of retort that ho claimed no one in New Zealand knew more about Ottawa than he did, and | he thought therefore that what ho said in that rogard might bo regarded as an authoritative opinion and not "merely the irritable babblings of ono who knew nothing at all about it." Mr. Coates proceeded to indicate the rery wide range of thought representative of politics, economics, trade, commerce, ami the industry of the Empire which had been assembled at tho Conference, and commented that i it could bo said that never before had J such a comprehensive representation of all shades of thought been gathered I together In tho Empire. The purpose of the Conference had been an en-' deavour to lift the situation from tho groove of the depression and to deal with all factors relating to problems presented. In all the discussions at the Conference care had been taken not to prejudice unduly the Empire's I capacity for world trade, since it was considered that such,a coiirse would bo inimical to the interests of the Empire. . . , "The result of the Conference, in my. opinion, was ..entirely satisfactory," said Mr. Coates. "It was a good beginning, and set .the basis for. future work." . ■ ■ • : . EXCHANGE BATE AND SALES TAX. The raising of'the exchange rate, j said Mr. Coates, had been done deliberately, as it had been done in other countries. The measure had been called by some interested parties a breach of the Ottawa Agreement, but it. was not so. Mr.-Coates supported, this ,yie\v b,y, the. quotation of leading , London Press opinion. Not one member of Cabinet had made a single penny put of tho raising of tho exchange Tatc. There had been rumours, but they were nothing more than rumours disseminated by interested parties. In regard to suggestions that the prices of commodities had been raised by tho increased exchange rate and the sales tax, Mr. Coates .indicated that while wholesale prices had increased 3.3 per cent, retail prices had come down by 1.1 per cent. It had been mentioned that some commodities'had gone up in price by the amount of the sales tax, and a little'more than the. increased exchange. ', "That is something that we will have •to correct in our own way, and ws have a good way, I can assure-you," said Mr. Coates. ' Regarding suggestions that the raising of the exchange rate would tend to excite prejudice in the1 minds of exporters in Great Britain, Mr. Coates assured his audience that not ono single complaint against the measure had, come to the Government from Britain. In spite of any criticism -under, the internal loan conversion, scheme,. £115,000,000 of stock now had been converted to a lower interest rate, and the next. step contemplated was the conversion of local body loans, -by ■which measure. £400,000 would be saved to the ratepayers of the Dominion. The rate of interest payable- on bank overdrafts would be reduced as from May 1 next, and stock and station agents, who formerly had levied interest at up to' 9 per cent., now had agreed to reduce the Tate to 1 per cent, above tho bank rate. BUTTER MARKETING QUESTION. Regarding the vexed question of the "butter market, Mr. Coates said it seemed to him that the attitude of mind of the suppliers should be to inquire whether the policy adopted was the right one. The question now was whether it would, be wise to restrict the production of butter for .export to the Home market and the countries of the Empire in order- to raise the price. The policy that had been adopted was that of increasing production to balance the reduction in prices, but that did not mean that an endeavour should •not be made to raise the price on the London market. He believed it waa possible to raise prices for produce, but to do so regard must be held for the request of responsible authorities in the Old Country, and it might entail some restriction for a year or two. With respect to a question concerning the effect of wheat duties upon the price of bread, Mr. Coates said that since the industrialists of the Dominion enjoyed protection against overseas importation's, why should not a similar benjeflt be extended to the poor wheat farmers? Mr. Coates, who had not spoken in his own elc^prate for many month 3, answered several questions, and received a unanimous vote of thanks at the close of the meeting.