THE ELECTION CAMPAIGN PRIME MINISTER'S ADDRESS TO RECOVERY ECONOMIC STABILITY

Evening Post, Volume CXX, Issue 116, 12 November 1935, Page 6

THE ELECTION CAMPAIGN

PRIME MINISTER'S ADDRESS

TO RECOVERY

ECONOMIC STABILITY

LABOUR'S PROPOSALS EXAMINED

After the weekend break, candidates for political honours throughout the country entered with renewed vigour into the fraylast night. The Prime Minister (the Rt. Hon. G. W. Forbes) started his tour of the Wairarapa yesterday, and speaking at Carterton last night he reviewed'the actions of the Government in its endeavour to meet economic difficulties, and warned his audience against Labour's "fanciful schemes." While he was doing that, the Minister of Finance (the Rt. Hon. J. G. Coates), speaking at Dargaville, was denying that the Government policy 'was influenced by big financial interests. At Invercargill, the Leader of the Parliamentary Labour Party (Mr. M. J. Savage) spoke about the desirability of developing the Dominion's natural resources, while not very far away the Hon. W. Downie Stewart, opening his campaign in Dunedin West, subjected Labour's plan for currency and credit control to a critical examination. He accused the Labour Party on being bent on inflation. Locally, the various candidates were busy, the majority of their remarks being along orthodox lines.

GOVERNMENT'S JOB

MR. FORBES'S REVIEW

WORK WELL DONE

CFrom "The Post's" Special Reporter.) CARTERTON, This Day. Over five hundred people packed the State Theatre, Carterton, last evening to hear the Prime Minister (the Rt. Hon. G. W. Forbes) deliver a speech in support of the candidature of Mr. J. W. Card, • Nationalist candidate for Wairarapa. A hundred or more people were unable to be accommodated. Mr. Forbes, who earlier in the day had addressed meetings in other parts of the electorate, was given a quiet and attentive hearing. There was no demonstration either' of enthusiasm or of hostility, and his two-hour speech, in which he made a general defence of the Government, was listened to practically without interruption. At the conclusion there was some show of resentment on the part of a section of the audience at the fact that Mr. Forbes declined to answer questions, but the Prime Minister explained that he only did that in his own electorate. A vote of thanks and confidence was declared carried, a section of the audience showing noisy disapproval. Mr. Forbes, who was received with applause, said that on the last occasion he had visited Carterton he was Minister of Lands and everything appeared to be well with the country's finances. Soon afterwards he became Prime Minister and represented New Zealand at the Imperial Conference. On his return he was confronted with the information that the finances of the country had slipped very badly. The position was unprecedented in the history of the Dominion and, he realised that drastic steps would have to be taken to meet it. Reductions in expenditure were made, including cuts in salaries. The Government realised that such steps would" not be popular, but he, as Prime Minister, felt that the position had to be faced. In spite of the steps taken, however, the position went from bad to worse and more unpopular legislation had to be put into operation.

LABOUR STAYS OUT.

The Prime Minister referred to the setting up of the inter-party committee to consider the position of the country and the endeavour to right it. He had realised that it would be' impossible for a minority party to put the necessary measures into operation and that it was desirable that the other parties in the House should be asked to assist. New Zealand had been facing a crisis, and he had suggested the formation of a National Government. The late Leader of the Labour Party (Mr. H. E. Holland) declined to join unless Labour's policy were put into operation, but he (Mr. Forbes) had pointed out that the time was not one to talk of policies. On the other hand Mr. Coates, the Leader of the Reform Party, agreed to come in, and so the Coalition Government was formed. During the last four years the Government had been endeavouring to put the country on the right track. Now the Labour Party was going round the country saying it was not in the dock and that the Government would have to take, the responsibility for its unpopular actions. That was a very easy thing to do, but the Government had had the hard work to do and the unpopular course to follow. New Zealand had weathered the storm and liad made a really remarkable recovery, enabling restorations to be made in several directions.

Demands had been made in several directions that taxation should be reduced, notably the sales tax, but the Government had felt that its first duty was to its employees. ; It was not the Government's desire to maintain high taxation, but promises had been' made to the civil servants and those had been carried out.

The Government had . been accused of breaking contracts in reducing interest and rents, but the needs of the country had been paramount and the Government had not hesitated to act.

FEELING OF SECURITY.

The Government's policy had given a feeling of security to the people. Those with money to invest had been anxious to put their money under the control of the Government. That confounded those critics who .said that the Government's policy had been responsible for a loss of confidence on the part of the public. In addition, New Zealand's credit in England stood very high. "That is a complete answer to all this talk about the Government having lost the confidence of the people of England," said Mr. Forbes. "The evidence speaks for itself. Instead of ill will in England there is the greatest good will and a feeling of admiration for the manner in which we stood up to our difficulties."

New Zealand had avoided quack remedies in meeting the effects of the depression and had come through because it followed sound methods, said the Prime Minister. Economists had made' a thorough examination of the position to ascertain if the gap could be bridged between costs and prices. The economists had recommended the raising of the exchange rate to 125, expressing the view that such action would cause less : hardship than any other method that might be adopted. The Government had decided to adopt that recommendation and the exchange rate had been increased with a minimum of dislocation. It had been argued that the cost of living had been increased but official figures did not show that. He ventured to say that if the Government had not increased the rate there would have been considerably more unemployment in New Zealand today than there was.

Referring to the present position of

the country and future possibilities, the Prime Minister said it was hoped before long to make a complete restoration of Public Service salaries. The Government had been asked why restorations of salaries and pensions had not been made before, but the fact of the matter was that such action had been impossible. The Government had acted as soon as the finances of the country permitted it. Of course, there were people who said it had been done because an election was imminent. (Hear, hear and applause.) "Well," said Mr. Forbes, "if we had said 'we can't grant increases because there is an election coming,' that might have taken even more explaining." Mr. Forbes expressed the view that the Mortgage Corporation of New Zealand would prove a most successful institution. The question .of soldier settlers coming under the Act had been raised, but he could assure those concerned that they need not come under the Corporation unless they desired. They could remain under the Lands Department. BOARDS AND BOREK The Prime Minister said there had been a lot of criticism about the numbenof boards that the Government had set up. A voice: Yes, and they've all got the borer, George. (Laughter.) Mr. Forbes paid a tribute to the work of the various produce boards, which had won the admiration of N the British consumer. He also referred to the value of placing the control of the railways outside of politics, and said that he considered he had done a service to the people of New Zealand by setting Up the Government Railways Board. Mr. Forbes said he would really like to know which board was objected to. A voice. The bread board. (Laughter.) Another voice (more seriously): The Dairy Board. Mr. Forbes said he could not understand the objection that was raised to the appointment of boards, which were necessary to carry out administrative work. In conclusion, Mr. Forbes asked for a fresh mandate for the Government to carry on the task to which it had set itself.

LABOUR'S PLAN OUTLINED

"We have been a voice crying in the wilderness for years, trying to attract attention to our policy. Now we want to sweep aside such economic conditions as exist and let people live in happiness and prosperity." So said Mr. R. McKeen, Labour candidate for Wellington South, when addressing elec-'! tors at Island Bay last night, after he had described the condition of the Dominion following four years of Coalition rule, and the way in which unemployment had increased after the cuts in wages and salaries made by the Government. Mr. McKeen said the trouble today was that owing to the control of economic forces by a system of private groups, and the control of the monetary system by private corporations, they determined the lives of the people and the destiny of the nation. Labour proposed to establish a national credit authority, and transfer the sovereign rights of money from private systems to the people. Upon that foundation it would set out to build prosperity in this country. To do that the incomes of the people had to be increased, and hours reduced in every branch of industry in the country..

"We have got to develop on economic, nationalist lines, and exploit our resources to their fullest extent to enable us to give every man, woman, and child the highest standards of life it is possible to give," said Mr. McKeen. "That is possible if a Government with common sense is returned to the Treasury benches."

. After dealing .at length with the monetary system, the raising of the exchange rate, and the imposition of the sales tax, Mr. McKeen said the Government was asking for another blank cheque as it had done four years ago. It thought that the people would be equally guljed again as they had been last time. He was satisfied, however, that there was a new line of thought amongst the community. It was obvious and very striking to those who addressed meetings.

"The farmers are satisfied that Labour's guaranteed price is the only solution of their difficulties," said Mr. McKeen. "In view of the fact that New Zealand has been built up by the export of her products, we want to provide stability to the economic conditions of the farming community, and propose to do it by a guaranteed price."

Mr. McKeen said it v/as proposed to take the average of a range of prices over a number of years, stabilise that price and guarantee it internally to the farmer. Through the control of the national credit authority, the Government would be able to do that. It would take the commodity and immediately enter into agreements with various Governments in order to market it. Agreements of this nature had been entered into with various European countries by Great Britain.

"By the system of giving a guaranteed price, we will give the farmer security and stability, so he can build up his resources," said Mr. McKeen.

"We don"t propose to give the farmers something that the others in the country can't get."

With guaranteed prices there would naturally be guaranteed wages and salaries, because as the national production increased, so must incomes increase and the standard of life go higher and higher.