PEOPLE HAPPIER

Evening Post, Volume CXXVIII, Issue 29, 3 August 1939, Page 6

PEOPLE HAPPIER

GOVERNMENT DEFENDED

"FAITH IN FUTURE"

MR. SULLIVAN'S

SPEECH

Defending the policy of the Government, the Minister of Industries and Commerce (the Hon. D. G. Sullivan) claimed that the people were happier today than they had been for many years, and that the majority of the business people had faith in the future. He blamed the borrowing of past Governments for the present financial position. Replying to Mr. Hamilton's statement that the patience of the people had reached breaking point, Mr. Sullivan said that was contrary to his experience. Before the House assembled he had met a representative gathering of manufacturers and had found them in good heart, hopeful and enj thusiastic. The workers and the majority of the retailers were also happy ahd hopeful. That, was not to be wondered at, because there was no more convincing argument to a business man than his own balance-sheet. If, after paying increased costs and taxation, he found that his profits were better than for the previous year he knew the position was satisfactory. Mr. W. J. Poison (National, Stratford): But you budgeted for less income tax. NON-DRINKERS AND BEER TAX. Mr. Sullivan claimed that the taxation would not reduce the standard of living of the average man. He asked the Leader of the Opposition if it woud affect his standard of living. "If he is affected by the beer duty that is optional to him," he said. "I don't know if it costs him any more than it costs me." Mr. Hamilton: About the'same. Mr. Sullivan: I'm a very poor patron ■ The Rt. Hon. G. W. Forbes (National, Hurunui): Cheer up! You may do better later. As far as the internal loan was concerned, said Mr. Sullivan, Mr. Hamilton did not seem to think it possible for the people of New Zealand to have sufficient faith in the Government and ■ the country tp subscribe voluntarily,, The loan had been oversubscribed by the public without any pressure whatevei\ Mr. W. A. Bodkin (National, Central Otago): What about the State Departments? What did they contribute? Mr. Sullivan: I say the £4,500,000 was oversubscribed by the public. There was very little indeed from State Departments. Mr. Hamilton: Were they raided previously? Mr. Sullivan repeated that there had been no pressure on anyone. Mr. Poison: There were some broad hints. Mr. Sullivan: The member for Stratford is incorrigible. Mr., Sullivan . said that •if the increased expenditure for defence were] subtracted from the Public Work; vote! it would be about the same as before. Mr. Hamilton had made some comments about employing seasonal workers making hiking tracks. What was ! wrong with making hiking tracks? he i asked. | Mr. Bodkin: Will that stimulate production? . j Mr. Sullivan said he thought the I member for Central Otago would be the last to: deride 'work that would enable the people to see the scenic beauties of the country. A tourist

tunnel was being made in Mr. Bodkin's electorate. PAST BORROWING. Answering Mr. Hamilton's comments on borrowing, Mr. Sullivan said that the money first borrowed in 1856 had never been paid off and no one bknew how many millions had been paid in interest, because loans falling due were always converted. Under the arrangement made by Mr. Nash, the £17,000,000 would be. repaid within a few years. Financial arrangements had been badly made in the past or £17,000,000 would not have matured at once. Further trouble would be experienced in the future for the same reason. COMPILATION OF FIGURES. Referring to criticism of the Government's housing policy, Mr. Sullivan said that they had not set out to builct slum houses but to provide good homes for the people. Surely the Leader of the Opposition and his colleagues should refrain from such criticism, having regard to the record of the previous Government, in respect of housing. Mr. Sullivan said that he resented the imputation that instructions had been given to the Census and Statistics Office regarding the manner in which its figures should be compiled. From his knowledge of the Department he could say definitely that no such instructions had ever been given. Mr. Hamilton: I am glad to hear that. ' . Mr. Sullivan refuted the contention that a large number of tradesmen were available from Public Works and relief camps and said it should be remem- j bered that as a result of the previous Government's policy the supply of tradesmen had been substantially reduced and in many cases the men had lost their skill. The Minister claimed that the Government's policy had brought many back into industry. The Hon. P. Fraser: Thousands of them. . ,-«,.* Mr. S. G. Holland (National, Christchurch North): Pardon my mirth! Mr. Sullivan: A very large number of young men who have never had any previous experience in industry are going into industry. Referring to the rate of interest, Mr. Sullivan recalled Mr. Hamilton's remark that during the previous Government's term the rate of .interest had been the s lowest in the history of the country. "That may have been so, but everything else was low at the same time," he said. "Wages were low, the standard of living was low, and, generally speaking, there was not very much for him to boast about." Coming to the guaranteed price, Mr. Sullivan said it seemed that Mr. Hamilton was very hard to please. If there was a deficit in the Dairy Industry Account he was upset, and if there was a profit he was still upset. Mr. Hamilton: Not a bit. REDUCTION OF COSTS. Mr. Sullivan: It looks like a case of "heads I win, tails you lose." What has become bf the hon. gentleman's compensated price? We have not heard anything about it at all. Also, the hon. gentleman and his colleagues have been talking about reducing costs for a long time, but we have never heard how they expect to reduce them. We know that the only way he would set about reducing costs would be by pursuing the policy of 1931 to 1935 of slashing wages. Mr. Hamilton: Tell us how you are going to reduce the cost of living. Mr. Sullivan: You should make it clear and say what costs you are going to reduce. Will you give an absolute denial to the statement that you would reduce wages? Mr. Hamilton: We said so at election time. Mr. Sullivan said that the .members of the Government were the trustees for the people and for the political thought of the people, and were instructed to. give effect to the policy they agreed to in 1935 and confirmed in 1938 regarding the lifting of the general standard of living of the people. Harsh as the criticism of the Government seemed to be at times in connection with its social services, that criticism was not quite so severe or so virulent as that which had been directed at Mr. Seddon and those associated with him when he flrst tried to put old age pensions on the Statute Book, Mr. Sullivan said. ■ When Mr. Hamilton talked about extravagance he should say what social services his party would reduce in order to minimise the necessity for the present taxation. The Minister discussed cost-of-living figures in relation to wage levels and claimed- that the effective wage rate today was better than it had ever been in New Zealand, and that the Government's policy had been to the advantage of the great mass of the people. EVERYONE HELPED. Mr. Sullivan claimed that the Government's policy had worked out to the advantage of the mass of the workers and to the commercial community. He did not claim that all commercial concerns had gone ahead. Some had gone up and down and up again, and ordinary business fluctuations would be found, but a general survey of business would show a greatly improved condition compared with the depression years and a favourable one compared with the pre-depression years. Mr. A. E. Jull (National, Waipawa): What about taking a look into the future? Mr. Sullivan said that he had .visited Taranaki, and if the guaranteed price had not made the farmers better off it had at least enabled them to get more and better cars. Mr. Holland: They have got very good representatives in Parliament. Mr. Sullivan said he had seen many up-to-date cars in Taranaki. Mr. Poison: You were very impressed with Taranaki evidently. The wheat farmers were doing fairly well on 5s 9d a bushel, Mr. Sullivan said. Mr. Poison: Why is there a reduction in wheat production every year? Mr. Sullivan: It has not been due to any indisposition of the farmers to grow wheat. Mr. Holland: It must have been the bad weather. Mr. Sullivan: It was the bad weather. (Opposition laughter.) j WEATHER AND WHEAT CROP. | Mr. Sullivan said that he was sorry to hear the way in which the Opposi-! tion had received that statement. Thej farmers had been willing and anxious to increase the wheat crop and he had seen land prepared for crops and the i planting made impossible" by three successive bad seasons. If the coming season were good, New Zealand would have more wheat than the country had had for many years. Mr. H. G. Dickie (National, Patea): Why are you profiteering on Australian wheat? Mr. Sullivan: What does the hon. gentleman want me to do? Does he want me to put Australian wheat on the market at a cheap price at the expense of the local growers? Mr. Dickie: What about the poultry farmers? Let private enterprise handle it. No one wanted private enterprise to handle it, Mr. Sullivan said. He claimed that the poultry farmers had benefited by the present marketing of wheat. Mr. Sullivan concluded by stating that he believed he had proved that the majority of the people were better off because of the policy of the Labour Government. The debate was adjourned and the House rose at 10.30 p.m. until 2.30 p.m. today.