ELECTION CAMPAIGN

Evening Star, Issue 22193, 22 November 1935, Page 15

ELECTION CAMPAIGN

DEMOCRAT’S TRIAL BUDGET m HISLOP GIVES DETAILS [Per United Press Association.] MASTERTON, November 21. Speaking at Hukanni to-night, Mr Hislop, Leader of the Democrat Party, said lie bad promised the people of New Zealand a Budget showing in detail how the Democrats proposed to put their policy into effect. _ On the expenditure side, Mr Hislop said, were;—Permanent appropriations, £10,634,000; annual appropriations, £8.740,000: salary restorations. Superannuation Fund subsidy and general, £850,000; subsidies to farmers, £3,750,000; total, £23,974,000. The permanent appropriations for the year ended March 31 last, excluding main highways and exchange, wore £10,507,225. The Democrats could show a substantial reduction on those appropriations by carrying into effect certain of the recommendations of the National Expenditure Commission, and by various readjustments, such as a review of the Amortisation Fund commitments on the nublic debt. The amount he had shown included interest and sinking fund on the proposed loan of £8.000.000 for national development and unemployment purposes. The Democrats had adopted the policy that main highways taxation should be used wholly for the purpose of main highways and they had included neither the revenue from that taxation nor the payments on account of main highways. ' Reductions in the annual appropriations, Mr Hislop continued, could be effected' by savings through their national health and pensions scheme and on account of savings through maintenance over-charges, depreciation, and general administration following the recommendations of; the National Expenditure Commission and the Auditor-General. Provision for subsidies to farmers had been made to show the effect as if the whole of the exchange were removed immediately. The Democrats, however, did not propose that the exchange should be taken off immediately, but gradually brought down in a manner that would give the best results to both town and country. The amount of the subsidy payable would be small to begin with, gradually increasing as the rate of exchange was reduced, until they finally arrived at the maximum figure set down. When primary produce prices rose to normal, the paying levels of the subsidies would be reduced proportionately, enabling them to make further taxation reductions. Referring to unemployment, Mr Hislop mentioned that the interest and sinking fund oh the £8,000,000 loan were included in -the permanent appropriations. Any subsequent loans would be provided from the balance of a contributory tax of sixpence in the pound, which would _ bring in more than the amount estimated once the employment scheme w r as under way and the Democrats’ general policy began to take effect. The estimate of revenue was £24,055,000. This estimate was based on Mr Coates’s estimate in his 1935 Budget, and also on Mr Downi© Stewart’s estimate of Customs and other revenue . increases following exchange reductions. Mr Coates himself admitted that he'had under-estimated the revenue for the current year, and there was no doubt there would bo large revenue increases following the application of the Democrats’ general policy. The total revenue available to the Government for the year ended March 31, 1935, including the unemployment tax, amounted to more than £30.000.000.

The Democrats’ estimate of the total revenue, including a health insurance contributory tax, was approximately £27,800,000. The sales tax and the gold export duty were not' included m the revenue estimates, as they proposed to abolish those two taxes. In addition, the estimate for income tax showed a reduction of 10 per cent, on that of Mr Coates, as they proposed to reduce that tax by 10 per cent.

Summing up, the Budget estimates were:—

Revenue, £24,055,000. Expenditure, £23,974,000. Surplus, £BI,OOO. Dealing with national health insurance and pensions, Mr Hislop said that £3,750,000 would come from a contributory tax and £1,900,000, which was included in the estimate, from the annual appropriations. Pensions would absorb £4,000.000 of that and health insurance £1,650,000. Mr Hislop said that for years, even as .late as 1932, the annual taxation had always been in the vicinity of £17,000,000 to £18,000,000. To-day it had leaped to £25,000,000 per annum. By getting back to sound principles there was no reason why taxation should not be returned to the previous levels, and that was the Democrats’ aim. FINANCE MINISTER [Per United Press Association.] GISBORNE, November 22. - Paying a flying visit to the Bay of Plenty electorate, the Minister .of Einance (Mr Coates) addressed wellattended meetings yesterday at Tolaga Bay and Tekaraka, getting an enthusiastic reception and votes of confidence at both places. At Tekaraka there were a few good-humoured interjections, from which the Minister generally scored. Defending the policy of the Government. Mr Coates recalled the serious problems which had to be faced in 1931, and contended that the plan of rehabilitation had been successful. Economies had been necessary in order to meet the 43 per cent, decline of income from exports. Replying to an interjector who made facetious reference to the Government’s blank cheque, Mr Coates retorted, “ Well, you can fill your cheque in now, which is more than you could do in 1931,” the comment being greeted with applause. Stating that ho didn’t doubt the sincerity of the Government’s opponents, the Minister said he wanted the electors to remember how much easier it was to criticise than to construct. Every citizen had suffered by the depression. and the Government’s aim had been to spread the burden as equitably as possible. The only issue now before the country was whether a Government which had resolutely pursued a considered policy of reconstruction to a successful conclusion should be returned to put into effect a carefully devised progressive programriie, or whether the Treasury benches should be occupied by the Labour Party, whose sole contribution towards tiic solution of tho difficulties had been destructive criticism—a party with no experience, and whose proposals were ill-considered, illusionary, and impracticable. The Democrats didn't count except as a vote-splitting group of malcontents.

LABOUR’S CAUSE REV. E. I. COX AT KAITANGATA MONETARY SYSTEM AND SOCIAL REFORM 'The Labour Party's monetary policy and plans for social reform were the chief topics of an address delivered in Kaitangata last night by the Rev. E. T. Cox (Labour’s candidate for the Clutha electorate). Mr Cox, who spoke to a crowded hall, was given on excellent reception, and at the close of his address was accorded a hearty vote ot thanks and confidence. The Mayor of. Kaitangata (Mr J. W. Fenton) was in' the chair. Dealing at the outset with the principles of Labour’s monetary policy and guaranteed prices, the candidate denied the truth of the Prime Minister’s allegation that his party was going to “ monkey ” with the Dominion s credit. The first question Labour candidates were always asked in regard to their plans for introducing guaranteed prices was; “ Where are you going to get the money from?” The second question was; “ How is the system going to operate?” Their opponents would say nothing about Labour’s being able to answer those questions. Labour’s monetary policy would be exactly the same as that of Mr Mackenzie King and the Liberal Party which got into power in Canada recently by a big majority. Mr King, in summarising his monetary policy before the election, said; “Canada is faced with a great battle between money power and the power of the people—a battle which will be waged in the new Parliament. I plead tor a sweeping Liberal victory to carry out my policy of public control of currency and credit. Until the control of currency and credit is restored to the Government and recognised as its most conspicuous and sacred responsibilities, all talk of sovereignty of Parliament and democracy is idle and futile. CONTROL OF CREDIT.

In outlining the party’s proposal to assume control of the public credit, Mr Cox said this was the plank on which Labour would stand or fall at the election. The Reserve Bank returns showed that New Zealand had about £8,750,000 in notes and £2,750,000 in coin. For the purposes of an illustration, the amount could be given as £12,000,000. That was all the cash that New Zealand possessed, but there was £120,000,000 of bank deposits. What was the difference of £108,000,000? Actually it existed only in the books of the banks. It was proposed to take the supreme power out of the hands of the banks, and to do that.they did not need to change the constitution of the banks. They would need only to change the directors of the Reserve Bank, nominating men rvho believed that the Labour Party would be just as safe and sound as the men who sat on the board today. The next step was fo issue a little credit. In the course of a speech which would go down as one of stupidity and ignorance, Sir Alfred Ransom had said it would cost £30,000,000 for Labour to carry out its programme. Even if such a large amount were involved, it could be issued in fhe form of credit. It would be a perfectly sound policy to have £150,000,000 of credit with £12,000,000 of cash, and it was absurd to suggest that the Dominion would go bankrupt if they issued another £30,000,000 of credit. The addition of £30,000,000 would not affect the stability of the Dominion’s finances one iota. The banks objected, but only because they would not •get a rake-off, for the added amount would not be interest-bearing. They would get the money for the guaranteed prices through the Reserve Bank. They would have control of the credit, and if the directors of the bank refused to carry out the Government’s wishes—well, they would be retired. There was no need for any alteration in the working of the Reserve Bank. What security would he behind the credit? It would be the security of the Dominion itself which would be behind it, and New Zealand had been valued for taxation purposes at £650,000,000. PRODUCE PRICES. With the aid of a large graph, the candidate showed the price movements of cross-bred wool over a large number of years, stating that-it was possible New Zealand would experience another period of low prices. If that did occur, the urgency for the establishment of guaranteed prices was all the greater. In explaining how these prices would be fixed, he said that one of the chief benefits would be the fixing of a standard price for the production of the country, upon which everyone lived. Thus the standard of life for all the people would be set. The second great benefit would be the stabilisation of the value of the land. If the value of land were standardised by the standardisation of the value of production, no man would have to walk off his farm.

British fanners had been overwhelmingly in favour of a continuation of guaranteed prices for milk, the voting being 81 per cent .in favour of it, while Finland, Norway, and Sweden, tho most prosperous countries in the world, had guaranteed prices for their dairy produce. Japan had a guaranteed price for rice, and the United States guaranteed the price of tobacco. They had been a success wherever they had been tried out, and Labour was only trying to bring New'' Zealand into line with other countries. In the event of a long period of low prices, continued Mr Cox, they would have to issue more credit. If they never got above what would bo an average price over the whole of tho Dominion’s history since 1871, they would have to pay for it, but they expected that high prices would cancel out tho low prices. They would issue the free credit only to meet difficult times, and this, in turn, would bo offset by the good times. In the final issue the loss was on the country and would have to be met. Was it not better that, if such a position was to be met, it would be met by tbe nation instead of by the producers alone ? The whole of the public benefited by high prices. Therefore, let the whole of the public stand tho debt. AUGMENTING THE CHEQUES. Tbe average price for wool in 1935 was si}d a lb, added Mr Cox. Taking it as Od for the sake of easier reckoning and comparing it with the IOJd a lb which was the average struck over tho last G 4 years, they would see what a difference guaranteed prices would make in their cheques. The same principle would operate in connection with butter and cheese. Over a period of 10 years from 1906 till 1915 the average price for butter was 116 s. Over the next 15 years the average price was 2045. Then for the next four years the average price was 995. Under the system of guaranteed prices an average struck over a period of 30 years would amount to 158 s Bd. What would this mean to dairy fanners? • It would, mean that £6O would be added to every cheque of £IOO. Instead of £4OO they would got £100; instead of £I,OOO they would get £1,600, arid so on. The same would apply to cheese.

Labour’s plan was no new departure in the history of the British Empire. A railway had been built from South Australia to Berth without the raising of a single pound that was interesthearing. if that could be done to the tune of £7,000,000, New Zealand could do it to pay guaranteed prices. (Applause.) Moreover, the Isle of Guernsey had been issuing free credit for 120 years. Several countries had Stateowned hanks, and it was time New Zealand followed. What Labour would attempt to do won id be to carx'y out what was operating in the flourishing countries of the world to-day. (Applause.) TENSIONS AND WAGES. lu analysing Labour’s social reform programme Air Cox said that one of the principal proposals was the restoration of the cuts made in all pensions, and, whore full pensions were involved, to place them on a basis of a reasonable standard of living. Moreover, the party intended to establish a national system of superannuation payable at (30 years or invalidity, it would be impossible to pay out on such a scheme unless it wore contributory,' but the policy of the Labour Tarty was to inaugurate a contributory scheme under which every man would pay Into a national fund from which he would he able to draw a pension at the age of 60. Only in that way could most of the people make themselves secure against their declining years. It should be noted that the pensions would he extended in accordance with scientific development and increased production. It was the purpose of the LabourTarty to safeguard the superannuation rights of all Civil servants. The funds should he based on actuarial principle. The position to-day was that all the contributions that were going in were being used to pay Civil servants who were retiring. That was not sound business. The candidate dealt also with the restoration of wage and salary cuts, reminding his audience that the Dunedin City Council had restored all cuts and was assisting the unemployed to the extent of £-100 a week. As the restoration of these cuts cost £6OO a week, the council was spending £I,OOO a week more than when Labour came into power. Yet a statement of its profits for the first six months of the year revealed a profit of £40,000. Tills showed that the people paid their rates when the money was in the community ; therefore, the city funds had benefited, in spite of the fact that the council was spending more. The restoration of the cuts had been of benefit to the whole community. Labour would sec that all cuts to'the workers wore restored, and that compulsory arbitration was reintroduced. (Applause.) An important point in Labour’s policy was the abolition of the many boards, continued the candidate. It was proposed to eliminate them entirely and instead to appoint a Minister in charge of each department and to associate with him members of the party. Together they would form the governing authority, and only the ordinary salaries would be paid. Mr Cox said it was supposed by some people that the Labour Tarty was comprised of a lot of pacifists and did not believe in the defence of the realm. He had represented Labour’s attitude as being its intention to protect the Dominion and, collaterally with the Dominion, the British Empire. However, he considered that the present system of defence was antiquated, and Labour proposed to make defence ample to secure. They all admired Britain’s stand against war in Abyssinia, but he thought that, having done her best in that direction, she should have stopped short of imposing sanctions, which could bring about serious retaliations if Italy came to some form of agreement with non-sanctionist nations. Having stated that Labour proposed to inaugurate new industries, Mr Cox went on to refer to the possibility of obtaining oil from coal in New Zealand. He thought the Government itself should undertake the expenditure that would be involved in the erection of the necessary plant, and said that 2,000 miners and 2,000 factory workers could he employed in producing sufficient oil' and petrol to meet the Dominion’s requirements. (Applause.) After a number of questions had been put and answered Mr Cox was accorded a hearty vote of thanks' and confidence. DUNEDIK NORTH A running fire of interjections was maintained at a meeting in the Foresters’ Hall, Albany street, last night when Mr A. S. Falconer (Nationalist) addressed a .crowded audience, which was clearly not in sympathy with his views. At times the interjectionists were very noisy, and when question time came the replies of the candidate were given a stormy reception. An appeal to every elector to exercise his franchise was Aade by Mr Falconer, who proceeded on the lines of his previous addresses to defend the legislation passed by the Government in the past four years. He defined the issue as being between the Nationalist and Labour Parties, and referred with pride to the achievement of the Government in not having increased the National Debt one penny during the depression. New Zealand, he said, was the only country which could boast of such a record. r .l'he Government’s manifesto was shortly dealt with by Mr Falconer, who said that he would vote with the Government on a no-con-fidence motion even if he disagreed with its action, as lie believed that its retirement from the Treasury benches would bo the worse evil. Many questions were asked, the replies being given hostile receptions, and the meeting broke up in disorder when the chairman (Air J. M. AVhito) declared an amendment of no-confidence in the present Administration and advice to the electors to vote for Labour candidates lost on the voices. The original motion of thanks was carried as the majority of the audience was leaving the hall. DUNEDIN WEST Dr D. G. ATAlillan, the Labour candidate for Dunedin West, addressed a largo audience last night in the Knox Church Sunday School Hall, Mr 6. Bollock presiding. Throughout an address lasting for an hour and a-half Dr ABAlillan received a very attentive hearing. At the outset the speaker said that while he agreed that the Government was not responsible for the depression, he was of the opinion that the administration had net used sane methods to combat it in the interests of tho whole of the people. When the electors were asked to return the Coalition Government at the last election they were told that prosperity followed sane government, but the only difficulty had been that the country had not had a sane Government. The speaker devoted considerable time to tire report of the Native Affairs Department. which he described as a record of ineptitude and worse. He proceeded to severely criticise the Government’s methods of preparing the public accounts, and accused it of gross extravagance in l he carrying out of public works, quoting the estimated costs

and tho actual costs of a large number of works to prove his contention. Several .aspects of the Labour programme were explained by the candidate, who said that Labour had arisen to carry on the old and glorious principles of Liberalism. After answering a' number of questions Dr ATAlillan was accorded a vote of thanks and confidence. In the course of his address to electors in the Kaikorai School last evening, the Hon. W. Downie Stewart, Independent National Government candidate for Dunedin West, pointed out that the Government had been compelled to reduce its expenditure when the country had been overcome by the depression, just as a private individual would have done in similar circumstances, and it was a significant fact that those countries which had taken the hard and unpopular road of reduction in wages, social services, and the like, were those which were emerging first from their financial difficulties. Mr Stewart, dealing briefly with the Labour Party’s credit policy, asked why, if it were so easy to bring about prosperity by that means, it had not been done by any Labour Government in Australia. A similar policy had, in fact, been rejected by the Scullin Administration. In reply to a question regarding superannuation. Air Stewart said that there were certain clauses concerning retirement before the period of 40 years’ service had expired which might bo regarded as imposing hardship on Civil Servants, and he had been in communication with the Minister for some time about these, although the terms generally were such as to return greater benefits than if the. money paid in had been invested instead. The candidate was accorded a vote of thanks. DUNEDIN CENTRAL - , j Mr D. O. Cameron, National Government candidate for Dunedin Central, addressed two meetings yesterday. In the afternoon he spoke to an assemblage of over 50 ladies in the Cameron Hall, Anderson’s. Bay, stressing humanitarian, educational, and other matters of particular interest to women. Lady Ferguson, who presided, expressed to Mr Cameron the best wishes of the meeting, which later conveyed its thanks to the candidate by a vote which was proposed by Mrs Guthrie, seconded by Airs Forrester, and carried unanimously. In the evening Mr Cameron delivered an address in the Kensington Presbyterian Church Hall. Mr H. A. Foote (who is chair-, man of the local school committee) said that tho Kensington School was greatly indebted to Air Cameron for his efforts in connection with the modernising of the school building. This was only part of the good work Mr Cameron had done as a public man over a long period of years. The candidate, in his address, covered the principal phases of the Government’s activities during the past difficult years, and outlined proposals which, he considered, would alleviate distress and relieve to a very large extent the evils of unemployment. Mr Cameron was given close attention, and after answering questions was accorded a vote of thanks. Mr Sidney Wren addressed a wellattended meeting at Highcliff last night when he dealt particularly with the needs of tho small farmer. “ If the exchange rate is to benefit the community generally,” said Mr Wren, “ and not only the freeholder and the financial institutions, it should be paid locally to every exporter.” The candidate explained the advantages to the electorate of an independent representative and his suggestions for the restoring of prosperity. Mr Wren answered questions for more than an hour after his address, and he was accorded a unanimous vote of thanks. DUNEDIN SOUTH There was not oven standing loom iu the Wesley Hall, South Dunedin, when Mr T. K. S. Sidey, National Go-, vornment candidate, opened his address to the electors there last evening. Supporters of the opposition candidates were present in fairly large numbers, but the few interjections coming from them during the address were goodnatured, or at any rate sensible. At question time, however, the matters put forward were not always relevant, yet Mr Sidey’s frankness in dealing with them was impressive. Air A. Devlin occupied the chair. The candidate dealt in a lucid manner with a wide range of subjects, including tho vexed question of taxation, the further imposition of which was the only means by which the Labour Tarty could raise the money necessary for many of its proposed innovations. He pointed out that the inevitable result.of over-taxa-tion of a company, for instance, would be to increase the cost of production, and to adjust this one or two courses would be necessary—to increase prices or dispense with the services of a certain number of employees. Thus was created the vicious circle. On the banking question, the candidate explained that as the basis of credit was confidence, once the bank exceeded the recognised margin of safety the confidence of the business community was lost, the result being a demand for deposits, what is known as “a run” on the bank, and a crash. Money could be issued ad. lib., but the greater the amount issued the less its value became. A vote of thanks was accorded Air Sidey and the meeting closed with cheers for the candidate, to which the Labour section of the audience responded with cheers for their party. CHALMERS Mr A. E. Ansel), National Government candidate addressed meetings at Alomona and Henley last evening and was well received at both. At Henley Air Anscll dealt specially with the difficulties of the settlers who found the burden of the drainage rate pressing heavily upon them, and stated that, despite the fact that the Government had already rendered assistance towards a scheme, designed to protect Taieri farmers from flood damage, it was obvious that further help was urgently required. The matter had been placed before the Prime Minister during his recent visit to Dunedin, said the candidate, and Mr Forbes had agreed that relief must he given and he would be pleased to recommend Cabinet to favourably consider the proposal submitted to him, or one of a similar nature. Air Forbes, said Air Anscll, was one of the most honourable men who had ever been in public life in New Zealand and he could be relied upon to carry out his promise. This statement met with loud applause. In proposing a vote of thanks to and confidence in the candidate, Air H. W. Wilson, as a member of the Taieri River Trust, personally thanked Mr Ansel] for his continuous efforts to assist Inc Taieri fanners. The motion was put to the meeting by the chairman, Mr A. P. Fleming ,and carried by acclamation.

OAMARU Speaking at the Kartigi camp, Air H. Gladstone Hill, Democrat candidate for the Oamaru electorate, was given a very attentive hearing. Air D. J. Ross presided, and introduced the speaker. Air Hill, who traversed the lines of his former addresses, mentioned that he had been completely surprised at the magnificent beach road and the scenery generally from Oamaru to Port Aloeraki. Aluch could be made of this for the betterment of. the whole district. At the conclusion of his address Air Hill was heartily thanked. DUNEDIN NORTH Mrs R, S. Black, the Democrat candidate, addressed a crowded meeting in the Leith Street Hall last night. Introducing the candidate, the chairman (Air AT Gill) said he had come forward to help Airs Black because of the willing service she had given the commercial travellers in their efforts for the relief of distress. Outlining the policy of the Democrat Party, Mrs Black said that its platform was the only ope that stood for the freedom of the individual. Its policy was to see that every man was paid adequately for his services, and it would restore the Arbitration Court. Speaking of broadcasting,* Airs Black said that, as it was the listeners who paid for the service, they should have an elected .representative on the Broadcasting Board. With regard to the B stations broadcasting, the candidate stated, there was no exception to the rule that competition was good for everything, and if tho majority of the listeners who paid for the service wanted B stations they should have them. The Democrat Tarty, Airs Black stated, would, if elected to power, provide B stations with a subsidy. At the conclusion of her address the candidate was accorded a vote of thanks.