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PRE-SESSION ADDRESS

BY ACTING-PREMIER ' LABOUR CRITICISMS ANSWERED [PEB PRESS ASSOCIATION.] - - DANNEVIRKE, August 8. Sir A. Ransom opened, the pre-ses-sional Ministerial campaign at Dannevirke Drill Hall this evening, addressing a good humoured audience of about 1000. He devoted an hour to criticism of the Labour Party’s policy and the same time to an. explanation and. a justification of Government measures to meet the economic depression. He received an attentive hearing. Replying to the speech given by the Leader of the Opposition, Mr. M. J. Savage, at Dannevirke recently, Sir A. Ransom defended the extension of the life of Parliament to four years. He did so from the point of view, he said, of the country’s welfare. He .claimed that results had justified the ’ Government’s action. Naturally, he said, Mr. Savage desired the general election before an economic recovery

was in‘sight, as, if Labour were successful at the polls, it would reap the fruits of the Government’s good administration. The Government had not sought political popularity, but had donb its best in the interests of the country. He referred to Mr. Savage’s contention that, unless those who already are on the land, are made secure, it is hopeless to establish others on the land. Sir A. Ransom said he could well understand Mr. Savage’s hopeless outlook, because Mr. Savage had failed to grasp, and he had not been a party to all that had been done. Crown tenants had been assisted in many - directions, and, except for a few, hopeless cases, were absolutely secure on their holdings. The question of granting them further relief, by way of a revaluation, was receiving consideration. Other settlers, he said, had had the benefit of mortgage legislation and other remedial measures that were calculated to ensure a continued occupying of the holdings. There was nothing fantastic or impossible in the Government’s proposals.

Regarding the Labour Party, monetary system, which, he said, had never been clearly defined, he hoped that it was not planned on lines that were followed by Mr. J. T. Lang, when he was head of a Labour Administration in New South Wales. The New Zealand Government was prepared to adopt a sound, well-tried system making for a permanent recovery. Mr. Savage claimed that unless the purchasing power of the masses kept pace 'with increasing production, there was little use in increasing the production. That was, again, a dismal outlook. Mr. Savage quite overlooked that masses who were consuming our production were not in New Zealand, but in the United Kingdom, where, fortunately for us, there was a National Government, including Labour, in charge, and where a marked Improvement was showing in trade generally, and a substantial ■ decline in unemployment.

MORTGAGE CORPORATION

It was, difficult to appreciate Mr. Savage’s concern over the State Advances Office, because, although the . office has been absorbed by the Mortgage Corporation, the general result would be in favour of mortgagors, who, he said, would receive advances at a lower rate of interest, while the Department would be removed from political control, which was contrary to Labour’s policy. Mr. Savage had claimed that the contracts between the State and Mortgage Corporation would destroy its clients. There again he was shedding crocodile tears. The change would bo only a nominal one. Mortgagors could elect to retain the present terms for their mortgages. Sir A. Ransom alluded to the increase in dairy production, which had been bemoaned by Mr. Savage He said ■ the increase since 1932 had been twenty-five per cent. It had been due to efforts by dairy producers to counteract the effect of the low prices. When the present prices of dairy produce in London was considered, also the fact that the producer received an additional 25 per cent, by way of the exchange, it rebounded to the credit, of the Government that it had not taken action during the depression, to restrict the production. The Labour Party had certainly played no part in bringing the present, position about. After referring to other points in Mr. Savage’s address, Sir A. Ransom dealt, with the subject of guaranteed prices for farmers. Tills he described as the Labour Party’s trump card to catch the farmers’ vote. He said that nobody knew the exact natuie of that plan. Common sense condemned all schemes for guaranteed prices for exports as being unsound in principle aiid destructive in practice. Mr. F. Langstone. M.P., had issued a pamphlet on the subject, when I resident of the Labour Party. At that time the London parity price of butter had been fid. He advcoated a guaranteed price of 1/3 per 11). He would apply the same principle to all exports, guaranteeing thereon a price based on the average return for a number of years past. Just how he would pay for different quality grades of product, he did not say. Apparently said Sir A. Ransom, the guaranteed price was to be liberal enough to keep in business the inefficient farmer, and at the same time it would give a handsome bonus to the farmer who did not require it: but it was all to bo done at the expense of the rest of the community. Why not arrange for a guaranteed price for every kind of product, und thus let the country go crazy in a big way? Assuming that the taxpayers of the country would find money for the scheme of guaranteed prices, he said, it would probably’ assist the piimaiy producer temporarily, but it would only bo until the production costs caught up with the prices. All other sections of the community, including wage earners, would be- infinitely worse oft'. Tho Labour Party had. apparently. reversed its policy. It now wished to penalise its old love, the ■wage-earners in order temporarily to subsidise the farmers. The Government had definitely assisted primaryproducers in many directions, based on sound principles, without unduly penalising other sections of the community, but had received no assistance from the Labour Tarty. A penny per lb. subsidy for all primary products would amount to over £5.000,000 per annum. The money would have to be found in New Zealand from one or more of the following sources:

A levy on imports, taxation, borrowing, creating mney or credit, or a high increase in the exchange rate. The Labour Party had denounced the 25 per cent, exchange rate, but a levy on imports on the basis advocated by Mr. Langstone would mean an exchange rate equivalent to 250 against the 125 now ruling. If the cost were to be met by taxation, as advocated by Mr. Savage, the burden again would be a national disaster. Mr. Langstone advocated the creation of money or credit. That process was kept a great secret, but so far as the speaker could see, it would cost nothing, and would be worth as much when created.- No Labour Administration so far had been able to put this policy into practice, not even Mr. Lang, when unable to meet the salaries of public servants in New South Wales, and the State. Savings Bank had to close its doors. Some countries, Germany for instance, ’ had actually put the policy into practice, but were - now warning other countries not to do so. It would mean a depreciation of all securities, ruin of people dependent on savings, flight of capital from New. Zealand, and a stampede from a suspected currency. One of our problems to-day, he said, was over production, or under consumption. The Labour Party s plan of guaranteed prices certainly would increase our production: and then unless the British Minister of Agriculture instituted a series of quotas, prices would fall still lower, and the amount of subsidy increase. Sir A. Ransom pointed out the- National Dairy Association’s rejection of the guaranteed pirice scheme, and said practical farmers would have none of it.

EXCHANGE RATE Referring to depression and to steps taken to cope with the situation, Sir A. Ransom claimed that few, if any, countries had been more liberal in the measure of assistance granted in relieving unemployment. As it was necessary to live within its income, the Government had effected savings in expenditure amounting to nearly £10,000,000 per annum. Sir A. Ransom referred to the reduction of the interest rate, which he claimed meant a saving to primary producers alone to the extent of £1,600,000 per annum. Under the Mortgagors’ Relief Act, 1400 cases had been' dealt with, foreclosures been avoided, rental and interest concessions granted, and in addition thou-> sands of voluntary adjustments made. There had been the abolition of land tax. It saved landowners both in town and in country not less than £1,000,000. Referring to the exchange rate, Sir A. Ransom said the increase in the rate was made in order to help to bridge a disparity between farming costs and farming prices. Predictions of calamity did not come true, but the increase of the exchange had enabled many farmers to remain on farms. He" said it increased national spending by nearly £10,000,000, and increased business activity, helped to maintain security values, and increased taxable capacity, also augmenting national revenue. Certainly the exchange had incurred an additional cost of £1,750,000 in remitting charges on our overseas debt. It also had slightly increased the cost of imported articles, but the gain had largely exceeded these costs, and the cost of living was not appreciably affected, A reduction of the bank rate, brought about large, ly through the influence of the Government conferred a benefit on primary producers and the commercial community generally. He detailed items showing that an average annual assistance of £14,000,000 had been granted the farming industry alone.. He asked the electors to compare such a concrete result with shadowy proposals on the part of the Labour Party. He asserted that nothing was wrong with the Government that could provide such assistance without increasing the national debt., He quoted figures as showing indisputable evidence of a return of confidence and prosperity, and said it had been calculated that the wages bill of the Dominion increased by £3,600,000 last year. It was anticipated that a much larger increase would have been recorded in incomes other than wages. He added: Under the Mortgage Corporation Act you will pay no more in principal and interest than you have paid in interest alone previously, unless you had a marvellously low interest rate. Most of you will pay less if you are paying your interest. At the conclusion, after the speaker’answered questions in his capacity of Member for the district, a motion of appreciation was declared and carried by the chairman, Mayor E. Gibbard.

ROTORUA CANDIDATES MR. DOIDGE AND DEMOCRATS AUCKLAND, August 8. The announcement that Mr. H. I-I. Corbin, late Professor of Forestry at Auckland University College, had received the official endorsemeht as the Democrat Party’s candidate for Rotorua was issued to-night. This announcement adds considerable interest to the contest in that electorate, and also to party politics generally, as on Wednesday Mr. F. W. Doidge, who has been considered high in the councils of the Democrats, announced his candidature for the seat. When Mr. Doidge proclaimed his candidature he was supported on the platform by Mr. W. Goodfellow, who is a member of the Auckland Executive of the Democrat Party.

With these entries the Rotorua elee tors have the choice of six candidates. The others are Mr. C. H. Clinkard (sitting member), who carries Government endorsement; Mr. A. F. Moncur (Labour): Mr. D. R. Campbell (Country Party); and Mr. P. Shine (Independent). Seen to-night concerning the party nomination for the seat, .the Democrat Party's officers in Auckland stated that two months ago an influential deputation of Rotorua residents waited on Mr. Corbin to request him to stand for Rotorua in tho Democrat Party’s interests. After consideration, Mr. Corbin decided to accede to the request, providing that he received the official endorsement of the Party Mr. Corbin’s name was considered by the Auckland Executive of the Party, and it was definitely decided that he should be the official candidate for Rotorua. It was staled: "This means that, in the event of Mr. Doidge contesting the Rotorua seat, he will not receive the Democrat Party's support.'

MR. SMITH'S CRITICISM

NEW PLYMOUTH. August S

A sharp reply to the Government s critics was given by the Minister of Employment, Mr. Smith, in a pre-ses-sional address at New Plymouth. “If Sir Alexander Herdman js the true patriot he pretends he is, said Mr. Smith, “he would have given point

to his criticism by coming down from his sheltered and assured position on the Bench four years ago, and have lent a hand in helping Now Zealand to weather the worst economical storm of all time." . n , “As far as Doidge’s scheme of Empire free trade is concerned, if he has his way, it will mean that the end of New Zealand's secondary industries has come." said Mr. Smith. He also denied what he termed a rumour that lie wan receiving a double salary for holding the portfolios oi Education and Employment. He made reference to the exploitation of the unemployment funds by certain local bodies. The Government had acted promptly, lie said, and taken every unemployed man out on sustenance in those areas.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/GEST19350809.2.37

Bibliographic details

Greymouth Evening Star, 9 August 1935, Page 7

Word Count
2,198

PRE-SESSION ADDRESS Greymouth Evening Star, 9 August 1935, Page 7

PRE-SESSION ADDRESS Greymouth Evening Star, 9 August 1935, Page 7