MR. NASH BLAMED FOR INFLATION: WORKERS SUFFER

Gisborne Herald, Volume LXXV, Issue 22821, 16 December 1948, Page 4

MR. NASH BLAMED FOR INFLATION: WORKERS SUFFER

(S.R.) CHRISTCHURCH Dec. 16. So long as Mr. Nash remained in office inflation would continue, said Mr, S. G. Holland. Leader of the Opposition in an address last night. Inflation caused by the increasing gap between money and goods was live worker’s worst enemy, but the process was still going on. Mr. Xordmcycr had told tiie last Labour conference- that the gap in 193°,-39 was £48,000,000. while in 194543 it was .2159.000.000. Tims, it had increased in that period by £111,000.000. In 1936 tiie national income was £135.000.000, and in 1947-48 it had risen to £455,000.000. No one believed that production had increased correspondingly. New Money Created "Here is an example of inflation a month ago,” said Mr. Holland. “When the exchange rate was reduced the law required the Government to take £21.500.000 out of circulation and pay it to the Reserve Bank. What did Mr. Nash do? 1-Ie created £21,500.000 of new credits with the Reserve Bank without creating a shilling’s worth of goods—that is inflation.”

Everyone was looking for a sound solution to the inflationary spiral. The solution was a simple one—to get rid of the causes. The cause of inflation, and the cause of steeply rising living costs, was the Government's financial policy of creating money and credits without goods. The constant race between rising wages and mounting costs could only end in disaster for the workers. He y referred to the recent observation by Mr. C. Prime, a member of the Arbitration Court, who had pointed out that every £1 increase in wages meant an increase of £1 in the price of goods, but of the £1 extra that worker received, he retained only 15/8, the other 4/4 going to the Government in taxation and he therefore had only 15/8 to meet increased costs of 20/-.

Many workers were now realising that higher wages were not the answer, and that the only remedy was the National Party's policy of incentive schemes to encourage greater production and increased efficiency. Civil Service Unrest

There had never been so much unrest in the civil service as at present. People ** in responsible positions had been to him and said they had never known such dissatisfaction . The public servants had been shamefully treated.. The Government had set up a tribunal called the Margins Committee to report on certain complaints. After nearly a year the committee had presented its report. Public servants had naturally expected positive action. In- »- stead they had got a positive refusal to do anything, and the Government had now passed a law establishing yet another tribunal.

Public servants felt that they had been bluffed and fooled for nearly a year, and what added to their anger was that one small branch, the Government Printing Office, threatened to strike so in that one case the recommendations of the Margins Committee had been put into effect. Although direct action was abhorrent to the publie service, its members felt that it was the only way to get anywhere with the present Government.

“Deplorable Attitude Of Socialism Before •* Empire”—Mr. Holland

(S.R.) CHRISTCHURCH, Dec. 16. The deplorable attitude of many people in the highest places who put socialism before the Empire was a contributing factor to the difficulties *- through which it was now passing, said the Leader of the OpDOsition, Mr. S. G. Holland.

There were people in high places in England who said the liquidation of the Empire was essential to implement a policy of socialism, while nearer home a Fabian Socialist had proclaimed in the New Zealand Parliament that he, was happy to say the British Empire was in liquidation. “I am against Russia and against communism,” said Mr. Holland, “be cause Russia and communism are out to deny to us British people the way of life we prefer. I am also against paying the fares of Communist agents to come here at the taxpayers’ expense to carry on their subversive activities.

“When connecting Mr. Nash’s earlier admiration for the Soviet system of economic planning with his recent cable of good wishes, which he had forgotten until reminded about it in the House, we have no difficulty in understanding where the Minister of Finance stands.”

STATE DUMPING OF POTATOES ASSAILED

(S.R.) CHRISTCHURCH, Dec. 16. “If anyone had said that the Labour Government would destroy food and cut pensions he would have been laughed to scorn, but that is precisely what this Government has done in December, 1948,” said the Leader of the Opposition, Mr. S. G. Holland.

“We all remember Labour’s condemnation of the burning of coffee in Brazil. In several centres this month the Government is dumping potatoes in refuse pits—good, edible table potatoes. All the explanations in the world cannot alter the fact that the Labour Government is destroying good food.” The Government had cut pensions by a short clause in a washing-up bill, which imposed cuts of £1 a week upwards in the superannuation pensions payable to many widows of former public service superannuitants—pensions rates which Labour had introduced. That too, had happened in December, 1948 .

Ever since Mr. F. Hackett’s “office at any price” speech the Government had been running away from socialism, but if the Government could not achieve socialism by one method it would do so by another. Its offer of the freehold was a gigantic confidence trick, because with the continuation of the Land Sales Act. the Labour brand of freehold became the stranglehold. “To see how hard-pressed they are,” said Mr. Holland, “one has but to mention the levy on unionists. No party ever stooped to lower depths than when the Government passed a law to enforce compulsory levies on their opponents. I would hang my head in shame if I felt that a penny piece of a Labour supporter's money had been used to secure my election.”

TRIBUTE TO MR HOLLAND AS PARTY LEADER

(PA.) CHRISTCHURCH, Dec. 16. •• “Mr. Holland’s position as the leader of the National Party is indisputable and unassailable,” said Mr. K. J. Holyoake, M.P., deputy-leader of the party, in a telephone message from Dannevirke. Very little further advance was needed by the party to make it the Government, said Mr. Holyoake. Much of the credit for the strides made by * the partly was due to Mr. Holland, who had been able to weld the 38 members in Parliament into a very effective team. The opponents of the party had attempted to destroy the leader, and consequently the party, by casting clou is on bis qualities of leadership and e loyalty of his team. From his p - tion in the party and in the House f Representatives, Mr. Holyoake said aa could give an unqualified denial to the innuendoes. The tribute to Mr. Holland was supported bv Mr. J. T. Watts, M.P., and Mr. W. H. Gillespie. M.P. *>'