STERLING FUNDS CONSERVED FOR CAPITAL GOODS

Gisborne Herald, Volume LXXVI, Issue 23108, 22 November 1949, Page 6

STERLING FUNDS CONSERVED FOR CAPITAL GOODS

—MR. KEELING

“The sterling funds held by the New Zealand Government cannot be dissipated as recklessly as the Leader of the Opposition has suggested.. Apart from the needs of the country in respect of goods for current consumption, it is imperative that a substantial part of the funds be conserved for capital goods to replace and replenish what has been lost or deteriorated since the beginning of the war,” staled Mr. U. A. Keeling, Labour candidate for the Gisborne seat, speaking at Matawai on Saturday evening to a gathering of GO peonle. The candidate pointed out that the cost of New Zealand imports from the United Kingdom had almost doubled during and since the war. and although the sterling balances held bv the Government were high, they represented onlv half the volume of goods which the monev could have purchased prior to the war.

Moreover, there was a heavy replacement “back-log” in the Dominion, represented by capital goods required for railways, hydro electric power stations, farms, secondary industry and transport, among many other lines of effort. They all needed urgently a supply of heavv machinery and other equipment which if had been impossible to obtain or renew since the beginning of the war. Maturing Debt A third and important factor governing the disposal of the sterling funds was the legacy from past Tory Governments in the shape of a load of maturing debt, which had to be provided for, said Mr. Keeling. Labour had discontinued the Tory policy of borrowing from Peter to pay Paul, and would not go back to the Tory system of borrowing every year in London to pav annual debt charges. The Nationalist self-styled “orthodox financiers” have launched a campaign which will be as ruinous as it is irresponsible.” declared Mr. Keeling. They seek to make political capital out of irritating shortages of the day. The immediate release of sterling funds would firstly bring about an influx of luxury or semi-luxury goods, because the importers would inevitably choose the most profitable lines available to them Britain is already sending us all the necessary goods she can supply

“A second result of the release of our sterling funds would be to drain the London account dry and leave nothing for capital equipment which must be procured as soon as it is available if the Dominion is going to make good the losses due to war-time depreciation of plant and machinery. Capital Equipment

“The Government will not be stampeded bv Torv nonsense. Capital equipment for industrial development, and full development, stand or fall with Labour’s import policy. To achieve these obiectives national needs must have priority over the whims of individual.” Mr Keeling also spoke on taxation, the exchange rate, and social security, and claimed that through its humanitarian legislation the Laoour Government had given security to the people of New Zealand. A vote of thanks was accorded to the candidate. Air. R. Beaufov was in the chair.

On Saturday afternoon Mr. Keeling visiting the Gisborne borough transit camp where he spoke to a gathering of 30 people on housing and related subjects. No questions were raised, and the meeting passed a vote of thanks and confidence on the motion of the chairman Mr Tov. On Sunday the Labour candidate ad dressed supporters and friends at Motu and Motuhora. his addresses following the lines of those given at other campaign meetings.