THE GENERAL ELECTION CAMPAIGN

Grey River Argus, 9 August 1935, Page 5

THE GENERAL ELECTION CAMPAIGN

A FUNNY POSITION IN ROTORUA

Ministers Speak At Other Centres

MR HARRIS’S DECISION. AUCKLAND. August 8. Mr Alexander Harris M. 8., rar W:.itemata, announced 10-day th.'. did not intend to stand for Fa! jit)vu at again a! Hie coming election. MR ATMORE’S OPPONENT. NELSON. August 8. A meeting of the Nelson branch of the National Political Federation unanimously selected Herbert EvereU, a> the official candidate. Mr Everett a member of the Waimea County Council. Nelson Hospital Board, and chairman of th ( > Waimea Power Board. Hon. Mr. Smith WHACKS AT HERDMAN AND DOIDGE. NEW PLYMOUTH. August 8. A sharp reply to the Government’s critics was given by ilie Minister of Employment. Mr Smith, in a pre-scssi- ( ual address at New Plymouth. “If Sir Alexander Herdman is the tiuc patriot he pretends he is,’’ said Mr SiniZh, “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 New Zetland to weather the worst economical storm oi all time.” “As far as Doidge’s fJchemc 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 Air Smith.

He also denied what, he termed a rumour circulated among the unemployed That he was» receiving a double salary for holding the portfolios of Education and Unemployment. He made reference to the exploita tion of the unemployment funds bv certain -local bodies. The Government had acted promptly, he said, and taken everv unemployed man out on susten a nee in those areas. SPEECH BY ACTINGPREMIER Reply to Labour Leader DANNEVIRKE, August 8. Sir A. Ransom opened the pre sessional Ministerial campaign at Dannovirke Drill Hall this evening, addressing a good humoured audience "t about 1000. He devoted an hour to criticism of the Labour Party s pohej 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 bj e Leader of the Opposition, Mr. M. J. Savage, at Dannevirke recently, bir • Ransom, defended the extension oi the life of Parliament to four years, n did so from the point of view, he said, of the country’s welfare. He claime that results had justified the Government’s action. Naturally, he said, Mi. Savage desired the general election be fore an economic recovery was m sig i , ■is if Labour were successful at tie noils, it would reap the fruits of the Government’s good administration. The Government had not sought politi cal popularity, but had done its best in the interests of the country. He referred to Mr. Savage s contention that, unless those who already an on the land, are made secure, it is hopeless to establish others on th 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 tew, hopeless eases, were absolutely secure on then holdings. The question of granting them further relief,■ by way of a re valuation, was receiving consideration Other settlers, he said, had had the benefit of mortgage legislation and other remedial measures that were cal culated to ensure a continued occupying of the holdings. There was m>thing fantastic or impossible in the Gov ernment’s proposals. Regarding the Labour Party, monetirv system, which, he said, had never been clearly defined, he (Sir A. Ransom) 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, welltried system making for a permanent

recovery. , i Mr Savage claimed that unless the. purchasing power of the masses kept pace with increasing production, there was little use in increasing the produc-j tion That was, again, a dismal outlook. Mr. Savage quite overlooked that masses who were consuming our surplus 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. . It was difficult to appreciate Mr. Savage’s concern over tbe 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 the contracts between the State and Mortgage Corporation would destroy its clients. There again he was shedding crocodile tears. The change would be only a nominal one. Mortgagors could elect to retain the present terms for their mortgages. Sir Ransom alluded to the increase in dairy production, which had * been bemoaned by Mr. Savage. He said the increase since 1932 had boon twentyk five per cent. It had been due to ef- ' forts by dairy producers to counteract $ the effect of the low prices. When the ' I present prices of dairy produce in LonJ don 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 tbe depression, to restrict the production. The Labour Party had certainly played no part in bringing the present [>osition about. After referring to other points in /Mr. Savage's address, Sir A. .Ransom dealt with the subject of guaranteed prices for farmers. This he described as the Labour Party’s trump card to catch the farmers’ vote. He said that nobody knew the exact nature of that plan. Common sense, ho said, condemned all schemes for guaranteed prices for exports as being unsound in principle and destructive in practice. Mr. F. Langstone, M.P., had issued a pamphlet on the subject, when President of the Labour Party. At that time the London parity price of butter had been Gd. He advocated a. guaranteed price of Is .“><! per lb. He would apply the 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 be done at the expense of the rest of the community. Why not arrange for a guaranteed price for every producer of every kind of product, and 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 nrobably assist the primary produced temporarily, but it would only he until the production costs caught up with the prices. All other sections of the community, including wage earners, would be infinitely worse off. The Labour Party had, apparently, reversed its policy. It now wished to penalise its old love, the wageearners, in order temporarily to subsidise the farmers. The Government had definitely assisted primary producers in many directions, based on sound principles, without unduly penalising other sections of the community, but had received no assistance from the Labour Party. 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, taxration, borrowing, creating money or credit, or a high increase in the exchange rate. He said the Labour Party had. denounced the 25 per cent, exchange rate, hut a levy on imports on the basis advocated by Mr. Langstonc would mean an exchange rate equivalent to 250 against the 125 now ruling. If the cost were to he met by taxation, as advocated by Mr. Savage, the burden would likewise be intolerable, and 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 he 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 po. Tt 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 cur-

One of our problems to-day. he said was over production, or under consump’ tion.

The Labour Partv’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 price scheme, and said practical farmers would have none of it.

Referring to depression and to steps ■ taken to cope with the situation. Sir A. Ransom claimed that few, if anv, countries had been more liberal in the measure of assistance granted in reliev- ( ing unemployment. As it was necessary to live' within its income, the Government had effected savings in expenditure amounting to nearly £lO,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 dot annum. Under the Mortgagors’ Relief Act, 1400 cases had been dealt with, foreclosures been avoided, rental and interest concessions granted, and in addition thousands of voluntary adjustments made. There had been the abolition of land tax. Tt 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 ealamitv 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. CoTtainlv the exchange, he said, 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 largely through the influence of the Goveml ment conferred a benefit on primary > producers and the commercial coms munity generally. He detailed items showing that an average annual assisti ance 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, assert- ; ted that nothing was wrong with the s Government that could provide such - assistance without increasing the nat tional 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 said; 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 SEAT

Mr. Doidge From London ROTORUA, August 8. As the result of a request by a deputation which waited upon him. Mr F. W. Doidge intimaetd his intention of offering himself as a candidate for the Rotorua seat at the General EJec■tion. Although he indicated that he would ojipose the present Government.' and Labour Party* Air Doidge did not coinmil himself to any definite party alignment., beyond remarking he was quit,, prepared to work with Sir A. L. Herdman, or any o'ther candidates, in accordance with his view’s. Tie indicated that a policy of Empire trade reciprocity would figure very largely in his election campaign. He expressed th c opinion that the days of lhe present administration in New Zealand were definitely numbered, and tha>t the record of the present Government was a direct antithesis of progressive legislation introduced by the Bal'ance. Seddon. Ward and Massey Governments. He considered that New Zealand, at present, was inclined to be too preoccupied in domestic affairs. Tie expressed the opinion fhat one of the country’s greatest needs was a. wider understanding uf the Emire and world politics. There could be no return of real prosperity until New Zealand obtained a sheltered market’ in Britain. MR DOIDGE FALLS IN. DEMOCIRATS PUT UP AIR CORBIN. AUCKLAND. August' 8. The announcement that Air 11. H. Corbin, late Professor of Forestry at Auckland University College, had received the official endorsement as the Democrat Party’s candidate tor Rotorua was issued to-nigh't. This announcement adds consider aldo interest to the contest in that electorate, and also to party politics generally, as on Wednesday Air F. W. Diodge, who has been considered high in the councils of the Demoeraits. announced his candidature for the seat. Air Doidge did not give any indication as to which Party he would support, but he declared himself Ao be against the Government and the Labour Party. When Air Doidge proclaimed his candidature he was supported on the platform by Mr AV. Goodfellow, who ia member of the Auckland Executive of the Democrat Party. _ AVith these entries t'he Rotorua electors have the choice of six candidates. The others are Mr C. H. Clinkard (sitting member), who carries Government endorsement; Mr A. F. Moncm (Labour); Air D. R. Campbell (Country Party); and Mr P. Shine (Independent.) Seen to-night concerning the party nomination for the seat* the Democrat Partv’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 Roforua in the 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 i t was definitely decided that he should b e the official candidate for Rotorua. It was stated: “This means that in the event of Mr Doidge contesting ’the Rotorua seat, he will not receive the Democrat Party’s support.’’ MR FORBES’S CONMENT. SYDNEY, August 8. In a brief reference to the political situation in Now Zealand, Mr Forbes said he naturally was reluctant to express any views when still far away from the scene, but he did not regal'd the retention of a Labour seat’ by a Labour candidate, as an indication of loss of ground by the Government.