PARLIAMENT

Grey River Argus, 17 September 1937, Page 6

PARLIAMENT

Address in Reply DEBATE OPENED. 1 Per Press Association], WELLINGTON, September IG. There were very nearly full galleries in the House of Representatives for the Address-in-Reply debate. Only two speakers were heard —Mr. J. Thorn (Government, Thames), the mover, and Mr. G. T. Barclay (Government, Marsden), the seconder. In accordance with tradition, both mover and seconder wore full evening dress. The achievements of the Government during its two years of office were reviewed by Mr. J. Thorn (Government, Thames), who claimed that the Government had been faced with a problem of great magnitude resulting from a thoroughly defective system of society in which economic and financial organisation naturally caused insecurity and collapse. “The Labour Party, wnenit came 4 into office, had to deal with a legacy of chaos,” said Mr. Thorn. “For that the previous Government was responsible. Its own former leaders have admitted as much.” The Labour Party had prescribed a cure in its election manifesto, and no Government had a better record in performance of its pledges. In the State control of currency and credit more than £ll,000,000 of public credit had been made available through the agency of the Reserve Bank for national purposes—£6,ooo,ooo to finance the payments of the guaranteed price and £5,000,000 for the building of houses. In both cases credit was issued against the means by which it could be redeemed so that it could not be said that the administration of the bank had been inflationary. Even the newspapers had admitted that the low rate of interest charged by the Reserve Bank on advances to the dairy industry account had saved exporters about £160,000 last year. HONOURED PLEDGES. The pledges for the payment of guaranteed prices and for the restoration of salaries and wages had also been faithfully' carried out, Mr. Thorn said, and the promises for the development of industry, in company with the provision of better industrial conditions for workers, had succeeded to such an extent that last year the number of factories registered increased from 16,434 to 17,126, and the number of factory workers from 102,275 to 111,041. “The figures indicate a record in the number of factories registered and in the number of workers employed,” Mr. Thorn added. The Government improved the posi--1 lion of pensioners, and was completing its plans for national health and superannuation schemes. The party’s election manifesto had made no reference whatever to taxation, and the only reason for which taxation was increased last year was to finance improvements in pensions. “Now I wish to ask tne Opposition,” said Mr. Thorn, "whether it intends to reduce old age pensions, and take away something from the invalids and the widow to give a reduction in taxation to its wealthy friends. I think it does. The statements of the Leader of the Opposition suggest this definitely. He has asserted that this Government is dominated by sentiment and sympathy. We are too sympathetic, our hearts are not hard enougn.” Mr. Thorn also mentioned Labour’s ■promises with regard to education. Most of them had been fulfilled already, he said, and it only remained to carry' out a general reorganisation which' would be effected this session. The promises of Labour were to have been implemented in a three-year-Parliament, but most of them were on the Statute Book already. CONFIDENCE AND PROSPERITY. Members of the Opposition pretended to be very concerned about rising costs. However, several of their speakers said they' did not intend to repeal legislation providing for , reduced hours of work and increased wages. If the Opposition accepted those measures, and did not intend to repeal them, it could not logically complain about the increase in costs allegedly due to them. In any case, Mr. Thorn added, talk about rising costs did not amount to much when there was overwhelming evidence of confidence and prosperity. In 1936 no fewer than 942 new companies were registered, with an aggregate nominal capital of £9,934,903. From January to June this year, 407 new companies were registered, with an aggregate nominal capital of £3,427,000. That meant, in 18 months of Labour rule, 1349 new companies, with a nominal capital of £13,361,000. That did not look as if the Government’s legislation had stifled enterprise, or brought industry to the verge of ruin. That companies had benefited was shown from that source assessable income from that source had increased in the last taxation year by' £2,000,000, and that the. profits of 150 representative companies, after paying taxation, showed an increase or 14.3 per cent. The revenue from sales tax during the first half of this year showed an increase of 25 per cent, on the figure for the first six months of last year, and luxury expenditure also showed a marked increase. At the same time savings had reached record heights. The people were spending more and saving more, hney were happier and more confident. “Then there is the Socialist bogy, raised by members of the Opposition,” Mr. Thorn said. “Personally I want a root and branch change in the present economic system. Instead of a system of industry and trade owned by individuals who compete and jostle for private profit, I want it owned cooperatively and organised solely tor the use and benefit of all the people. ’ Mr. H. S. S. Kyle (National, Ric carton): Pure Socialism. Mr. Thorn: However, we are democrats. We believe in constitutional government, and in education and persuasion. Nothing for uie application of our principles, in the law, and in our industrial life will be done until we win the support of the people, and receive their mandate. Guaranteed Prices GOVERNMENT POLICY DEFENDED. The Government’s scheme of guar ■ an teed prices for dairy exports was , defended by Mr. J. Thorn, who claimed that the pledge given in this direction "had been scrupulously observ ed, and that the great mass of dairy , farmers were more than contented

with the present procedure. In fixing last year’s price for but ter at 12 9-16 d per lb. f.0.b., Mr. Thorn said, a sum of £560,000 was included over and above the promised 10-year average to meet any rise in costs. It was estimated that the price for butter would work out at approximately 13d per lb. of butter-fat. In addition to that a new marketing system had been introduced, which had entirely eliminated speculative anu gambling elements. “TORY RACKETEERS.” > “Among the farmers’ leaders there is a group of Tory racketeers,” Mr. i Thorn continued. “They set up an ’ outcry about the price being too low, . and these racketeers chummed up with the compensatory pricers, ali though they knew that if the price was .fixed at Is 41-d, as those : people claimed, there would have 1 been a deficit of at least £5,000,000. “I am sure that these racketeers do ■ not represent the great body of comI monsense farmers, many of whom have expressed themselves as entirely satisfied with the price,” said Mr. • Thorn. “Their views represent an ’ honest recommendation of everything ■ the Government has sought to do to ■ improve conditions of dairy farmers.” i Mr. J. G. Barclay (Government, • Marsden), made an important contri- • bution to the guaranteed price dis- • cusslon. He said that no man had 1 done more than the Minister for Mar--1 keting to eliminate speculation from ■ the sale of dairy produce exports. If ! the Minister had his way he would ’ also eliminate speculation from buying and selling of land in the Dominion. 1 Mr. Barclay said that under the 1 guaranteed prices scheme most of the ! factories this year would be able to I pay out Is 2id. It was admitted on ‘ all sides that the marketing system 1 was a huge success. > New Zealand, in sterling value, was ■ 5s per cwt. nearer to Danish butter : than it was the previous year. Five ■ shillings in sterling parity represented 5u per lb. on butter-fat. The credit, for that could be claimed by the Minister for Marketing. In spite of that satisfactory position, Opposition members were complaining about the cost ‘ of the Minister’s trip abroad. Mr. Nash’s mission had been well 1 worth while. New Zealand was selling 1 on the London market at 2 per cent. ’ commission, whereas previously it ' sold at 2* per cent. I ! INTEREST RATES. . The action taken by the GovernA ment to keep down rates of interest in New Zealand was also referred to ,by Mr. Barclay. He said the Gov- , eminent was obtaining money for 1 local bodies at 3i per cent. The Government had taken over the Reserve . Bank and used the public credit in . that bank to deal with two great problems, unemployment and me ; situation in the dairy industry. It was intended to use up to £5,000,000 of the national credit for building houses to provide homes for the people. By constructing houses the Government was providing work for men who were unemployed when the present administration came into office. The credit in the Reserve Bank was being used for the financing of the dairy industry, and anything from £4,000,000 to £5,000,000 hau been made available, for which 11 per cent, was paid to the bank. When the Government came into office 44 per cent., 5i per cent., and 6 per cent, was being paid by dairy factories to the trading banks. >

THE LEGISLATIVE COUNCIL. In the Legislative Council, Hon. M. Connelly moved the Address-in-Reply and advocated the development of possible oil* fields in New Zealand and an increase in secondary industries. He said ne was satisfied that farmers were getting a good price for their produce and the price of dairy stock showed there was faith in the dairy industry. He also discussed what the Government had done since it came to office. Hon. T. Brindle said the standard of living had been improved and he hoped that unemployment would be greatly reduced as soon as the Government’s plans had their full effect. The purchasing power of the people had been increased, and, any rumblings of discontent were mainly apparent through letters to the newspapers that were obviously inspired and through newspaper articles. Socialism was not taking away the liberty of the people, but was increasing the liberty of the workers. Mr. Brindle referred to the unsettled state of the world and said that he was proud to be associated with a Government that spoke fearlessly in favour of collective security. Without collective security, the outlook for civilisation was very dark indeed. Mr. Barclay said that the State Advances Corporation had found £23,000 for the Whangarei Hospital Board at 3J per cent. Money was being found at that rate all over the country. In Australia local body loans could not be floated under 4i per cent. Mr. Barclay quoted several tables showing farm ■ costs and incomes in his argument that under the existing guaranteed price scheme dairy farmers were not so badly off as was claimed by critics of the Government. A typical one dealt with a one-man 30-cow farm, running cows producing 2401 b. of butter-fat. Costs were quoted as follows:—

OUTLAY. £ 75 acres at £2O an acre 1500 Stock and plant 500 Total capital outlay 2000 Interest on that at 4i per cent. 90 Eight tons of fertiliser at £5 a ton 40 Maintenance 65 Rates and insurance ' 15 Outside labour 10 Bull purchase money (one every three years) 5 Total costs 225 INCOME. £ s 30 cows at 2401 b. at Is 2d 420 0 Pigs at 30s a cow 45 0 20 bobby calves at 7s 6d 7 10 Five boner cows at £2 10 0 Total income 482 10 Net income 257 10 “That did not look like starvation, Mr. Barclay claimed. He quoted another table based on similar costing figures for a 30-cow farm producing 2301 b. a cow. The net income from that farm he estimated at £240. For a 60-cow farm, averaging 2201 b. a cow,, he estimated that even allowing £2OO a year for labour and with a’

capital outlay on land and stock anc plant amounting to £3,600, the ne! income would be £293 a year. That figure was for a two-man farm, and he considered that the income of nearly £6 a week was not one which could be found much fault with. On such a farm, allowing for the wife of the farmer and his family going into the sheds to help him, the income would be £493 a year.”