DOMINION’S PROGRESS

Hawera Star, Volume XLVI, 17 May 1927, Page 3

DOMINION’S PROGRESS

REVIEW BY MR. . COATES. BETTER TRADE OUTLOOK. LEGISLATIVE PROGRAMME. (by telegraph—press association.) DARGAVILLE, May 16. The Prime Minister, the Right Hon. J. G. Coates addressed a large audience .here last night where he reviewed the political affairs of tlie country. He dealt with the legislation passed last session and then went on to indicate some of the measures which the Government hoped to submit to Parliament during the forthcoming session. ‘‘lt is a matter of general knowledge that a special tariff oommitte has been sitting in various parts of the country, inquiring and taking evidence in regard to our present system of Customs taxation,” he said. '’The report of this commission will, I hope, be presented to the Govenrnent shortly, together with its recommendations. The matter may he regarded as subjudice at present, but it is. intended to submit a Tariff Bill as soon as practicable in tlie coming session.” ‘ ‘ln connection with our secondary industries, I would point out that our Dominion occupies a somewhat singular position, because of its being so largely a primary producing country. A fall in the price of any of our principle products is felt, not only bv the farmer, but has a much wider effect, thus .creating a position of difficulty and hardship. One of the remedies for overcoming tlie dangers in this respect lies along the road of building up our secondary industries. It is necessary, particularly in a young country like ours, to have a Customs tariff for revenue purposes, and this will be the case for many years to come. It will be to the general advantage of. the country, in my opinion, if we continue to take steps to build up gradually but securely such industries as will help to relieve us during times when prices for our primary products in the world’s markets have fallen to a low and unprofitable level. “I do not suggest for one moment that every industry should he encouraged, but careful inquiry would disclose the merits of industrial undertakings. particularly whether they were lilcels- to have security of existence and What measure of assistance, if any, should be extened to them. The country and the town are, and will continue to' be, inter-dependent, and I hope our primary producers, on whom the community so largely depends, will, in this matter of the development of essential industries, take a broad view in the interests of the Dominion as a whole. “The Government are also conducting inquiries into the general question of °the incidence of taxation, and if the investigation is sufficiently advanced proposals in this connection Will be submitted. Another question which has occupied the attention of Cabinet is that of still further enlarging the opportunity of easier finance for the farmer. The Government will do all in its power to make the rural advances legislation of last session very successful in its working. The Act came into operation on April 1 this year. Any necessary amendments to give fuller effect to its provisions and generality extend its. usefulness will be designed and, will, I feel sure, be agreed to by Parliament. “It is probable that-, in conformity vvitlv the report of the Rusal Credits Commission last year, proposals will be submitted 1 to give effect to further recommendations of the commission. •In the meantime the important question of farmers’ finance is under close investigation and review.

“Owing to the grent increase in the volume of motor traffic in rural districts, the country settler is called upon to bear an unduly heavy burden by way of rates in connection with the maintenance and', upkeep of road's. With, a view of lightening this load, wo hope to he in a position to suggest measures that, 1 hope, will eventually reduce the heavy demands upon ratepayers, and follow the principle of asking the user to pay for essential road improvements.

“The legislative programme' for next session also contemplates • measures dealing with shops and offices, education, fertilisers and agricultural education. I look forward with confidence to a busy and useful session. It will he found that the Government’s programme of .works is well advanced, and there will be no cause for complaint on the score of delay in submitting our measures. FINANCE AND TRADE.

“It is pleasing to record the successful flotation of our recent £6,000,001) loan on the London market. The loan was issued at 5 per cent at 991. This result compares very favourably with that achieved by New South Wales, who went on the London market subsequent to our issue for £11,000,000 at 5i .per cent at 99, which was underwritten to the extent of £6,000,000.” Proceedign, Mr Coates dealt with the Dominion’s public debt, covering the same ground as did the Minister of Finance (the Hon. W. Downie Stewart) at Foil ding the other day. “It is admitted that we are passing through a very difficult year, but New Zealand is not. singular in this respect; most countries in the world to-dav arc suffering the repercussion of the economic upheaval primarily duo to the war and its aftermath. Here in New Zealand we are closely associated with the prosperity of Great Britain. The Mother Country is the principal purchaser of our primary products. As the purchasing power of Groat Britain decreased, so there was less demand for our goods, and the result was immediately felt in the Dominion.

“Great Britain has recently been experiencing a most serious economic struggle, probably the greatest industrial crisis which' any trading country has been brought face to face with in history. ft will probably take years to recover from the economic losses and damage that she has suffered. These factors must inevitably affect her purchasing power, arid New Zealand’s prosperity is therefore also adversely affected. . “To appreciate this movement, let ps toko- our own trade figures for the Inst (ire years. For the financial year 1922-23 there was a surplus of exports over imports of nearly £8,500.000. Tn 1923-2-1 the surplus was C 7 500,000. and in 192-1-25 it was nearlv £5.000,000, but in 1925-26 and 1926-27 the position was reversed, and wo had a surplus of imports over exports amounting to nearlv £1.500,000 and £2,500.000 respectively. It will thus lie seen that the value of our exports rbo’iuo* 1026 ' T T !o cr -’ Ihan during 1925 by over £0,000,000.

“This Was almost wholly duo to the lower prices received: for our products. Similar causes were reported last year, when the value of our exports decreased by £3,000,000, notwithstanding that the quantity of butter, cheese, frozen meats and wool exported was even greater than that of the preceding year, but- I am glad to bo .in: a position to say that there are already signs of an improvement taking place. The value of the exports during the March quarter of this year is greater by £406,763 than the corresponding quarter of 1926, the figures being £16,671,033 and £16,264,270 respectively. The imports for the March quarter this year, compared with the same period of last year, show a decline of £1,696,893, the figures being respectively £11,995,879 and £13,692,772. “It will be seen from these figures that for the quarter there was a surplus of exports over imports of £4,675,154, as compared with £2,571,498 for the same period last year. . From this it is clear that the position, as far as our external trade is concerned, shows a steady improvement. “I think there is justification for saying that the low level mark has been reached, and that we can face the future with calm confidence.^ “Mr Holland states that when the Reform Party came into power it was found that the amounts borrowed at low rates of interest started to decline substantially, while the amounts borrowed at high rates began to increase. The Leader of the Opposition implies that- the Reform Party werte responsible for the rise in the rate of interest, whereas he knows full well that rates of interest have increased the world over. Has he forgotten there was a world war, with its enormous destruction of property and consumption of capital. “During and since the war the demand for money far outstripped the supply, and! rates of interest rose everywhere. As a matter of fact the rates in New Zealand remained surprisingly low. Much of the credit for this is due to the policy of the Government lending departments, through which huge sums have b§en made available at low rates. Between 1914 and the end of 1915 the State Advances office advanced 1 - £26,000,000 at 4J p©r cent, while the whole of the £22,500,000 advanced to returned soldiers was at the low* rate of 5 per cent. THE FUTURE. “Speaking of New Zealand, may I say that the solution lies in a determined effort on the part of ail our citizens. It calls for brave hearts and a fixed determination. The main slogan should be- increased, production. “The prices of our marketable products are lower, but the costs, of production. remain the same. It disi through greater effort and iuorea.sed output on the part of those who are engaged in our industries, both primary and secondary that we can expect to compete and, at the same time, maintain a. satisfactory standard of living. If good 'results are not attained by this method, then the only course open is to face the costs in another way. It is essential, if we are to compete in the world’s markets, to see that enterprise can do so on: a basis which will give an incentive and encouragement to our citizens.

“The whole fabric of our community must rest on prudent finance. It must be conceded by every 7 fair-minded person that the financial condition of the. country is sound, and that our national credit abroad stands at the high water mark.

“The Dominion has faced periods of depression in the past .and the. energy and industry of her people have always enabled us to win through. The present difficult times will prove, no exception to the. rule. Already the silver lining to the cloud iis mailing itself slowly hut surely visible. At such times, when people are feeling the pinch, there is, I know, a tendency to blame the Government which has happened to lie. ini office.

“I would, however, ask them to have patience and employ their industry and efforts, as I have ,already '.pointed out, to the .really useful purpose of greater production. A little quiet stock-taking on the part of all our people will do no harm. Indeed, it will be all to the good, for. by the exercise of greater thrift and economy, we shall reach the goal of prosperity the sooner. “The following resolution was car-, ried amid a scene of great enthusiasm at the conclusion of the address: ‘That this meeting thanks the Plrime Minister for his able and statesmanlike address, and expresses confidence in the Government of which he is the distinguished leader, and renewed confidence in him as the member for Kaipaira.”