PATEA SEAT.

Hawera Star, Volume XLVII, 30 October 1928, Page 6

PATEA SEAT.

AIR. H. G. DICKIE’S CAMPAIGN

ADDRESS AT HAWERA.

An audience of over 300 persons taxed the seating accommodation provided in the assamioly hall at the Winter Show buildings last evenmg when Mr H. G. Dickie delivered! his finst address of the present election campaign at Hawera as this Ileform candidate for re-section ■as the member of Parliament for Paitea. “I desire .to publicly thank Mr Dickie for the attention he has given to public affairs as they affect (this municipality,” said the- Mayor, Mir it. A. Faoey. in formally introducing Mr Dickie. ‘‘While'not a supporter of the party’ to which Mr Dickie belongs, 1 have not, ale Mayor, anything but praise for Mr Dickie individually as the member tor the district.” Mr Dickie’s address traversed broadly. the lines of .'his opening addrsss of the campaign, as reported in the “Hawera Star,” while he also touched further phases of the political outlook, and replied to a number of points raised by Mr W. A. Veitch, M.P. for Wanganui, during his addi*ess at Hawera on Friday evening. . Referring to the advent ot the new United Phrty, Mr Dickie said its inauguration had been preceded by ‘ a gooff ffeal of shadow-sparring arising From the faint, imaginary line separating the olatform! of, the- farmer Nationalist and Reform Party platform, and ail unsuccessful endeavour find t>een made three years ago to bring abouta. union of the two. ' In the appointment of its leader, he thought it rather pathetic that the new party should have practically pitchforked the office on to Sir Joseph Ward- a gentleman who had) previously served the country so well in a political sense ■ The appointment had been -spoken or by Mr Dickie with a prominent member of the party, who, during the conversation, said, “It will be all right so long his we can stop him from talking.” “Unfortunately, lie has talked,” said Mr Dickie, in ‘referring to the propoisals of Sir Joseph Ward; to raise £70,000.000 for various purposes. Mr Dickie thought that in making the announoement Sir Joseph Ward had not consulted any other member of the parity. AN APPARENT CHANGE.

During his address at Hawera. Mr Veitch had said the United Party would raise the money, a few millions at a time as required, and: advance it through the Advances to . Settlers Office,” and by that moans would reduce the rate of interest throughout the country. Aii interjector: “You r© wrong. Air Dickie : “1 am quoting the ‘Hawera Star,’ and in - its reports the ‘Star’., is usually correct.” Mr Dickie inquired as to how Mr Veitch could reconcile that programme with his statement in the last Parliament in the Addlress-in-Reply., Quoting from Hansard, volume 212, page 207, Mr Dickie said Mr Veitch, in commenting on the Rural Credits Act, had stated: „ , , “There is nothing I am so deeply concerned about as the rapid growth of State interference with the investment in finance and industry. Last session I drew attention to the grave danger that is already developing, namely, that m connection with the Skate Advances Department alone there are on the average over 515 mortgages to the Crown in each electorate in New Zealand. and the dav will come when, like everybody else, titey will organis 1 ©, 'and we shall "have an organisation of State mortgagors. If every one of these men has his own vote and that of his wife, that will mean a thousand votes in each electorate, and with that tremendous voting powar they -can demand almost any conoeseion and get it. I -am pointing out one of the dangers or the socialism of the Reform Party. . - • If we add 1 to the number of State mortgagors already mentioned, the mortgagor’s to other departments of State we find a very serious position developii], 0 '.* * Despite that suggestion that mortgagors would hold a /pistol to the head of the Government, Mr Veitch came to Hawera a year later to -support the advaried of further huge amounts by the State. Side by side with the statement made by Mr Veitch in the Address-m-, Reply, 'Mr Dickie quoted his own remarks concerning the State Advances Office as reported in the same volume of Hansard, page 320, in which he said: “Although we have been lending money at a greater rate than ever before in the history of the office, it is still snowed under with applications. I suggest to the Minister of Finance that it would be a good thing if we could raise £2,000,000 to-morrow to clear up those arrears.’.’ DANGER OF BOOM CONDITIONS. . Another point of view concerning the United Party proposal was that supposing £10,000,000 was advanced, it would probably release £9,000,000 held unffer mortgage in private investments as of the many loans the speaker had assisted to raise during the last three years, not one had been a new .loan. The release of money held under mortgage would lead to further speculation with its unffesirable results. “In our own financial affairs we hear a lot of criticism concerning the statement that wo have turned the corner,” continued Air Dickie. “I say definitely that we have turned the corner. The reason is not entirely attributable to the Government —no one would claim that. It is largely and almost entirely due to the fact that the people of ‘the Dominion have been seized of the situation and have practised economy.” This was shown by the improving trade balance. For the eight months of the present year the trade balance showed about £14,000,000 on the right side of the ledger and last year the excess of exports over imports was approximately £10,500,000. As the amount required to meet interest charges was £7,500,000 it would be seen that a considerable margin was held. The recent financial trouble commenced in 1921 when New Zealand bought goods to the value of ab0ut£197250,000 in excess of the value of its products. If the enormous amount of money suggested by the. United Party was brought into the country, the natural consequence would he another trade boom followed by a slump. Dealing with Sir Joseph Ward’s proposal to borrow at per cent, at £95 (the sum at which a bond redeemable for £IOO could he secured by the investor), Air Dickie said the rate of interest to tlie borrower receiving an advance from the loan would necessarily be 42 per cent. Then the redemption of the extra £5 would have to be provided for. On £60,000,000 that would entail £300,000, yet the manifesto stated the loan was not going, to cost the country a penny in taxation.

DOMINION FINANCE.

The speaker had been informed that ample money was available for investment in New Zealand from private sources and the speaker thought that if the table mortgages system were made available by the private concerns in relation to investment on bpoad acres in the same manner as was

adopted by the State departments, a big proportion of tli© money required would be forthcoming without going to the- Lonffon fianciers. Under the amortisation principle the value of security improved every year. An interjector: “That’s cheap money.” „ Mr Dickie: “You can’t have cheap money. Aloney will find its own level, like water.” It had been stated that amounts were not obtainable through the State Advances on the same terms as previously, but that was governed by the rate at which the money was obtained for the purpose and money borrowed at 5i per cent was re-lent at 5f- per cent. It was not to be expected it would be lent at a loss, as if that were done the balance would have to he found in taxation. Such a procedure was not good business or finance. Mr Veitch had made much of the United proposal to spend £10.000.000 on uncompleted railways, but. it must be remembered that the Government expended £2.500,000 on railways last year. Air Dickie wanted to see the completion as early as possible of the North Auckland, Sfcratford-Alain Trunk and the Taneatua lines, which showed a prospect of being profitable, but- he had been opposed in the meantime to such, works as the Gisborne line and the Palmerston North deviation. The sum of £179.000 had been spent on the Stratford line last year, and though tunnelling made progress- slow, it was being pushed ahead as raoidly as possible', it being realised that until it was completed a considerable sum of capital would not be earning interest.

“DEAD WEIGHT” DECREASE

Referring to the suggestion of the United Party that the expenditure ot £10,000,000 on the railways would relieve unemployment, Air Dickie pointed out that tiie relief would not be permanent, as other occupations tor the workers employed would nave to he found when the money was expended. Of the public debt of £251,000,000. some £139,000,000 was held outside of New Zealand, said Air Dickie. Of me latter amount £72,000,000 was directly attributable to the war. This being a “dead weight debt” every endeavour was being made to reduce it, and in the last six vears it had decreased by £10,000,000 t© the present figure. During further comment on the United Party platform, Mr Dickie noted that the State bank and proportional representa-taion planks had been dropped. Sir Joseph Wardi had not formerly favoured the State bank proposal. When the New Zealand banks, in order to stabilise the position, had advanced the rate of interest, Sir Joseph Ward had stated the action was unavoidable, and it was now evident the hanks took the only course open to them. Under the State advances scheme for woi-kers’ dwellings the advances since 1925 had been at the rate of £2,000,000 annually. Though it had appeared risky when the late Mr. Massey had inaugurated the practice of advances up to 95 per cent of security, it had proved successful, and the occupants or houses built under the scheme actually claimed more cash rebates for prompt payment than was the case with those who received loans from the advances to settlers’ office. The dwellings scheme was proving a sounff investment, and the. administrative costs were as low as Is 3d! per cent. Though higher amounts had been advanced during the previous four years, the sum this year had fallen bv necessitv to between £1,250.000 and £1.500,000. That in .itself, said Mr. Dickie, was evidence that the policy of the Government was not to purchase votes by lavish expenditure on the approach of an election.

EDUCATION ADVANCE. After referring to the big expenditure of £4,000,000 annually, which had been decreaseff this year- by £140,000 by reason of the comparatively bigger expenditure on large buildings last year, AL\ Dickie instanced the enormous growth in recent years under the heading of education. Now it was possible for a bright child to receive free education from the kindergarten stage" to the university. In 1912, 64 pupils qualified for free places at the universities. Last year that number was 756. Air. Dickie also drew attention to the action being taken to utilise the accrued funds of £2()j000 in respect of tlie Taranaki scholarship endowment for the purpose of agricultural bursaries for Taranaki students at tlie Massey College. Dealing with pensions, he instanced the growth from £300,000 in the annual payment of 1907 to £2,500,000 in 1928, and the increase of £90,000 occasioned this year by additions to soldiers’ pensions. Dealing with motor taxation and the nee-cL for removing certain anomalies, unemployment, general taxation,, public works expenditure, and the Licensing Bill, Air. Dickie traversed the lines of his former addresses. In conclusion, he said it had been his privilege to represent the electorate for three years, and he hoped it would lie his pleasure to represent the district for a further term.

QUESTIONS.

Answering a question put by Mr. M. H. Kendall, Mr. Dickie said he would favour the publication 0 p totalisator dividends, as the existing methods only served to drive the question underground. Replying to tho same questioner, he intimated ho would favour the institution of a standard half-holiday. Mr. A- Larkin an asked for the candidate’s views on the superannuation system which gave a man £2300 on retirement, whereas “the widow of a superannuitant received only £18.” “Mr. Veit eh claimed that the opposition blocked the proposal of the Minister of Finance to repeal tho limit of £300,” replied Mr. Dickie. “As a matter of fact, the Reform members, of whom I was one, were equally responsible for the withdrawal of the clause.” He was opposed to the payment of big amounts in superannuation, as were entailed 1 in twothirds of the higher salaries, though he was 1 not prepared to state that the unconditional limit should he £3OO. A widow could claim a pension of £l weekly and 10s for each child in excess of one dependent on her. Tribute, to the services rendered in Parliament by Mr. Dickie was voiced by Mr. S. Blake in proposing a vote of thanks to Mr. Dickie. As a fellowmember on local bodies Mr. Blake also attested to the work carried out in that respect by Mr. Dickie, while as a farmer the candidate had taken a lead in many matters which others had followed to their benefit. “Mr. Dickie has done well as our representative,” concluded l Mr. Blake. “I will leave the question of confidence to the electors.” The motion was seconded by Mr. J. Thomlimon, and was carried with acclamation. ,