The Hawera Star. SATURDAY, FEBRUARY 14, 1931. PRIME MINISTER’S STATEMENT.

Hawera Star, Volume L, 14 February 1931, Page 4

The Hawera Star.

SATURDAY, FEBRUARY 14, 1931. PRIME MINISTER’S STATEMENT.

Delivered every evening by 5 o’olook in Hawera, Manaifi Kaupokonui. Otakeho, Oeo, Pihama, Opunake, Normanby, Okaiawa, Bltham, Ngaere, Mangatoki. Kaponga, Awatuna, Te Kiri, Mahoe, Lowgarth, Manutahi, Kakaramea, Alton, Hurleyville, Patea, Whenuakura, Waverley, Mokoia, Whakamara, Ohangai, Meremerc, Fraser Road, and Ararata.

As we anticipated last, week, the Prime Minister has brought before the country, and will shortly submit to Parliament, an economy programme which, while it will call for sacrifice from every section of the community, is calculated to gain the endorsement of thinking and responsible people. It is, moreover, largely based on the policy enunciated by Mr Coates, who promised his aid to the Government in putting through legislation designed to, meet the economic needs of the time. It is true that Mr Forbes’s programme is not a complete adaptation of the Reform policy; conditions have changed even during the few weeks that have elapsed sinee Air Coates made his pronouncement. Moreover, the Leader of the Opposition planned a programme for a future administration', not for emergency measures, such as are now necessary. In advocating the ‘‘ depoliticalisation” of railways, the readjustment of Arbitration Court wage awards, and the reduction of the rates of unemployment relief wages, Air Forbes has adopted Reform’s suggestions in their entirety. He has been forced, by the needs of the times, to go further than Reform suggested in some directions, notably in regard to increased taxation, and he has been able to ignore, for the time being, Reform’s proposal that the De-

fence system should Tie reorganised. No one will bo inclined to quarrel with the Government on the last-named subject; defence is only one of many reforms which will have to wait till other needs become less pressing. The Government's proposals to increase direct, and perhaps also indirect, taxation will not be welcomed; such proposals never are; but unless it can be clearly shown that other means for overtaking the threatened deficit exist, they will have to be accepted with the best grace the country can muster. Farmers will see a rav of hope in the Prime Minister's statement on the state of the primary industries and his recognition of the need for sympathetic, but wise handling of rural finance. The Civil Service will not be enamoured of the promised ten per cent, salary cut, but it can be taken for granted that its members will face the situation as cheerfully as the rest of the community. The Service has complained in the past, with reason from the individual’s point of view, of the tendency displayed by all governments to offer it up for sacrifice as soon as money becomes tight; but on this occasion the Service cannot complain that it i 3 being chosen to bear the brunt of the slump merely because it is easy to- “get at." It will have the moral satisfaction of knowing that everybody in the Government service, from Cabinet Ministers down, is suffering similarly, and it will derive not only moral, but material satisfaction from a general reduction in wages which will bring about a fall in the cost of living. The Government has expressed its determination to prevent exploitation of wage reductions or farmers’ finance machinery by “slump-time profiteers," and it is to be hoped that it will be strong in that determination, for cost of living cam fall only if reduced costs are genuinely passed on to the public. Tire Prime Minister's statement does not, as ho foresaw, make “pleasant reading," but he can be assured of the loyal support of the country in his efforts to balance his Budget and maintain the Dominion’s high credit in the finance market of the world so long as he places country before party, and spreads the burden equitably.