PATEA SEAT

Hawera Star, Volume LIV, 7 November 1935, Page 7

PATEA SEAT

MR. DICKIE’S CAMPAIGN ADDRESS AT KAKARAMEA COALITION POLICY DEFENDED UXI’OPULA It LEGISLATION NECESSARY.

A strong defence of the steps taken by the National Government to deal with the depression was made in the course of an address to electors at Kalcarainea last night by Air li. G. Dickie, ALP., the National Government candidate tor the Paten electorate. Air It. J. Watt presided, and there was a good -attendance considering the unpleasant weather conditions. At- the conclusion of the address a vote of thanks to Air Dickie and confidence in him and the Government was carried by acclamation on the motion of Messrs. K. Carmichael and AN . AN ills. The brunt of the depression Inn been felt chiefly by the primary producing countries, and New Zealand, which relied on primary products tor over 90 per cent of its income, was particularly affected, said Air Dickie. As primary production was the base, of the Dominion’s economic structure, methods had to he adopted to pievent the farming industry from crashing, and although some of the steps taken were not popular at the time. the results had fully justified what had been done. He had been pleased to return to the Dominion from the conference oi the Dm pi re Parliamentary Union to find that the situation was improving, which was a reflection of the trade improvement in England. The Coalition Government had been returned at the last ejection \\ ith a blank cheque, and Air Dickie contended that this had not been filled

•in for an over-large amount. In 193 L the Domiuion had been faced ivith a deficit of £S,OIX),CI)O, while today there was a credit balance ol £L (500,000, which had been the result of an increase in death duties this year and the sata of gold, on which a profit of £1.000,000 had been made. This balanced the Government’s accounts and enabled it to keep the promise made to restore pensions and salaries, and to give relief to returned soldiers in certain directions. The Government had kept to its bargain and would continue to give cheap money to both primary and secondary ! industries.

Dealing with some of the emergency legislation, Mr Dickie said a general order was proclaimed reducing all wages by 10 per cent... which had not been popular in the towns, but had strong measures not been taken to help the farmer and spread the burden equally over the whole • community. the people in the towns would have suffered. Adjustment commissions were set up in all land districts to bold the scales evenly between mortgagor and mortgagee, and over 33,0110 cases bad been dealt with. However, the majority of cases were dealt with privately, chiefly on the same lines as laid down by the commissions. Last session the Final Adjustment Act was passed to give those .farmers who were in serious difficulties a definite chance to win out- over a given period, Put briefly, the farmer was given a lease of the property at a rent lie could pay, with a right to take it over at a price based cm wliat the land would produce under efficient .management alter a trial period, of five* years. To a man, who, through the depression had become insolvent, this was better foi all concerned than allowing him to be pushed off bis property.

NATIONAL GOVERNMENT FORMED Mr. Forbes had made a gesture cowards the formation of a National Government, and Labour had decided to stand out. “L cannot say that 1 blame them,” said Mr Dickie, “as all parties are inclined t 0 louk ior their own advantage. However, they will have to answer to the people for their action.’’ ’When the National Government was formed, lie said, it was a genuine coalition of the two old partie's,. United and Reform, with the object of endeavouring to extricate the Dominion from its difficulties and bv various methods to balance the Budget and to get to the position of living within the means of the country.

The Democrat Party was formed by a few disgruntled ex-Mmisters and a programme formulated by Mr A. K. Davcy, who was a paid organiser. So far, the movement was remarkable for the men who bad joined and left it. Mr William Goodfellow was prominent for a time and was now suing Mr Davev. Sir Alexander Herdmail was mentioned as leader but had pulled out of it. Mr. Davey went through this electorate in search of

a candidate some months ago. but had failed to get anyone. Ho subsequently got a Wanganui gentleman to consider the matter, but as this gentleman got no encouragement lie quietly dropped out, and now Dr. Adams, of Wanganui, had joined up and there would be a split vote in this electorate. “Every vote for the Democrats is a vote for Labour,” he said. large borrowing programme

The, Democrat policy involved a borrowing programme of £“20,000.000. anti at the same time a reduction in taxation. They would also increase pensions and give good things to everybody. The interest on £20.000,030 at 4 per cent, would amount to £BOO.OOO per year, independent of any other items on the Christmas tree, and any attempt to carry them out would get the country into serious difficulty again. No country could borrow itself out of debt. Australia had been borrowing to meet its unemployment problem and had now a floating debt of JOO millions sterling, while New Zealand had paid for unemployment as it had gone along. Concerning the raising of the exchange rate. Air Dickie said the- rate of exchange was fixed by Cabinet and the banks a week before Parliament met. and the first measure in connection with it came up for discussion when the House assembled. This was a Bill to indemnify the hanks against loss in the event of their not being able to sell their London funds, which had been bought at £l2-3 in New Zealand for £IOO in London. This was only fair to the banks and he voted for the measure. Once an exchange rate was put on, it could only be lowered by slow degrees without notice, and neither the Labour Party nor the Democratic Party could take it off if they should get into power. If it were taken off to-mor-row morning it would ruin half the business people in New Zealand, as they would lose 25 per cent, on all their stocks bought since it went on, plus exchange, on freight, etc. The methods adopted by the Coalition Government to deal with the position were precisely the same as those adopted by the National Government in Great Britain, and. the effects were obvious to anyone i isiting the Old Land to-day. Great Britain increased taxation by eightv-one and a-half millions a year, made economy cuts of £60,000,000, reduced interest hv loans conversion, etc., and went off the gold standard. To-day. prosnerity was with her again; she lie' been able to restore salary cuts amounting to seventy-two millions; she had reduced taxation; had a surplus of £7,-300,000 and 800,000 men had been placed in employment who had noC had permanent work since 1920.

NATIONAL DEBT CONVERTED By the conversion of the national debt held in New Zealand, one million pounds were saved per year, while conversion of local body debt had saved the ratepayers of the Dominion £500,000 per - year, he added. In addition to the restoration of pension and salary cuts, provision had been made for the “burned out” returned soldier by the inauguration of a veteran’s pension, which was available for men who were ineligible for ordinary war pensions. It allowed a returned soldier whose health had broken down owing to general war service- to receive, with his wife. £9l a year which, with his children, could reach up to £143 per year. This was the most liberal treatment in the world and was available to a man at the age of 40 years. It was also intended to institute a free delivery of milk to the children in the schools, and the scheme had already been started in Auckland. Returning to the problems of the primary industry, Air Dickie said that in 1930-31 the value of the Dominion’s exports fell by over twenty million pounds, and it was necessary to bridge the wide gap between farm costs and prices received for produce. Thirty-eight per cent, of farmers’ costs consisted of interests, so a partial moratorium was created and all interests and rents were reduced by 20 per cent.

GREAT BRITAIN’S POLICY

Great Britain had become the dumping ground for produce from all countries, and when the matter was fully discussed at the Ottawa Conference. New Zealand had made a very favourable deal. It had been finally settled .that there would be no levies, and that Empire produce would be allowed to enter Great Britain free. Thirteen countries had trade agreements with Britain which expired next year, and a new policy of levies or specific duties would he placed on foreign meat, butter, cheese and other foodstuff, ‘ and it was proposed to put smaller levies on Empire goods. The money raised by this medium would bo used to help British agriculture. The fear of starvation in the event of another Eiiropenn war made any movement towards Britain producing a greater amount of foodstuffs very popular, and every encouragement by way of bonus would be given by the Government. Ihe recent increase in Germany’s air force and in the construction of .super-sub-marines had aroused fresh interest in British agriculture. New Zealand had made very favourable agreements at Ottav a, and there was no reason why she should not come out of the next confeienee equally as welk “It is not nice to hear Labour talk about going on the ‘Lang Plan,’ ” lie said, “and not paying our overseas debts unless Britain takes our produce. Australia had said she would send all her beef, but would please lierself about buying in return, but this was likely to have repercussions.’’

LABOUR PARTY’S POLICY

The Labour Party was to guarantee prices, and every one of them had a different way of doing it, said Mr. Dickie. It was an empty promise which they had never seriously considered. and was only air election dodge. Labour proposed to pay guaranteed prices in various ways. Mr F.

Langstone, who was supposed to have originated the idea, said that when butter was 6d in England he would give Is 3d for it in New Zealand, and then he would square the transaction by charging Is 3d in New Zealand for wliat it cost 6d in England. When, it was pointed out that this would mean a rise in the cost of living of 1-50 per cent on these items, he said that wages would have to he raised to meet it.

Air R. Semple says he would inflate the exchange; Air M. J. Savage says he would manipulate credit through the Reserve Bank; while Air H. R. G. Mason says lie would print notes, and so on. If anything of the sort were attempted it was obvious that the farmer would he paid with bad money. The Egyptian cotton growers had asked the Government for a guaranteed price for cotton, but after a trial this had to be dropped. Ilie Egyptian pound dropped'to half the value of the English pound and the scheme had to be dropped because the cotton growers were being enriched at the expense of everyone else “1 have lived in the electorate for 61 years and have been your representative in Parliament for 10 years,” said Mr Dickie in conclusion. J know of no matter affecting it during that time to which I have not o-iven my personal attention, I am sorry it has proved to be a triangular contest, as it clouds the issue.

QUESTION TIME In reply to a question concerning war debts, Mr Dickie said they had almost been forgotten, and the sooner the better. He was of the opinion they would soon be wiped out altogether, and then the wheels of commerce would move faster, being lelieved of a heavy burden. It was difficult to determine what proportion of the per cent, exchange ‘ was directly received by the farmer, he said in reply~to another question.

“Do you think we shall ever get ironworks in Patea”? asked another questioner. Mr Dickie said that when in England he had bought some razor blades made, from Patea ironsand, and lad been informed that a small company would probably be started* to commence operations in Patea in the near future.

Mr Dickie, in reply to another question, said he had opposed the graduated land tax because he was opposed to any. form of land tax. The graduated land tax meant that the big farmer would save 6d in the £l. where tiie small farmer would save only l-'ioth of a penny. He was quite satisfied that if the Labour Party went into power the graduated land tax would be restored. He was opposed to any form of land tax, and considered it quite unfair to; the people, who should be taxed on their income and not on land which was not- producing anything.

“Why is the Government making all these tax reductions at election time”? he was asked. “I have told you the reason. It was because we had a fortuitous credit balance,” he said in reply. “It was made possible in one way because wo had bought gold at £4 and sold it at a profit of £1,000,000. The Government had promised to make restorations in various directions, aivd it had done so. The fact that it had happened in election year was a : ©incidence.”

Mr Dickie said he would be in favour of abolishing single men’s camps during the summer- months, when questioned on that matter. He considered it was iniquitous to keep the men. in camps when there was so much work available throughout the country districts. . :

In reply to another question. Air. Dickie said he was in favour of the life of Parliament being extended to four years. The Government had a precedent for this action, as'it was done during the war. It was a v y.ste of time when the session lasted only three years, as in only one session was much work possible. The first year the members were getting their speeches into Hansard and the third vear they were electioneering.