WHAT THE GOVERNMENT HAS DONE.

Horowhenua Chronicle, 11 May 1938, Page 3

WHAT THE GOVERNMENT HAS DONE.

■ Most Important Legislation Reviewed. Mr. A. F. Moncur Addresses The Electors. A clear and concise outline of the achievements of the Labour Government during its first term of office in New Zealand was given by Mr. A. F. Moncur, M.F. for Rotorua, when he addressed electors in the Century Hall on Monday evening. Dealing chiefly with banking control, mortgagors’ and lessees’ rehabilitation, marketing of primary products, housing and various other matters which had influenced the improvement in economic conditions, the speaker gave facts and figures to show the benefits which the people of the Dominion had received * through the Government’s legislation. A very large number was present, all the downstairs seating accommodation being occupied. There was a complete- absence of interjections and the speaker was exceptionally well received, his remarks being frequently punctuated with applause. His Worship the -Mayor (Mr. F. W. Goldsmith) occupied the chair and introduced Mr. Moncur to the gathering. Apologies for absence were received from Messrs L. G. Lowry and C. L. Hunter, M.’sP.

After thanking the Mayor for his introduction, Mr. Moncur said he was not present to attack personalities but systems, and if it • became necessary for him to mention political celebrities it would be for reference only. He was a- member of the Government because he believed that in its policy, and it had been in vogue for the last two years, there were better ideals than in any other. He would use only authentic figures, for the reason that it would prevent the Press from distorting them. Biassed Metropolitan Press. The speaker said he had to exercise care in this respect because the metropolitan press was “one-eyed, biassed and unfair.” His experience of the provincial newspapers, and that extended over a period of twenty years, was that they were fair to all types of speakers. ■When it came to the metropolitan press, which stood for vested interests, anything members of the Government said was distorted. Therefore, everything said was proved. The metropolitan press -would not use figures as they would be a showdown ox its policy, and the only time figures were given was when they were quoted by the Prime Minister or by members of the Cabinet in connection with the activities of their departments. In these days of fast motor transport the metropolitan press would squeeze out the provincial newspapers, and he enjoined his hearers to support their local journals. One way of combating this unfairness was by means of broadcasting. This showed the humbug and objections in the work of Parliament. The broadcasting of debates in the House had proved a wonderful success, and during the last year 46,000 wireless sets had been sold, bringing the total in operation in the Dominion to 285,000. This meant that 74 houses in every 100 were equipped with wireless sets. There had been a great deal of critieisim of the salary paid to Mr. C. G. Scrimgeour, Controller of Commercial Broadcasting, but it was nothing but propaganda. Why had the Opposition raised that question without reference to Professor Shelley, Director of National Broadcasting, who received the same salary? It was because the commercial broadcasting interfered with vested interests the metropolitan press. The four commercial stations would more than pay for themselves. A tremendous volume of advertising was handled, while the people also had good entertainment. Moreover, these four stations provided employment for .370 people. That was the Government’s policy and it would be carried on. Oil and Steel Industries. Continuing, Mr. Moncur said that £1,000,000 was to be spent by three companies prospecting for petroleum. Experts had informed the Government that there were most encouraging prospects in this connection. Licenses had already been issued for the Hawke’s Bay and Taranaki districts, and actual boring would commence in the very near future. The machinery necessary for this class of work was very expensive, and it had to be imported as that available in New Zealand would not bore deep enough to give reasonable prospects of obtaining a flow of oil. The value of finding a satisfactory supply of oil was of immense importance to the Dominion, particularly in the matter of defence.

One other industry which was to start almost at once was that of iron and steel. Some of the Opposition, in contradiction of their statements of 1914, had said that the Government was interfering with private enterprise in interesting itself in iron and stee,. That was not so, for private enterprise had had sixty years to do something. After-primary production had been arranged for, then next most important was the iron industry, and the Government was justified in starting it. Within the next two years it would provide work for about 1200 people, while its subsidiary industries would employ far more than that. Banking and Exchange. Contrary to what the Opposition had said, there was no disruption when the Government took over the control of the Reserve Bank and paid shareholders the current value of £6 5s for every £5 share, proceeded the speaker. The result was that the total profits were now paid into the bank. The Government had arranged credits for £6,000,000 for housing construction’ and marketing,, and the people had noticed nothing wrong with the scheme. The Government was given a mandate from the people at the last election to take over the control of the Reserve Bank

and no change would be made before the people were asked. The next step would be in the taking of control of foreign exchanges in their entirety, so that the Government would have jurisdiction over the flow of imports into New Zealand. The reason for this was that those not friendly to the Government could arrange to import certain articles into New Zealand at a certain time and throw the local industry into chaos. In this connection Mr. Moncur said it would be remembered that 750,000 pairs of boots and shoes were imported from Canada last year and placed on the New Zealand market. Then the Dominion interests blamed the Government for the adverse effects the importation had on local industry. That kind of thing could not occur if the Government controlled all foreign exchanges. Marketing Agreements. Touching on marketing, Mr. Moncur said that the results of the Hon. Walter Nash’s overseas visit had justified it. Trade between countries was merely a matter of exchange and was conducted by multi-lateral and bi-lateral agreements. The new trade with Germany was an instance of a bi-lateral agreement. It meant that Germany took 2500 tons of New Zealand butter and in return New Zealand received exactly the value of that butter in goods which she could not manufacture. No money passed in the transaction. Similarly, Belgium had agreed to take 76,000 extra cases of New Zealand apples, while, by a new reciprocal agreement just completed, Switzerland was to receive 80,000 extra cases of apples. Quoting a case of a multi-lateral agreement, the speaker said that New Zealand took from Ceylon about 750,000 pounds of tea each year, and the Hon, Mr, Nash had said it would continue, provided Ceylon took payment in secondary goods from Great Britain. That meant, indirectly, that the British people had more money to purchase New Zealand’s butter and cheese. All trade was done in the form of goods, value for value. Farmers’ Position Analysed The guaranteed price scheme had proved to be one of the best ever brought down by a government. In-re-ferring to some of the adverse propaganda sponsored by the Farmers’ Union, Mr. Moncur said he had yet to meet the small farmer who would go back to the previous system of speculation. Last year the price given by the Government w-as 12 S)/16ths pence per pound of butterfat, and to that had tc be added the return from over-run. The over-run of the competent factory approximated 20 per cent., or 1/oth. It was near enough to 2kl, .which brough the price for the year to Is 3d, and not less than that amount was paid to any company. Costs of collection in some scattered districts were heavy, but in more intensified areas it was not so great. Allowing. .1 id for costs, that gave Is lid, which was the minimum paid. Dealing with savings in costs of marketing, the speaker stated that at the point f.o.b. an amount of not less than £125,000 had been saved. Secondly, there was the difference between the 2i per cent, paid to the Tooley Street merchants under the old regime and the 2 per cent, which followed Hon. Mr. Nash’s visit, this being equal to £06,000. Thirdly, the amount paid in levies to the Dairy Board had been reduced from 3/46ths of a penny to l/50th, resulting in a saving of £40,000. These three transactions alone had saved the industry not less than £260,000.

The Government had laid it down that money could not be raised at a higher rate of interest than 3?. per cent and intense pressure had been brought to bear in an endeavour to have it raised, maihly through the medium of local bodies. The present position was that farmers knew exactly where they stood, and the banks knew how to distribute credits to those requiring them. The speaker quoted the huge increases in the revenue of several of the farmers 7 trading organisations, which went to show that the farming industry was in a better position. In this regard he said that no farmer paid income tax unless his unimproved value was over £3OOO. After rent and interest had been provided for, the average returns obtained from the small farmers showed their incomes over the last three years to be as follows : 1934-35, £2 per week; 1935-36. £3 10s; 1936-37, £5 15s. Huge Increase in Savings. The returns of the savings bank department of the Post Office was one of the most reliable guides to the

prosperity oi : the country, declared the speaker. Prior to last election the newspapers said by advertisement that the Labour Government would confiscate the people’s savings, but it was to the credit of the people that their savings were a record for all time. There had been an increase of £10,000,000 in the deposits since 1930. At December 31st, 1936, the gross total in the Post Office to the credit of 912,814 accounts was £60,865,000, a record in the history of the Post Office savings bank scheme in New Zealand. It had been said that added costs cancelled out the increased incomes, but that was not so, for the people had been able to live well and save £10,000,000 in the last two years. Mention was made that the increased savings were particularly noticeable in country districts.

Housing Construction. Housing was a very controversial matter, said the speaker, but it was the aught of every young man and woman to have a home of their own. Private enterprise had never catered for home building, and the present Government was endeavouring to catch up on the lag of the past, but still the country was thousands and countless thousands short of its requirements. Owing to the prosperity which prevailed, marriages were on the upward trend and recent figures were a record. The shortage of houses had been estimated at about 25,000. There were three schemes under which houses could be obtained, said Mr. Moncur.

The first was by th e local body borrowing from the Government for the purpose of building, ’ and no borough council was fair to the people of its town if it did not take advantage of the Government’s offer. Mctoey for this purpose was available at the low rate of interest of 3 per cent and no call or load was placed on the borough. In Dunedin the local authority had borrowed three amounts of £IOO,OOO each and had built houses costing 17s 3d per foot for selling purposes. The average cost of these houses to the tenants in interest and principal repayment was £5 8s 2Ad per £IOO per annum. Therefore, a house costing £IOOO to build could be obtained for approximately £54 per year in interest and principal repayment. The second method of building was by obtaining a loan from the State Advances. By this moans a young person could build whatever type of home was desired and the State would lend up to 00 per cent of the cost. The Government had taken control of this institution immediately it came into power, and provision had been made for insurance on the liability. Handled by the State, an insurance policy could be taken out on a house costing £IOOO and the premium was only £3 7s lOd per year for the thirty years of the loan. If death overtook the husband at any period, then his wife would receive* the home as an asset free of liability. The third scheihe was bv State housing on which 11,000 - were employed directly and indirectly, and practically ali New Zealand material was being used. For a long time adverse critics had said that the Government was interfering with private enterprise, but to-day local builders were falling over each other to obtain the State contracts.

National Debt Reduced. Certain people to-day said that taxation was something terrible, proceeded the speaker. Admittedly it had exceeded all records, but that was not because of the incidence of taxation. It was due to increased prosperity. ■When overseas loans fell due the Government would pay them from internal credits and bring them back to New Zealand. The national debt had been reduced in the last two years by nearly £2,000,000 in England and £850,000 in Australia. The financial position of the country would be shown in ihc Budget which was to be brought down during next session. No money had

been borrowed overseas, the national debt had been reduced find the Budget balanced with a surplus of £BOO,OOO. Mr. Moncur said the burden of taxation had been placed on the shoulders of those who were best able to bear it. There were individuals in the Dominion who had earned up to £30,000 and he had no compunction in taxing them to the extent of £15;000, and spreading it among the masses'of the people, from whom they must have taken it in the hist place. No person could earn that amount in one year. Conclusion. At the conclusion of his address, Mr. Moncur answered a number of questions satisfactorily. On the motion of Mr. D. Morgan, seconded by Mr. K. Locke, a hearty vote of thanks and confidence in the speaker and his party was carried by acclamation, in moving a vote of thanks to the "Mayor for presiding, Mr. Moncur said he was noted for the fair hearing which ho gave all speakers coming to Levin, and asked those present to remember that on the day of the municipal elections. The motion rvas carried by acclamation.