PREMIER'S DEFENCE.

Horowhenua Chronicle, 14 July 1938, Page 6

PREMIER'S DEFENCE.

SPIRITED REPLY TO CRITICS. ADDRESS-IN-REPLY DEBATE CONCLUDED (By Telegraph —Press Association";. WELLINGTON, Last Night. The Address-in-Reply debate was continued when the House resumed at 7.30. The Prime Minister (Rt. Hon. M. J. Savage), who was greeted with applause, said he had frequently made public reference to the abundant signs of prosperity which were everywhere apparent. He would not take time to repeat them now, but there were some sure signs which were always manifesting themselves, namely, expenditure on such items (they could call them luxury items if they liked) as radios, motor-cars and irdi totalisator. Speaking of New Zealand's London credits, Mr. Savage stated t\hat' th<! Government had been charged with having bought too freely from Britain. Mr. Hamilton: No, Australia. Mr. Savage: Britain was the country mentioned.

Continuing, he said that those who made critical references to the fall in New Zealand's London credits were, in effect, saying we bought too much from Britain. By what other means, asked Mr. Savage, could we get the benefit of our increasing exports? It was a wellestablished fact that only by overseas purchases could we obtain payment for our oversea sales. It might be that, from timn to time there would be fluctuations in the relationship between our sales and purchases, but in the long run our purchases must balance our sales. Admittedly, imports had increased in the past two or three years, but that was largely a natural consequence of the increased exports during the preceding seasons. Mr. Savage added: "I should like to make it clear generally, and to newspaper editors in particular, that I am aware that the increase in imports haa also meant using up a proportion of our accumulated sterling funds in London. This was accounted for largely by the increased imports of capital goods, the type of goods which the mistaken policy of the Coalition Government forced us to go without during the depression. That accounted for an unnecessarily large accumulation of sterling assets during that period." Mr. Savage continued that the cutting down of expenditure during the depression resulted in an accumulation of many millions of pounds which should have been used instead of being hoarded up. The result was th'at to-day we had to spend some of that money to make up the arrears in our purchases of capital equipment. The figures for the period 1931-33 were worth quoting. They told their own story. In this period vvc had some £40,000,000 in London at the very time when over 79,000 men were unemployed in New Zealand and at least one-sixth of the population was on the breadline. Bank advances had declined from £53,500,000 in 1930 to £41,000,000 in 1934. During the corresponding trading years imports declined from £49,000,000 to £20,500,000. In 1932 they had fallen as low as £24,500,000 simply because the people of the Dominion were too poor to reclaim their exported wealth. It had often been claimed, said the Prime Minister, that the increased prices of our exports were solely responsible for the improved conditions of the past two years. It could be justly claimed, however, that if the Coalition policy of wages cuts, unemployment and general credit contraction had been maintained the social and economic conditions to-day would show little imIprovement and the accumulation of London funds would be greater than ever. Unless the people of the Dominion were able to buy at home and abroad to the [same extent as they offered goods and services for sale, prices must fall and industrial depression would follow. He added that New Zealand must, of course, continue to aim at providing sufficient funds in London to meet our commitments, but it was not desirable to accumulate unnecessarily large sums which could be better used in purchasing British goods and services. Would anyone say, asked Mr. Savage, that the expenditure of £17,750,000 on the Social Security proposals, mainly among those who would spend it as soon as it was received, would not benefit New Zealand trade, internal and external? He held that the bulk of the money would be immediately spent with the small shopkeeper and others with goods and services for sale. He criticised the National Government's policy and compared its record with that of the present Government which among other things had given the guaranteed price for fanners, set up the national marketing of primary products, reduced farmer mortgages, given the minimum wage for agricultural workers, restored wage rates, increased pensions to widows and restored war pensions, re-established the Arbitration Court, etc.

Continuing, Mr. Savage stated that he had said a hundred times that, there was no chance this side of the grave *'or the average person to save sufficient to keep body a/nd soul together for invalidity or old age, and it was this condition of affairs which necessitated the introduction of a National Health and Superannuation system. That would be done. Mr." Savage, in conclusion, briefly referred to the remarks made about him by Mr. W. W. Mulholland, president of the Farmers' Union, and stated that among other misrepresentations Mr, Mulholland and others insisted upon saying that the I Government was determined to soc- I ialise farms. Nothing could be '

further from the truth. The average farmer had a greater equity in his farm to-day than he had three years ago. "That is my reply," added Mr. Savage. "Our job is to keep on increasing that equity until the farmer is free." Mr. H. Atmore said the past Government had never learned to think of things in terms of human beings. It had thought of things in terms of balanced Budgets. Opposition members in the debate had made no attempt to show what measures would be repealed if they came into power. Nothing constructive had been offered. Mr. Atmore went on to criticise the single men's camps when the National Government was in power and stated that there was not a prisoner in the gaols who was not receiving better treatment than the young men in camp, yet the Opposition to-day were issuing a call to youth. Not one member of the Opposition had evinced dissatisfaction with the existing systems under which people lived in JSTew Zealand. Slumps, said Mr. Atmore, were made by the last Government by taking away the purchasing power of the people. Rev. A. H. Nordmeyer said if Mr. Coates in his speech last night had created the impression that the Government did not know its own mind in regard to the superannuation scheme it was a totally false impression. A scheme of such magnitude must of necessity take a long time to draft. The member for Pahiatua had said that only the indigent, the unfortunate and the thriftless would participate in the scheme. "I suggest," said Mr. Nordmeyer, "that that is an insult to thousands of men in this country who, through no fault of their own, had been unable to aggregate some wealth." Mr. E. A. Wright said the Industrial Efficiency Act was a danger to the business community, because it gave the Minister tremendous powers, enabling him to call upon people in any industry to obtain a licence. It had been said that those opposed to the Government had been trying to create a fear complex in the minds of the people. He believed there was a fear complex largely due to the statements made by members of the' Government. Referring to the Government's attacks on the press of the Dominion, Mr. Wright said he believed the objective of such an attack was to justify the Government's attitude in having all its publicity broadcast.

Mr. A. G. Hultquist referred to the Government's public works policy and thanked it for the work done in his electorate of the Bay of Plenty. Ho also pointed out the necessity for further roading work in that area. On the conclusion of Mr. Hultquist's speech the Opposition 's amendment to the Address-in-Rcply w:is put to the House and was defeated on purely party lines by 41 votes to 19.

The mover of the Address, Dr. McMillan, in reply to points raised during the debate, defended the Government's housing policy and contended that there had been a swing towards Labour during the past year or two.

The debate concluded at 10.20 Avhcn the motion to present a loyal address to his Excellency the Governor-General was carried without a division.

Curing the address 50 Government speakers, 16 Opposition and five Independents took part. The debate occupied eight sitting days. Mr. Savage intimated that to-morrow afternoon would be devoted to a discussion of the report of the committee on maternity service. The House rose at 10.25.