GOVERNMENT’S WORK

Manawatu Standard, Volume LV, Issue 230, 27 August 1935, Page 9

GOVERNMENT’S WORK

REVIEW BY PRIME MINISTER BEIGHTER TIMES FOR DOMINION A comprehensive review of the Government’s measures for oifsettmg the economic depression of the past few years was given by the Prime Minister (Rt. Hon. G. W. Forbes) at Itangiora, last evening, when he also struck a highly optimistic note. Mr Forbes said that throughout the depression in Hew Zealand the processes of individual adjustment which had been pursued had been leading the country into a healthier economic organisation. He was definitely of the opinion, and his sources of information were wide and varied, that the Dominion had seen the worst of the depression. He thought we could look forward with confidence to steadily improving conditions and to better times.

BRITAIN. A HEARTENING PICTURE.

couraging industry and progress, though evidently critics would have you suppose that its aim is to hinder everyone. The general policy of the National Government in future must be to maintain the confidence which has now happily been restored, to create the conditions in which individual enterprise may flourish, and to supply where possible the means whereby it can be assisted and materially encouraged. That this can be achieved there is no doubt. The Government has faith in the people and hope in the future. The Government is also determined to maintain the freedom of the individual which has always been the outstanding characteristic of British democracy.

COMMON POLICY WITH NEW ZEALAND. RANGIORA, Aug. 26. After mentioning that it was a great pleasure to him to speak again in the electorate which he had had the honour to represent in Parliament for nearly 26 years, Mr Forbes said he spoke not only as Prime Minister but as a farmer to farmers and to his fellow citizens -who knew him personally. Referring to the Royal Jubilee celebrations Air Forbes said that the personality of the King and Queen and their devotion to the duties of their exalted office were among the strongest links that continued, and would continue, to hind together the component portions of the Empire. No visitor from the outlying portions of His Majesty’s Dominions could fail to be impressed and touched by the enthusiastic 'demonstrations of affection and of loyalty.

“One point I wish to emphasise particularly—that at this time above all, when prosperity is obviously returning, it is essential that we should remain calm and steady. The people of this Dominion did not lose their heads during the depression. They realised, as did the people of the Old Land from which they sprang, that the times demanded sacrifices and drastic measures of readjustment. For this purpose they adopted the wholly commonsense view that was taken in the United Kingdom—that this was no time for party recriminations or for political manoeuvring. They welcomed the formation of a National Government in New Zealand, as a similar Government was welcomed in the Unites Kingdom. The excellent results in Great Britain are obvious, and they are becoming obvious here.'

Discussing conditions in general in Great Britain, Mr Forbes said they presented a very heartening and encouraging picture. If the people of the United Kingdom were temporarily in difficulties, then obviously they were unable to purchase our commodities to the same extent as they did in times of prosperity, and thus any period of depression in the United Kingdom was immediately and necessarily followed by a depression in this country. The sane and orthodox policy which the British National Government had .followed in restoring the Home country to prosperity had many points in common with the policy adopted by the National Government in New Zealand.

“A steady, sound and sober policy is all that is now required to consolidate the position of this country on as strong a basis as it ever has been. But if the people of New Zealand are misled at this juncture, when success is in sight, by quack nostrums and by fairy tales of spurious short-cuts to untold wealth, then all that has been done may well be wrecked.” THE WORST OVER.

Britain’s financial position was the envy of the world. Combined with the 'industrial revival, the recovery in national finance was clear proof of the fact that sound financial methods and balanced budgets, even if they may involve temporary hardships, brought their own rewards. He was literally amazed by the improvement in economic conditions at Home. During the last year this had been very marked and Great Britain now undoubtedly and admittedly led the world in economic recovery. OPTIMISM IN DOMINION. Events in New Zealand of the last few years, one of the most difficult and perilous periods that this country had experienced, were dealt with by Mr Forbes. He explained the 6teps that had been taken to meet the position as it developed, and the reasons for them and their effect. Following a review of the Dominion’s trading position, Mr Forbes said: “You have only to look around to see the clearest indication of restoration on every side. Certainly there is a striking change in the general attitude toward national conditions. There is now a pronounced spirit of optimism in the place of gloom, and prospects are undoubtedly better than at any time since the depression began. Export values have improved, imports have increased, the balance of trade is favourable, costs of production have been reduced, and money is availaWein abundant quantities. “It is usual for the policies of Governments to attract more attention than the efforts of private individuals, but in the aggregate the latter are more important. Throughout the depression in New Zealand the processes of individual adjustment which have been pursued have l>een leading the county into a healthier economic organisation.’’ REWARD OF SACRIFICE. Mr Forbes said great sacrifices had been made by the community, but these sacrifices had not been in vain, and it was impossible to believe that any policy that would have ignored the fall in national income would not have increased the difficulties of the country. The Government itself had pursued a policy of drastic economy in public expenditure in just the same way as tlxe public had had to economise in its private expenditure, and it rested now largely with private enterprise to build upon the foundation that had been laid. The Government was, he thought, entitled to claim that the necessary steps had been taken to ensure the future progress of this Dominion on a sound foundation. To do this, it had been obliged on many occasions to risk the gravest misunderstanding of its motives and intentions and to incur in many cases marked unpopularity. “Four years have now passed and the results of the Government’s measures can be clearly seen emerging from the chaos of the depression,” Mr Forbes continued. “Practically every sign at present is one of encouragement. There is a marked return of confidence and a general and thoroughly justifiable belief that our feet are again firmly on the ladder to prosperity. We have already left the bottom rung behind us and are climbing steadily. A criticism frequently made is that the Government has no policy. I can only reply that ix my opinion no Government has ever been so keen on evolving and consciously carrying out a consistent policy as the present Government. “Our policy lias been to insulate New Zealand from the worst of the depression’s effects and to strengthen those elements which were weak or were endangering our whole economic structure. Because our economy is an agrarian one we have had to continue our measures of agrarian legislation. “Critics and opponents of the Government are always apt to make rash i promises and criticisms that are very wide of the mark. It is comparatively ! easy for the party in opposition to do this, and already a large net has been put out to catch all kinds of fish and lines have been cast to which have been attached every conceivable kind of hook and bait ever invented as political lures. But the Government must necessarily bo guided by a sense of responsibility in its preanises. There can be no question of the Government’s , endeavouring to outbid the promises j of the Opposition. ENCOURAGING PROGRESS. ] “Blaming the Government is not go- < ing to get us anywhere. The Gov- i eminent is here for tire purpose of en- i

In conclusion Mr Forbes said he was definitely of the opinion, and his sources of information were wide and varied, that New Zealand had seen the worst of the depression. He was saying that not because lie wished to create any. false feeling of optimism, he was saying it because he was convinced it was true. He thought we could look forward with confidence to steadily improving conditions, and to better times and ho knew that when we had achieved them we in this small Dominion would be able to look back with pride and with pleasure upon the manner in which we faced these apparently insuperable difficulties and finally overcame them.

BRITISH AGRICULTURE. NEW POLICY OF SUPPORT

FREE MARKET NO LONGER.

“The British Government is determined that British agriculture is not to be allowed to perish on account of the disastrous fall in world prices, but on the contrary that it is to be maintained and to be made to pay.” declared Mr Forbes, in reference to agriculture in his address. “This new policy,” ho added, “is of vital importance to ourselves.

“It should not be thought that the reorganising and revitalising of British agriculture is due to a sudden reversal of policy at the bidding of Mr Walter Elliot or that it is a form of reprisal against overseas exporting countries. The protection and fostering of European agriculture which has taken place, more especially since 1925, is the outcome of existing economic conditions. Throughout the world the nations are all trying to protect their own industries. There are no longer any free markets.

“In Great Britain the change dates from the Agricultural Marketing Acts of 1931 and 1933. The policy began with an attempt to organise producers under self-governing marketing schemes and to steady the market by the regulation of supplies coming into it. But the system lias so expanded (and is still expanding) that British agriculture is now protected, while production and distribution are being planned and developed.” NEW ZEALAND’S SHARE. After outlining the results of the negotiations with, the British authorities in relation to exports from New Zealand, Mr Forbes said: “We in New Zealand need not despair of an expanding share in the British market. The consumption of food in Great Britain has by no means reached saturation point; there lias been a remarkable improvement in recent years in the standard of living, and, more important still, the country is more prosperous and purchasing power is returning. “I am satisfied that we have received every consideration from the United Kingdom Ministers and that they were perfectly fair in all their dealings witli us and endeavoured to meet the jiosition as far as it was practicable and consistent with their obligations under treaties with other countries, and in the interests of their own farmers. I am convinced that they were anxious to do everything possible to facilitate a mutually satisfactorv conclusion to the negotiations, and that they would have liked to go farther in this direction but for the existence of these treaties.”

FREE TRADE BARGAIN. NOT PRACTICABLE.

Statements that Now Zealand would be able to obtain a free market for her produce in the United Kingdom if she were to make a straight-out offer of free trade to Great Britain were challenged by the Prime Minister. He said such a suggestion was never a practicable proposition and the outcome of the recent negotiations in London bad only gone to emphasise more than ever the impracticability of such a scheme. Tiie possibility of a free market had been thoroughly explored. In view of the fact that it was widely held in New Zealand that if the Dominion could make sufficiently drastic

concessions in her tariffs against the United Kingdom she could secure freedom from any danger of a quota, the New Zealand Government cleared up the position by means of an exchange of telegrams. In October, 1933, it was explained to Great Britain that there was a widespread belief on the part of New Zealand producers that if New Zealand undertook a drastic reduction, or the removal of the protective tariff on British goods, the British Government would guarantee the continuance of unrestricted entry for New Zealand’s primary products. The British Government’s reply, dated December 23, 1933, clearly stated that no modification of the British policy would he undertaken oil the basis of such a suggestion. Moreover, it would seem hardly necessary to point out that New Zealand’s tariff was already lower than that of any other British Dominion. This was the case at Ottawa even before further remissions on British goods had been made under the revised tariff of 1934. It might also be noticed that Australia, with its extremely high tariff against British goods, also gave artificial bounties in aid of her exports—for example, the equalisation plan for butter; but in spite of this New Zealand was unable to secure better terms than Australia.

ENTHUSIASTIC WELCOME. ABSENCE OF INTERJECTIONS,

The audience, numbering between 400 and 500, gave Mr Forbes an enthusiastic welcome and a remarkably attentive hearing. There was a complete absence of interjections and his defence of the Government’s recovery measures was warmly applauded. The Mayor of Rangiora (Mr W. A Rorvse) expressed the pleasure of the constituents at Mr Forbes selecting Rangiora for his first public address on his return from Britain. A vote ot thanks was enthusiastically carried.