FOR REFORM

Northern Advocate, 11 June 1931, Page 8

FOR REFORM

MR COATES AT WAIPU OPPOSITION VIEWPOINT CITED. BROAD POLICY OUTLINED. The unpromising weather last night did not prevent over 100 people attending to hoar a political address given in the Waipn Hall by Rt. Hon. J. G. Coates, Loader of the Opposition. The speaker was briefly introduced by Air A. .T. McKay, councillor for the riding, who occupied the chair. Fusion.

Air Coates, after replying to the welcome, said there had 'been much discussion lately as to whether it was in the interests of the country as a whole to form a national party, for very grave and thoughtful consideration was called for before any of the existing parties wore disbanded. After very careful and thoughtful consideration, the Prime Minister's proposals ha,d been rejected by the Reform Party, one reason for this was that there was no guarantee that fusion would bring about what the Prime Minister claimed. One of the traditions of party government was that when a government Avas unable to give effect to its policy it must either fall or resign. Then again, the thought lying behind Air Forbes' offer was that both the other parties must combine to fight against Labour. If Labour had a platform Avhich appealed, it had a perfect right 'to place it before the country Reform endeavoured to represent every section of the community—employer and employee, town ancT country —and to legislate and administer accordingly.

Class faction which, organised •cleavage in political thought meant class legislation ami inevitable clashes 'between employer and employee, which could not bo tolerated. .Mr Coates said he appreciated the earnestness and good faith which he believed dictated the Prime Minister's statement to the country.

So far as wages and salaried men were concerned, tlmae should not forgot that under the regime of Eeform they received higher pay and worked under better conditions than had prevailed during the time of any other Government in Now Zealand.

Before rooting up a party whicli had built such splendid traditions, the loaders must see something better .ahead. Let the People Decide. What was the actual meaning, and What object lay behind a national Government f Its principles, policy and administration had to be investigated. Two widely divergent schools of political thought would have been joined. To carry any policy into effect loyal adherence and. cohesion were necessary. Mr* Coates thought that if fusion had taken place the weakest possible administration would have resulted. For success, team work was necessary.

A government of expediency was not necessary right in front of a general election. It was better to allow the country to decide for itself which party it considered most likely to adhere to principles. It should be remembered that when the Conservatives and Liberals united in Australia the combined party -was defeated at the very next election. In 1928, immediately after the general election, the Eeform Party asked United to reconsider the impossible promises made to the country, and advised that, provided this) was done, it would be prepared to assist. The answer was a matter for history.

In January, 3931, the Eeform Party issued a statement, drawing attention to Hip serious position confronting the country and offering United support if the Government adhered to certain suggestions. Whether on account

of this, or because ho found, on his return from England, there was nothing left in the Treasury, Mr Forbes decided at the special short session that it was necessary to make alterations in the pledges given to the people before the election. Borrowing Policy. Although Eeform did not attribute all the ills which the country now passing through to the Government, it considered that United must accept a large share of responsibility for aggravating the position. The Eeform Party had advocated a tapering off in borrowing, and that it was sincere in f th*is was shown by the figures of fhe national debt, which had increased as .follows during the party's regime:—l92o, €1.1,000,000; 1927, £7,000,000; .1928, £5,500,000; 1929 (for which estimates were prepared by Eeform), £5,120,000. This policy had been exactly reversed by United. In the remaining period of .1929 the new Government borrowed £2,260,000, in 1930, £8,800,000, and in

1931 between £9,250,000 and £9,500,000. Expenditure from the Consolidated Fund under Reform was £27,399,000 in 1924-25, and £24,945,000 in 1928. I taxation per head in 1928 was £ll 17s 7d, and in 1931, £l3 17s. Sound Currency Necessary. New Zealand was in a different position from Australia, which had been keeping up her standard of living largely on borrowed money. During the past twelve-year period the exports of the Dominion had far exceeded her imports, When Great Britain,

United. States and the Continent reverted to the gold standard in 192. r ), New Zealand and Australia did not do so. So long as our exports exceed our imports by a sufficient margin our £1 was worth £l. in England, but when there was a sudden and severe fall in the price of our primary products the effect was to raise the exchange rate against us, so that we had to pay £ll9 in Noav Zealand for £IOO Avortli of English goods.

It was necessary for the country to live within its means. In 1928 'Reform had not gone to the country w r ith any extravagant promises, but on the other hand had said that it would not be possible to continue at the then rate of expenditure, and that a national stock-taking was necessary. Reform had also said that the Government could not, accept the responsibility of employing the enormous number out" of work at full rates of pay. As a result, “9/- and 42/- a day” were thrown at him from every platform, and many good Reform candidates lost their seats. Less Money* Circulating. On account of the low priec.s for primary produce, £25,000,000 less money was circulating in the Dominion. Was it reasonable to expect that wages and costs could be maintained by taxation? In Australia, where the Labour Government had the position in iis own hands, there were 150,000 unemployed, Several 'State Labour Governments had been returned, pledged -to restore the 10 per cent. had been unable to keep their promises. It had been contended that wages in New Zealand should be kept up so that the city man could pay more for the farmer's produce. Mr Coates quoted figures to show that, of the primary products,, the following percentages were* sold in the Dominion:—Wool, 3; cheese, 6; butter, 25; and-lamb," 7; sj that home consumption had an infinitesimal effect upon the produce marketed by the farmer. Surely everyone realised that New Zealand was entirely dependent upon the farmer. However, those who thought lightly of secondary industries had not a proper sense of proportion. They should be given a fair opportunity, and then made to stand on their own feet. The cost of production in secondary industries must <be governed by the ability of the consumer to pay. Production and Costs, The solution of the problem, said .Mr Coates, lay in increased production, and to bring this about it first necessary to reduce costs, so that New Zealand might Compete successfully on the world's markets. The costs of farm production were 483 above those of 1914, while the' prices were approximately the same. Mr Goates then proceeded to examine the methods by which it was possible to bring about a reduction in production costs. Labour had almost promised ability to raise money at 4-j per cent., and this in face of the last New Zealand loan costing £5 7s 6d! Mr Coates contended that, so long asj the Government remained on the mar-] kot offering 5$ per cent, on the salej ,of bonds, it w T as keeping the rate of interest at a high point, and prevent-i ing money from going into the ordinery avenues of private development, j It was essential that the Government should create confidence among investors and those who had money to spend. The Government had levied land tax on large estates. A great gart of these large holdings were unsuited for closer .settlement, and were quite useless to any but the owners, who were hindered in carrying out development by such impositions. Eating. Coming to the matter of rates, Mr Coates said that the Main Highways Act had been brought about for two main reasons —(1) The principle of the user paying, and (2) the object of reducing rates on lands. In 1929 the now Government amended the Act to take away £516,000, and had robbed the fund to the extent of £316,000 annually since, thus increasing rates for the purpose of balancing the Budget, and doing a great disservice and injustice. The farmer must bo relieved of costs as much as possible.

Wages Reduction. Mr Coates condemned the Government's railways policy in raising fares and freights, when the people were in a worse position than for many years past, to meet increased prices. He also criticised the raising of house rents to raihvaymon, which meant that many had received the equivalent of a 20 per cent. cut.

He had held that wage reductions should be on a graduated scale. A married man, say, with a family of six. living in a city, should not bo asked to exist on between £3 Ss and £3 15s per week. Very few workers minded the 10 per cent, cut, realising that there was loss money to go round, and either there must result the dismissal of large numbers, or a reducton. in times of prosperity all should benefit; in times of depression, let all bear the burden. So long as the wageearners felt that the cut was fairly placed, and there was equality of sacrifice, little objection could be raised. Socialists Criticised. Mr Coates went on to deal with the principles of the Labour Party, which he said, thought that everything should be produced in the interests of the State. This was diametrically opposed to the ideals of the Eeform Party, which believed that each man should have an opportunity; to ttnake good,

This, the speaker contended, was designed to develop a better moral fibre than State “molly-coddling,” Labour reckoned it could do away with the unemployed “like the mist before the rising sun.” Mr Coates pointed out that under Labour in Britain the unemployed had increased from 1,000,000 to 2,600,000.

In times of . stress, when it was neo essary to reduce the costs of Government, social services must be curtailed. The cost of Government had a direct influence on enterprise, and until the confidence of investors was restored, the country could nqt expect to get back to a normal condition. When those who had their savings in banks and other securities -were confident enough to invest in developmental works, so soon would the unemployed bo absorbed in profitable undertakings.

Misleading Pamphlet,

Mr Coates described a. pamphlet issued by the Country Party during the Hauraki by-election as a tissue of misrepresentations. He did not think the member for Bay of Islands had a hand (n its preparation, and was sure Mr Ross had not. The misleading propaganda was coming from another source, and it was a pamphlet of prejudice. Rural Credits. Mr Coates claimed that the Intermediate Rural Credit Act has all the elements of an agricultural bank. All that was required , was an association big enough and wide enough, and instead of paying' S per cent, for his overdraft the farmer would only be called upon to pay 0 per cent. Savings Bank. 'Mr Coates said that Reform had been blamed for reducing the maximum deposits on which interest would be paid by the Post Office Savings Bank from £SOOO to £2OOO. This had been done to check the tendency of the Post Office Bank absorbing capital which otherwise would be used in development. If the bank had accepted everything offering, it might have been in the same position as the State Bank of New South Wales was today.

If tiro Government, had lent out too much from the savings in the Post Office Bank, any sudden run would have put it to considerable inconvenience and compelled it to find several millions at short notice. In the recent session the sole representative of the Country Party had voted most times with Labour. He would soon have to face up and decide which party he intended to subscribe to. Tariffs, * It was unthinkable, Mr Coates continued, that New Zealand should become a free trade country when the world taxed against us. Taxes were necessary in order to bargain with when making trade treaties. He denied that Reform had been instrumental in increasing Customs taxation. The party had reduced the taxes on necessities and increased those on luxuries. The total Customs taxation in the last year of Reform's office was £9,800,000. Surely it was not suggested that the duties should be taken off liquors, tobaccos, motor cars, fur ebats, costly silk garments and other luxuries which actually represented voluntary taxation. If these were put to one side there only remained £2,000,000 placed on articles it would be desirable if to admit duty free, la

1927 the tariffs had been overhauled, and £300,000 •of taxation taken off the necessities of life. ' •, Land and the Worldess. The Leader of the Opposition said that United had failed in its land policy, and there were actually 400 less settlers than when Reform ceased Ho govern. Some of the recent unemployment relief works he described as wasteful and unnecessary, and favoured engaging the men on developing land whicFat present was idle. When brought iii, the price of such land should be appraised on the estimated value of production, not on the cost of bringing it in. _ There were a number of freeholders •near his place who were starting to break in properties ranging between 50 and 120 acres. Last season, the Figgest cream cheque was £5, and yet these men were debarred from participation in any scheme of unemploymentrelief, and had no money with which to pay their store bills. It would be better for the Government to advance such men £35 or £SO to tide them over the winter and allow them to continue improving, the land. Fertilisers. Thp Government had -also failed Ho, bring about the supply of cheaper fertilisers, and as a result between 25 and 40 per cent, less ’ fertilisers were being sown this autumn, The result must ■ almost inevitably mean a fall in production next year. The farmers should have been financed, and the fertiliser manufacturers and distributors were prepared to co-operate if the Government had stepped in. | The Election. Mr Coates said that the electors would shortly be given the opportunity of hearing the various manifestos, and it was for them to choose which they considered the most reasonable, and the “most effective of accomplishment. Reform would always place the country before party advantage. He looked forward to the future with optimism. If the people faced the true facts, the lessons of the depression would do good, and with confidence it would not be long before the country was moving along again in a mannef satisfactory to everyone. Business must be restored and the unemployed brought back into useful and paying occupation. Mr Coates concluded an address which had lasted -over two hours by expressing the feeling that the future of the Reform Party -would be very important, and that it would be called upon to take up greater responsibilities in the near future (Applause). On the motion of Mr J. J. Finlayson, seconded by Mr H. MeAulay, a hearty vote of thanks was accorded Mr Coates for his able address. A vote of thanks to the chair concluded the meeting. PARTY ENTERTAINED. N WOMEN'S auxiliary, Mr and Mrs -Coates and Mr W. Jones were entertained to supper at the Waipu boardinghouse by members ' of the local Reform League. ’ In a splendid address Mrs Coates briefly outlined the ‘constitution and ’ objects of the Women’s Reform. Lea--1 gue, branches of which are being formed throughout ;the North.