Mr. Savage Sums up Prosperity Points; Reply to Critics

Northern Advocate, 14 July 1938, Page 8

Mr. Savage Sums up Prosperity Points; Reply to Critics

[Per Press Association. — Copyright.! WELLINGTON, This Day

rpHE ADDRESS-IN-REPLY DEBATE WAS CONTINUED WHEN THE HOUSE RESUMED AT 7.30.

THE x'RIME MINISTER, THE KT. HON. M. J. SAVAGE. WAS GREETED WITH APPLAUSE WHE N HE ROSE. HE SAID HE HAD FREQUENTLY MADE PUBLIC RE TERENCE TO THE ABUNDANT SIGNS OF PROSPERITY WHICH W ERE EVERYWHERE APPARENT.

He would not take time to report 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 the totalisator.

London Credits

Speaking of New Zealand’s London credits, Mr. Savage stated that the Government had been charged with having bought too freely from Britain.

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

The Hon. A. Hamilton (Leader of Opposition): No, Australia. Mr Savage; Britain was the country mentioned.

money would be immediately spent with the small shopkeeper and others with goods and services for sale. The Government’s Record.

|> Continuing, Mr Savage 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 ge get the benefit of our increasing exports? It was a well established fact that only by overseas purchases could we obtain payment for our overseas sales. It might be that .from time 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. Increase in Imports. Admittedly, imports had increased in the past two or three years, but that was largely a natural consequence of 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 "has also meant the using up of proportion of our accumulated sterling funds in London. This was accounted “ idr largely by increased imports of ’ capital goods, a type of goods which the mistaken policy of Coalition Goveniment forced us to go without during the depression. That accounted for unnecessarily large accumulation of sterling assets during that period.” #s. Fruits of Depression. Mr Savage continued that the cuti ting down of expenditure during the depression resulted in the accumulation of many millions of pounds which should have been used instead of . being hoarded up. The result was that today we had to spend some of thdt money to make up 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 we had some £40,000,000 in London at the very time when over 79,000 men were 1 unemployed in New Zealand, and at leaist 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 £26,500,000 irt 1932. They had fallen as low as £24.500,000 simply because the people of the Dominion were too poor to ref claim their exported wealth.

Mr Savage criticised the National Government’s policy and compared its record with that of the present Government, which, among other things, had given guaranteed price for farmers, set up national marketing of primary products, reduced farmers’ mortgages, given minimum Wages for agricultural workers, restored wage rales, increased pensions to widows and aged, instituted pensions for deserted wives, increased and restored war pensions, re-established the Arbitration Court, etc. ?

Need For National Superannuation. Continuing, Mr Savage stated he had said a hundred times, that there was no chance this side of the grave for the average person to save sufficient to keep body and soul together for invalidity or old age, and it was this condition of affairs which necessitated the introduction of the national health and superannuation system. That would be done.

Mr Savage, in conclusion, briefly referred to 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 Government was determined to socialise farms. Nothing could be further from the truth. The average farmer had a greater equity in his farm today than he had three yeax’s ago. “That is my reply,” added Mr Savage. “Our job is to keep on increasing that equity until the farmer is free.”

, *flt had often been claimed,” said the Prime Minister, “that increased prices of our exports were solely responsible for the improved conditions of. r the last two years. It could be justly claimed, however, that if the Coalition policy of wages cuts, unemployment and general credit contraction had been maintained; social and economic conditions today would show little improvement, 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.” Hoarding Not Desirable.

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 on purchasing British goods and services.

Would anyone say. asked Mr Savage, that expenditure of £17.750.000 on the social security proposals mainly