NATIONAL FINANCE

Nelson Evening Mail, Volume LXVI, 9 November 1935, Page 6

NATIONAL FINANCE

LABOUR’S' PLAN ATTACKED PRIME MINISTER WARNS ELECTORS “God help New Zealand, if, as a result of the elections, a Labour Government is given control of national finance and administrative affairs for the next four years. It will mean a worse disaster than the severe depression from which the country has emerged. It will involve the control of the banking machinery of the Dominion and the savings of the people. The people must face that prospect as the most serious issue ever submitted to the electors of New Zealand.” Such was the direct statement made by the Prime Minister (the Et. Hon. G. W. Forbes) on Thursday, in a vigorous address to close on 300 electors in the new hall in Oxford, says the “Press,” Mr Lancelot Watson presiding. “We are approaching a general election,” Mr Forbes said, "at which the people will be asked to determine the political and administrative future of the country for a period of four years. To my mind it is the most serious decision that the New Zealand electors have ever been called upon to make. It demands very serious consideration. “As a National Government, we have endeavoured right through the severe depression to keep the finances of the country on sound lines. Now the electors are being invited to believe that there is some new magical method of avoiding difficulties, without cost or hard work. It is suggested that by manipulating finance, an open and easy road to prosperity will be provided. Such a suggestion is merely an illusion. Look at Britain’s efforts and achievements. To-day the United Kingdom is the < envy of the whole world, and its enviable position has been due to firm and consistent adherence to sound methods of finance, which simply means balanced budgets and reliance on old and tried methods THE ISSUE AT THE POLLS “What is the position in New Zealand to-day? What is the issue at the forthcoming polls? We have on one side an experienced Government which has proved its courage and ability to face realities, and do everything possible to maintain fiancial stability and prudent administration. On the other side there is the Labour party, with no experience whatever of administrative affairs, but with a fantastic and experimental fanciful policy. There are, of course, other parties in the field, but after all the issue is between the National Government and the Labour party. As I have said the Government’s determination throughout the depression was to keep on the financial rails. I have been looking at the programme offered by the Labour party. 1 have no hesitation in saying that if such a policy is tried, it will be the greatest disaster New Zealand has ever had to face.

“Leading representatives of the Labour party are speaking just now in very moderate terms, which might tempt many people to accept the party's policy as a mild one, and almost worth a trial. That is a real danger. I have been associated with Parliamentary members, and I respect them: but it is necessary to remember that they do not advocate their own policy, but must follow, the policy laid down for them by their industrial organisations outside Parliament. Make ho mistake about it, that is the position. ... .. r—bj j.j.;. • LABOUR AND THE BANKS “One of the things in the forefront of the Labour programme,” Mr Forbes continued, “is to secure possession of tlie banking machinery of the country for the purpose of carrying out the party's experiments. I notice to-day that a member of the party candidly announces that Labour intends to take control of the bftnks. What does that mean? It means that a Labour Government, in order to attempt to give effect to its schemes for guaranteeing prices, incomes, and wages, would take control of the investments and savings of the people. We know such schemes are hopelessly impossible pf achievement, without taking rash liberties with the national finance and seriously affecting the foilndfitions of! the national credit. lam confident that the people will not take such a dangerous risk. It has to be admitted that Labour has to put something attractive before the electors, but every sensible man knows quite well that its policy of all sorts of cannot be put into operation. *., It is like spreading treacle for flies. “Is New Zealand going to keep on the lines which have brought it out of the depression, or is it going to entrust the administration of its affairs to inexperienced parties? That is the main question to decide, but my own feeling is that it will be a sad day for New Zealand if it changes horses while crossing a stream.” (Applause.) Hie Prime Minister recounted the difficulties and achievements of the Government, claiming that the Coalition Ministry, while receiving all the blame, was entitled to some credit, i He received an excellent hearing, and was frequentlv applauded during his two hours’ address.

After replying to questions, Mr Forbes was accorded a unanimous vote of thanks.