IMPORTS AND FUNDS

Nelson Evening Mail, Volume LXXIII, 30 June 1939, Page 8

IMPORTS AND FUNDS

GOVERNMENT POLICY CRITICISES “NOTHING BUT TROUBLE AND CONFUSION” CAUSE OF PRODUCTION DECLINE MINISTERS REPLY TO ATTACKS ! From Our Own Paiiiatuen'ary Reporter! WELLINGTON, This Day. The Government’s import restriction policy, the decline of production in New Zealand, the need for adequate defence measures, and a number of other topics were warmly debated in the House of Representatives yesterday when the first Imprest Supply Bill of the session came up for discussion. The Leader of the Opposition opened the debate and characterised the result of the Labour Government's activities as nothing but confusion and trouble. He was replied to by the Mi-ister of Education! th» Hon. P. Fraser), and then there followed a series of exchanges between Opposition and Government members, one side claiming that production and prosperity had declined while the other argued that the Dominion was still prosperous.

Opening the debate the Leader of the Opposition (the Hon. Adam Hamilton) severely criticised the Government on its administration of the country's finances. Considerable emphasis was placed by Mr Hamilton on the fact that after three of the most prosperous years in New Zealand’s history, the Government was at the present moment endeavouring to borrow money, and to all appearances was short of ready cash. No section of the community was satisfied with the work of the Government, Mr Hamilton declared. Every section was greatly disturbed, and was wondering how long the country could last if the present method of administration continued. MUDDLE V. CONFUSION "As a result of Labour's three years ir. office we have got nothing but confusion and trouble," continued Mr Hamilton. To make matters worse there is no reason for the position we find ourselves in. If the Government had had to pass through some economic difficulty, either local or foreign, there would possibly nave been some excuse for the muddle and confusion to be found in the country. “I am not complaining because the National Party did not win the election. It is good that the Labour Government should experience some of the troubles and difficulties that it has created by its own policy. At the present time there should be an abundance of money in New Zealand, and the Government should not have to go cap in hand to other people and borrow money. But, instead of an abundance of money with which to meet out commitments, the reverse is the case." GOVERNMENT SHOULD VACATE OFFICE Mr Hamilton pointed out that since the Labour Government took office the revenue from the country’s exports had averaged £60.090.000 annually. That was a period of record prosperity, and it could be compared with an average income of £37,000,000 during the three years prior to the election of the Labcur Government A Government that could not manage the country’s affairs and keep it on its feet with such a favourable income should vacate office.

"The Government had had an increased income of £23,000.000 a year compared with its predecessors, and still it Is hard up and forced to send a Minister away to borrow money.’’ went on Mr Hamilton. What a result after three years of office. He added that the country should be informed of the true state of its finances. Was the country bankrupt? Had the Treasury plenty of ready money? What had gone wrong to make the Dominion so hard up? These were questions for the Government to answer. Mr Hamilton said there was an abundant supply of money overseas when the Government assumed office. That money had now dwindled until it was doubtful whether there was sufficient to meet one year’s interest. The Government at last seemed to be realising that it was a wise thing to have money overseas. It seemed to be making an effort, when it was almost too late, to restore its London funds. EMERGENCY IN TIME OF RECORD PROSPERITY

Besides causing the depletion of the London money, the Goverpment had completely strained the resources of the Reserve Bank, Mr Hamilton added. The Reserve Bank had been established to provide the country with funds with which to meet an emergency, but ir, a time of great prosperity the reserves and resources of this bank had been almost fully exhausted. The danger signal had been hoisted. A few weeks before Christmas the Prime Minister had declared if ever New Zealand had reached a state of emergency it had then. “Imagine that in a time of record prosperity.” added Mr Hamilton. New Zealand did not hear much about the use of the country's credit these days, continued Mr Hamilton. That was a cry that seemed to have died down completely. There was a time w'hen the Prime Minister repeatedly said the Government was not going to be stuck for money, but Mr Hamilton was beginning to think that th*» Prime Minister had been pulled up. Mr Savage was beginning to realise that money really mattered. FINANCIAL POSITION STEADILY WORSE "New Zealand is now nearly one hun-

dred years old,” said Mr Hamilton. It is time we were able to stand on our feet. But. here we are borrowing overseas. We would have been able lo stand on our feet had this Government not squandered the resources that were available in London when it took office. “Not only that, but the interest rate has burst. It has risen 5 per cent, since Parliament last met. and the country’s financial position has steadily grown worse. On top of everything else we have had. to borrow £4.500.000. This is a sorry record in finance from this Government's point of view.” Mr Hamilton added that the state of the Post Office Savings Bank deposits was another cause of concern. Mr J. O'Brien ((government. Westland): You should not say anything about the Savings Bank. Mr Hamilton: I know the Savings Bank had to stand up to a lot of withdrawals during the depression, but it is a different story to-day. The state of , the deposits used to be held up by this Government as a barometer to show [ the prosperity it had brought to New Zealand. Where is the barometer to- , day? IMPORT RESTRICTIONS Added to the difficulties created by 1 the Government’s handling of the country's finances was the uncertainty ; and disturbance brought about by im- ’ port restrictions, continued Mr Hamil--1 ton. On this point the country was entit--1 led to a clear explanation as to what • was intended by the Government. The 1 Minister of Finance had declared the ■ measure to be of a temporary nature.

but the Prime Minister was always saying that it was a fixed policy. How could people in business carry on with any certainty regarding their future when such directly conflicting statements as were being made? asked Mr Hamilton. The import restrictions had been applied ruthlessly. There was no thought of the harm they might do. Many businesses that had been built up through the years’ had been wiped out over night. No thought of compensation ever entered the head ot the Government while this was happening.

PRISONERS IN OUR OWN COUNTRY "Such interference in trade relations had not previously occurred in New Zealand,” said Mr Hamilton. "Wc are lacking some of our former freedom to-day, and we arc beginning to realise what was meant by British liberty. We are prisoners in our own country. We have lost our good name and our credit, and I believe wc are seriously disturbing the goodwill of Britain herself. Wc have no right to say we will conduct one-way trade. We have no right to expect that we can sell all our goods to Britain and yet dictate to her what she might sell to Mr Hamilton said that the disgraceful extent to which New Zealand’s prestige and credit ha-l fallen could be gauged from the fact that the chief amusement of a party of students overseas had been an attempt to obtain change for New Zealand money.

AWARDS FLOUTED The Arbitration Court had been a feature of the Labour Government, but its authority was being ignored, continued Mr Hamilton. Awards were being flouted. The Court had been the sheet anchor of industrial disputes, but today it was practically non-effective. "Arc the people with fixed incomes satisfied?” he asked. The cost of living was rising, and that meant a “cut” in wages. Sheep farmers were complaining throughout the country and the Government had set up a Royal Commission to investigate the position, a Government that had always been against commissions. What had become cf the Government’s policy that proclaimed that farmers should be paid with the same tape measure as all other people? The goods the Government said it would deliver were not being delivered. Produce was being commandeered from the farmers who were not getting the full sterling reward they were entitled to. SOCIAL SECURITY Referring to Social Security, Mr Hamilton wondered whether the Minister of Health was satisfied with the position The people were paying the taxation in full, but the benefits were r.ot being paid in full. If that happened ir- private business it would just about j amount to false pretences. The MinisI ter of Finance had said that there | would be a shortage of £2.000.000 this | year. That was most helpful as far as j the taxpayers were concerned. The I Minister had got into a muddle. I The Minister of Health. Mr Fraser: What Muddle? * Mr Hamilton referred lo the Social Security Act, and said that it made provision for agreements with the medical profession. Mr Fraser: I suggest that you should study the Act. Mr Hamilton said that the social security benefits were not available to the people because agreements had not | been made with the medical profession. Hospital boards had complained, in fact he would like to find a section of i the community that had not eomplain- | ed. After what had been called three I years of prosperity every portion of

the country had a grievance. "Wc are experiencing the full consequences of labour administration,” eon'inued Mr Hamilton. “I hear rumblings even from the Government benches; the same comes from Government caucus meetings and conferences." Mr J. O’Brien (Government, Westland): No rats yet. Mr Hamilton said that some of the Government supporters had been disciplined for disloyalty to the Labour cause. There was dissatisfaction in the

Government ranks as elsewhere. The farmers, the workers, the business men i and taxpayers were all dissatisfied, and )

he felt sure the women folk were not) satisfied. Instead of appealing to Great Britain New Zealand should be standing on its own feet and paying its Mr A. S. Richards (Govrnment, Roskill): Why did you not do that? Mr Hamilton said that Great Britain had sufficient to do to carry itself along, and Nerv Zealand should have ! abundance of funds to carry on with had it been properly managed.