ELECTION CAMPAIGN.

New Zealand Herald, Volume LXV, Issue 20075, 12 October 1928, Page 15

ELECTION CAMPAIGN.

(PROGRESS TINDER REFORM.

REPLY TO MR. HOLLAND.

WEAKNESS OF LABOUR SCHEMES

EXAMPLES IN AUSTRALIA.

[BY TEt.EGRAT>H —I'IiESS ASSOCIATION.] WELLINGTON. Thursday.

The lion. A. D. McLcod, Minister of Lands, addressed a political meeting at Upper Hutt this evening, and referred to Rome of the statements made by Mr. H. E Holland, Leader of the Opposition, at Masterton last evening. Mr. Holland's insincerity, said tho Minister, was proved in that most of his speech was distortion of fact and an appeal to the lion-intellectual. lie endeavoured to make believe that the valuo of money based upon a gold standard could remain for long periods on some other than an approximate equality of v.iluo basis, whilo the necessity for interKmpiro and international exchange must correspond with inter-Empire and international trading. For ten years or more Labour parties in various parts of tho Empire while out ,of office had argued 011 similar lines to Mr. Holland, but 011 reaching office their academic political financial proposals on being put to the test had had to go by the board. Striking examples were found in Australia. Government and Banks. "Let Mr. Holland cease platitudes and point to any one of tho Labour-governed States in Australia where money for farmers and workers has been cheaper or advanced to a greater extent than in Now Zealand," said Mr. McLeod. "For him to say the Government approved and encouraged the raising of overdraft rates by tho associated banks last year is to say tnat which is contrary to fact. That deposit rates for money had to go up last year is admitted by all having a knowledge of international finance. What the Government did not and does not now &gre<> with is that there was a necessity for a corresponding increase in the lending rate "Mr. Holland also features the fact that the State Advances Office made profits of over £1.250,000. That is exceedingly satisfactory. To my mind tho £1,250,000 represents a reserve fund of less than 4 per cent, against a total amount of loans outstanding of just on £36,000,000. No concern working on safe linos would consider such a sum excessive. "The Prime Minister himself will deal with the appointment of Mr. 11. 1L Sterling as general manager of railways, but referring to the statement of illegality of appointment .and reinstatement of superannuation rights, how often has tho Prime Minister 111 this and other countiies made bargains subject to confirmation by Parliament? It may not bo htrictly within the actual letter of tho law, but it has been done and will be di ne again, and Mr. Holland knows that perfectly well. Fair Treatment by Government.

' 1 am in agreement with those who s.ny the whqle question of rights of giiperannuitants should be fully investigated, and this is being done by Government, but to say all those who for their own betterment or convenience left the service and later came ba-k should be granted indiscriminate reinstatement is something the Government cannot agree to without complete and full investigation oi' all the circumstances. I believe the present Govern rricnt has gone further in the direction ol granting extended leavo to Labour supporters to contest elections than the < loverninent of any other democratically - governed country, yet Mr. Holland wishes to force upon the public as an employer a demand by its employees as a right that which no private employer would consider for a single moment." Mr. Mc.Leod said he would deal at a later date with Mr. Holland's jumblo of figures respecting land and its occupation. fri five years up to 1928 the Reform Government had provided for housing purposes a total of no less than J: 10,621,000, so that people, might own their houses, fn addition to this a sum of £8,726,000, for providing of houses on a similar basis for returned soldiers had been expended. This made a total of £19,347,000, an amount unequalled in any other country in the world on a population basis. Substantial Rural Advances. "There is a limit to which public credit can be used in borrowing and this fact alone has been responsible for any easing up during the last year, continued the Minister. "Mr. Holland, when pointing to a similar easing in rural advances made through the State Advances Office, neglected to point out that, largely as the result of Government assistance, a branch of that office, lending on rural securities through the long-term rural advances alone, last year authorised loans totalling vio less than £1,146,000. which i ountenicls the decrease in the amount loaned under the State Advances Act. as compared with 1927. At March 31 last £751,900 of this amount had actually been paid over. "Since the long term Rural Advances Ant first functioned on April 1, 1927, uijt.il October 1, 1928, loans have been authorised arid monetary provision made for a total of £2,015,805', while £1,294.985 has actually been paid over. Iho reason for authorisation being so much in excess of the actual payments is that, in the case of most rural mortgages, threo and six months! notice must be given to terminate an existing mortgage and thus avoid tho payment of a penalty by mortgagors." Necessity for Efficiency. Referring to the industrial position, Mr. McLeod said: "Those who suggest that this Dominion is capable of carrying a population of 10.000,000 as a result of primary expansion alono are talking nonsense. Jf we are to expand in population mid production in these days of keen world competition we must establish a iirru basis on eflii iency. Ibis applies equally to all sections ot producers, farmers, manufacturer:} and labour. \\ ith all its power the Government resisted last year great pressure from manufacturers for higher and still higher protection. "ft was pointed out to both manufacturing and labour representatives that no biisis for permanent prosperity could possibly be established on inefficiency, which must throw back upon our great exporting primary industries a load incapable of being carried by those whoso working hours more often than not were fixed by. tho rising and setting of the sun. To political Labour we have. said that a high v.'a go standard may bo possible of attainment temporarily by their gaining office as a result of political subterfuges, but tho permanent maintenance of tho high-wage standard, which we all desire, is possible only as a result of a high standard of efficiency and a determination to render a maximum of service for everv hour worked.

"The Government policy is to place at tlio disposal of tho»o seeking knowledge or assistance the experience and investigations of the scientific and industrial research and allied departments. That primary producer!) are taking full advantage •of the services offered fis in some degree proved by the great increaso in tho Yolumo of piodnction." j