LABOUR ATTACK

New Zealand Herald, Volume LXXII, Issue 22206, 5 September 1935, Page 13

LABOUR ATTACK

GOVERNMENT'S FAULTS LONG PERIOD REVIEWED FINANCE AND DEBTS UNEMPLOYMENT PROBLEM [»Y TELEGRAPH—SPECIAL REPORTER] WELLINGTON. Wednesday The alleged sins of the Government rather than Labour's policy for tho future formed uhe theme of the speech of the Loader of the Opposition, Mr. M. J. Savage, in moving his no-confi-dence amendment to the Addrcss-in-Rcplv motion in the Hotiso of Representatives to-day. Mr. Savage wondered what the great legislators of New Zealand's past would have to say about the work of the Government to-day. Royal commissions and committees of various kinds were doing the Government's thinking for it, and doing tltint thinking very badly in many cases, he said, 'lhat position was solely due to the fact that conflicting political viewpoints were present in the parties forming the Government. "The reason for the appearance of unity between these forces," Mr. Savage continued, "is that they are facing a common danger to their political existence —the rising tide of Labour. Tliev realise that if they do not hang together they will hang separately. They will hang; in any case, and, in my opinion, they richly deserve it." Growth of Public Debt Mr. Savage reviewed political developments between 1912 and 1928 when the Reform Party was in power. During that time, he said, over £166,000.000 was added to the public debt, which meant that the country was spending £10,000,000 a year more than it received for its production. Government Voices: Wasn't there a war then ? Mr. Savage said tho country had spent beyond its income then, hut when it was suggested to-day that buying power should equate production the reactionary forcesi shouted, "Inflation."' Between 1928 and 1933, he continued, the Unitul and Reform Parties added a further £33,000,000 to the public debt.. Actually the net interest payments on the public debt during the 20 years to 1934 amounted to over £141,000.000. excluding Treasury bills. The policy of the Government was debt in perpetuity. Formation of Government Mr. Savage traced the formation of the present Government. A committee of the various political parties had been formed in .August, 1931, to examine a threatening economic position, but no etfon; was made by Reform and United members to draw up any report for the benefit of Parliament. The Prime Minister brought things to a head by refusing dogmatically to allow proceedings to continue until a National Government had been formed. It was stated that Labour was invited to join that Government, but Reform and United representatives actually met in secret in the Prime Minister's office. The Coalition Government was formed and went to the polls on a "blank cheque" policy, said Mr. Savage. The people gave them the open cheque, but now after four years there was nothing to show for it except an army of unemployed and a few pieces of reactionary legislation which had destroyed some of the great works of the past. When the Unemployment Act was passed in October, 1930, there were from 6001) to 7000 registered unemployed. A year later, immediately after the formation of the Coalition Government, there weire over 51,000, excluding thousands of women, and in July this year there were well over 55,000 men who were a chargo on tho unemployment fund. That was the prosperity brought about by the open cheque that the people gave. Production and Buying Power " The full period of the life of tho Coalition Government," said Mr. Savage, "provides a story of destitution and ragged clothing for thousands of men, women and children, while alleged statesmen are discussing restriction of production in order to make it fit in with a shortage of buying power." Mr. Savage referred to many railway lines ou which work had not been completed and stated that the total amount expended on those lines was £5,802,412. " These railway!! are rusting away," he added, " while the interest bill is established in perpetuity." After referring to wage reductions and to title reduction in pensions Mr. Savage criticised the Government's policy of appointing Royal commissions to carry out itu duties. However, the report of one of these, the Native Affairs Commission, had been fully justified and was the greatest indictment that had ever been made against a Government in the political history of Now Zealand. The story of maladministration and loose administrative methods was portrayed in language that could have only one meaning—that the Government could not shelter behind one of its number, but must stancl or fall by its collective responsibility. Position o! Farmers Dealing with the establishment of the Mortgage Corporation Mr. Savage contended that owing to the small margin between the borrowing and lending rates "only farms that were gold mines" would benefit, while the farmer in difficulties could not be considered. The Rural Mortgagors Final Adjustment Act would bring the farmer down to the same level as tho relief worker to-day since it would bo the duty of those supervising the work of the farmers to cut down overhead charges in order to make the land yield a greater return. Mr. Savage spoke for some timo on what he described as "the Government policy of inflation" in connection with the sale of £23,000,000 sterlfng in London to the Re;ser. e Bank, and later defended the Labour Party against Ministerial statements that in the event of a Labour Government gaining power tho people's deposits in the savings bank would be misused. In conclusion lie advocated reduction of the exchange rate in favour of a system of guaranteed prices which would help the farmer when he needed it most and not as at present when hfi was least in need o, assistance. , 3Jr. Savage spoke for an hour and a-half and at tin; conclusion of his speech his no-confidence amendment was seconded by Mr. W. Nash (LabourHutt). SOLDIERS IN HOSPITALS QUESTION OF COMFORTS [Blf TELEGRAPH —SPECIAL REPORTER] WELLINGTON. Wednesday The provision of comforts for returned soldiers who are patients 111 mental hospitals was raised by Mr. A. J. Stallworthy (Independent—Lden) in the House of Representatives to-day. He asked tor a return show-mg the amount of money held by the lsew Zealand Red Cross Society and the respective amounts distributed from Red Cross; funds for hospital comforts to ex-servicemen in mental hospitals a Auckland, Wellington, Chr.stchurch and Dunedin from April 1, 1934, to August 31, 1933.