"A GREAT CHANGE"

New Zealand Herald, Volume LXXIII, Issue 22431, 29 May 1936, Page 13

"A GREAT CHANGE"

STATE IN CONTROL

SPEECH BY MR. SAVAGE WORK FOR THE PEOPLE GIVING EFFECT TO PROMISES [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday "This is the beginning of a great change," said the Prime Minister, Mr. Savage, during the second reading debate on the State Advances Corporation Bill in the House of Representatives to-night. "We are putting tho State in charge of another public service, which will be administered for the benefit of the people." Mr. Savage said there would probably still be those who would declare "that it could not be done." He was prepared to argue with a man about tho methods of reaching an objective,' but tho individual who had nothing to say other than "it can't be done" made him a little tired. In spito of the remarks made by tbe member for Wallace the Prime Minister thought that the corporation under the bill would go a little bit further than the old State Advances Department. There was a clauso in the bill which stated that the board of the corporation must have regard to representations made to it by tin 3 Minister of Finance. That meant that tho Government policy would be reflected in every act of the board. It would be managing for the people of New Zealand, whom the Government represented. Underlying Principle

"The principle underlying the bill is to take the Mortgage Corporation back and place it on the foundations from which it should never have been removed," Mr. Savage said. "That is the foundation of the State Advances Department. The department failed because the Government of the day reduced the power of the people to pay rents and interest." The Leader of the Opposition, the lU. Hon. G. W. Forbes: It reduced rents and interest, too. There had been some criticism of the short time allowed for the preparation of speeches since the introduction of the bill, Mr. Savage continued. Any such criticism came very badly from the Opposition which, when it was in power, had not given its opponents any consideration whatever. He remembered one night last session when eight bills were introduced and he himself had not been able to make a pretence of understanding more than half of them. If the Government had contracted any evils during the last week or two it could fairly claim to have inherited them from its predecessors. There was no intention of stealing a march 011 the people. The Government was merely giving effect to definite undertakings which had been fully explained months ago.

deferring to interest rates, Mr. Savage said the Government controlled public credit by Act of Parliament. It remained ,to be seen whether it had the courage and wisdom to give effect to its election promises that it would use that credit with care and advantage to the people. The question of preventing speculation had been raised, and, he thought, rightly so. It was not a bit of use the Government closing all the doors and leaving a window open. Restoration of Equities Mr. Savage predicted that the time was coming when both the mortgagor and tlie mortgagee would live to bless the day when the Labour Party was returned to power. They would find that their equity had been restored to where it should always have been. The Government was not legislating for scientists, but for ordinary people, such as farmers and home-builders.

It was Labour's intention to re-estab-lish equities, not to destroy them. Would anyone ever forget the Rural Mortgagors Final Adjustment Act? The farmers would never forget. They were put into chains for five years. "We have people of various kinds .if businesses ' perambulating through the country, telling the people Ave are going to disappoint them." continued the Prime Minister. We do not mind that. We will go before the people as a jury and let them try us. We will see who wins. My word lias been given to the people. I may not reach the heights I have to reach and if I don't it will not be through dishonesty, or not endeavouring to keep my promises.

An Opposition voice: What about the exchange? The Prime Minister: The less said about exchange the better for the reputation of the Opposition. Mr. Savage said he would ask the peoplo of New Zealand not to worry about speculators. They might win in the first round, but the Government would win all the rest, because it had the power to legislate. The people had nothing to lose by the passing of the bill.