HAPPY NATION

New Zealand Herald, Volume LXXV, Issue 22949, 29 January 1938, Page 16

HAPPY NATION

TIDE OF PROSPERITY PRIME MINISTER'S [ VALUE 'OF PRODUCTION "DISGRUNTLED OPPOSITION"*[bt telegraph—press association] "WELLINGTON, Friday "The Lemder of the Opposition has made another futile attempt to belittle the rising tide of prosperity in New Zealand," said the Prime Minister, the Rt. Hon. M. J. Savage, to-day, in reply to ,a statement made yesterday by the Hon. A. Hamilton. "He refers to' my recent statement concerning the impressive evidence of prosperity under Labour rule during the past two years' as- a parade of statistics and glib talk of- millions. "Indeed, after several days' reflection, Mr. Hamilton came to the conclusion that I, as Prime Minister, had to be content with painting the clouds with sunshine," Mr. Savage said. "Even if that were so, surely that must bo better than following the National Party's practice of blackening the outlook -with pitch. ('Mr. Hamilton at least has the loyalty of a man who clings to - an, obsolete policy. As a Minister in tho former depression Government and as act incurable pessimist, ho has been so used to clrabness that ho cannot appreciate luminous facts. His political and economic ideas take the form of 'menacing shadows.' ! •, •-* Nationalist Policy "Do Mr. Hamilton and his friends want to go back to the days and ways of social misery and unexampled impoverishment of the people?" the Prime Minister asked. "One can only feel sorry for a party leader whose daily joy is found only in predicting economic disaster. -Is the Nationalist policy still based on wage cuts and parsimonious treatment of the aged and poor? Is that the reason why the party considers *ft imprudent to disclose its policy? "It would seem that Mr. Hamilton is angry over the great increase in the value of production. Tho conditions are bo novel to him that he is disgruntled. Under his Government's disastrous, rule the total value of production dropped by £37,000,000 in two years. "Although the farmer worked harder than ever before, his reward, generally, was bankruptcy," Mr. Savage said. "Under Labour rule tho valuo of •production has increased in two years by £39j100,000, while the small •farmer's weekly income has risen from £2 to £5 15s —has net income after paying tent, interest and working expenses, including wages. This may seem a lavish use of statistics, but they happen to be facts. Increased Income

"Again, under the guidance of the former Conservative administration, the aggregate private income decreased within two years by £20,000,000. Since ~th*e country wisely dismissed the 'black cloud' Government the national income has been raised by £37,000,000. "What is the. use of Mr. Hamilton saying that? taxation has v'triped out prosperity when it is prosperity itself which is bringing in additional revenue," he declared. "The- people have more left over after paying taxation, and more than half the taxes go directly back to the people in social services. What is the use of saying that purchasing power is decreasing when wages have increased more than prices s Wages are higher than they were in 1929, but prices are lower. "Mr. Hamilton says I am an optimist when I say the people are enjoying their prosperity. Does he mean they are miserably enduring it? ! . 'r? 6 added. '"This is 1938, not 1932. The holiday season just passed has been a record one in every respect, and I do not need to make any, parade of statistic# to prove that people are en~ joying their prosperity." mmmmmmmmmrnmrntrnm