INTEREST RATES

New Zealand Herald, Volume LXXV, Issue 23077, 30 June 1938, Page 15

INTEREST RATES

CREDIT FOR REDUCTION

MR. COATES HITS OUT MISREPRESENTATION ALLEGED REPLY TO LABOUR CLAIMS [BY TELEGRAPH —IBPEUIAI, REPORTER] WELLINGTON, Wodnesday "The greatest piece of misrepresentation ever porpetrated by a responsible public man," was the description applied by the Rt. Hon. J. G. Coates (Opposition—Kaipara) during the debate on the Imprest Supply Bill in the House of Representatives to-night to the statement made by the Prime Minister, Mr. Savage, in a recent public address to the effect that the Labour Government had reduced interest rates in New Zealand. "Tho Prime Minister says that if the Opposition is returned to office moneyed interests will have the first consideration," said Mr. Coates. "What justification has the Prime Minister for saying that his predecessors raised the rates of interest? In 1925 certainly money rates hardened, but that is tho only point on which the Prime Minister hangs his case. "He says that we are the gentlemen who raised the rate of interest and that he and his colleagues reduced it. It is a matter of definite fact that the rates of interest were reduced by the previous Government wheu the Minister of Finance happened to be tho Rt. Hon. Mr. Coates, Internal Loan Conversions "The internal loan conversions saved this country £1,000,000 a year in interest and members of the Labour Party sat on the Opposition benches and opposed all they could," Mr. Coates continued. "Who was it reduced the rate of interest to 4i per cent? Who was it arranged the reduction in mortgages and rents? We expect tho Prime Minister of the Dominion at least to put the case fairly, but he claims the credit for himself when the truth is that it was the last Government which was responsible."

The Coalition Government had taken effective action with regard to interest rates, Mr. Coates said, and yet the Prime Minister stated that his predecessors had been dictated to by the moneyed interests. Mr. Savage also spoke of what had happened under the Mortgagors and Lessees Rehabitation Act. Was he responsible for all those benefits or were they the result of something which he had found waiting for him on the Statute Book and which he had merely extended? " Nowhere Near Finished " "I know the Government will say it amended the legislation because of the stay order provision," Mr. Coates continued. "They objected to the fiveyear period, but Labour has been here nearly three years now and the adjustments are nowhere near finished." Mr. W. J. Poison (Opposition —Stratford) : There are 14,000 odd still waiting. Mr. Coates: That is so, and I say that even what has been done is not enough. Further misrepresentation had been indulged in by the Minister of Lands, continued Mr. Coates. Mr. Langstone had claimed that through the £10,135,000 conversion in London the Government had saved the country £2,135,000 in principal, as well as £266,765 annually in interest. The Government was not entitled to any credit for that. Particulars were set out in the 1935 Budget and at that time it once again happened that the Minister of Finance was the Rt. Hon. Mr. Coates. The Start of Prosperity Mr. J. A. Lee (Government—Grey Lynn): That was before prosperity. Mr. Coates: That was the start of prosperity and if the National Party had been returned to office and costs had not been artificially raised by the blundering of an inexperienced Government the real incomes of the people would be much better to-day. The arrangements for the 1935 conversion were made on the occasion of the visit to London of the New Zealand delegation at the time of the jubilee of King George V., Mr. Coates continued. The Minister of Lands claimed the benefits for Labour. Surely that was not fair play. The 1936 conversion was carried out by the present Minister of Finance, the Hon. W. Nash, but jt was only fair to say that, whereas in his conversion the bulk of the loan had been left on the hands of the underwriters, the previous loan had been fully subscribed. Another Point Answered "The other point made by Labour speakers," said Mr. Coates, "concerns past increases in our national debt. They say it has risen by £198,000,000 since 1912. They do Slot say that in that total there was £11,000,000 for discharged soldiers. They do not say there was £80,000,000 of war debt. Was that es'capable? "There is also £12,000,000 for hydroelectricity. Is that wasted money? It is invested in one of . the finest alssets in the country to-day. an asset for which the present Minister of Public Works tries to take all the credit." Mr. Coates had not concluded his speech when Mr. Speaker said: "The honourable gentleman's time is up."