THE OTAGO DAILY TIMES WEDNESDAY. SEPTEMBER 24, 1930. THE ISSUE IN NEW SOUTH WALES.

Otago Daily Times, Issue 21139, 24 September 1930, Page 8

THE OTAGO DAILY TIMES WEDNESDAY. SEPTEMBER 24, 1930. THE ISSUE IN NEW SOUTH WALES.

The most interesting point in the unbridled but not uninteresting speech with which the Leader of the Opposition in New South Wales, Mr Lang, has opened his' election campaign, is the divergence of opinion it reveals as between Federal and State Labour representatives. The Federal Government has just concluded its painful interviews , with Sir Otto Niemeyer, the financial physician who was called in to examine what looked to be a pretty baffling case. Sir Otto was grave, but not entirely discouraging: he prescribed drastic remedies and the Federal Government is, perforce, following his advice. But Mr Lang, blithe and feckless champion of Labour in New South Wales, refuses to see what even the Commonwealth Labour Government has acknowledged, that costs must be reduced, and reduced all round. . “The Labour Party,” he stated in his policy speech, “ would insist on amendment of the financial agreement and dissolution of the Loan Council. The State must continue to borrow .for. many years.” The financial agreement referred to is doubtless that made by all the Gov.ernments in conference. at Melbourne recently, that budgets shall be balanced and expenditure reduced to meet full- 1 ing receipts, and the Loan Council, of course, is the body * that has been placing a restraining influence on State borrowing. It is a small matter to’ Mr Lang that the Labour Governments in other. States in Australia were parties to the Melbourne agreement, i or that it has been definitely stated by Sir Otto Niemeyer, by Mr Scullin, by the Commonwealth Bank, by the Loan Council, and by every reputable economist in Australia, that borrowing must cease. “ There was sufficient money here to finance public works,” the cable message reports Mr Lang as observing, “ and he would undertake to get it • in order to complete them.” Such talk is irresponsible enough, but on a level with Mr Lang’s other statements. He is determined, for example, to restore a 44-hour week and to maintain wages at their original level. Yet Mr Lang made outward concession to the constant warnings of the present economic difficulties in the Commonwealth to the extent of a declaration, in a recent speech, in favour of the abolition of State Governments as an economy measure. It is not necessary to comment upon his discovery of such a com viction unless to say that the alteration of the present system would require alteration of the Constitution also, and is therefore not a State matter at all. But the measure of Mr Lang’s consistency is hardly such as to render it strange to find him deploring the expenses of the governmental system and at the same time advocating the maintenance of status quo ”as regards hours and wages. The Bavin Government, and every other Government in Australia, excepting Victoria, has recognised the need for immediate reductions in running expenses, and has met it by calling upon its employees to share in the sacrifices. All branches of the Public Service have had to accept reductions in pay and the necessity for working longer hours. They are, in fact, making their contribution and thus assisting the taxpayer. Mr Lang apparently wishes to restore the wage cuts with one hand and with the other abolish the institutions which make the payment of these wages necessary. As to the constructive side of his programme Mr Lang is rather vague. - Closer settlement, the stimulation of agriculture, and. a Federal wheat guarantee are mentioned. . These are the standardised

election promises. They may be commendable on paper, but they do not offer a solution of the more immediate problems which Australia has to meet. Developmental schemes are always costly and slow-maturing, although Mr Lang overlooks that fact as calmly as he dismisses others even more urgent. , Mr Bavin’s policy regarding agricultural development is moderate. He has formulated an economy scheme that aims at lowering production costs, with proportionate reductions in the cost to the consumer, and primary producers are offered loans at low rates of interest provided they find work for the unemployed. Mr Bavin believes that he can maintain a-fair standard of living and still balance the Budget; Mr Lang would maintain an extravagant standard and let the Budget take its chances. Thus the electors of New South Wales have the issues fairly clearly defined. If they are prepared to disregard Sir Otto Niemeyer’s warning they will support Mr Lang, but in doing so they ' will be inviting disastrous consequences.