CURRENCY CONTROL

Otago Daily Times, Issue 21773, 12 October 1932, Page 9

CURRENCY CONTROL

INCREASE OF PURCHASING POWER LABOUR’S POLICY CRITICISED. \ - (From Oue Parliamentary Reporter.) WELLINGTON, October 11., The primary producer’s place in Labour’s scheme of currency control was discussed critically by Mr Ansell in the House to-day when he questioned the emcacy of any move to increase purchasing power—the main aim of the Opposition s policy, he said. , , Labour’s idea of increasing the purchasing power meant higher wages, Mr Ansell said, but this would necessarily increase the cost of production. Since the New Zealand producers had to accept world parity for their exports, however, they would be in a worse position than even if the downward trend of costs were checked. He was not prepared to say there was no answer to this criticism, but he would be interested to hear what Labour had to say on this point. Discussing the Prime Minister’s Budget statement that New Zealand would have to rely more on the internal market for loan moneys, Mr Ansell said he failed to agree that this course was right. He did not think there was sufficient money in the Dominion to meet the Government’s requirements, and if the Government went on the local market for a loan it would be a serious competitor with industry and commerce generally for the limited amount of capital available.