CHALMERS SEAT

Otago Daily Times, Issue 22716, 31 October 1935, Page 17

CHALMERS SEAT

THE DEMOCRAT CANDIDATE CAPTAIN FRASER'S ADDRESS 9 The Democrat candidate for the Chalmers seat, Captain Robert Fraser, opened his campaign at Outram on Tuesday night. Mr A. Walker occupied the chair. Captain Fraser commenced his speech with reference to New Zealand's future, and stressed the concern being shown upon all sides as to where the country was drifting. No better criterion of the efficiency of the Government and of the well-being of the community was to be found than in the problem of unemployment, he said. It was the greatest issue confronting the country to-day. In Great Britain, with improving conditions, the unemployed were being gradually reabsorbed into the national life of the community, but in New Zealand what was the position? The position was that today it had 10,000 more unemployed than when the present Government took office four years ago, the figure now standing at 58,225, out of which 15,347 were men on sustenance only, which was approximately 10,000 more on sustenance than last year. These 58,000 were the men only, and if the wives and children were added it would be found that at least 200,000 of our pepole were dependent on the meagre earnings of the unemployed, and this out of a population of 1,500,000. What did these figures mean? They meant, first, that the Government had failed to solve the problem, and that the Minister of Employment, Mr S. G. Smith, was correct in stating the position of the Government when, on June 21, he stated: "We are doing our best to deal with the difficult question of relief work and sustenance. I cannot solve this problem. The board cannot solve this problem. The Government cannot solve it." The Democrats said that" the problem could, and would, be solved. The crushing burden of taxation must be lightened to enable industry again to function. Once this was done, the wheels of conimerce would move with increasing rapidity, absorbing men and women again into normal employment. "We must encourage the expansion of old industries and the development of new ones," Captain Fraser added. "We must aim to encourage and develop economic and selfsupporting industries. We recognise that the principle of providing capital works out of revenue derived from heavy taxation is wrong. The community is in a state of indecision and doubt. A healthy stimulus of new capital carefully administered will restore vitality and confidence. We will not embark on an orgy of extravagance or a carnival of spending, neither do we intend to allow the people any longer to remain in a state of hopeless despair. The call now is for bold, courageous action." The Democrats would institute a National Development Council to consist of representatives of the Government and citizens of highest standing representing local bodies, primary, secondary, manufacturing and financial interests. Its duty would be to examine proposals for putting work in hand, whether Government, local, or private enterprise, and the one test of every proposal would be its ability to become permanent and selfsupporting. If this test were passed, funds would be made available according to the needs of each project from a National Development Fund. Projects would not necessarily be assisted by direct advances, but necessary help would be given in some cases by guarantee either of principal or interest or dividend. The method adopted would be that which appeared best to the Government, but the essential principle was that the work.? must become, within a reasonable period, self-supporting and able to bear their own burdens. Applications from private bodies would receive equal consideration wi,th those from local bodies. While the Democrats did not intend . to embark upon a State housing scheme, they would assist private enterprise to meet any shortage of housing for the people. To finance these schemes the Demo* crats would take authority to borrow. In the first year they might borrow up to as much as £8,000,000. The amount would depend upon the schemes approved and the manner in which they were financed. A sum of £8,000,000 in direct payments would create work for at least 32,000 men, and probably many more. The flow of their pay throughout the ordinary channels of trade would help many more and thus provide a healthy stimulus to the whole country. No obligations, however, would be incurred except where the works were going to be definitely economic, and consequently in a comparatively short period the whole cost of the scheme would be removed from the State on to the self-supporting work involved. As the projects were approved the necessary finaucial provisions would be made, because the works were to be carried out o n loan moneys. The Democrats were satisfied that they would in the' first year put at least 40,000 men back to work at full normal rates of pay, the unemployment tax consequently being reduced. They would abolish the annual levy of £l, and the tax would be reduced from 8d to 6d i" the £. In addition, a portion of this tax would form a basis of a national health insurance fund. He had referred to borrowing for the first year on schemes approved only on a basis of their becoming definitely selfsupporting- If, however, to complete entire rehabilitation through these methods a total sum over a period of four years of even up to £20,000,000 was required, it would be definitely well worth it. The sinking fund and interest on a total of £20,000,000 would be approximately £1,000,000 a year, an amount that was only about one-fifth of the annual sum at present levied by the Government on the people for unemployment. If it took four years for the whole scheme to be complete and the works to become definitely self-supporting, the total cost to the taxpayer would be less than the present taxation for one year. That was the scheme. Surely it was infinitely superior to the hopeless outlook of defeatism evinced by the present Minister and his colleagues. . " I venture to say that never in the history of New Zealand has a Government holding office for four years done so little for the advancement of this country or so much damage to her fanreputation overseas," Captain Fraser continued. "The success of New Zealand s recent loan conversion was due to the fact of the large amount of money lying idle or invested at lower rates at _ Home than any goodwill or confidence m the Forbes-Coates Administration. I make this statement deliberately and advisedly, as I have recently returned from nine months' stay in the United Kingdom, and, despite interested statements to the contrary, I "say our reputation has badly slipped. When in Leeds at the Roi'i.Tin Club I was introduced to three prominent manufacturers as a visitor from New Zealand. They each and all remarked their pleasure at meeting one who CAine from a country where the Government did not interfere with the exchange, but left it to world economic conditions. That was in November, 1032, when the Commonwealth of Australia had raised its rate of exchange. Judge, therefore, my disgust upon my arrival in New Zealand, at the end of January. 1933, to hear that the Government had deliberately lifted the exchange rate from 10 per cent. Up 25 per cent. —this against a definite assurance Riven a few days before by the Prime Minister that the matter would be left entirely with the banks to deal with in accordance with ordinary economic principles. This was against the advice of the Treasury, against the advice of the banks, and against the advice of the Minister of Finance (Mr Downie Stewart), who, to his eternal credit be it said, resigned his portfolio in the Cabinet." One of the regrettable effects of this damnable exchange had been to divert the Dominion's import trade from its best and most vital customer, Great Britain, to its great competitor and rival, Australia. Thus, instead of buying from those who took the great bulk of our exports, the New Zealander was left to buy from Australia and divert the money across the Tasman that should be going to the Homeland to assist in the consumption of New Zealand's primary products. Unfortunately, the New Zealand Year Book gave data only up to March, 1933, which practically showed only the diversion caused by the 10 per cent, exchange. This was as follows: —

The same applies move or less to fencing wire, white lead, glass, etc. He asked his audience to think what was going to become of the Dominion's exports if John Bull were treated like this. It was the policy of the Democrat Party to bring the rate of exchange to its true economic relationship with sterling. As the reduction came about the need of the £1 would be met by a different method. For the purpose of bringing about the reduction, the Democrats would call into consultation the Reserve Bank and the trading banks. They would act on the advice of these banks as to the time, method, and degrees of reduction. They recognised the present financial difficulties of the farmer. To assist the farmer, as the exchange fell they intended to pay to the individual farmer an export subsidy upon his produce. The amount they intended to pay to him would give him rather more than his net gain from the present artificial exchange. It would be paid to him directly as an individual. They would set up a special fund made available through the savings which would occur on the debt services, State purchases, and otjier revenue which would follow, such as increased Customs returns. Nearly £IOOO had been added to the cost of the Balclutha bridge owing to the increase in exchange. " I come," said Captain Fraser, "to a subject which I consider has simply been toyed with by the present Government. During the past 12 months no fewer than two Ministers of the Crown have at different times taken joy jaunts to Australia at a co3t of £llOO of the taxpayers' money to arrange for the export of our potatoes to the Commonwealth, and on both occasions, after a social round, they returned to New Zealand with nothing accomplished. I contend that it isinothing short of a scandal that, with a powerful tariff lever in the shape of a £2,000,000 trade balance ni Australia's favour, our Government could not have demanded their free admission, failing which Australia's favourable trade balance would be taxed 25 per cent, to put it on an equal basis of admission to the goods of our best and principal cus tomer, John Bull—a matter that could have been quickly settled without joy jaunts of Ministers at the public expense to enjoy the Commonwealth s hospitality. With'the Democrats this is a matter that speedily will be dealt with." . Asked by an Auckland member just prior to the close of the session what action was being taken in connection with the foreign competition in shipping, the Frjme Minister had stated _ that the matter was under consideration. This was the position after four years of office, a position that would not have been tolerated for six months under the virile Government of Seddon or Massey. If New Zealand bought foreign goods the Government of the country levied from the purchaser a duty of 35 to 60 per cent. Four years ago the Government put a duty or tax upon all oversea passage tickets of 5 per cent. He contended that the present administration had the power to have placed an additional duty or tax of 45 per cent, on the passage tickets bought by people in New Zealand who used foreign ships for their pleasure or convenience. This policy, in conjunction with the Commonwealth of Australia, would have prevented hundreds of thousands of pounds being diverted from the British shipping industry into thf coffers of the United States of America*. In this matter there could be no question of foreign complications, as every country had a right to make laws for its own nationals. No British ship touching at Honolulu was allowed to embark a passenger for America, and any cargo lifted was liable to be confiscated. That was America's attitude to British shipping. New Zealand would, on the other hand, take no exception to either cargo or passengers being lifted by American ships, being more than generous by comparison. To its own people, however, it would say: " If you wish to use foreign ships to the detriment of our own British ships and vital national interests you must pay for it." Even the liberty of the subject would not be infringed upon, option of choice still being his right. Further to show the Government s utter disregard for or interest in the maintenance of British shipping, he wished to point out that the Government was in great glee at getting Japanese ships to come to the Soutli Island ports, overlooking the fact that they were going to take away thousands of tons of transhipments from New Zealand, tending to lay up more ships and put additional seamen out of work to swell the already overcrowded ranks of the unemployed. " To-morrow, if any international crisis arises," said Captain Fraser, " these gentlemen will get upon their legs, wave the British flag, and extol the worth arid value of British sailors, of whom at the present moment there are no less than 1200 officers and men ashore in New Zealand out of employment. Their adoption of Mr Stanley Baldwin's photograph on their advertising propaganda is an insult to a preat British Prime Minister. Japan will take just as much of our wool as suits her and not a pound more. As for taking our meat and dairy produce, it is a myth, The Japanese national diet is rice and fish, and the few tons she will take for the hotels and the wealthy classes in the larger cities will be obtained from Australia. The present Government is devoid of all vision, ready to fall into the arms of any foreign nation to the detriment of our own British race and people." " There are some people who consider that, because the country has come through the slump, the Government is entitled to the credit. To that view I cannot subscribe. I say that the country has come through the depression despite the Government. New Zealand is so lavishly endowed by Nature that it has been well said that, even with mismanagement and bad government, she survives. Could they vote for a party whose leader, after making a definite and solemn declaration, deliberately broke it a few days later, a party that had injured the Dominion's good name in the British market, upon which this country relied for its very existence, a party that hag done little but saddle and overload this fair e land with expensive boards and commissions, allotting to their appointees thousands of pounds, while taxpayers were squeezed for the last penny. It was a party which dishonoured the sanctity of contracts by its " stay order " provisions in its Mortgage Adjustment Acts; a party that had been condemned by one of .its own Ministers (Mr W. Downie Stewart), a party which presented public accounts that could mislead the public and differ from the Treasury books? He believed that the vital safety of New Zealand demanded that the present Government be ended once and for all.

At the conclusion of his speech the can didate was accorded a vote of thanks.

IMPORTS IRON AND STEEL BAR, BOLT. AND ROD. 1929— United Kingdom £187.874 '884 1933 — United Kingdom £41,694 35,920 HOSIERY. 1929— _ United Kingdom £324,447 177 1933 — United Kingdom £157,677 35,920 ELECTRICAL MACHINERY. 1929 — United Kingdom £1,107,269 41,602 1933 — United Kingdom £446,354 140,183