GOVERNMENT DEFENDED

Otago Daily Times, Issue 23527, 16 June 1938, Page 20

GOVERNMENT DEFENDED

BY LONDON NEWSPAPER REPLY TO CRITICISMS (From Our Own Correspondent) (By Ail’ Mail) LONDON, May 25. The English Labour National daily newspaper, the Daily Herald, has adopted the role of publicity agent for the New Zealand Government.. It has a reply for those who criticise in any way the activities of the Dominion s Labour Cabinet. “Evidence is accumulating of attempts to minimise the improvement which has taken place in New Zealand's economy since the advent of the Socialist Government there and to discredit the Government.” says the City editor. , , “ Speaking at the annual meeting of the Royal Sovereign Pencil Company Mr Percy Charnaud, the managing director, who has just returned from a trip to Australia and New Zealand. made an attack on the Administration and stability of the latter Dominion. He said that New Zealand was going through experimental stages politically. That, he thought, was causing a certain feeling of insecurity. He contended that there did not appear to be the same feeling of contentedness and optimism that lie had met in Australia. This was probably due to the changes taking place, and to the short hours and high wages which had been imposed by the Government.

CRITICISMS ARE BASELESS ” “From the facts available, it would appear that Mr Charnaud’s criticisms are baseless. In so far as Ins own business is concerned, Mr Charnaud has no reason to comnlaii) of the treatment he has received from New Zealand's Labour Government. Since the tariff revision, which came into operation on March 1, 1938, British pencil-makers have received still more favourable tariff concessions from New Zealand. “The tariff on Bntisn pencils enterini' the Dominion is 20 per cent. Before March 1. the tariff on foreign pencils was 45 per cent, plus surtax, making CO per cent.; since that date the tariff on foreign pencils has been increased to 50 per cent, plus surtax, making 67 per cent. British preference over Czechoslovakia and other pencil manufacturing countries has accordingly been increased from 40 to 47 per cent. . "Mr Charnaud’s allegation that political experiments have caused insecurity can also be challenged. Labour has balanced its two Budgeli, and even after enormously increasing social services, New Zealand has not only been able to pay the service on her debt, but also last year to reduce the capital sum owing by £4.082,000. “ It is also difficult to understand Mr Charnaud’s charge that higher wages and shorter working hours produce a feeling of discontent. At least 70 to P.O per cent, of the community are wage-earners, and it seems absurd to sav that they are made less contented than their Australian neighbours by improved labour conditions. “ Even if Mr Chranaud's remarks arc intended to apply to employers only, it appears that they are without foundation. The Times Trade and Engineering Supplement of April reports that in New Zealand a review of the balance sheets of 150 representative companies shows an average increase of 14 per cent, in profits since the Labour Government came into power. Furthermore, The Times Annual Commercial and Financial Review on February 8 reported that ‘ prosperity exceeding that of any other vear since 1929 was enjoyed by New Zealand in the past year.' “Might 1 suggest that Mr Charnaud. who apparently has no reason to complain of the treatment given to his business interests in New Zealand, should present facts to support bis adverse criticisms of conditions in New Zealand."