THE PRIME MINISTER

Otago Witness, Issue 3494, 22 February 1921, Page 20

THE PRIME MINISTER

ENTERTAINED AT CHRISTCHURCH, j CHRISTCHURCH, February 14. | Tho Prime Minister was entertained at j dinner by the New Zealand Reform Party to-night. There was a large attendance. Mr Massey was accorded a flattering reception, mingled with loud cheers. Replying to the toast of his health, proposed by the chairman (Mr 11. D. Ackland), who congratulated him on the success of the seven years during which he had been in power, and expressed the dominion’s confidence in him as New Zealand’s representative at the coming Conference, Mr Massey said that luckily he had been blessed with a splendid constitution for work. He was determined before his health broke down to see this country through the reconstruction period. Anyhow, his health showed no signs of breaking down just now. Referring to his coining visit to England, Mr Massey said that two months ago he informed Lord Milner that there was no probability of his attendance, his first duty being to New Zealand; but when the last telegram came, which was confidential, he at once called Cabinet together, and was told his first duty was to go Home. Mr Massey referred to the splendid sacrifice made by Sir Francis Bell in giving up his trip Home to permit Mr Massey to go. So far Parliament had not, of course, sanctioned the trip, but it would be considered amongst other things at the session commencing on the 10t.h of next month. He expressed the opinion that all the necessary work of the country would bo done between now and the end of the year. The present Parliament, as last session proved, had been a splendid one, and he predicted that there was not likely to be any change in that respect for some considerable time to come. Last session was the best held in New Zealand in at least a dozen years, and for some time before that. Of course, all the work done was not popular, but that could not he helped. Passing on to the financial position, Mr Massey said Parliament had spent a very large sum on the war, thus enabling New Zealand to do its share. We now had to foot the bill, and they were S™ng do it without much trouble. Interest and sinking fund was . ari d a-half millions per annum. Pensions, when paid, would be very little snort of three millions per annum. On account of the high cost of living, the Government had to increase the salaries or provl“? bonuses for the people in its employ, \\ Inch amounted to another two millions per annum. Subsidies on wheat and butter were a little over another million. Then, under the Permanent Loans Act, there was anot.ier millions to be found. In addition to that owing before the war there was a yfkt of honour, and that was going to be paid. There would no doubt be some financial difficulty during the coming year. The drop in wool would mean six million less than before. In dairy produce, on the other hand, for the six months of the present season, August to February, butter and cneese had increased by £5,381“629. Though there was going to be a falling off in other directions, there was nothing to be pessimistic about. Regarding Customs duties, the imports during the last six months had been enormous, but it must be remembered that there must be a serious falling off next financial year. It liad been his duty durjnfif the last six months to do Ins best in building up a reserve for the coming deficiency. He could not say exactly what the surplus was going to be, but it would be a substantial one. Pie stated, and believed, hs would not have less than five millions for an emergency. That would not go as far as before the war, but with the arrangements that had been made the country, he believed, would get along without much difficulty. No country in the world was so well off financially as New Zealand. The increase in expenditure must be met, of course, but he did not propose to increase taxation. Perhaps we had not economised as much as we might have done, but he would give a little information on that point. The war debt had been practically reduced by 20 millions. Accumulated sur-pluses-—those left over after paying the war expenditure each year —now amounted to about £16,000,000, which had been spent on soldiers. At the end of this financial year there would be another four millions, which would be spent as before. The law previously regarded those surpluses not as assets, but liabilities, and compelled the putting away of 1 per cent, for a- sinking fund. That had been costing £200,000. The absurdity of the position was apparent. Paying for a debt that did not exist, and they had had that altered. Consequently that amount was now saved to the taxpayers. When money was invested on good security in the land of the country it, of course, ceased to be a liability, and became an asset. In regard to the purchase of supplies for departments, a new board which would purchase supplies for all de--1 partments, would, the Treasury estimated, [ mean £150,000 to £200,000 per year of a j saving. The balances in London again had been invested, which was looked to for another £30,000. Regarding the Bank of Now Zealand Bill, the Government's interest in the bank had been increased from one-seventh in the first place to one-third now, which was looked to provide another £20,000. There was a distinction between | economy and retrenchment. It was right to economise, but he did not think we would get actually as far as retrenchment in its proper sense. He did not think we would get as far ns the necessity for that. At present we were losing over £300,000 per year owing to coal difficulties. Having to get it outside New Zealand, etc., and at, one time the General Manager of the Railways estimated it at 1000 tons per day. There was coal all over New Zealand There was con! enough in New Zealand for our needs. However, there was no necessity to continue tho present high prices for outside coal. Good Welsh coal could be imported from Wales considerably cheaper than from Newcastle arid that would mean another considerable saving. I[e thought we could say that at tho end of the financial year there would bo a saving of at least half a million per annum; but we needed it all. ITe could make no definite

promise, but no one would be more pleased than be if lie oould then make a coon reduction in taxation. Mr Massey then read a balance sheet of the State’s assets and liabilities. showing assets totalling £121,114.000. tin- chief items being;— 11 turns from railways £42,400.000 Land for settlement 0.666.000 Public buildings ... 8,240,000 Interest, bringing assets against the war debt, totalled about 20 millions, so that there was ovix £140,000,000 as against lia-

bilities of some £200,000,000, though the ] country's debt was, t hero fore, about £50,000,000. Against that we had all the Crown lands, the value oi which it was impossible to tell, and privately-owned property and interests behind them. It was impossible, therefore, to call the country bankrupt when it was in a position like that. The Treasury, Mr Massey continued, was going to get, and had almost gut, all that was needed for soldie rs' s-ttl -ment. "With the present stringency in money there was not much chance of getting loans at the rate of 5i per cent., and ns increased interest meant increased taxation, which he did not wish, there would not. for the present be an extension of public works on loan money. Leaving finance, Mr Massey said that when he went to England he "would look info the wool position. Sir Arthur Goldfinch had told him that there were in store in the Old Country wool of a value of £22,000,000, and against that there were seven or eight millions accumulated profits. Sir Arthur Goldfinch said that if the wool was not sold at a certain figure that the latter amount would be set up against the loss, and New Zealand would get nothing out of it. Of course, if there were a profit ,New Zealand would get her share. That did not appeal to Mr Massey, who looked forward to some interesting discussions on the matter when he got Home. Of the war indemnity from Germany, Mr Massey went on, New Zealand would be entitled, he considered, to her share in proportion to her war expenditure, was another point he would look after. Another groat point was that of the Imperial connection with the dominions. The dominions, as far as he was concerned, were not independent nations, who could do what they liked, and what little influence he could use would be used in the direction of a united Empire. Our very existence in the Pacific depended upon a united Empire, and the existence of that Empire depended upon the supremacy of the British navy. Touching on Samoa, Mr Massey said the question of possession was not what benefit it would be to New Zealand, but that other rations should not be able to gain possession of those islands, which were really th 3 key of the Pacific. Regarding the latest addition to New Zealand’s navy, she was not expected to act as a warship, but as a protector of commerce. The little cruiser was a sister ship of the Sydney, and if the Sydney was good enough to sink the Kmden, her sister was good enough for our purposes. In conclusion, Mr Massey briefly touched on the new immigration law. Some countries would shortly be exempted from the restrictions. He was rot going to say which countries, but would say, for instance, the United States, a British-speaking race. Again, he would not like to see France, which had stood by the Empire so well, excluded. However, the Act, with exemptions, was going to do more than any previous measure to keep New Zealand for the Anglo-Saxon race. Replying to the toast of tlio Reform Party, Sir R. Heaton Rhodes briefly sketched the rise of the Reform Party, and said that ail the present members received votes from Labour—not the extremists, whom they could do without; but they had the support of all honest Labour, and Mr Massey now had the confidence of moderate Labour. Touching on defence, Sir Heaton Rhodes said, though economy was needed, they were going to have efficiency. Particular attention would be paid to officers and non-commissioned officers. The war had proved that men could soon be trained. With competent officers and non-commissioned officers they could do without camps and territorial training for a year or two, but he hoped to see them reestablished on a sounder and more efficient footing than before. Cadets, too, would not be forgotten. They must be trained, made physically fit and efficient, and drafted into the Territorials. Sir Heaton Rhodes continued that he had unwillingly been compelled to retire many officers for retrenchment purposes; but he believed the efficiency of the force was still unimpaired, and if ever it was necessary to send another force to help tlie Empire the machinery was there. He incidentally remarked that he did not wish to disband any regiment. Some might for the time being have to be made squadrons or companies, but they would retain their traditions and badges, and if they were again extended into regiments they would not have lost their identity. The meeting decided that a cablegram be sent to General Smuts congratulating him on the iesult of the recent elections and the success of the Imperial Party of South Africa under his leadership. TOUR THROUGH NORTH CANTERBURY. CHRISTCHURCH, February 15. I Mr Massey had an extremely busy time | to day in visiting the different parts of North Canterbury. Nearly 150 miles were covered on the tour, and at every township and settlement there were demonstrations of appreciation. Short addresses were delivered by Mr Massey at several places, but he broke no new ground. He leaves for the West Coast by special train tomorrow. VISIT TO THE WEST COAST. HOKITIKA, February 16. The Prime Minister arrived this evening, anti was accorded u magnificent reception in the Town Ilall. During the course of an address Air Ala-'-ev read the following copy of a telegram from the Secretary of State for the Colonies to his r.xeeller.oy the Governor-General of New Zealand: T shall be obliged if your Excellency will convev to Mr Massey the following message for him from Mr Lloyd George, Prime Minister: “ I earnestly trust that it will he possible for you to come to England for the Conference next June. I consider that tho Conference will have to discuss and decide questions of vital importance to the future of tins Empire, especially its policy in regard to defence, foreign policy, and other very important questions. I fool that it would be a great calamity if we were deprived of your experience and advice.” (Signed) Alilxee. GREYMOUTH. February 17. The Prime Minister arrived this afternoon j from Hokitika. lie met members of local 1 bodies and visited the scene of the river j erosion. Later he received deputations rc- ! carding local needs from the Grey County i Council, the borough councils of Greymouth, j Runangn. and Brunner, the (’obden Town ! Board, Miners’ Union of Workers, tho j Wrier:-'filers’ Cnion, the Runanga (Jo-opera- • live Society, tlie Hospital Board, the Pro-

gress League, and the Repatriation Committee. Mr Massey promised favourable conside ra‘ ion to oqu.-ls. Later Mr Massey visited Ri uanga, giving satisfactory replies regarding housing and local improvements. The miners' deputation stressed the fact that men were leaving I--- unse they could not get houses. There was a large crowd in the evening at the T< wn Hall at a welcome to Air Alassey. who in a speech dealt at length with lb - lie: (1 for the solidarity of the Empire. When he went to Greai Britain he would stand for gieater Imperial unity. He wke optimistically of the Otira tunnel as a factor in advancing the West Coast. ITe instanced cases proving the success of the soldiers’ settlement policy of the Government, and stressed the need for public and private industry and economy iu the next eighteen months. A good metro would be: ‘‘Take courage, and keep busy.” lie dealt briefly with the financial position, also the gold mining prospects, expressing the hope that tlie new dredging venture at Rimu Flat would lead to a revival of gold production on the Coast. He believed that much gold was still to be got in the Coromandel Peninsula. He said ihe sugar position was improving. Regarding immigration, he pointed out limitations against undesirable foreigners, but would welcome the French people and others who would be > good settlers, and paid a high triubte to the trench people, lie dealt with the coal position, saying the dominion wanted more production, as they were importing coal from as far away as Wales, whence a shipload left only that day to come 14,000 miles for our railways. He would do liis utmost to make the miners’ conditions and wages the best possible, in order to get more miners, as the, country was losing £300.000 a vear through having to import coal. He thanked the people of the Coast for the splendid welcome given him an all the places visited. Mr Alassey was later entertained at a local function by local bodies. Air Alassey leaves early to-morrow morning for Reef ton and Westport. THE EXPANSION LEAGUE DINNER, On his return to town from Waipori on the 17th the Hon. J.. G. Coates (Minister of Public Works) was entertained at dinner in the Savoy Rooms by the Otago Expansion League. Messrs Furkert and Birks were also guests. Air Charles Todd (president of tho league) presided, and there were present—tho Mayor (Mr W. Begg), local members of Parliament, city councillors, members of the league, and prominent business men in the city. An excellent dinner was enjoyed, and a few musical items pleasantly varied the execution of the toast list. J lie looked for event was, of course, the speech by the Minister, which was expected, and did, contain a clear statement of the department’s policy so far as the development of hydro-electricity in Otago is concerned. The Minister said he felt sure that when they went into it, they would agree that the full development of Waipori. with a _ feeding station, would not only be sufficient for the present, but for many years, and would he cheaper and e'er so much quicker than the larger scheme. What he had said was not said offhand, but after thorough consideration (not forgetting tho possibilities of Hawea) and with the approval of Ills engineers. lie believed they would come to see that if satisfactory arrangements could he made, Waipori was the quickest and best scheme from all points of view for some years to come, llawea was always there, and if in 10 years the population bed grown so that it was needed they would have to scrap only a third at tho most of their plant—the generating plant, which could be sold. They would still retain the reticulation, and would have had the advantage of having had tli9 power all these years. VISIT TO WESTPORT. WESTPORT, February 18. The Prime Minister was mot to-day at Inangahua Junction by a large representation of the Buller Progress League, including the heads of all local bodies in W estport, and was given a most cordial reception. lie mot some deputations, including one on the Buller Gorge railway, which pressed for the speedy completion of the line. Later, as they were corning down the gorge the Prime Minister was taken into one of the mines, just off the roadside, where a coal face of 27ft in thickness was being worked. The Prime Minister remarked: “I must get this railway through.” He regretted that, a train was not now running there to bring the coal to the waiting markets. On arrival in town Air Alassey, with tho heads of Government departments from Wellington had a consultation with the Harbour Board, which the Government takes over on April 1. This evening the Prime Minister was given a great civic reception, the band and people turning out in large numbers, and crowding the “theatre. The speakers were the Mayor (Mr M entries), Air MTntyre (chairman of the County Council), Messrs H. E. Holland and R. Hudson, M.P.’s. The Prime Minister dealt with local and Impel',al questions, and at tho conclusion v.a- accorded a most hearty vote of thanks, on the motion of Mr G. Gothard (nresident of the Progress League), seconded by Air (: eO . Griffiths (for 30 years a member of the Westport Harbour Board). A number of other deputations were hoard.