POLITICAL ARENA

Southland Times, Issue 20614, 12 October 1928, Page 8

POLITICAL ARENA

AWARUA SEAT MR J. R. HAMILTON OPENS CAMPAIGN THE CASE FOR REFORM Opening what promises to be a strenuous campaign, Mr J. R. Hamilton, sitting member for Awarua and Reform candidate at the approaching general election, addressed electors at Waimatua and Tisbury last evening when there were satisfactory attendances at both places. The speaker, who in both instances was accorded an attentive hearing, defended the policy and legislation of the present Government and replied to criticism which has been levelled by the members of opposition parties. “We have reason to congratulate ourselves on the vast improvement in the economic condition of the country since we last met,’’ said Mr Hamilton, “but there is still room for caution, and it is to be hoped that the public, now that the depression is over and good prices have returned, will not lose their heads as they did during the war period, but will realize that it is as well not to be too extravagant in their expenditure and that they will study economy as much as possible. The Government has been blamed for the depression which we have just passed through, but is receiving no credit for the return to prosperity. It is not that anybody wishes the Government to receive the full credit for the good prices now being received for our primary produce which is the chief reason for the great recovery in our economic conditions, but when people are unfair enough to blame the Government for the depression, they at any rate should give the same credit for the improvement. Trade depression was no new phenomenon, he said, but it had repeatedlj occurred in times past. Trade moved in cycles, and years of prosperity were followed by years of depression. The greatest of economists had tried to solve this problem. but through their processes of reasoning had arrived at opposite conclusions. “I have said before and I say it again new.’’ said Mr Hamilton, “give the primary producer a payable price for what he produces and our economic problems will be automatically solved. There is one thing that the depression has proved, and that is how much we depend on the producers for our prosperity.” If any particular industry was forced out of existence through economic pressure, it affected very few outside of those connected with the industry, but when the primary producer was not receiving a payable price for his produce, the whole of the Dominion was affected. If farming was to be regarded purely as a mode of living it was only an individual question, but when the primary producer was in difficulties and it affected the whole community then it became a national question. In the early days New Zealand farming was purely a mode of living, but to-day now 40 per cent, of the population were making their living from farming, while 60 per cent, were depending on agriculture for a living. New Zealand’s wealth was still on the land; the income still came from the land; 95 per cent, of* the exportable wealth came from the land, therefore the chief problem before the people of New Zealand was to see that the producer received his fair share of national income. Fighting the Vested Interests. "We are told that we must have less Parliament in business and more business in Parliament,” said the speaker, “but our past experience has proved that we get very little out of the vested interests except under pressure.” He referred to the manure question, which was an important factor with the primary producer. Attempts to reduce the prices had been unsuccessful until Mr Goodfellow, managing director of the New Zealand Cooperative Dairy Co., had tackled this problem with the force of his 10,000 suppliers behind him. When he faced the position and put up an alternative the prices were forced down by about £1 a ton. On the other hand there were instances of the Proprietary Articles Trades’ Association protecting the vested interests against competition and the lowering of their selling prices. There were also experiences during the war period when our freezing space was “collared” and the farmers were unable to get the full benefit of the commandeer prices. There was also the experience of the wonderful organization of the vested interests that took place when the farmers attempted to control the selling prices of their produce. The Dairy Control Board instead of being composed of producers’ representatives was now being absolutely controlled by exporters and could be truly named an exporters’ board. The Land Question. “Our opponents will be coming round and telling you that the time has arrived when the Government should be put out of office because of their alleged inability to control the land question,” said Mr Hamilton, “but anyone who has a practical knowledge of the land question knows that until a certain degree of stability over a period of years is reasonably sure, any large purchases of land at other than conservative values is fraught with more than the possibilities of large losses which would have to be borne by the general taxpayers. The remaining area of unoccupied Crown Lands cannot be developed to any extent under present economic conditions without considerable sums being provided as subsidies.” If the future prosperity of the people warranted the calling on the taxpayers for the money to bring into fruition such lands, the Government would not hesitate to take action. The difficulty that surrounded the cutting up of large estates was well known to all practical farmers. For example, the cutting up of an estate of 1,000 acres into ten farms would immediately raise the cost of each farm by not less than about £l2 per acre which would be required for the establishment of homestead and necessary outbuildings. “The difference between the cutting up of estates under the Liberal Government and now is the difference between the conditions that existed then and those that now exist. The buying of land and settling people on it on a rising market is a different proposition from buying land under present day conditions.” The Government was continually being blamed of pushing people off the land, but if this were so the evidence would be found in the number of unoccupied farms. In speaking to other members of Parliament he had found that the same conditions existed in their electorates as in Awarua and that unoccupied farms were not to be found except in special circumstances. So far as the South Island was concerned he bbelieved one could travel thousands of miles without seeing any unoccupied farms. A great deal had been said about the number of people placed on the land under the Liberal Government, but between 1912 and 1922 this Government had settled 29,749 settlers on 6.000,000 acres of land. There was no record in existence of any period under the Liberal Government exceeding the number quoted. The latest figures available showed that last year 1,711 settlers were placed on 456.590 acres of land. Anyone who talked of forcing land settlement against natural conditions was not sound in his policy. To have attempted to purchase land on a falling market and placing settlers on it would have been courting disaster. Taxation. “A great diversity of opinion and a great deal of misconception exists to-day in regard to taxation,” said Mr Hamilton. Neither the small farmers nor the small business-man paid any direct tax at present. It had been stated that the Government was the friend of the large landowner and the wealthy business man. It would be found, however, that the large landowners and the wealthy business men paid a heavy income tax. As an example, the man who would have paid about £5OO a year in taxation under the Liberal Government was now paying over £2,000 a

year. There was also a good deal of misconception among farmers regarding customs taxation. No customs duty was paid on any implement not manufactured in New Zealand, but it was questionable whether the price of the imported implement would be reduced were the duty lifted as the local manufacture was always a factor in keeping the price down to a certain level. The opponents of the Government had asked what had been done on behalf of the producer. The present Government had established a sliding scale of wheat duties with a view to stabilizing wheat prices at' a level that was payable to the growers. A petrol tax had been established to compel the users of the road to pay their fair share of the upkeep as local taxation was becoming a very considerable burden on the ratepayers. The Government had also made it impossible for the Arbitration Court to raise the costs to the produced by way of increased wages and altered conditions. “Unemployment is another question out of which our opponents are trying to make political capital,” continued the speaker, “but the figures show that in New Zealand the rate of unemployment per head of population is the lowest among the following countries. In England the rate of unemployment is one in 38 persons, in the United States of America one in 60, in Australia one in 190 and in New Zealand one in 440.” The Licensing Question. Licensing legislation was another subject that had come very prominently before the people during the last 12 months. Many people were inclined to think that the legislature was settling the matter of no-license or Continuance, but the legislature’s work was one of placing before the electors a ballot paper which w’ould enable them to say whether they desired Continuance or Prohibition. “So long as I am a member, I will never favour the matter of deciding this issue being taken out of the hands of the electors, but so long as a certain section of the people think that they are labouring under a severe handicap, you will never remove the question from the field of politics. The whole endeavour has been to place before the electors a ballot paper which will give an equal opportunity to all to say whether they want Prohibition or Continuance,” he said. Daylight saving had also been prominently before Parliament during this and the last session and in order to save a certain amount of friction between town and country, the legislature had agreed to put the clocks forward half an hour for five months during the year. Administration of Samoa. “The Leader of the Labour Party has levelled a good deal of criticism of the Government’s administration of Samoa,” continued Mr Hamilton, “but it is very difficult to follow him in his argument as it is so contrary to his usual policy. The Leader of the Opposition usually arrays himself against the monopolists and vested interests, but here we find him taking up the cudgels on behalf of the vested interests and monopolists of Samoa and the only conclusions that one can draw are that Mr Holland is attempting to make political capital out of the difficulties that have arisen in Samoa and these are almost solely of the making of the vested interests.” Dealing with the taxation of the past year, which had amounted to £17,437,827, the speaker said that Customs revenue had provided £9.016,862, death duties £1,500,000’ totalisator tax £559,000, amusement tax £64,000, land tax £1,229,067, income tax £3,422,216 and other taxation £1,495,887. Local revenue and taxation amounted to £5,475,369. Many people imagine that this Government is borrowing too, heavily, but when you consider how the borrowed money has been applied it would be difficult to understand how with the demands of the public for money through the State Advances less would meet the position. During the last three years £9,645,786 of our borrowed money went into the State Advances Department. The balance went into hydroelectric development, post and telegraph development, railway improvements, extension of lines and roads and bridges. If our opponents would state specifically which of these items they are prepared to cut out, then the Government would be able to consider where they stood in the matter.” Effect of Arbitration. Mr Hamilton referred to the effect that the Arbitration Court had had on the industries of the country during the past years. This matter had received a great deal of attention from the Government during the last two sessions of Parliament. No changes of moment had taken place in the economic structure during the last generation except those of a political nature and origin, and since 1905 a series of enactments had transformed the economic fabric of the country. Freedom of contract had been replaced by statutory regulations and trade union restrictions under Parliamentary sanction. Piecework rates which had ruled from the earliest times had been overridden by statutory regulations and rates were payable irrespective of work done. Employment was based on terms which some public authority decided. Salaries and wages, hours and conditions of service were fixed not as formerly by free and individual bargaining, but by arbitrary and rigid regulations. The economic system had undergone such a radical change that the effect had been to lift industrial costs to such, a height as to cripple industry. Costs were fastened at that height by such powerful political rivets that out of its own resources industry was powerless to lower them. The power of readjustment to change conditions had been destroyed and the capacity to recover from trade depression had been lost in the process. The Government had attempted to so alter the arbitration laws as to give a measure of relief to these industries and a conference had been held to endeavour to arrive at a workable basis. A conference would also be held this year between employers and employees to see if some agreement could be arrived at before the Government attempted to legislate on this important matter. At Waimatua, on the motion of Mr A. R. Biondell, seconded by Mr M. Lindsay, a vote of thanks was accorded the sneaker for his address and a motion of confidence carried. The meeting closed with a vote of thanks to the chairman (Mr A. R. Blondell). THE INVERCARGILL SEAT. MR. MACALISTER’S ATTITUDE. To the Editor. Sir, —As your leading article of yesterday under the heading “Invercargill Seat,” may possibly create a wrong impression, I wish (while desiring not to be ungracious) to make it clear that I have not yet been asked by the Reform Party to contest the election and that if I am, any decision I may come to will depend on the weight of evidence put before me that there is a general desire on the part of the electors that I should offer myself as a candidate for the seat. —I am, etc., S. M. MACALISTER. Invercargill, October 12, 1928. THE MATAURA SEAT. MR D. McDOUGALL’S POSITION. (From Our Correspondent.) Mr D. McDougall, who was approached by the United Party to become a candidate for the Mat aura electorate, stated to a Southland Times representative yesterday that he thought it was understood that in the event of the Hon. G. J. Anderson being unopposed at the forthcoming election, no Reform candidate w’ould be appointed to oppose Sir Joseph Ward at Invercargill. He had noticed by the Southland Times that the Reform Party had approached Mr S. M. Macalister to contest the Invercargill seat and under these circumstances he (Mr McDougall) would have to consider his pdsition in regard to the Mat aura seat.

SIR JOSEPH WARD. UNITED PARTY CAMPAIGN. (Per United Press Association.) Wellington, October 11. Sir Joseph Ward (leader of the United Party) will open his campaign on behalf of the Party at the Auckland Town Hall on Tuesday night. He will leave for Auckland on Monday. Sir Joseph will speak in Wellington later but the date has not yet been fixed. He also intends to speak in some of the other larger centres. PRIME MINISTER’S CAMPAIGN. Christchurch, October 11. The Prime Minister will open his election campaign at Christchurch next Wednesday, speaking in the new Municipal Concert Hall. REPLY TO MR HOLLAND.* MR A. D. McLEOD’S ADDRESS. Wellington, October 11. Mr A. D. McLeod, Minister of Lands, took the opportunity at Upper Hutt tonight to reply to some statements made by Mr H. E. Holland at Masterton last night. Much of Mr Holland’s speech, said Mr McLeod, was a complete distortion of fact and an appeal to the non-intellectual. Much of the academic financial proposals put forward by the Labour Party in all parts of the Empire while in opposition, have had to be abandoned when they came into office. Striking examples were to be found in Australia. He asked Mr Holland to cease platitudes and point to any one Australian Labour governed State where money for farmers and workers has been cheaper or advanced to a greater extent than in New Zealand. His statement that the Government approved and encouraged the raising of overdraft rates by banks last year is contrary to fact. What the Government did not and does not now agree with, is that there was a necessity for a corresponding increase in lending rates. Mr McLeod was extremely satisfied that the Advances Office made profits of over £1,250,000. Referring to the appointment of Mr Sterling as manager of the Government railways and Mr Holland’s statement that it was illegal as was the restoration of superannuation rights, Mr McLeod stated that the same precedence was adopted here and in otheV countries and Mr Holland knew that well enough, he added. He did not agree to an indiscriminate reinstatement. No Government could agree without full investigation. The Government of New Zealand had gone further in allowing civil servants to support Labour and extended leave to contest the elections than any other democratic country in the world. He considered it amusing that not more than two or three United Party candidates were farmers. He referred to the fact that the Government advanced in five years £19,347,000 to enable people to build and own their own houses. This amount was unequalled by any other country in the world. On population he referred also to the great success of the recently formed rural credits scheme. He believed that New Zealand would never fulfil testing by primary production alone, and stressed the need for highest efficiency in primary manufacturing and labour, and upheld the need of scientific research work.