ELECTION CAMPAIGN

Southland Times, Issue 22728, 2 November 1935, Page 6

ELECTION CAMPAIGN

REPLY TO CRITICS FINANCE MINISTER EXCHANGE DEFENDED EFFECT OF INCREASE (Per United Press Association.) Helensville, November 1. A reply to critics of the high exchange rate figured largely in the speeches to-day by the Minister of Finance, the Rt. Hon. J. G. Coates in the course of his election tour of the Kaipara electorate. “When the Government took office in 1931,” said Mr Coates, “there had been a drop of 43 per cent, in export prices, but very little reduction in costs. It would have been impossible to bridge that gap by reductions in costs alone. The reductions we made, although absolutely necessary, were serious enough, but to have applied 40 per cent, reductions in wages, salaries and other costs would have been manifestly disastrous. The gap had to be bridged and raising the exchange reduced it to manageable proportions. I have been asked to show that one penny additional wealth has accrued to New Zealand as a result of the raising of the exchange. The answer is clear. By sustaining the farmer’s income, it sustained production in farming. The farmer - could buy more goods from the trader and manufacturer and the national income was thereby increased. The value of production which increased from £83,600,000 in 1931-32 to £98,800.000 in 1933-34 is proof of this and the figure is still rising. In addition wages and salaries have increased from £59,000,000 in 1933 to £65,000,000 in 1935 and are still rising. There has been no extra cost to the Budget through the benefit to the farmer alone. The national income is £14,000,000 higher than it would have been at par and on the present basis of taxation this means at least £3,500,000 more revenue. The added cost of the exchange is £1,600,000 so that there is a clear gain to the Budget of about £2,000,000.'’ Mr Coates also criticized the advocacy by Labour and the Democrats of the export subsidy as an alternative to the exchange. If all the producers were to derive the same advantage from the subsidy as from the exchange, the cost to the Budget would rise from £1,600,000 to £13,500,000. Apparently there was a suggestion that the subsidy should be given direct only to those who needed it. Such a scheme would require an army of prying inspectors before it could be put into effect. The proposal was too ridiculous for words. PRIME MINISTER DEFENCE OF LEGISLATION. (Per United Press Association.) Christchurch. November 1. A defence of the Government’s legislation for the rehabilitation _of the farming industry was the main theme of an address by the Prime Minister, the Rt. Hon. G. W. Forbes, at Hanmer in his own electorate to-night. The speech was the first of his own election campaign. Two hundred were present and Mr James Ashton presided. Mr Forbes spoke of the measures which the Government had had to take to rehabilitate the country’s finances, mentioniing as one of the most unpleasant tasks, the reduction of expenditure involving a reduction of salaries and wages. The Government realized that the farmers were the hardest hit in the community and that if anything went wrong with the farming industry, every industry in the country would suffer, so the Government considered it wise to maintain the stability of the industry on which rested the commerce of the country. He detailed the measures taken by the Government and claimed that experience had proved their success. A resolution was carried expressing thanks to Mr Forbes and continued confidence in the Government with appreciation of its courageous action. AWARUA SEAT MR HARGEST’S ACTIVITY. Last night Mr James Hargest, M.P, the National Government candidate for Awarua, addressed meetings at Taramoa and Waianiwa. At Taramoa about 50 people were present, and Mr Albert McDowell presided. After the candidate had spoken on the lines of his earlier addresses he was accorded a vote of thanks and confidence on the motion of Mr H. M. McDowell, seconded by Mr R. W. Hawke. At Waianiwa the attendance was 150, and Mr Martin Bruland occupied the chair. Mr Hargest spoke at length on the Labour Party’s programme for guaranteed prices and the control of credit. Referring to the Southland Power Board he explained the effect of the Government’s guarantee, particularly in connection with the conversion in the future, . the result of which would be that of removal of any need for rates. In addition the Government had put before the board a further proposal for discussion involving the purchase of the scheme. In aswer to a question about the Orepuki shale works, Mr Hargest said that there was no mystery and nothing sinister about the inactivity at the works. It was purely a matter of business. The New Zealand Coal and Oil Company held a 66 years lease of the deposits dated from 1899. It had worked the deposits for two years, but owing to the broken nature of the shale the cost instead of being 3/6 a ton as estimated was 18/-. The shale yielded 38 gallons of oil a ton and 291 b of sulphate of ammonia. Owing to the cost it had been unprofitable to work and therefore had closed down. The only place where shale was worked profitably for the production of oil was in Scotland, where the shale was unbroken and yielded 100 gallons a ton. In New South Wales the shale gave a yield which was about as good, but it was a fact that the treatment of 600,000 ‘ tons in 1020 had fallen to 600 tons in 1924, and the works had practically ceased to operate. A few years ago an enterprising sharebroker had tried to raise capital for a company to take up an option on the. works on advantageous terms, but investigation showed that the deposits could not be handled profitably and the capital was not forthcoming. At the end of the meeting the candidate was accorded a vote of thanks and confidence on the motion of Mr S. Wilson, sen., seconded by Mr J. F. Fotheringham. The motion of thanks and confidence at the Bluff meeting on Thursday night was proposed by Mr J. Lopdell and seconded by Captain R. C. Harbord. MR NIEDERER’S. CAMPAIGN. (From Our Correspondent.) There was an attendance of 40 people in the Mokotua Tennis Club’s pavilion on Wednesday evening when Mr L. A. Niederer, Democrat candidate for Awarua, addressed electors of the dis-

trict. Mr C. Clay was voted to the chair. Mr Niederer spoke for an hour ana a half, and stated that the full policy of the party would be enunciated at a later date in an adjacent hall. He was given an attentive hearing throughout and at the conclusion Mr J. Bourchier moved a hearty vote of thanks which was carried by acclamation. Mr Bourchier said he would not add a vote of confidence as that could be done at the ballot box. In reply to a question by Mr J. Jefcoate, Mr Niederer said he was in favour of a subsidy on butterfat to bring the price up to 1/- a lb which he considered was the minimum price to be received from year to year. To Mr Bourchier’s question whether the Democrat Party would wipe out the present exchange rate immediately upon attaining power or gradually, he said it would be gradually reduced until it ultimately found its own natural level. Mr Clearwater asked what arrears would be written down and how would this be effected, to which the candidate replied that all arrears would be written off, using the existing channels. Asked by Mr Jefcoate if he considered it advisable to link up the large gap in the South Island main trunk railway in spite of its passing through consistently barren country, he said that the Australian transcontinental railway passed through hundreds of miles of desert, but was considered necessary as a link between important centres. Mr E. Hansen inquired if the Democrats would join with Labour to put the present Government out, to which Mr Niederer replied: “If Labour wins more seats than we do, we will let them have a go.” They wanted the present Government out and would certainly vote with Labour to do that. Mr Bourchier said that the Transport Board allowed certain people a monopoly of services on certain roads. Mr Niederer said he did not believe in the present system and would work to alter it. Mr Bourchier quoted recent refusals by the Commission of Agriculture to grant permits for the erection of dairy factories in certain localities, and the candidate stated that he would be in favour of allowing anyone to build anywhere. WALLACE ELECTORATE THE HON, ADAM HAMILTON. SUCCESSFUL MEETINGS. Continuing his campaign for the Wallace seat, the Postmaster-General (the Hon. Adam Hamilton) last evening adressed 50 electors at Heddon Bush. Mr F. N. .Taylor presided, and a vote of thanks ar.d confidence was carried on the motion of Mr John Plunkett, seconded by Mr E. Bailey.

At Drummond 70 electors were present and Mr Kincaid was chairman. A vote of thanks and continued confidence in the sitting member was moved by Mr J. Kincaid, seconded by Mr F. Ridder and carried.

On Thursday Mr Hamilton sjJoke at Clifden, where Mr T. Cochrane took the chair. A vote of thanks and appreciation of Mr Hamilton’s services, moved by Mr C. Gardner and seconded by Mr J. Dickson, was carried. Forty electors were present. When Mr Hamilton addressed 70 electors at Orawia later, Mr E. K. Sim was chairman. A vote of thanks and continued confidence was carried on the motion of Mr Moffett, seconded by Mr McGibbon.

DEMOCRAT CANDIDATE AT MOSSBURN.

On Thursday evening a crowded hall greeted Mr W. Hinchey, the Democrat candidate for the Wallace electorate, at Mossburn.

Mr I. R. Wills, who acted as chairman, when introducing Mr Hinchey spoke of the long and faithful service he had given to Southland. He was for 17 years a member of the Bluff Borough Council and Mayor for eight years, on the Southland Hospital Board for eight years, the Southland Electric-power Board since its inauguration, being chairman for six years, the Southland League since its inception and president for six years, and a member of the Bluff Harbour Board for 11 years, including one year as chairman—a very fine record. Mr Hinchey’s speech followed the lines of that delivered in Lumsden, and was received enthusiastically. At the conclusion of the speech several questions were asked and satisfactorily answered. A hearty vote of thanks was moved by Mr T. Goodger, and seconded by Mr Christie, for the very interesting and instructive address. The motion was carried by acclamation. On Wednesday evening Mr Hinchey spoke at Lumsden, where the chairman of the Town Board, Mr A. J. Heath, presided and introduced the candidate. At the conclusion of his address the candidate answered questions. On the motion of Mr J. Campbell, Mr Hinchey was accorded a hearty vote of thanks. INVERCARGILL SEAT MR REED’S CANDIDATURE." Mr Gordon J. Reed’s central executive met on Thursday evening when there was a good attendance. Much valuable work was reported to have been accomplished and reports from sub-committees showed that steady progress was being made. The ladies offered many useful suggestions and are showing a lively interest in the progress of the campaign. •DENIAL ISSUED NATIONAL PARTY’S ADVERTISEMENTS. (Per United Press Association.) Dannevirke, November 1. During the course of an election address at Herbertville, Sir Alfred Ransome, the National Government candidate, referred to Mr Hislop’s objection to certain advertisements that the Democrat leader had undertaken not to enter general politics if elected to the mayoral chair at Wellington and to Mr Hislop’s assertion that such advertisements were paid for by the general taxpayer. That statement, said Sir Alfred, was a deliberate attempt to discredit the Government Mr Hislop knew perfectly well that such advertisements were paid for by the National Political Federation and any statement, to the contrary was unworthy of a man of Mr Hislop’s standing. Mr Hislop had boasted that he had been returned as Mayor of Wellington by the largest majority in New Zealand, but notwithstanding such support he had not the courage to contest a Wellington City seat.