MATAURA SEAT

Southland Times, Issue 22733, 8 November 1935, Page 8

MATAURA SEAT

DEMOCRAT POLICY ADDRESS BY MR NEWMAN PLATFORM OUTLINED Addressing an audience of 70 electors at the Edendale Hall last evening, Mr A. T. Newman, Democrat candidate for the Mataura seat, outlined the policy of his party, claiming that the platform of the Democrats was designed to end the stalemate from which he declared the country was suffering. Measures on sound business lines were forecast as the objective of the party and the candidate stated that close examination of the proposals would reveal that they were practicable and capable of restoring prosperity. Mr O. Baird was elected to the chair and briefly introduced the candidate. After describing the Democrat Party and the general lines of its policy, Mr Newman went on to state that though the country has experienced bad times during the last three or four years, the Government was not entirely to blame for it, and he felt that Messrs Coates and Forbes had done their best during the early stages of the depression. During the last year or two, however, a lot of things had been done for which his party considered the Government should shoulder a considerable portion of the blame. Now that conditions were improving, people were inclined to say: “Things are getting better; stick to the Government.” The Democrat Party felt that had it not come out into the field there was every possibility of a Labour Government going in at this election. It was heard from various quarters that people were saying they would vote for Labour on the grounds that Labour could not be any worse than the present Government. Probably 20 or 25 percent. of the people were true' supporters of Labour, but there were a large number who would vote for Labour this year if no other party came out. “We do not mind Labour getting its true supporters, but we feel that it is only right that the large middle section of the community should have representation,” he said. Excessive Taxation. The main objections the Democrat Party had to the present Government’s policy were two: Excessive taxation and the socialization of the Dominion’s resources. As a result of excessive taxation there had been a dearth of employment, business people and others being afraid to commit themselves to any extra expenditure in employing labour. The Government had made commercial enterprise extremely difficult with heavy overhead charges of government, excessive taxation and the general interference in business The setting up of so many boards which were doing the work that Parliament should do was a costly and unsatisfactory method of government. This applied particularly to the transport boards. People in the transport business were being harassed unduly, business firms being forced to forward balancesheets of their business to Wellington. The latest move on the part of the Government was the sending out of auditors to examine the books of these firms to ensure that correct returns were furnished. The nature of the legislation in late years had been purely experimental, such as the raising of the rate of exchange, the Mortgage Adjustment Acts and the setting up of the Mortgage Corporation. In connection with the exchange question, some of its illeffects were that the goodwill of New Zealand’s greatest customer was threatened and the imposition of a sales tax and gold export duty had been necessary to meet the cost, resulting in a crushing of the expansion of business, the closing of the sources of employment and the cost to the people of the country. Benefits to Farmers. Sir Alfred Ransom was reported to have stated that last year the exchange was worth £9,000,000 to the primary producers. These figures were probably correct, but it was not correct to say that the producers received directly or individually by way of clear profit that amount. Against that amount must be taken into consideration the additional cost of every item purchased overseas, the additional cost of every item affected by the' sales tax and the additional taxation due to the cost of exchange to some local bodies in increased interest rates on their overseas commitments or loans. It would probably be safe to say that less than half of that amount would be clear profit. The question could be asked: Who paid for the exchange? The importers paid nearly 60 per cent., roughly £5,500,000, local bodies in additional interest, including the Southland Electric Power Board, paid approximately £250,000, Government additional interest accounted for £1,900,000 and exchange which had to be purchased by the Government through the Reserve Bank for £1,300,000. The Democrat Party, if returned, would reduce the exchange by sound methods, leaving it to the banks to adjust the rate according to world conditions. Referring to the Mortgage Adjustment Acts, Mr Newman said that the Democrat Party stood definitely for the sanctity of contracts. Even though many farmers and business people had been very badly hit during the last few years the party felt that it would have been far better had the mortgagee and mortgagor come together in a spirit of negotiation when in most cases arrangements could have been made to carry on. As it was many inefficient people had been kept on their . farms as a result of the relief legislation. It would probably have been better for this class to have left their properties and taken up other classes of work for which they were better suited. The party felt that the compulsory provisions under stay orders were objectionable both to mortgagee and mortgagor. In putting on the Statute Book the Mortgage Corporation Bill, the present Government seemed to have handed over its responsibilities in connection with the State Advances Department and other Government lending departments to an outside body. The real purpose of this legislation seemed to be to ask the Mortgage Corporation to act as receiver for the State Advances Department. Unemployment. Touching on unemployment, the candidate stated that in 1931 48,000 men had been engaged on the various unemployment schemes throughout the Dominion and in 1935 there were 58,000 with at least 200,000 dependents. The Hon. S. G. Smith was reported to have said: “I cannot solve the problem, the board cannot and the Government cannot.” In otherwords the problem was insoluble. The Democrat Party felt that it could be done and that bold action was required. An advisory council would be set up to advise the Government; unemployment taxation would be reduced immediately, as providing capital works out revenue from taxation was wrong in principle. There were many essential works that could be proceeded with. In the South Island the completion of the trunk railway would be carefully gone into; local bodies would be encouraged in every way to take up new works, while afforestation, mining, irrigation, settlement on land, secondary industries, housing (not State) could all be

carried out by a sound policy of controlled borrowing. Even if £8,000,000 were necessary for a start, much of it would be revenue-producing if put into such schemes as had been mentioned. Even if £20,000,000 were borrowed in the next four years it would cost the country £1,000,000 annually in interest and sinking fund as against £4,000,000 at present raised in unemployment taxation. The party would cut out the £1 annual levy and reduce the wages tax from 8d in the £ to 6d, of which approximately 4d would go to a national health scheme and 2d used to help to pay- the interest on the money borrowed. Agricultural Dictatorship. The socialization of primary production was next touched on. Mr Newman said that one of the latest Acts placed on the Statute Book by the Government had been the Agricultural Emergency Powers Act, passed in November of last year, adopting many of the provisions of the Royal Commission on the Dairy Industry. The Government was authorized to put into effect by Order in Council any of the recommendations, including: (1) Prescribe conditions rto be observed in the dairy industry; (2) license the people in the farming industry; (3) regulate transport to dairy factories; (4)’ fix a levy on dairy produce consumed at home or abroad; and (5) any other purpose.” These provisions were very far-reaching, and the candidate declared that such drastic legislation was contrary to the best interests of the producers or the industries concerned. , , The national health scheme of the Democrat Party was outlined in detail. The candidate said that New Zealand was one of the few countries in the world that did not have such a scheme in operation. Even Turkey had a health scheme. The present Government had promised to introduce it “when funds permit.” The Democrat Party would put it in(o operation immediately. The 4d in the £1 tax on wages, which would be applied to finance this scheme, would produce £3,000,000. The present local bodies’ and other contributions amounted to £1,150,000, the health vote to £1,250,000, the pensions vote to £1,650,000 and amounts from other sources to £200,000. This would produce a total revenue of £7,250,000. On the expenditure side to carry out the scheme health insurance would cost £1,000,000, hospital and other benefits £600,000, pensions £4,000,000, tuberculosis and cancer schemes £50,000, hospital and health system £1,500,000 and other items £50,000, a total of £7,200,000. The system would greatly enlarge the scope of national health preservation and treatment and enable the pension schemes to opei'ate for the greater benefit of all. Assisting the Farmers. While it might be thought that the primary producers would suffer fiom the scaling down of the rate of exchange, the policy of the Democrat Party was to assist the farmer to a greater extent than was being done at present. It was intended to provide an export subsidy to a degree at least equal to the exchange benefits at half the cost. This would be possible from the savings effected as the rate of exchange dropped, the increased Customs revenue from a greater volume of imports which would flow into the country and a general increase in business and trade activity. Mr Newman said he had found many electors keenly interested in the attitude of the party to a motion of noconfidence in the Government in the event of a changed distribution of strength in the House of Representatives following the election. The Democrat Party would use its influence to remove the present Government from office, but it would not vote to put the Labour Party permanently into office. While prepared to accept assistance from the other parties to put its policy into operation, it would make no concessions.

In conclusion, the candidate said he was satisfied that the Democrat policy was sound and practicable, and its adoption would go a long way in the direction of restoring confidence to all sections of the community and prosperity to the country as a whole. He appealed for the support of the electors and said that while he made no special claims concerning himself he was acquainted with the other candidates of the party and was satisfied that they were sincerely concerned for the welfare of the country and were men capable of carrying through the many reforms they advocated. When questions were invited a number of queries were put forward concerning the operation of the exchange, several electors contending that the farmers had derived a very considerable benefit from the artificial exchange. The candidate replied that the amount of the benefit of the exchange had been found through additional costs in other directions and while the money had been put into one pocket it had been taken out of another.

On the motion of Mr T. Hickey, seconded by Mr P. Casey, the candidate was accorded a vote of thanks. At Morton Mains earlier in the evening, Mr Newman addressed a meeting of 20 electors under the chairmanship of Mr Blackmore and was accorded a vote of thanks. Mr Newman addressed 20 electors at Menzies Ferry on Wednesday night, Mr Fraser occupying the chair. He later addressed 12 electors at Tuturau under the chairmanship of Mr Christie. The candidate was accorded an attentive hearing and a vote of thanks at each centre. MR GOLDEN AT GORE GOVERNMENT DEFENDED. Mr T. Golden, National Government candidate for the Mataura seat, made his first appearance of the campaign before a Gore audience at the Princess Theatre on Wednesday evening when he delivered a policy speech to an audience of about 150 electors. The Deputy-Mayor (Mr J. A. Baldey) who presided, said that Mr Golden had had extensive experience on a number of local bodies. He was at present chairman of the Southland County Council, chairman of the Southland Hospital Board and a member of the Southland Electric Power Board. He was also a successful farmer. The chairman said he was sure he would make a useful member if elected. In opening, Mr Golden said that he took the small attendance as an indication that the people of Gore were satisfied with the present Government or they would have been present in larger numbers to voice their disapproval. His address followed similar lines to those previously reported in detail, the candidate traversing the difficult situation faced by the Government through the drop in the national income with its marked effect on the revenue of the Government. He defended the various measures adopted by the Government to meet the unprecedented conditions, and declared that the affairs of the Dominion were now well on the road to recovery, as a result of the confidence engendered by the Government’s proposals and policy. He was confident that a close investigation of the record of the Government during, the past four years would show that it had adopted a sane, common-sense policy. There might have been mistakes. In a period of emergency any Government might err in certain directions, but tha men who had shown the courage to face a crisis and overcome it were worthy of consideration and could be depended upon. The Government had tried to give justice to every section of the community, and he believed had accomplished this. When questions were invited an

elector asked: “What acreage of farm land would you say was reasonable for a man to make a decent living for himself and his family?” Mr Golden said this depended entirely on a man’s ability. Many had proved failures on quite substantial holdings. Dealing with the Government’s administration of the main highways funds, another questioner asked if the candidate was in favour of county councils taking over the administration of these funds in their own areas. Mr Golden said that all county councils were in favour of this, believing that it would ensure a more equitable distribution of the moneys so raised. The difficulty lay in collecting this taxation on account of the extent of through traffic. He appreciated that there was considerable dissatisfaction over the Government’s administration of these funds, but the policy of other governments was similar. Mr R. S. Green raised the question of the gold export tax. He referred to the tremendous asset gold mining companies were to the Dominion, yet quite a number found it difficult to make ends meet due to this tax, while many were compelled to pay this out of their capital. Was the candidate in favour of companies showing a loss being compelled to pay the gold export tax out of their capital? Mr Golden said he did not believe the tax was responsible for companies showing losses. Mr Green said he could speak from practical experience. If the tax removed many companies which had been forced out could carry on. In view of the advantages to the country of such an industry, surely this was worthy of consideration, yet the Government had refused to take any action. Mr Golden said he would be quite willing to take the matter up with any companies. In reply to a question as to the cost of the Unemployment Board’s administration, Mr Golden said that quite a number of erroneous beliefs were held concerning this. Actually the cost of administration of the Unemployment Board was 3 per cent., whereas in most local bodies it was from 5 to 7 per John Shanks moved that Mr Golden be accorded a hearty vote of thanks and confidence. He said he had shown that he had a thorough grasp of the affairs of the country and had given a very clear outline of the activities of the Government during the past four years. , r The motion was seconded by Mr u. R Wilkinson, and on being put to the meeting met with a strong chorus ot aves. There were several dissentients. On the motion of Mr Golden, a vote of thanks was passed to the DeputyMayor for presiding. INDEPENDENT CANDIDATE MR McDOUGALL’S CAMPAIGN. Mr D. McDougall, M.P., Independent candidate for Mataura, addressed three successful meetings on Wednesday eV At ln the Conical Hills Public Works camp the candidate received .an enthusiastic reception and at the conclusion of his address he was accorded a vote of thanks and confidence. A large number of electors attended the Conical Hills School when Mr A. R Whyte presided. At the conclusion of his address Mr McDougall answered several question. A vote of thanks and continued confidence was earned on t e motion of Mr Tait, seconded by Ml was a large attendance of electors at Waikoikoi and .Mr McKenzie Dresided At the conclusion of Mr Me Dougall’s address several d were asked and answered. A vote ot thanks was carried.