LABOUR’S POLICY DEFENDED

Southland Times, Issue 23548, 30 June 1938, Page 6

LABOUR’S POLICY DEFENDED

Mr Savage Critical Of Opposition

“MONEYED INTERESTS NOT TO DICTATE”

REDUCTION OF INTEREST RATES CLAIMED (From Our Parliamentary Reporter) WELLINGTON, June 29. The accusation that the Opposition in all its criticism of the Government’s policy was merely seeking to protect the moneyed interests, was made by the Prime Minister (the Rt Hon. M. J. Savage) during the debate on the Imprest Supply Bill in the House of Representatives today. Mr Savage described the Opposition assertion that money was leaving the country as one of the best criticisms of Opposition policy. To say that that money would flow back into New Zealand when the Labour Government went out of office was to admit that the people owning the money were again going to dictate the policy of the Government, as they had done in the past. The moneyed interests were not going to be allowed to dictate the policy of the country while the Labour Government was in power. The statement he made in Pahiatua that interest rates were being taken down all the time by the Labour Government was true. “We are still taking them down,” Mr Savage added. “It is only the firm stand that has been taken by this Government that has kept all interest rates down. In March 1936 61 per cent, of all the mortgages registered in New Zealand were at 4J per cent, or less., The same month in New South Wales only 26 per cent, of mortgages were at rates as low. In New South Wales 33 per cent, of mortgages were registered in March at 5 per cent, or more, but only 5 per cent, were registered at so high a rate in New Zealand.”

STATEMENTS CHALLENGED

The Hon. Sir Alfred Ransom (Nat., Pahiatua) challenged the accuracy of the statements of the Prime Minister on what he had said in Pahiatua. Mr Savage: I am talking from my notes. I do not open my mouth and let the wind blow my tongue about. “The Leader of the Opposition has expressed concern about the welfare of democracy,” the Prime Minister continued. “That is a strange thing to hear from him when it is remembered that a substantial part of the people under his Government was not allowed to take part in democracy. “The Leader of the Opposition accuses us of trying to confuse the issue,” Mr Savage continued. “He wants to know all about where the money is to come from and where it is to be spent. He will, know that it is unreasonable to expect me to make a Budget speech. I have promised the Budget after the Address-in-Reply debate and then the House will have an opportunity to analyse the position.” Mr. Savage said the endeavour of the Government was to show something for the money spent. Some costs were too high admittedly, but others ’were too low. The, Government believedthat interest rates should be low. That had not been the experience of the country before. The Opposition was more concerned with the moneyed interests than with the welfare of the rank and file of the people.