FARM LANDS

Timaru Herald, Volume CXLV, Issue 21156, 1 October 1938, Page 5

FARM LANDS

Partial Derating Intention of National Party By Telegraph—Press Association INVERCARGILL, September 30. The intention of the National Party partially to derate farm lands was explained by the Leader of the Opposition (the Hon. Adam Hamilton) in an address at Waikaka. .. “We have decided to give effect ro the resolution passed by the county councils at the annual conference that we should alter the basis of county subsidies,” said Mr Hamilton. At the present time county councils receive a subsidy of 5/- in the £ on money collected in rates and spent on roads up to a limit of £2500. County councils have complained that this is inequitable as the bigger counties are adversely affected. They have asked ! the Government to abolish the limit. We have accepted this principle and will pay a subsidy of £ for £ on the total collections instead of 5/- in the £. This will materially assist county councils to lower the rates which, today, are fairly heavy. We think the time has come for the petrol tax to bear a greater share of the cost of, maintaining county roads. The higher subsidy will allow county councils partially to derate farm lands by from 30 to 40 per cent.” Mr Hamilton said he did not believe that farm lands should be completely derated, because he considered it preferable for local people to retain control of their own local affairs.

The latest returns of railway revenue and expenditure under Labour ministerial control showed that the railways had ceased to show a profit towards interest charges and were now becoming a charge for running costs, declared Mr Hamilton. He also gave°a denial to the complaint of the Minister of Railways that the previous government had failed to maintain rolling stock in a proper state of repair. In 1937-38 the revenue of the railways was £7,500,000 showing an increase of £1,350,000 on the figure two years previously. In the same period expenditure had increased by £1,768,000 to £7,250,000. Most businesses, said Mr Hamilton, expected to make greater profits when they secured more business, but for every £l3OO of extra business obtained by the railways the cost had been £l7OO. In the years before the Labour Government took office the usual expenditure for each £lOO of revenue had been £BB. This had gradually gone up to £96 in the last financial year. For the first four months of the present financial year to July 23, 1938, the revenue was £2.322,000 and the expenditure £2,379,000. All the revenue had been absorbed by expenditure and there was a shortage of £55,000 to be found by the taxpayers. Who was going to pay

interest on the railways? he asked. For every £lOO earned by the department the cost of management was £lO2/8/-. “If the people of New Zealand are not interested or alarmed about the r -anagement of the railways they ought to be," he said. “This position is the result of ministerial Labour control. It is no wonder that heavy taxation is required. In the past the railways have found a substantial amount for interest; now they are not even paying management expenses.”

The Minister of Railways had always said that the last government had left the rolling stock in a dilapidated condition, and that more expenditure had been required to bring it up to a proper state of repair. The facts showed that the previous government had neglected neither rolling stock nor track. In 1935 the number of engine repairs for 100,000 engine miles was 2.93, and in 1938 it was 2.42. The number of cars and vans repaired on the same basis was 8.68 in 1935 end 8.45 in 1938, while the number of waggons repaired was 12.33 in 1935 and 10.54 in 1938. There had been an absence of complaints about the condition of rolling stock in 1935. The general manager was required to certify as to the condition of rolling stock each year, and he had not said it was not efficient in 1935. LABOUR’S REAL POLICY Bv TPlegraph—Press Association WELLINGTON, September 30. An appeal to the people of New Zealand to preserve their democracy by voting Labour out of office on October 15 was made by Professor R. M. Algie, organiser of the Auckland Political Freedom Association in an address given under the auspices of the National Party in the Town Hall to-night. He contended that the real policy of the Labour Government was complete socialisation and that policy involved serious dangers to personal freedom and prosperity. He supported his argument by a critical examination of portions of the legislation'enacted during the last three years and various statements made by Labour candidates and supporters during the present election campaign. An overwhelming majority of the audience which completely filled the hall enthusiastically applauded Professor Algie, but at times his address was interrupted by a noisy section at the rear of the hall. Police were kept busy warning hecklers to behave themselves. Good humoured replies by Professor Algie to interjectors effectively helped to silence the opposition. For the most part he was listened to attentively, and there were frequent outbursts of applause as he drove home his points.