MR COATES WILL NOT GIVE HIS HELP.

Star (Christchurch), Issue 19198, 11 October 1930, Page 1

MR COATES WILL NOT GIVE HIS HELP.

MR RANSOM APPEALS TO ALL PARTIES FOR AID. (Special to the “Star.”) . WELLINGTON, October 11. That Capital as well as . Labour should make sacrifices in times of economic stress was the point made by the acting-prime Minister, the Hon E. A. Ransom, in the House this morning, when replying to the Imprest debate. Mr Ransom twitted Reform members on their change of attitude since the Budget was dealt with. Opposition members had then described the document as a black Budget, and contentions had been advanced that it was not necessary to take drastic steps to meet the position. Now, however, the Government was accused of not adopting sufficiently drastic measures. The Government believed that costs of production should be reduced, but the only suggestion advanced by the speakers in that direction during the debate was that wages should be reduced. “ I don’t regard the immediate reduction of wages as far as the farmer is concerned as a solution of his trouble,’* said Mr Ransom. “1 agree that there should be full, free and frank co-operation between Capital and Labour, otherwise we cannot overcome the present crisis. When we call upon Labour to make some sacrifice during a time of stress the people are justified in expecting that Capital should make equal sacrifices to meet the serious economic position. If Capital were as willing to assist as Labour would be willing, I believe we would be nearer to a solution of our economic difficulties than we have been for some time. If the cost of Labour is to be lessened it is only right to expect that the cost of Capital will also fall, but we see little effort on the part of those handling the finances of the world to make any sacrifices whatever.” Mr Ransom said that he thought that the country was justified in seeking some means whereby there could be a reduction in capital costs to the primary producers. If there were a ! reduction of 1 per cent on the mortgage investment on farms, it would prove of greater assistance than a 25 per cent reduction in wages. Some mortgagees were prepared to accept such a reduction during a period of stress, and it was a pity that some of the larger institutions would not do th“ same thing. Mr A. Hamilton (Reform. Wallace) : Will the State Advance* Department give a lead? Mr Ransom replied that if it had not been for the efforts of the State Advances Department the position might have been much worse than it was. As long as he occupied the position of Minister of Finance he was prepared to lend the State Advances money at the lowest possible margin without loss. He recalled the attitude of the Reform Party in sharply increasing the State Advances interest rate. Mr P. Fraser (Labour, Wellington Central): Yes, and it was done immediately after the 1925 general election. Mr Ransom said that although the Government had sought the co-opera-tion of the House it had been sneered at by the Reform Press. The Government was endeavouring to co-oper-ate with the other parties, but the encouragement had not been very great. Financial assistance had been given primary producers to enable them to maintain themselves on their properties. Many would have lost their holdings but for the help of the State Advances Department during the last twelve months. The Minister said, in conclusion, that the Reform Party had not made a single mistake regarding its group settlement scheme of 1925, as it had not placed a single settler under it. Mr Coates: That’s very clever. Mr Ransom repeated that he hoped to obtain the co-operation of all parties in meeting the present difficulties. Mr Coates: You will get none from me at that rate.