SETTING COUNTRY’S HOUSE IN ORDER.

Star (Christchurch), Volume XLIV, Issue 119, 21 May 1931, Page 5

SETTING COUNTRY’S HOUSE IN ORDER.

MR FORBES JUSTIFIES HIS ECONOMY POLICY. Per Press Association. AUCKLAND, May 20. Justification of the Government’s economy measures was voiced by the Prime Minister, the Right Hon G. W. Forbes, in a speech at Otahuhu this evening, in furtherance of the campaign of the United Party candidate in the Hauraki by-election. Interjectors were active throughout the address. Mr Forbes said that in attempting to balance the Budget it would be realised that no half-measures would* be effective. If they were to preserve the country’s reputation, they had to set the country’s house in order. Much criticism had been levelled in regard to the 10 per cent cut in public service salaries, but the Government had been faced with the necessity of asking the people to make sacrifices. It was not likely that he would have taken such a step if his own political safety was his only consideration. The cost of the public services had to be reduced. The revenue of the country was fully £20,000,000 less than it was two years ago, and the Government had been faced with the alternative of reducing wages or dismissing men. A voice: You have done both. Mr Forbes said they had to discharge some men as the public works on which they were engaged had been completed. Over £2.000,000 was still required to balance the Budget. In addition to losses on exports, farmers had received £10,000,000 less for their produce sold in New Zealand. The reductions in revenue were: Meat, 30 per cent; wool, 73 per cent; hides, skins, etc., 55 per cent; and dairy produce, 35 per cent. Unemployment. Mr Forbes denied the statement of Mr Holland that the Government had promised never to cut wages, and said j it was no good talking now about what | it was intended to do in the past. They had to realise the problems of to-day and make provision for the future. The unemployment problem was one of the biggest difficulties with which they had i to grapple, but after studying the mea- | sures adopted in other countries he was satisfied there was no place in the world that could offer a lesson to New Zealand. He had seen the effects of the dole in Britain, and was satisfied the people of New Zealand did not want the dole. It was hoped that some arrangement would be made with Canada for the removal of the high tariff against New Zealand butter. He had been in constant communication with Canada, but so far without result. With regard to a general reduction in wages he was confident the people realised that they had to adjust their expenditure to meet the times. He had sufficient faith in the common sense of New Zealanders to believe they would realise the position. In connection with his proposal for a National Party, Mr Forbes said he realised that the utmost co-operation was necessary to avert disaster. He did not expect to bridge all the differences of opinion, but he was sure there were some points that could be bridged. The Labour Party did not offer co-operation in any economies, and it was no use talking further to them. The Reform Party, he was sorry to say, had declined the proposal, though he was still hopeful that something more satisfactory would be obtained from that party in the future. A vote of thanks was carried for the manner in which Mr Forbes was facing the country’s difficulties, and of confidence in his policy and leadership. Hi S 3 IE3 5E HH S ESI3 EE! HM HE EBB HI ID ®HI Si