GOVERNMENT PLATFORM

Wanganui Chronicle, Volume LXXXIII, Issue 19842, 17 May 1927, Page 8

GOVERNMENT PLATFORM

MEASURES PASSED INTO LAW

Programme for Next Session—Dominion’s Sound Finances—Successful Flotation of New Loan—Trade Position Improving— Labour’s “New” Land Policy.

[Per Press Association.] DARGAVILLE, May 16. Tn the course of his policy speech at Dargaville to-night, the Prime Minister (Rt. Hon. J. G. Coates), after acknowledging the euthusiastsic welcome accorded him, referred briefly to the work of the Imperial Conference, and after quoting figures showing the progress made in recent years in North Auckland, reminded his hearers of the platform on which the present Government was elected, its planks being as follow:—1, sound and prudent finance; 2, thorough examination into the incidence of taxation; 3, closer settlement of occupied and unoccupied lands by purchase and subdivision; 4, extension of scientific agricultural education; 5, investigation into farmers’ land banks; 6, well-being of the State and the Empire; 7, support of the League of Nations; 8, encouragement of secondary industries and suppression of trusts; 9, immigration selective organisation to be strengthened; 10, humanitarian —more houses and fewer slums, increased compensation benefits, investigation of universal pension scheme, and aid to parents with large families; 11, modernised methods of education; 12, extension of public health policy; 13, establishment of Local Government Board; .14, no spectacular programme, no fanciful promises; 15, national safety and progressive development; .16, more business in Government and less Government in business. Work of Last Session. The electors, by their verdict at the polls, returned the Government to office with a large majority and to show that its policy and platform did not consist of merely idle words, but that at the earliest opportunity it proceeded 1o translate that policy into practical er-; fevt, he mentioned briefly some of the measures which Parliament was asked to pass. There was the Family Allowance Act which aimed at giving assistance to wage-earners with large families. Provision was made for the payment of 2s a week in respect of each child over the second to those whose income did not exceed £4 a week, plus 2s for each child in excess of two. It has been asserted by the Labour Party that the rate of allowance was not large enough and that the amount should be increased to 10s. On the basis of 2s the Govcrnmewt had budgeted for £50,000 per annum. It was estimated that an increase to 10s woul mean £1,250,000 per annum. The Government had considered the position carefully and had decided that, until the general financial condition of the country became more stable and experience had shown-the actual cost, no increase < dd be contemplated.

i’he town-planning legislation passed last session was very important. Generally its effect will be that, in future, a population will not be allowed to settle itself haphazard without regard to health conditions whilst another effect will be to eliminate the slums in the larger towns and to prevent the creation of slum areas in the future. The betterment clauses in the act are designed to check land speculation in urban areas. Further Legislation. The estabkshment of a Local Government Loans Board was another reform. The Workers’ Compensat’oa Amendment Act substantially increased the monetary benefits to injured workers and also the allowance in case of death. The State Advances office was empowered to raise more capital to advance loans to farmers on the long term mortgage principle for a term of 36 years, with a half-yearly sinking fund and payment of the lowest possible interest. The Bank of New Zealand was also authorised by Parliament to provide similai long term mortgages at a fixed rate of interest. Both schemes are now in active operation. Another important question dealt with was the control of motoc omnibus traffic, the principle unlerlying the legiS altion being that viuaicipal authorities should be j-iven complete control of transport but in return that control they are bound to provide adequate services. There were many other useful acts passed by the Legislature, but the legislation particularly referred to gave effect to much of the policy programme submitted to the electors in November, 1925. Not for many years had Parliament passed so much important legislation in one session. This Year’s Programme. In regard to the work of the coming session, the Government intended to submit a Tariff Bill in connection with our secondary industries, and for the purpose of assisting to build them up. The Government was inquiring into the incidence of taxation, and, if the investigation was sufficiently advanced, proposals in. this connection would be submitted. Still further enlarging the opportunity of easier finance for the farmer and to extend the usefulness of the Rural Advances Act would also be attended to and, he was sure, would be agreed to by Parliament. It was hoped to do something to reduce the heavy demands upon ratepayers in connection with the upkeep of roads. The programme also included measures dealing with mining shops and offices, education, fertilisers and agricultural education, d the Premier looked forward to a busy and useful session Public Finances Healthy. The public finances were in a healthy condition. The revenue for the last financial year amounted to, approximately, £24,940,000, and the expenditure to £24,353,000, leaving a surplus of £587,000, which was very satisfactory in view of the uncertainty of trade and business conditions throughout the

year. A gratifying feature was the fact that departmental expenditure had been kept under close control, with the result that, in spite of certain inevitable increases in certain votes, such as education and naval defence, the total expenditure under annual appropriations shows an increase of only £lOO,OOO over that for the previous year. Successful Loan Flotation. It was pleasing to record the successful flotation of our recent £6,000,000 loan on the London market. The loan was issued at 5 per cent, at 99A. It was intended to leave the loan open to subscription for three days, but it was actually closed in a day and a-half, with subscription then totalling over £7,000,000. The return to the investor in our loan, with redemption 18 i years, is £5 0s lOd per cent., compared with £5 2s 6d for a similar loan last year. This result compares very favourably with that achieved by New South Wales which went on the London market subsequently to our issue for £11,000,000, 51 per cent, at 99, which had to be underwritten to the extent of six millions. The return to the investor in this case, with redemption 20 years, amounted to £5 6s 8d per cent., as contrasted with £5 Os lOd in the case of New Zealand. In connection with, loan flotations on the English money market he would draw attention to a point not generally appreciated, namely that British investors are not so keen on lending money for the purpose of making advances to settlers and others to enable them to carry on their avocations as they are eager to subscribe to loans having for their objective the prosecution of necessary works of development. Productive National Debt. Regarding the public debt of the Dominion, from time to time adverse criticism is expressed regarding this and the borrowing policy of the Government. Comparisons with the per capita debt of other countries are made, but very often deductions are misleading, if not erroneous. Our public debt on March 31, 1926, was £238,855,478. The war debt at same date was £75,333,648. Deducting the war debt and charges thereon, we have approximately a debt of £163,500,000 the annual charge on which amounted to £7,193,000, but of this latter sum the taxpayer, as such is called on to find only £1,656,000. proving conclusively that, excluding the war debt, the public debt is financially productive to the extent of 77 per cent.

The debt, £163,500,000, may be divided as follows: —Expended on productive purposes, principally railways, telegraphs, telephones, hydro-elec-tricity, land settlement, soldiers’ settlement, State Advances, £122,720,000; expended on indirect productive purposes, including highways, roads and bridges, £20,630,000; expended on financially unproductive purposes, chiefly public buildings, including schools, £20,150.000; total £163,500,000. As shown in last year’s Budget, the State assets held against the debt of £163,500,000 were valued at March 31, 1926, at £247,000,000. It was quite evident that our debt was in an entirely different catagory from that of most European countries, whose debts were almost entirely incurred for war purposes. These considerations should not be overlooked when debt comparisons per head were made. Labour’s Land Policy. The Prime Minister then dealt with the Dominion’s trade, quoting figures to show that the trade balance now disclosed a better position and that we could look to the future with confidence. After fuily reviewing the dairy control position, he then passed on to deal with the new land policy of the Labour Party, which he said, showed the marks of an amateur craftsman. It threw over the “usehold” and professed to secure an owner’s interest in his land, but gave no guarantee that this would be observed if the Labour Party got into power. It also included much of what was already in. force, such as the graduated land tax, compulsory acquisition for settlement purposes, and proposals which were already contained in the Land Transfer Act. Compensation for improvements was also provided for by the existing law, as was financial assistance to farmers. The Labour Party did not explain what it meant by a “State Central Bank” and the whole of its new land policy looked as if the Labour Party was merely trimming its sails in accordance with expediency. The policy smacked of opportunism and vote catching and was a flagrant example of inconsistency. The Prime Minister also refuted Mr Holland’s statements in recent speeches as to land occupation, and showed that under the Reform Government the area in large holdings had been reduced and the number of small holdings increased Thanks and Confidence.

In conclusion, the Prime Minister pointed out that need still existed for the exercise of thrift and economy, which would enable us to reach the goal of prosperity. A vote of thanks and renewed confiedence was enthusiastically carried.