RANGITIKEI SEAT

Wanganui Chronicle, Volume 79, Issue 266, 13 November 1935, Page 5

RANGITIKEI SEAT

MR. STUART AT FORDELL GOVERNMENT’S WORK REVIEWED CRITICISM OF RIVAL PARTIES A review of the legislation passed by the Government during the past four years in the interests of the farming community was given by Mr. A. Stuart, M.P., at Fordell, on Monday night. Air. D. Sutherland presided over an attendance of approximately 50 electors. “The Labour Party is putting great promises before you; promises that cannot be carried out,” said Mr. Stuart. “Its members are accusing the Government of being responsible for the financial crisis and the hard times we have been through. You all know ‘ that that is not so and that the crisis existed throughout the whole world and was well established when it reached New Zealand. The Government has been well criticised for its actions but we realise that when people see their assets and their savings . slowly slipping away from them it is hard for them to keep a level head. We excuse you for your criticism but you must admit that conditions in this country are much better and we are deserving of some praise and credit for what we have done.

Safeguarding Industry “During a financial crisis like we have just passed through it is the duty of the Government of any country to take steps to safeguard its chief industry. The farmers of New Zealand were faced with an expenditure much in excess of their receipts but had the Government not taken action and allowed this chief industry to fail then every section of the community would have suffered. In the peak year the national income was £150,J00,000 but by 1932 it had follcn to £90,000,000, a reduction of £60,000,000. Something had to be done and done at once. It was either a case of borrowing large sums of money—which would have been a difficult task during that time —or reduce expenses considerably.” Air. Stuart said that the Government had reduced wages, salaries, pensions, etc., and made a saving of some thing like £10,090,000. “The Government has been subjected to considerable criticism for this action,” he said. “Most of the criticism is unfair. Lt was a most unpleasant thing to have to do; do you think we got any enjoyment from such drastic action. The promises of the Government to State employees was that when financial conditions warranted it restitutions of the reductions in their salaries would be made. Restorations were recently made but this our opponents declare is • an election bribe. You can go and tell them that prior to the 1931 election the Government inflicted a reduction of 10 per cent. “Our opponents are telling you that the Government has done nothing for the farmers. The Democrats on the other hand are saying that we have done too much. Who are we to believe? 1 will tell you that the Labour Party has strongly opposed every measure designed to assist the farmers during the past four years. They arc keen to help you now; why did they not lend us their assistance in extending to you a helping hand?” The first thing the Government did for the farmers was to reduce the price of money. The bank rate was 7 per cent, and in some cases farmers were paying interest at from 8 to 9 per cent. To-day, as a result of the Government legislation, the interest rate on bank overdrafts was 4$ per cent. The Alortgage Corporation was strongly opposed by the Labour Party, said Air. Stuart. This institution would serve to keep money cheap for the farmers. The corporation had taken over the control of the {State Advances Department. The (Democrat Party stated that it was opposed to {State control and yet intended, if elected to power, to replace the department under Government control. Air. Stuart said the interest rate on corporation loans was 4. 1-8 per cent, and the longer the term the easier the terms. “I am sure the Alortgage Corporation will be oi great benefit to the farming and ou>. ness communities yet it was strong opposed by the Labour Party.” Rebate of Rates Another measure introduced

Government for the payment c c bate of 12$ per cent, on rates ha . a,.-o been of great assistance. The Labour Party opposed this up to the point that they would give the subsidy to those farmers who were in straitened circumstances and not to farmers who could balance their budgets. Thus the farmer who stayed at home and spent all his hours on ins farm would suffer while his neighbour who wasted his time and his money would receive thei benefit of the subsidy. “The raising of the exchange rate was strongly opposed by tho Labour Party,” said Air. Stuart. “The Prime Minister has been accused of changing his mind. He did not do so. The raising of the exchange was a matter that had to be kept secret. It would not have done for the Prime Minister or any Cabinet Minister to have mentioned the increase, for there were many people who would have turned this information to financial advantage. The high exchange rate has been of tremendous assistance to every section of the community, it has assisted considerably in helping to set the wheels of progress going again There is no section of the community to whom it has not been a God-

send.” The Labour Party, said Air. Stuart, was always clamouring for greater protection for the Dominion’s secondary industries, but there was not better protection than the high exchange rate Industry had greatly beneiitted from the pegged exchange. The secondary industries had increased their product:on and considerably increased the number of their employees. “Whaf would your factory bonuses have been last August if it had not been for tht» exchange’” he asked. Dealing with the Mortgagors’ Relief Act and the Final Adjustment Bill, Air. - Stuart said that the majority of mort- . gagors had been treated well by their . mortgagees but there were a number of , unscrupulous mortgagees. Some people . said the Government had taken away ( their securities from them but the » people who were doing all the com- ( plaining were mostly the holders of ] second and third mortgages which j were of no value. Only a small per- 1 centage of the mortgagees were not ( playing the game to their mortgagors, t The Mortgagors» Relief Commissions t had a very hard task and was doing it f well. j “The Democrat Party intends to f abolish the exchange rate if elected £ t-o power and to subsidise your ex- c

ports,” said Air. Stuart? “They say that the country has far too many boards an,d inspectors now. They intend to subsidise the exports of only those who can balance their budgets; think of the large body of men that would be required to go through the country examining farmers’ books. Such a policy is an insult to the intelligence of the people of New Zealand. Under the Democrats’ scheme the farmer who stays on his farm and work hard will not receive the benefit of the subsidy which will be paid to the farmer who spends, much of his time in the city spending his money freely. If you are going to support a policy of this kind then I do not think too much of your intelligence. You are only wasting you vote on a Democrat candidate.

“It is votes that the Labour Party is interested in and not tho dairy farmer?” said Mr. Stuart. ‘‘Why don’t they refer to the sheep farmer and other types of farmer? They know that the dairy farmer has been hard up against it and they are tempting him with their wild cat scheme.’’ Lt the Labour Party’s scheme of guaranteed prices was introduced the farmer would soon have no say in his own affairs and self enterprise would be killed. Who would run the dairy factories and freezing works if farmers were assured of a definite price for their produce? The whole scheme was only a theory and had been propounded without consulting the farmers. Different members of the parties had different views of the manner in which the proposal would be worked.