MR. J. B. COTTERILL OPENS CAMPAIGN

Wanganui Chronicle, 31 October 1946, Page 6

MR. J. B. COTTERILL OPENS CAMPAIGN

LABOUR RECORD REVIEWED “This is not merely a contest to decide whether Eric Merewether or Joe Cottcrill is to represent Wanganui for the next three years, but it is more fully a contest between two widely differing sets of principles,” declared Mr. J. B. Cotterill, M.P., when he opened his election campaign in the Opera House last night. He added that the people were being called on to decide on November 27 whether they were prepared to add to the structure of economic and social advancement built by the Labour Government, or were going to turn back along the road they had come.

For 11 years the Nationalists had been predicting ruin, declared Mr. Cotterill, but to-day New Zealanders enjoyed unparalelled prosperity and security, testifying to the success of Labour's administration. A return to the worn-out economic ideas of uncontrolled private enterprise so dear to the Opposition would inevitably bring the despair, misery, and degradation which was the lot of the people before 1935. Salaries and wages had increased from £65,700,000 in 1935, to £185,200.000 in 1946, and to-day there was work for all at good rates of pay. Business has flourished as never before, because the customers had this increased spending power, and there were more businesses in Wanganui now than ever before. The value of • production had increased from £96,700,000 in 1935, to £174,200,000 in 1944. The total private income of the people had increased from £106,000,000 in 1935, to £310,000,000 in 1945. Total savings of the people had increased from £60.700,000 in 1935, to £184.300,000 in 1946. The value of farm production had increased irom £59.200,000 in 1935, to £99,600.000 in 1944. Those dependent on wages and salaries now had security, businessmen and manufacturers had security, and farmers had security and stability for the first time under guaranteed prices. Was this the mess that Mr. Oram stated last week the National Party wanted to clean up? “In the four years 1933-36 there were 1945 bankruptcies in New Zealand, but in the four years 1941-45 this had declined to 381," said Mr. .Cotterill. 'Farm bankruptcies between 1925-35 were 160, but last year only one farmer was bankrupt. The structure of economic and social security built up in the Dominion under Labour is the envy .of the whole world, yet the Nationalists still affirm that we have brought this country to disaster. "Through public ownership of the Reserve Bank of the Bank of N.Z. the Government is able to control the credit and currency of the Dominion, the transfer of all moneys to and from the country, and the disposal of the money received from the sale of produce overseas. Through the Reserve Bank the Government is able to launch its housing scheme. “The Nationalists look upon the use of the public credit as inflation, but they would borrow money from private financial institutions at higher rates of interest. The Government can mobilise the Dominion’s finances for great national projects and for any policy that may be needed to safeguard employment and living standards.” Ownership of the Bank of New Zealand provided another means of assisting the development of the Dominion through the provision of capital for the production of goods and services at low rates of interest. “ Labour would use the financial machinery at its disposal to prevent inflation and deflation, to maintain purchasing power for available goods and services, for the repayment of overseas and internal debts, for the progressive reduction of interest rates to the lowest economic level, the development of industries, and the maintenance and expansion of the living standard. If the National Party were given the opportunity they would undoubtedly hand back the banking system to private individuals to exploit the people for private profit. WAR DEBT REPAYMENTS. Although the war had cost the Dominion the huge sum of £640,500,000, 65 per cent, of the cost had alreadybeen paid, and the remainder was domiciled in New Zealand. Government policy Was to pay out of current resources as much as possible of our war expenditure so as not to hand on to posterity a huge burden of debt as had been done in the past. This had meant asking the people to beer a heavy burden of taxation, but already taxation had been reduced to the extent of £21,000.000, and the abolition of the remaining sixpence in the pound National Security tax next May would give a further relief of £8.000.000. With interest and sinking fund charges on the war debt amounting to £7.700,000 a year, with still heavy defence commitments, and with increased charges for war pensions and rehabilitation, it was necessary to maintain taxation to meet these • charges. But as circumstances warranted the Government would reduce both direct and indirect taxation to the lowest possible level. “Despite heavy taxation, statistics showed that even taking into account increased taxation and price increases since 1935, the real effective incomes of the people are immens’ely higher," added Mr. Cotterill. “When Labour was elected thousands of people could not obtain the bare necessities of life, now they are embarrassed because they cannot get tyres for their cars. The Government has not only refrained from borrowing overseas, but has progressively reduced overseas indebtedness, and this policy will be continued. “Although in six years of war we had heavy financial commitments to meet overseas our external indebtedness has been reduced by over £48,000,000. Control of the Dominion s sterling funds in London has made this possible. No previous Government reduced overseas indebtedness, but all progressively increased it, and it appears that previous Governments borrowed to pay interest on the money already borrowed overseas. EXPANSION OF INDUSTRY. ‘"The expansion of manufacturing Industries under Labour hr;, been an outstanding feature of our economic life, and this expansion has been important to Wanganui because of the number of new industrial plants established,” said Mr. Cotterill. The number of factories in NewZealand had increased from 5270 to 8202. The number of employees had increased from 79,358 to 117,864, and

the value of output from £79,324,000 to £175,686,000. This expansion had been the result of increased purchasing power bringing prosperity; to stimulation by extensive housing policy; by import selection which gave manufacturers an opportunity to develop; and to the Standards Institute which has helped industry to reduce costs, and at the same time protected the consumer in respect to the quality of goods. Import control was an essential part of Government policy, enabling the requirements of the overseas debt service to be met, to conserve funds for the replacement of capital equipment in industry, and to maintain full employment in the Dominion. There was was a lot of stupid talk about shutting out British goods, but the general principle governing import control was to give first preference to the United Kingdom. '‘lmport licences, totalling over £103,000,000, have been granted importers, and these are now current, but it has not been possible to procure the goods,” continued Mr. Cotterill. “Britain has not fully recovered irom the effects of the war, and for some time she will need to ration the supply of exportable goods, so how can New Zealand expect to receive her full quota, which were obtainable before the war? “Our opponents try to create the impression that British manufacturers are in a position to supply unlimited quantities of goods, but nothing is further from the truth. Wherever importers can show that goods can be obtained which are in short supply here, the Government will issue the necessary licences.” SOCIAL SECURITY. Discussing Social Security, the speaker showed how this legislation, together with improvements effected since 1939, had brought happiness to thousands who formally depended on charity, and had played an important part in giving fullness to the family life which was foremost in Labour’s policy. One would almost think to-day that the National Party was responsible for this legislation, but they had opposed it in 1938, and made it clear that if they had the opportunity they would not operate the Act.

They said it discourage thrift, that the country could not affoid it, and that it was a further step in State encroachment on the righs of individuals. They still complained that the burden of Social Security was too great for the country to carry, and recently, in Parliament, Mr. Doidge had said that they had a Jot of misgivings about having to operate Social Security.

The generous administration of this beneficial legislation was best left with the party that believed in it, and had consistently improved it, rather than a party that opposed Social Security and still disparaged it. Universal family benefits recognised the importance of the family, declared Mr. Cotterill. He quoted figures to show that the family man with four children would have to have an income of over £5OO a year before paying income tax, in addition to which the mother would receive £lOO family allowance. Tiie home aid service had already been well established in some districts including Wanganui, to meet cases cf emergency in the home with financial aid to those households unable to meet the full cost. HOSTELS FOR MOTHERS. Some time ago the Government had formulated a policy for the establishment of free hostels for the rest and recuperation of mothers as a post - war development, and this scheme would be pushed ahead. Housewives had borne the burden of the absence of household deliveries during the war, and although all impediments to the resumption of deliveries had been removed, private enterprise was still finding excuses. Discussing housing, Mr. Cotterill said that the erection of 8000 houses annually had only been reached twice, and on both occasions under Labour. Last year 9000 houses were erected in the Dominion, and it was estimated that this figure would be exceeded this year. Housing construction was proceeding to-day to the full extent of the labour and materials available. A five-year programme provided for 60,000 houses in that time, less than half of which would be State rental houses. The total number built or financed by the Government was 42,400. Every’ encouragement was given to home ownership, and 24,000 people had been financed into their own homes. Up to the end of September, 109 loans had been approved to exservicement in Wanganui to build their own homes, and 233 Joans approved for the purchase of homes, and every week further loans were being approved. The speaker also dealt with coalmining policy, the nationalisation of airways, physical welfare and recreation and the Government’s approach to international affairs. Want and insecurity had been banished, he said, and no longer did sickness, invalidity, widowhood, or old age mean poverty in the home, and the services rendered to the nation by the mothers had been recognised for the .first time. Never had people enjoyed more real freedom, nor had youth ever had wider opportunities. “New’ Zealanders are enjoying the highest standard of living in the world,” concluded Mr. Cotterill. “These achievements can only be preserved with a Labour Government, and with the co-operation of all producers of wealth life can be made more abundant for the mass of the people. The alternative is a return to the way of life the National Party held so dear—the old economic conditions we left behind in 1935.”