Mr. Holland Decries Recession Talk

Chronicle (Levin), 25 November 1949, Page 4

Mr. Holland Decries Recession Talk

BRIGHT FUTURE SEEN FOR DOMINION UNDER NATIONAL GOVERNMENT ♦A mi(I-afternoQii nieetmg f&ikd to keep §Q0 eleetors away from the Begent TheatrOj Lovlh, yesterday, where the Leader of the National Party, Mr, „S, G. Holland,, gave an address before proceeding to Palmerstpn North, Tmnultuons applause gyeeted Mr*. Holland ^3 he entered the hall and his remarks frequently , drew aqclaraation, The ehairman of the meeting, was the Mayor, - Mr. H, B, Burdekin, who formally introduced ■thespeaker. The urgent neecl for the.stepping up of primary production for the benefit of the future economic' position of the Dominion was emphasised by the speaker, who decried the attitude of the Labour Party- in its foreeasting of a recession and also what he described as a bringing alxout of a disturbing drift of eountry people- to the cities by failure to provide equiyalent amenities in the eountry.

The Labour Party's campaign was characterised by warnings to the people that a recession was ju.st around the corner, said Mr. Hqlland. There was nb justification for this view. The Labour Party olaimed it could competently manage a depression, hut .the people of New Zealand were not interested in •electing' cbmpefent managers of depressions. Under national party, administration he cquld foresee " a bright future ahead of New Zealand. Production was the key to the Dominion's standard of living. No mere printing of mon.ey could bring about prosperity. It de-^ pended on what the eountry produced. The farmers played a great part in the eeonomie nosition of the eountry and the standard of living. The city peo.ple ' f ully realised this and in turn the eountry people recognised the part which industry played-' The National Party had succeeded where every other eountry had failed in bringing town and : eountry tcgether under one policy and under one leader. It was ; an accomplishment of which it was very proud- The National Party helieved that both should wgrk together for the common benefit of all. During the past 14 years the Gqvernment had created a bias in favour of city interests and pampsred them at the expense of the eountry people. Dairy produce, wool and meat were the three topmost i.tems of importance to New Zealand's export trade. A

market had to be found for it otherwise unemployment would result. The cohsumption of wool in the world today was 75 per cent. faster than it was being produced in New Zealand and in a recent wool sale in New Zealand prices had risen by 30 to 40 per cent. "Are we not justified in our view that h,ere the future looks very •bright?" he asked. Boom In Dairy Prices. Record prices were being obtained for dairy produce today. The world was hungry for edible fats. New Zealand could produce them l at a lower cost than any other ■ eountry and New Zealand could look with confidence to the future development of its dairy industry. I Hjowever, owing to the present administration, which encouraged a drift from the land to the cities, a serious position had arisen. In the last 10 years the number of dairy cows had fafien by 89,000, continued Mr. Holland. The number of suppliers to the dairy factories had fallen by 16,000. This was due to a conversion to sheep farming and the greater call of the cities to those on the land because of the better facilities available there. "If we get into power we will divert that flow to the. cities by improving conditions. I have always subseribed to the view that people who live in the conntry are entitle'd to as high a standard of Uving as. their city brothers," added Mr. .HoUand. Britain was New Zealand's' only market for meat and the fact that England's own intemal production had fallen whfie the ratc of consumption had risen meant that she was. now searching the world for counjtries which could supply her. New Zealand could supply her. What was wanted was a New Zealand government which understood the farmer and a redistribution of labour into the eountry areas. Encouragement towards this end could be given by improving the ainenities and the rural housing position. Nothing was mqrq dangerou.Si to a country's economy than talking of a" depression or recession, as the Labour Party now chose to call ' it, declared Mr- Holland. Labqur's Ultimate Socialism. If the people elected a Labour Government into . office - again - it

was inevitable that it would pur* sue its course towards its aim of Ultimate socialism, and it had to he remembered that in the socialr-. ist philosophy there was no stage which marked the stoppi.ng point short of totalitarianism. "I can promise yo.u that under the .National Party there wifi be no more socialisation, but there will be a great deal more freedom, a great deal more goods and an infinitely wider variety of goods." The young people of today were growing up without ever having known what freedom was like, continued the speaker. "At one time I could save up and buy a section. When I had my section I could design my house an'd build it. I can't buy a - section today because the Labour Government is sitting on 2i,ooo of them. We have allowed in our policy to make many of these sections available, New the Labour Party has decided to copy us and in a death bed repentance sell them, too." Today a young coupie could no,t

design their Own house. They had to take it to a building controller and he decided what size their house was to be. Why should he deeide? asked the speaker. Who knew best what sized house a young coupie wanted? The present Government planned for the family, said Mr. Holland. His party believed that that was the right of the young people themselves. "This eountry has been running for 1QQ years and for close on 90 of them without these controls, and a better job was made of it," said the speaker. "In the light of your experience of socialism I invite you all to examine the departments that have been socialised and see if you would like to have that socialisation extended," said Mr. Holland. The purchasing power of money today had been cut ciean in haif, he said. The savings of the people had in turn also been cut clean in half. Savings Depreciate. Mr. Holland instanced a case in which he stated that people had answered a patriotic urge to lend money under a national savings scheme, only to find that when the withdrawal period arrived the individual's money invested, which originally would have bought a house, would not build half a ho'-^e on present day prices. If it was lent out for a further period, as the Government had requested, the rate of depreciation would be so great that in all probability it would not even buy a kitchenette. The 'Government, he alleged, had printed £14,000,000 of 'brand new money to meet the demand of the 43,000 of 50,000 investors in • the national savings scheme who had decided to withdraw their money at the time of gratuity. Throughout this election campaign he had noticed a new affection for private enterprise, • continued the speaker. Even the Labour Party was soft pedalling on its talk of socialism. They now said that they would not interfere with private enterprise

provided pnvate enterprise could do better. The point was, who was to judge? ( Mr. Holland then drew attention to the Government's State monopoly of the airways, resulting in a loss last year of £265,000 plus the loss to the Consolidated Fund of that amount which was drawn out to make up the loss, and the loss of taxation money from the high profits, of the airways under private control. "You will have to pay for that loss," said Mr. Holland to the meeting. ""You'll be getting the bill very shortly." State houskig had brought about a loss of £45,000 a week by a "genius of management." The railways had shown a loss of £2,000,000." Before the Government had taken over the Railway refreshment rooms Qne could get hot buttered toast 1 and marmalade. Now one got as much variety as sixpence worth qf stamps from the post office — it was all the same — but there was still a loss of £20.000 on the railway refreshment rooms. He did not believe in coimting his chickens befQre they were : hatched; said Mr. Holland, in conclusion, but a.fter a fortnight in the incubator he felt it quite in order to put the eggs under a strong light to see how things were going. So far he could see at least 40 eggs hatching out m-J to very strong and virile National ; chickens." . A motion of confidence in Holland, the National Party and Mr. J. J. Maher as M.P. for the , Otairi electorate was passed unanimously on the motion oi Professor F. P. Wilson. Throughout. Mr. Holland, who was accompanied on the platform by M1* Maher, received a very attentive hearing.