REFORM PARTY

Dominion, Volume 14, Issue 121, 15 February 1921, Page 5

REFORM PARTY

GATHERING IN CHRISTCHURCH MR. MASSEY ENTERTAINED REFERENCE TO FINANCE AND OTHER MATTERS By TeUsrnph—Pre» A«soolat!»n Christchurch, February 14. The Prime Minister was entertained mt dinner bv tho New Zealand Reform Party to-night. There was a large attendance. Mr. Massey was accorded a Mattering reception, mingled with loud cheers. Replying to the toast of his health, proposed by the chairman, Mr. 11. D. Acland—who congratulated him on his success during the seven, years that he bad been in power and expressed the Dominion’s confidence in him as New Zealand’s representative at the coining conference—-Mr. Massey said that luckily he had been blessed with a splendid constitution for work. He was determined before his health broke down to seo thia country through the. reconstruction period, and his health showed no signs of breaking down just no.v. Referring to his coming visit to England, Mr. Massey said that two months ago he informed Lord Milner that there was no probability of his attendance, his first duty being to New. Zealand, but when tho last telegram came, which was confidential, he at once called Cabinert together and was told that his first duty was to go Home. Mr. Massey referred to the splendid sacrifice made by Sir Francis Bell in giving up his trip Homo to permit Mr. Massey to go. So far Parliament had not, of course, sanctioned the trip, but it would be considered, amongst other things, at the session commencing on March 10. He expressed the opinion that all the necessary work of the country would be done between now and the end of the year. Tho present Parliament, as last, session proved, was a splendid one, and ho predicted that there was not likely to be any change in that respect for some considerable time to come. Tho last session was the. best held in Ne,w Zealand in the last dozen years, and for some time before that. Of course, all the work done was not popular, but. that could not be helped. The Financial Position. Alluding to tho financial position, Mr. Massey said 'that Parliament had spent a very large sum in the war, enabling New Zealand to do its share. Now they had to foot, the bill, and they were going to .do it without ■ much trouble. The interest on sinking fund was five, and • a half millions per annum. Pensions when paid would be very little short of three millions per annum. On account of the high cost of living the Government had to increase salaries or provide bonuses for the people in its employ, which amounted to another two millions per annum. The subsidies on wheat and butter came to a little over another million. Then, under the Permanent Loans Act there was an" other 121 millions to he found in addition to that owing before the war. That was a debt of honour and was going to be paid. There would, no doubt, be some financial difficulty during the coming year. The drop in wool would mean six millions less than before. I In dairy produce, on the other hand, for the six months of the present season. August to February, butter and cheese had increased by .£5,381.629. Though there was go■jng to be a falling off in other’directions there was nothing to he pessimistic about. Building Up a Reserve. Exports during the lust six month's had been enormous, but it must be remembered than if they were ''getting much more .than "the normal amount this year in Customs there must be a serious falling-off next financial year. It had been his duty in rhe last six months io do his best in building up a reserve for the coming deficiency. He could not eay exactly what the surplus was going to be, but it would be a substantial one. .He believed he would have less than five millions as a reserve for an emergency. That would not go as far as before She war, but with the arrangements that had been made, the country, he believed, would get along much difficulty. No country in the world was so well off financially as New Zealand.

The increase in expenditure must b® met. of course, but he did not propose to increase taxation. Perhaps we had not economised as ’much as wo might have done, but he would give a littl® information on that point. The war debt had been practically _ reduced by twenty millions. Accumulated surpluses, those left over after paring war exnenditure each year, now amounted to about 4116.000,000, whidh had been spent on the soldiers. At ’.lie end of this financial year there would be another four millions which would be. spent as before. Tile law previously regarded those surpluses. not as assets, but liabilities, and compelled the putting away of one “per cent, for sinking fund. That 'had been costing 4200.000. The absurdity of the position was apparent, paying for a. debt that'' did imt exist, ami they had had that altered. Consequently that amount was now saved to the taxpayers. When money was invested on good security in the'land of the country, it, of course, ceased to 'be a. liability, and became an asset.

Regarding the Bank of New Zealand Bill, the Government’s interest in tho bank had been increased from one-seventh in rhe first place to one-third now, which was looked to to provide another .£20,000. There was a distinction between economy and retrenchment. It was right to economise, but he did not think we would get actually as far ns retrenchment in its proper sense. Be did not think we would get as far as the necessity for that. At present we were losing over .£300,000 per year owing lo coal difficulties—having Io get coal outside New Zealand, etc., and at one. time the Manager of the Rail ways estimated it at one thousand tons per day. There was coal all over Now Zealand—there was coal enough in New Zealand for our needs. However, there was no necessity to continue, the present high prices for outside coal. Good Welsh coal could he imported from Wales considerably cheaper than from Newcastle, and that would mean another considerable saving. He thought ho could say that at the end of the financial year there would be .a saving of at least'half a million per annum—but we, needed it all. Tie could make no definite promise, but no one would be more pleased than he if he could then make a good reduction in taxation. Mr. Massoy then read the balance-sheet of the State's assets and liabilities, showing assets totalling 4121,114,000, the chief items being:— Returns from railways 42.400.000 Land for settlement 9,666,000 Public buildings 8,240,000 Interest-bringing assets against war debt totalled about 420,000,000, so that there was over 4140,000,000. as against liabilities of some 4200,000.000. Though the country’s debt was therefore about 400,000,000, nga.inst that we had all the Crown lands, the value of which it was impossible to tell, and pri-vately-owned property and interests behind them. It was impossible there fore to call the country bankrupt when it was in a position like that. The Treasury, Mr. Massey continued, was going to get, and had almost got, all that was needed for soldiers’ settlement. With the present stringency in money there was not much chance of getting loans at the rate of 5$ per cent, and as increased interest meant increased taxo-

tion (which he did not wish) there would not for the present be any extension of public works on loan money. Proposed Visit to Enoland. Leaving finance, Mr. Massey said that if he went to England he would look into the' wool position. Sir Arthur Goldfinch had told him there was in stole in the Old Country wool of a value of twenty-two millions, and against that there were 7 or 8 millions accumulated profits. Sir Arthur Goldfinch said that if tho wool was not sold at a certain figure that the latter amount would be set up against the loss, and New Zealand would get nothing. Of course, if there were a profit New Zealand would got her share. That did not appeal to Mr. Massey, who looked forward to some interesting discussions on the matter when he got Home. If there was a war indemnity from Germany, Mr Massey went on, New Zealand would be entitled to her share in proportion to her war expenditure. Another point he would have to look after —another great point was that of the Imperial connection with the Dominions. The Dominions, as far as he was concerned, were not independent nations who could d<> what they liked, and what little influence he could use would be used in the direction of a united Empire. Our very existence in l the Pacific depended upon a united Empire, and the existence of that Empire depended on the supremacy of the British Navy. Immigration Laws. Touching on Samoa. Mr. Massey said the question of possession was not what the benefit would be to New Zealand, but that other nations should not bo able to gain possession of those islands which were really the key of the Pacific. Regarding the latest addition to New Zealand’s Navy, the vessel was not expected to act as a warship, but as a protector of commerce. The little cruiser was a sister ship of the Sydney, and if the Sydney was good enough to sink the Emden her sister was good „ enough for .our purposes. In conclusion Mr Massey briefly touched on the new immigration law. Some countries would shortly be exempted from tho restrictions. He was not going to say which countries, but he would say, for instance, the United States, a British-speaking race. Again he would not like to see Franco, which had stood by the Empire so well, excluded. However the Act, with exemptions, was going to do more than any previous measure to keep New Zealand for the AngloSaxon race. Defence Matters. Replying to the toast of "Tho Reform Party,” Sir Heaton Rhodes briefly sketched the rise of the Reform Party, and said that all the present members had received votes from Labour; not. extremists, whom they could do without, but they had the support of all honest Labour. Mr. Massey now had the confidence of moderate Labour. Touching on defence, Sir Heaton Rhodes said that though economy was needed, they were going to have efficiency. Particular attention would be paid, to officers and non-coms. The war had proved that men could soon be trained with competent officers and non-coms. They could do without camps and Territorial training for a year - or two, but he hoped to see them re-established on a sounder and more efficient footing than before. The Cadets, too, would not be forgotten. They mneft be trained, made physically fit and efficient, and drafted into the Territorials. The Minister went on to say that he had unwillingly been compelled to retire many officers for retrenchment purposes, but he believed that tho efficiency of the force was still unimpaired, and if it were ever necessary to send another force to help the Empire the machinery would be there. He incidentally remarked that he did not wish to disband any regimenit. Some might, for the time being, have to bo made squadrons or companies, but they would retain their traditions and badges, and if they wore, again extended info regiments they would not have lost their identity.

The meeting decided that a. cablegram bo sent to General Smuts congratulating him on the result of the recent election and the success of the Imperial Party of South Africa under his leadership.