USE OF PUBLIC CREDIT

Evening Post, Issue 126, 29 May 1936, Page 6

USE OF PUBLIC CREDIT

PEOPLE TO BENEFIT

MR. SAVAGE'S SPEECH

The Prime Minister (the Rt. Hon. M. J. Savage) said that Mr. Atmore had raised the question as to what the Government could do with the public credit. Mr. Savage said that he had been through the country, and he thought that he had removed any doubt there may have been concerning the use of the public credit, and he wanted to assure the country that if he thought that the splitting of the difference between 3J and 4 per cent, was the last word that the Government had to utter on the money question he would resign now, because it would not be worth doing. There might be a temporary benefit to get a reduction of 1 per cent., but it was not enough.

Mr. Savage said that he had stated in no unmistakable terms what the intention of the Government was. The Government had said that it had to transform the whole money system so that money would be a true reflection of the goods and services the people of the country were bringing into !■ existence. The time must come pretty rapidly when the money system would be a true reflection of the goods and services that the people of the country were capable of bringing into existence for their own use and for exchange with people overseas for other goods arid services that could not be produced in New Zealand. It did not matter whether the goods were sold in New Zealand or Britain. When sold in Britain they would be paid for in British goods and services which must be bought and used in New Zealand. However the thing was looked at, the same conclusion was arrived at, that the value of the goods and services should be reflected in the money system and equitably distri--1 buted among the people. There was no other way of giving the benefit of science and invention to the people of this country. '"A GREAT CHANGE." "This is the beginning of a groat ! change," said the Prime Ministe-c He

added that there were those who said that it could not be done, but that made him tired.

Referring to the criticism made by Mr. Hamilton, that there had been insufficient time in which to study the Bill, the Prime Minister recalled the number of Bills which had been brought down by the Opposition when it was the Government, in the dying days of the session, and said that he had not quite understood the legislation by reason of the haste'with which it was being put through the House. The Government today had no intention of stealing a march on the Opposition. "Our intention is to take the people of the country with us wherever we go," said Mr. Savage. LEVEL OF PRICES. The Prime Minister referred to remarks made by the Opposition regarding the keeping of prices at a certain level, and said that the Government would keep prices from rising all right. "I have stated quite frankly that those who arc anxious to exploit everybody for their own personal gain might win the first round, but the Government will win all the rest," lie said. "We have the power, and we are going to exercise our power to the full: it is due to those people who trusted us with that privilege."

He said that the Government's majority in the House only meant that the Government's responsibility was increased. Some people thought that the Government was moving too rapidly, and others thought that the Government was doing nothing.

"We still have a responsibility, and we are not going over that precipice that some of our opponents would like to see^ us taking a header over," he said. Mr. Savage, said that the Government's policy was to establish prices upon the average of the last eight or ten years, and that would make for stability not only for the State Advances, but for everybody else. The State Advances did not fail because of any inherent weakness of itself. It got into difficulties because the Government of the day weakened thte foundation on which any lending institution must rest, that was, the power of the people to pay their rent. "W,e are here tonight to show that State enterprise in the matter of money will succeed, and it is the only enterprise I that can succeed," he saicL "The state of the world today is due to the private control of money; it is.certainly not due to the public control of money." Dealing with the board of management, Mr. Savage said that the Government would not appoint members because they were friends of the Government. They would appoint men who knew their jobs. Mr. Savage said that his meaning of a guarantee was that a person got what he expected. "The time cannot come too rapidly," he said. "The State is absolutely master now. We control public credit by Act. It remains to be seen whether we have the courage and wisdom to give effect to our election pledges." [ THE SPECULATOR. Mr. Savage proceeded to refer to the speculator, and remarked that it was no use the Government closing all the doors and leaving the windows open. [Some people were saying that the Government was going to betray- the people. The Government did not mind that, but would meet those people face to face and let the people be the jury, "and then we will see who will win," he added. "My word is not to be taken? I have given my word to the people of this country, and I am not going to break it. I may not reach the heights I imagine, but it won't be through dishonesty or misrepresenting the position to the people of this country." An Opposition member:. Whst about exchange? Mr. Savage: The less the Opposition say about exchange the better it will be for the reputation of the Opposition. Dealing with the position of the speculator, Mr. Savage said that surely it would not be thought that the Government would allow benefit to go to the pockets of the people selling land and houses. "I am going to ask the people of the country not to worry about the speculator," he said. "There is no one on earth who can stop us giving effect to the will of the people. The people will have nothing to lose by the passage of this legislation." The debate was adjourned.