JUSTIFIED AT LONG LAST

Evening Star, Issue 22145, 27 September 1935, Page 17

JUSTIFIED AT LONG LAST

PREMIER ON GOVERNMENT'S POLICY LABOUR'S “ CLOUDY " PROPOSALS [From Oob Parliamentary Reporter.! WELLINGTON, September 26. Credit was given by the Prime Minister to the Labour Opposition m the House for showing more cheerfulness in tlieir Budget “speeches, of course, said Mr Forbes, it was critical cheerfulness. Another Labour innovation he asked the House to note was that at last they admitted that there had been a depression. Hitherto it had been a case of blaming the Government for everything, and ignoring what had happened outside New Zealand which led to the national income of £150,000,000 in 1928-29 dropping in 1931-32 to £98,000,000. Mr Forbes recapitulated the measures which the Government was forced to take to readjust national economy to this disastrous drop, and showed that the depression fell with exceptional severity on New Zealand. National incomes from 1929 till 1932 fell in England 15 per cent, in Canada 46 per cent., the Commonwealth of Australia 23 per cent., in South Africa 21 per cent., in Denmark 14 per cent., in New Zealand 35 per cent—only exceeded by the United States, where the drop was 54 per cent. It showed the necessity for doing something more than other countries to assist the primary producers, upon whom the brunt of the depression had fallen. He defended the wage reduction policy as a means of enabling employers by reduced costs to maintain more men in employment, and concluded His’survey ofthe Government’s measures with the confident declaration that the aim to get stability of finance had been achieved.

A charge was made that the Government cut down wages but did not touch the wealthy, but the Government cut down interest and rents, and effected compulsory conversion of loans. The charge could not be sustained that the Government did not exercise its powers in the emergency fairly and equitably. This solid policy, which had been successful, ho wished to contrast with the Opposition Leader’s 12 joints, declaring “I don’t think any intelligent person is likely to accept these cloudy, vague promises and statements m substitution for tho_ methods adopted by the Government right through the difficult times. We are told, of course, that the restoration of pensions and Public Service salaries is being done to sweeten the electors, but what _ does Labour do? They are bidding higher. Each time we have a few additional points. (Laughter.) They recognise that we are able to point to the achievement in the Budget of the things we fought for.” The Prime Minister suggested that Labour’s 12 points would involve enormous inflation, and such a programme would land the country in a state of bankruptcy, if carried out. He missed one old friend from the points—socialisation of the means of production, distribution, and exchange.” “ We have seen him for years,” concluded Mr Forbes, amid Government members’ laughter, “ hut they seem to have turned their back on him. He has been dropped for guaranteed pripes.”