N.Z. IS WORLD’S BEST OFF COUNTRY

Grey River Argus, 2 September 1948, Page 5

N.Z. IS WORLD’S BEST OFF COUNTRY

Hon. R. Semple §ays Opposition Divided On Exchange Question P.A. WELLINGTON, Sept. 1 The Labour Government had almost closed the bankruptcy courts, and had put the pawnbrokers out of business. There were no swaggers on our highways, and ours was the brightest and most prosperous little country under God’s own sky, said Hon. R. Semple in tne House or representatives to-night in his budget speech.

The speech as the Minister was later deserwed by Mr R. M. Algie (Nat. Kemuera) as "the history or New Zealand in technicolour.” Mr Semple said that he was satisfied that the Opposition were not unanimous in their protests about the removal of the high exchange rate. Discussing criticisms of the railways administration, Mr Semple said that the railways of New Zealand have never been better managed than they are to-day. The Minister said that deficits on the railways’ operations in the last few years would not have arisen were it not for the high cost of the imported coal and oil fuel. If there had been sufficient New Zealand coal, or even of Newcastle coal, available for the railways, there would have been .no losses.

Mr Semple said that thirty-five engines have been converted to oil burners, and it was proposed also to convert a further sixty or seventy engines. The conversion to oil burning already had saved thirty-seven thousand tons of coal, and it was estimated the saving next year would be one hundred and eighty thousand tons of coal.

The Minister said that a programme of building overhead bridges to eliminate the railway crossings could not be undertaken without having the steel. It was, at present, impossible to get that commodity; but he had succeeded, up to a point, in Australia, and he had obtained priorities for sewerage and waterworks and hydroelectric schemes.

He added that the production of the Broken Hill Proprietory Company, when he was in Australia, was down by forty per cent., and it had since dropped another ten per cent. Nationalist Upholds Exchange Decision CRITICISES BRITISH GOVERNMENT / P.A. WELLINGTON, Sept. 1. Following Hon. R. Semple in tne Budget debate in the House to-night Mr R. M. Algie (Nat., Remuera) said that he would accept the challenge which Government Members had hurled at the Opposition to give their definite opinion on the . Exchange question. “It was,” said Mr Algie!, “desirable for our pound to be on a parity with sterling. This was the time to achieve it, and it was better done in one lump than in stages.” By returning to parity, he said, the New Zealand Government was seeking to lower costs and to increase the purchasing power of the people without adding to the volume of the money in circulation. Mr Algie said that the appreciation of our currency had been brought about not because of the virtues of the Labour Government of New Zealand, but because of the sins of the Socialist Government of Great Britaim Ever since the Labour Socialist Government took office in Great Britain, money had been thrown about and spent in a nonchalent and carefree style, characteristic of the Labour Government in New Zealand between the years 1936 and 1939, With exactly the same results in both countries.

He asserted that the American loan to Britain had been used in reckless extravagant expenditure on -nationalisation. Because of reckless expenditure, costs in Britain had risen to an unprecedented height, and the value of her currency had decreased. Mr Nash, he said, was well aware of perils in rotating the handle of the printing press in tne Reserve Bank. He unfortunately was subject to pressure of a Left Wing group which was reckless of consequences of inflation. Doubtless the Minister had agreed to appreciate our currency in the hope of stemming dn inflationary tide. This action however, he said, had resulted from the British price structure getting out of hand. He asked what preparation had been made to prepare New Zealand’s economy for the major surgical operation to which it has been subjected. What plans were there for a post-operational period for helning dairy farmers, high-coun-try woolgrowers, manufacturers .importers and retailers all of whom were confronted with new problems. The timber trade with Australia, he said was in a serious plight, and we were losing Islands trade to Australia. . He said that clots had appeared in the Dominion’s economic bloodstream. The bulletin at the moment was that the operation was a success, but the patient might die.

OPPOSITION’S MANY VOICES Hon. C. F. Skinner said it more apparent than ever that Opposition spgke with several voices on the Exchange issue.

The Minister recalled that Mr Holland had said that the change should have been made in stages, but Mr Algie said that it was rightly made in one step. Mr W. A. Bodkin had said that it should have been done eight years ago. Mr Algie’s speech could, in many respects, be applauded from the Government benches. The Minister said that the alteration to the exchange rate would certainly benefit the workers and all of the consumers in many ways.. Tyres, tractors, ears and other goods have already been advertised at lower prices, and he knew several businessmen who intended holding sales in the near future to sell their present stocks, and cut any losses before the lower priced imports arrived. More than forty per cent, of all the goods used in New Zealand, he added, were imported goods, and the consumers were bound to benefit. The farmers’ incomes would not be affected for some time at least. The House adjourned at 10.30 p.m. until 2.30 P.m. to-morrow.