POLICY SPEECH

Hokitika Guardian, 17 May 1927, Page 1

POLICY SPEECH

BY PRIME MINISTER

[by TELFGRAPn PER PRESS ASSOCIATION DARGARVJLLE, May 16.

The Prime -Minister, with Mrs Coates and suite, arrived at Dargaville, the headquarters of his electorate, this evening, and was accorded a civic welcome by the -Mayor and the Chairman of the County Council, after which the Prime Minister delivered a policy speech to the largest audience yet seen in Dargaville. The Prime Minister received a wonderful reception, and on rising to address the audience was received with cheers. In liis preliminary remarks M.r Coates referred to matters principally of local interest, and then lie went on with his main address. The Prime Minister dealt with the work of last session, and in so doing, he said that at the general election in 1026 the Government had appealed to the country for their confidence on a definite programme of policy, the essential points of which were to he summarised ns follows. Sound and prudent finance; thorough examination into the incidence of taxation ; closer settlement of occupied lands I>y purchase and sub-divison; extension of scientific agricultural education; investigation into farmers’ land hanks; well-being of the State and Empire; encouragement of secondary industries; suppression of trusts; immigration; selective immigration organisation to he strengthened; more houses and fewer slums; increased compensation benefits; investigation of a. universal pensions scheme and pensions due to parents with large families; modernised methods ot education ; extension of public health policy ; establishment of a Local Government Hoard. If was no spectacular programme, with no fanciful promises, hut one of national safety and progressive development, with more business in government and less Government in business. The electors, he said, by their verdict at the polls, returned the Government with a large majority. He claimed that his Government had dealt with most of their programme and succeeded in placing the items on the .statute Book. In view of next session, it was of public interest to give an indication of some of the measures which the Government hoped to submit for the consideration of Parliament during the coming session. It was a matter of general knowledge that a special Tariff Committee had been sitting in various parts of the country, enquiring and taking evidence in regard to the present system of Customs Taxation. The report of this Committee would, he hoped, he presented to the Government shortly, together with its recommendations. The matter might he regarded as sub judiee at present, hut it was intended to submit a Tariff Bill as soon as practicable in the coming session.

In connection with our secondary industries, Mr Coates said that the Dominion occupied a somewhat singular position, because of its being largely a primary-producing country. A fall in the price, of any of the principal products was felt, not only by the farmer, hut had a much wider effect. One of the remedies for overcoming the dangers in this respect, he said, lay along the road of building up our secondary industries. It was necessary, particularly in a young country like ours, to have a customs tariff for revenue purposes, and this, lie continued. will he the ease. It would ho to the general advantage of the country, in his opinion, if wo continued to take steps to build up. gradually hut securely. such industries as would help to relieve us during tines when the prices for our primary products in the world’s markets have fallen to a low- and an unprofitable level. He did not suggest for one moment that every industry should he encouraged, hut careful inquiry would disclose the merits of industrial undertakings, particularly whether they were likely to have security of existence, and what measure of assistance, if any, should he extended to them. The country and the town were, and would continue to he, inter-dependent, and lie hoped our primary producers, on whom the community so largely depended, would in this matter of the development of essential industries take a broad view in the interests of the Dominions as a whole. “ The Government,” he said, “ are also conducting enquiries into the general question of the incidence of taxation, and if the investigation is sufficiently advanced, a proposal in this connection will he submitted.

“ Another question which has occupied the attention of the Cabinet is that of still' further enlarging the opportunity of easier finance for the fanner. The Government will do all in its power to make the rural advances legislation of last session very successful in its working. 'The Act came into operation in April this year. Any amendments to give full effect to its provisions, and generally extend its usefulness, will he designed, and will. I feel sure, he agreed to hv .Parliament. It is probable that, in conformity with the report of the Rural Credits Commission last year, proposals will ho submitted to give effect to further recommendations of tin 1 Commission.”

‘‘ln the meantime the important question of farmers’ finance is under close investigation and review. Owing to a great increase in. the volume of motor traffic in the rural districts, the country settler is called upon to hear an unduly heavy burden by way of rates in connection with the maintenance and upkeep of roads. The Government holies to he in a. position to

suggest measures to eventually lighten this load, and will follow the principle of asking the user to pay for essential

road improvements. “Legislation for next session also contemplates dealing with mining, shops and office-, education, fertilizers and agricultural education. He looked forward with confidence to a busy and useful session, and it would fie found that the Government's programme was well advanced, and there would ho no cause for complaint on

ho score of delay.” In submitting measures of finance

lc was pleased to say the public fin

ances were in a healthy condition. He quoted the figures given bv the Alinister of Finance at Fcikling. He referred to the successful flotation of recent five millions loan, and in doing so referred to a fact which lie said was not generally appreciated, y'z., that British Ministers were not so keen on lending money for the purpose of making advances to settlers and others

to enable them to carry on their avocations. as they were eager to subscribe to our loans, having as their objective the prosecution of necessary works of development.

Recognising the position, he appealed to all citizens who had cash to invest. Ho said that Government debentures were being sold over the counter

to-day, and those who wished to assist their country in a difficult time could show patriotism in a practical way by purchasing their debentures.

The Prime Minister referred to the Public Debt, speaking on similar lines to those followed by tbc Minister of Finance at Feilding. lie concluded by saying that there was justification for saying that the low level mark had been reached, and that they could face the future with calm confidence.

He next came to what he termed “the vexed question of dairy control.” He said he had already made two statements in the country bearing on the subject. These, lie thought, were sufficiently explicit in regard to his attitude and action concerning the matter during his visit to London in the latter part of last year. Notwithstanding these statements a campaign or misrepresentation regarding himself and Government was being persistently carried on. Dealing first with Mr Holland, the Leader of the Opposition,

ho said Air Holland had been repea

ing parrot-like certain information which ho had gleaned second-hand, he presumed, from certain sources. On this information, he placed an interpretation which in his opinion would best suit his own political cause. His object was perfectly plain, and that was to discredit himself (Mr Coates) in Hie eyes of the farming community. As some of Air Holland’s opinions were swallowed by a section of the producers, he (Mr Coates) deemed it his duty to devote a portion of his remarks by way of reply. Mr Holland asked the country to bclievo that ho (the 1 Minister) had never been honest in the part ho took in connection with the dairy produce legislation, for which he was responsible to Parliament, and it appeared that lie based his conclusions

almost solely upon the appointment of Air Paterson as a. member of the London Agency of the Producers’ Board. From Air Holland's remarks, he seemed better posted in the doings of Air Paterson and his motives than lie (Air Coatas) had over been aware of. Ho (Mr Coates) held no brief for Air Paterson, hut wished to he fair to him, and did not for a moment believe Air Paterson would for a moment lend himself to any ulterior motive. He stated his reason for coming to his conclusions regarding the advisability of not pursuing, at the time, the policy of price fixation, which had been decided upon by the Board. To assert that lie (Air Contes) was in league with Mr Paterson, or he with him, was untrue. and unjust. His connection with the matter arose only after ho became

conscious of the serious position that the New Zealand dairy producer might he placed in by any move likely to place liis produce at a disadvantage as compared, with similar products on the Home market. His conclusions were arrived at after information had come into his possession from many reliable sources. Ho denied that ATr Paterson’s cable was sent to the Board with his (Mr Coates’) approval, though ’

knew of it. The telegram sent by himself to the Government of New Zealand expressed by far the hulk of the opinions which had been conveyed to him from a very reliable source. The real issue turned with their policy of price fixation? Without traversing all the factors, lie would mention two main causes likely to he very difficult at the outset. First of all, was the fact that at the time the Board assumed control there was a large quantity of butter held in store in London by dairy companies. This butter, which had probably missed the season, was being hold for higher prices, and likely to come oil the market at any time. Secondly, there was an undeniable fact that definite hostility existed among the trade, and indeed had spread to retailers and consumers. Tie challenged any person with a knowledge of the position which was founded on fact to controvert, ilio conclusion at which he arrived. Having formed his views, ho decided to acquaint the Government in the Dominion of the position, as he saw it. It had been stated ho was hostile to the Board’s Manager in London. He quoted an extract from a verbatim report of his conference with members of the Board and representatives of the butter trade in London on November Bth. in which ho said he was well acquainted with the New Zealand Co-Operative Dairy Association, its personnel and directors, and there was no doubt that they hud absolute and complete confidence in their London Afanager, that was. in Air Wright. Ho also quoted his remarks at the same meeting in which he said among other things, that control had come in New Zealand, and had come to stay. He had never suggested that price fixation was the cause of lower prices. He also twitted Air Holland on his newfound farmer friends, ami his professed anxiety for the welfare of the primry producer, and lie asked why he did not display with the transport of farmers’ produce the same concern eighteen months ago to the Home markets. Ho suggested

that citizens, whether country or town. should pause very carefully before seriously listening to the proposals of the Labour Party, which Air Holland enunciated. It was a policy which in his (Air Coates’s) judgment was fraught with danger, particularly to an agricultural mid pastoral country like New Zealand.

in concluding his remark's on dairy control, the Prime ATinister said he desired to repeat what he had already told fhe country, that the opposition to the policy of minimum price fixing was overwhelming, not merely by Home traders, hut by consumers. There was also, in addition, imminent danger of losing that friendly cooperation which was so essential for the successful marketing of our produce. He lelt sure that Air Grounds, who was staying at the same hotel as himself in London would admit that on all occasions when they conferred he (AH Coates) was as keenly desirous as he was that the Board’s operations in London should be successful and in the best interest of the dairy producers. He also said he was of opinion that the title of the Xew Zealand Hairy Produce Export Control Act contained a term that created ail impression that tended to prejudice our products on a certain market. He suggested, as an alternative. that a more suitable term would be that of “Xew Zealand Hairy Producers’ Co-operative Alarkoting Board or some other appropriate designation. Other questions dealt with wore Labour’s new land policy, also a reply to Air Holland’s criticisms on the present land policy; the decrease of the number of employees and of occupiers on holdings; mortgages and transfers in dealing in land; the interests rates; naval defence. Each of these niatteis was dealt with at length. A “SILVER LINING” PREORATION In conclusion, lie said the Government went to the country In 19‘25-with a definite policy. The great majority of the electors approved that policy, and the Government were already translating that policy into practical application. He made no attempt to

put forward a spectacular programme, involving vast expenditure, nor containing fanciful promises. The whole fabric of our community must rest on prudent finance. It must be conceded by every fair-minded person that the financial position of the country was sound, and that the national credit abroad stood at high-water mark. For this satisfactory position the Government was surely entitled to some credit for careful administration of piihlie affairs. The Dominion had laced depressions in the past, and the energy and industry of the people had always enabled them to win through. “The present difficulties,” he said, “will prove no exception to the rule. Already the silver lining in tile clouds is making itself, slowly but surely, visible.” At such times, when the people were feeling the pinch, there was, he knew, a tendency to blame the Government which happened to he in office. lie would, however, ask for patience, and for the employment of their industry and effort, as he had already pointed out to the really useful purposes of greater production. A little quiet stock-taking would do no harm. Indeed, it would he all to the good, for by the greater increase of greater thrift and economy we should reach the goal of prosperity the sooner. Air Coates concluded his speech amid hearty applause, and the following resolution was carried with great enthusiasm“ That this meeting thanks the Prime Minister tor his able and statesman-like address, and expresses confidence in the Government of which he is the distinguished leader, and renewed confidence in him as member for Kaipara.”