DIFFICULT DAYS

Hokitika Guardian, 5 February 1930, Page 3

DIFFICULT DAYS

PROBLEMS OF AUSTRALIA

VisiTiisfG poliiTitiAN’s Views. Industrial and eomomic problems , confronting the Commonwealth of Australia ; iit the present time, and ■the possibility of their solution in the hear future .were topics upon which the Hon. j. J. Holmes, M.L.C. of Western Australia, made a number of very interesting comments to a representative of the “Tress” recently. f , i k ..... Mr Holmes, who in the course of Jiisi sixth holiday visit to New Zealand, is now in Christchurch, lias been a member of the Western Australian Parliament for the past 26 years, holding Ministerial office during a part of that time. Although to use his own words, Mr Holmes is a “hard-shelled Conservative,” and . a Labour Government is now in power in, Western Australia, he carries letters from the present Ministry testifying to his having rendered distinguished service to the State in which lie. was born.

“I do not know of a better place than New Z eu l a,, d to escape from the Australian heat of .January, February and...March/’ said Mr Holmes..“ Since my first.visit here 25 years ago, there hiys been a .wonderful .development in every respect, and 1 am more impressed with tbe country than ever before. It is a delightful place* for a holiday. 1 ’

THE COAL STRIKE. Speaking of Australian affairs, Mr Holmes made it particularly clear that all pe pie under the impression that the Commonwealth was on the yerge of a revolution should absolutely banish the thought from their juinds. The worst trouble in the coalfields of New .South AVaies wgs being well handled by the. Prime .Minister, Mr T. R. Bavin, “When he is. assured of thej support, of public opinion for which be is now angling, and makes iiis move,” Mr Holmes considered, “all , Australia will .follow him. There may, of course, be a few phots fired, and the careers of one or two undesirables brought to an end, but it will be nothing to worry about.

\ 1 TOO MUCH BORROWING. “No one can deny that Australia anci New Zealand are facer with difficult financial problems. “ Individuals US well as the- nations have lieen having a good time on borrowed money, but the difference lies in the fact that when the individual finds himself in difficulties he can seek the protection pf the bgjikruptcy .court,. nation must meet its obligations and temporarily strangle its industries.. I uni pleased to note that we -. have come to', the ' end of our borrowing policy for the .time being, which, means that, Australia Jifas^ got to get back to work, and live on what it earns. We have been used to paying wageo on the basis of the cost of living, not on the ‘ basis pf the amount of work done, and irrespective of whether the industry can stand it or not. Obviously that is economically unsound and should be discontinued.”

NO NEED FOR UNEMPLOYMENT

Mr Holmes was convinced ' that there was .no necessity for unemployment. “The trouble is,” he said, “that immediately ( the Arbitration Court makes the employment of labour unprofitable, unemployment is the result. Australia is about 39 times us large as New Zealand ; you. have a population pf about 1,500,000; we have one of 6,000,009, aqd there is room for another 100,000,000 provided they are prepared to work. Western Australia has produced gold to the value of £170,000,000 since the discovery of the metal 30 years ago, but the production now is not as large as it has been, because only the high-grade mines are being worked. Others will be reopened as soon as men can be profitably employed. Western Australia has now a harvest wheat crop worth £9,000,000, where lialf a century ago we purchased all our flour from South Australia. We have also some of the finest hardwood forests in the world, but very little is done, in tbe way of export, since the arbitration awards have made timber handling unprofitable. 6ur coal mines are worked seven hours a day for five days a week, but all this will Ibe altered when Australia as a whole gets back to work.

CONTROL OF BORROWING. “To indicate the necessity for this change I would point out that under the financial agreement put forward by Mr S. M. Bruce, and accepted by the State, Australia has undertaken to liquidate her financial obligations amounting to over.’ £1,000,000,000 (one quarter of which is due to the war), in 58 years, This liability is to ibe disohargjed by ft compulsory sinking fund paid each' year, two-thirds by the State Governments, and onethird by tbe Federal* Gqvei'nnibnt. So far as new loans are concerned, the States have to pay half the interest, and the Federal Government half. If a deficit occurs in any State in any year, a special sinking fund is to be provided to liquidate this liability; in the course of ai few years. ThW financial agreement removes the problems of payment from ipolitioal influence, and the future borrowing policy of the Commonwealth and 'State Governments will be adequately controlled.”

LABOUR’S PROMISE. Questioned regarding tile possibility of the present Labour Federal Government under Mr J. H. Scullin effecting a satisfactory solution of Australia’s problems, Mr Holmes expressed the opinion that they had madq election promises which they they could never fulfil. “They promised to settle the New South Wales coal trouble in a fortnight, knowing that it was a State matter, and they could not successfully interfere. They Also intended to subsidise the affected (nine, to enable the miners to obtain the desired conditions, ..apparently, overlooking the fact that the Federal C nstitutidn provides that if any subsidy of ah industry is made in one State, the same conditions must Apply in all States.

BRIGHT OUTLOOK

“I am not in tlie least alarmed about Australia’s future,” concluded Mr Holmes, “but she has to live upon what she earns, and cease borrowing. There “is ample profit and employment for many millions, evidence for which may ibe seen in Western Australia alone, where we have hundreds jof 'thousands of acres of wheat lands unoccupied, gold mines equal to anything in the world, hardwood timber, coal, pearl, pastoral country capable of producing some of the finest merino wool, and a dairying industry which has in only a few ' yMrs exceeded all expectations.”