WARNING TO NEW ZEALAND

Hokitika Guardian, 27 August 1930, Page 7

WARNING TO NEW ZEALAND

AUSTRALIA’S FATE.

BURDENS-OF THE PRIMARY

PRODUCER

STRATFORD, Aug. 25

“Australia’)* position is so serious that it must have an indirect effect on Now Zealand,” said Mr W. J. Poison, M.P., in an interview, to-day. “Public opinion cannot be too strongly directed to tlie necessity . of profiting py Australia’s misfortunes. We cannot afford to drift a single hour. Wo must put our house in order at once. f -

“Australia has a colossal public debt, a balance of imports over exports, and high taxation. What difference exists between her position and that of New Zealand? Let ue face the facts. We are balancing our Budget by piling more taxation on this already over-burdened community instead of attempting to economise. Political courage and a strong policy are needed if We are not to be caught next year as Australia has been caught tliis yeur. If Sir Otto Niemeyer is right in his summing up, the position of tile primary producer not onlv in Australia but also in New Zealand coi’ls for Immediate consideration and statesmanship.” After setting out Sir Otto Niemeyer’r* conclusions, Mr Poison proceeded: “This dark picture of Australia’s position may not interest thoughtless people; but can anyone say that the situation in New Zealand is very much better or likely to improve under the policy of piling up costs through tariffs and adding to the tax burden which is already uneconomic.

“Drastic and far-reaching economies are called for. This country exports nothing but primary products. We have to export and maintain a bal-

ance of exports over imports'that will pay our overseas interest bill' if we are to retain a sound position. If world prices continue to fall, and the primary producing goose fails ,to lav golden eggs, nothing will save New Zealand from a catastrophe not experienced since the sixties. ‘ We are caught in the cogs of a political machine which we cannot control. “Parliament might,.set about improving the situation. No party has sufficient backing to adopt radical remedies and the party spirit is too strong. The present Government cannot even tackle the job of reducing living costs through the tariff and putting substituted taxes on the shoulders of the luxury-users. Yet \ve must apply the,so remedies, however unpalatable, or suffer worse results. The sooner the country waltcs up to this fact and insists upon its rulers acting instead of talking, the more lightly will we escape from Australia’s fate.”