PRIME MINISTER

Hokitika Guardian, 18 November 1931, Page 5

PRIME MINISTER

OPENS CAMPAIGN.

DEFENCE OF COALITION.

(By Telegraph—Per Press Association)

RANGIORA, November 17. ‘ The first speech of his election campaign was delivered by Mr Forbes in Eangiora Town Hall to-night before an attentive audience of more than

600 people. When he had come back

from England, he said, he had found estimates of public income had .altered

considerably. That was in January, but it had been very clearly seen tjiere would be a deficit in the balancing of accounts. Preparations were made to meet this deficit, but nevertheless there was still a deficit at the end of the financial year. In the present year they had again been faced with a deficit and had also to meet the problem of unemployment. He detailed the history and work of the economic session that was called, and thanked Mr Ooates and the Reform Party for assistance given. Even during that short session, accounts' went still further in the wrong direction and by the time the Budget came down, the gap in the accounts was then £6,800,000. Finally, after the Economic Conference it had. been decided it was necessary to get the wholehearted support of the House, and Mr Coatee had been approached, but it had not been possible, to get the /support or co-operation of Labour. He continued i “This was how Coalition came about. We felt the time, had come when wholehearted co-operation for the good of the country was necessary. I felt the burden of responsibility a® Minister of Finance too heavy for me. I knew people wanted security.” >

Mr Forbes said that at one time thought it possible a Coalition might make possible a. postponement of the elections, but had then quickly realised that the authority of tlie country was necessary to give a Coalition Government effective power. Had there been a postponement sitting memoers would have remained in the House; and it had been thought wise and fair that they /should be. candidates for. election. That was why he did his best to persuade the Independent, candidates /to stand down. Now he asked those who had supported, the United Party before to support official candidates again.

Aspects of the last Imperial Conference and Dominion preference were discussed by Mr Forbes, who expressed the idea that there might shortly be a. trade agreement with Britain giving security in the Dominion’s principal market. He said: “We must now set regain confidence abroad, and to set ourselves to meet deficiencies in revenue in all sincerity and good faith is by far the best way <to do, it. There is one thing about New Zealand I was proudest to hear in the Old Land, Itg reputation for soundness. That is a reputation this Government wants to see continued. We will honour our obligations, to the letter.”

Mr Forbes said; “It ha® been said in regard to ithe cuts in the Public Service salaries that the cuts were unnecessary, and that the best way to meet depression was to raise .wages and ,thus give increased purchasing power. Tf that is so, I think we should all want depressions all the time. There is only one way to carry on this country, and that is to carry on as an individual, and that I shall endeavour to see done. It ha® been said that depression is slackening, and I believe that is, so. I don’t think there will be any enormous improvement, hut with a rise in the prices of wool and butter, I think things will slowly but surely improve. However, public finances are the srst to . suffer and the last to recover from a depression, and the Government is asking tdie country’s mandate to take necessary measures to bring, them, back to normal.” 5i tr Forbe-s went on to deal with recent decision® regarding aid to farmers b v means of cheapening fertilisers and reducing rates, saying: “The farmer is the backbone of the country, and everything we do to help him helps the countrv. When you came up agaiiftst conditions such a® at present, it is necessary to face facts and do leverytSuna; possible to meet the position of all classes in the country. The sheep farmer has been hit hardest. I. doubt if ft shee P farmer in the country has been able to pay his rates and taxes without drawing on his reserves.” He continued: “I am subject to a good deal of criticism for my support of the abolition of the Graduated Land Tax, hut the Government has to pay the taxation burden equally on those who pay. I don’t- care who started the tax. or who put it on, but, so long a s I am Prime Minister, I shall see that the taxation which cripples the mmior producing class in the country is lightened.

“There is no doubt unemployment is one of the w-t serious problems faced by the courrfry,” continued Mr Forbes." He summarised the history of the battle with unemployment m New Zealand, saying: “Tim money we raise is exhausted almost shs it is raised, and unless we can put n»en on productive works, the country will soon be very heavily burdened. My colleague, Mr Coates, is endeavouring to direct men into* w'-rk in the country-go that the Dominion may . get some return for the money spent. When- it is remembered there has l>een a phenomenal growth of Urn unemployed of from 2000 to 50,000, I say we stand comparison with any othcir country.’ “It has been said that the Gov-

eminent is out to abolish the Arbitra-

tion Court. I deny that emphatically,’-’ said Mr Forbes, “but I consider that it i® imperative that the Arbitration system should be revised.” A time had come when the regulations restricting the employers and 6m-] ployees should be overhauled. Industry was in a straight jacket, thanks to the harrassing awards of the Court, and the Government would see : that they were done away with; The Government had been criticised regarding the smallness of the area settled by it. I was instrumental in getting through an Act. which gave the Government authority ‘t# break in land before opening it for settlement and to give advances to settlers, arid the result Iras been that a considerable area of Crown land has been settled in recent years. . . ’

I Mi- Fprbes commended the setting jup of the Railway Board. One of the j contributory causes of. Budget defij ciencies had. been the demand of money by the Railways to pay interest on construction -costs. The Board was constituted of business men,' and it was their, duty to see. flic railways were run on something like business lines. Lost year the railways had been able to pay £680,000 as contribution towards the interest payments. This year it was hoped to.'pay £900,000 towards interest. However, though overhead costs had been falling,, improved revenues had been impossible. There had been a certain number of’ dis* missals.. Now revenue was slowly catching up with expenses. The Board was now out to cut down enormous emus the Consolidated Fund had .''to pay out on behalf of-the railways in the past.

Mr Forbes discussed at length the positon of Mr H. H. Sterling. He praised his action in .accepting the Chairmanship of the Railway Board, adding: “One of the duties of ! the Board was to report on the lines under construction, which later they would have to carry on. They recommended unanimously that the construction of railways should be stooped. I regretted closing down the Trunk line, but our financial position makes one very loath to’spend huge sums'on railway*. Furthermore it hag been impossible to raise money . any where in the: world for > rail construction, because - noVrailway anywhere'- is. paying;” The Industries : yi3|>yelopment Board was mentioned : ||p!;s|j;j Forbes; in dealing with of local industries..' . He.; thought a good' deal could be done in., reducing overhead costs in local- seeotidhry: industries, And that was one of. .iKe purposes 'of' the new Board. Many of the bye-produerhs of industry could be improved, as well as many less important national products. He said : ‘ “We realise the improvement of unemployment [depends | upon the success of local industry, and any industry that can be carried on sound lines will receive help from the Government.” ' ; • - : Mr Forbes criticised severely Labour’s promises regarding unemployment and banking' saying: ; “They propose to take over a banking system. I think they would have to, if they wanted to carry.out proposals for the unemployed at the full union wage.” Mr Holland had said he would re-organise the resources of the Dominion on modern lines. .What‘had lie meant by that ? Wag it what they were doing in Russia He said:. “I know that in Parliament every proposal for economy has been opposed by J the Labour Party. They said we must build up, and ngt cut down, but the man who has 20g can’t get 30s without doing somebody down. All of Labour’g, vague generalities are a smoke screen, We,' know we are up against hard economic facts; that We must all carry the burden. A outting down must take place even in education, for we cannot afford:-to spent £3,500,000 on our education alone. We must have a strong Government, one which is Impossible without strong support, in order to face all the facts in all their importance of the economies position.”