STRONG CRITICISM

Marlborough Express, Volume LXXVI, Issue 246, 19 October 1942, Page 4

STRONG CRITICISM

RETENTION OF WOOL INCREASE. CRUEL INJUSTICE SEEN. P.A. WELLINGTON, Oct. 17. The Government's proposal to retain a portion of the 15 per cent increase in wool prices granted by the British Government was strongly criticised in the House of Representatives by the Leader of the Opposition (Mr Holland), who devoted the whole of his speech on the Finance Bill to that subject. There was an immense amount of oisc on tent among the wool producers over the Government's attitude, said Mi Holland. It was the farmer's money and they had no right to hold back 10 per cent. of it. Mr J. A. Lee (Democratic Labour, Grey Lynn) : Would you give the sol dier an extra 15 per cent.? Mr Holland retorted that the soldiers had received increases and he was always prepared to consider that sub.iect. Wool prices were increased to compensate for higher production costs. Wage mcreases had been granted to other sections of the community, but there was no suggestion that any part of this money should be withheld. Shearers' wages increased by 6d per 100 for every halfpenny a lb increase in wool ' prices and the growers had to pav these higher rates on the 15 per cent. increase in cash. Another cruel in justice was to withhold the higher price from the grower in respect to wool utilised by New Zealand manufacturers, a grave abuse of other people's money. The prices of woollen goods were stabilised in the Dominion, and it had been decided that the increased cost of wool would not fall on the New Zealand consumer. A Government member: Will the farmers go on strike? Mr Holland: They are loyal men and won't strike, but at the first opportunity they will deal with the Government which withholds their own money. Replying, the Minister for Marketing (Mr Barclay) said that the matter was the subject of negotiation at the present time between the Stabilisation Committee and the Government. He revealed tha.t he had received confidential information in Australia that one of the reasons for the 15 per cent. increase was to safeguard Australia's sterling balance during the war period. Immediately the announcement of the offer by the British Government was made he made a statemeni which he still stood by, and that was that the increase offered was no reason why New Zealand consumers should have to pay an increased price for woollen goods. To enable-. the wool grower to get his 15 per cent. the wage workers and others who had received 5 per cent. rises and less would have to contribute. It meant that either the taxpayer or the consumer in New Zealand would have to pay 4 per cent. to 5 per cent. more for woollen goods, or about £200,000 would have to be found out of the Consolidated Fund. To pay out £2,500,000 to the wool growers in New Zealand was just sheer inflation, said Mr Barclay, because it was impossible to get an extra volume of goods to offset this sum. Mr W. J. Polson (National, Stratford) said that the 15 per cent. was not the New Zealand Government's money. If the farmer was not to get it, it should be paid back to Britain. The dairy farmers had received their increase because it was their own money, and there was no reason why the same should not be done for the wool farmers. Why should they he selected for victimisation? The wool grower was marked out because he had no friends on the Government benches. The action of the Government would do more than anything else to discredit New Zealand overseas. NEED FOR CEILING. The speech of the Leader of the Opposition, said the Minister for Supply (Mr Sullivan), was calculated to create class and sectional feeling and have results that would be very damaging to the economy of New Zealand. Unless the ceiling could be put on, declared the Minister, the lid would undoubtedly be taken off completely, and the Arbitration Court would be functioning to the full, dealing with applications for increased wages, and the dangerous economic problems now threatening the country would be intensified.

The policy of stabilisation had been accepted by all parties in the country, continued the Minister, and he pointed out that up to the time when the 15 per cent. extra for wool was granted by the Imperial Government the Sheepowners' Federation had not asked for an increase. The 15 per cent. "came down out of the blue." There was no intention of depriving the industry of at least 131 per cent. of that amount, and the other II per cent. would still be a matter for discussion. It was just a question of holding a portion of the amount in resferve so that the inflation problem threatening the country should not be intensified. The Minister said he did not know whether the sheepowners and the Stabilisation Committee would be prepared to resume their negotiations after the speech of the Leader of the Opposition, which he thought was calculated ;to sabotage the agreement that was in prospect. "This is a desperate attempt on the part of the Opposition to get the good will of people with substantial electoral war chests," said Mr J. A. Lee (Democratic Labour, Grey Lynn). He was appalled at this ex~ hibition of sheer greediness. If the Opposition had demanded 100 per cent. of the increase for the small farmer with limitation on his income he could have supported it, but at a moment when the nation was bleed - ing to death there was an outrageous plea for a subsidy to people who were the wealthiest in the country. They were sabotaging the war effort. On Mr Speaker's request Mr Lee withdrew his last statement. The adjournment was taken shortly after 1 p.m. until 2.30 p.m. on Monday. , V