WAVE OF PROSPERITY

Manawatu Standard, Volume LVIII, Issue 51, 28 January 1938, Page 2

WAVE OF PROSPERITY

PREMIER’S “LAVISH COLOURS.” MR HAMILTON’S REJOINDER. Per Press Association. WELLINGTON, Jan. 27. “When it comes to painting a picture of prosperity 1 do not think anyone can spiasii round with more lavish colours than the Prime Minister, said the Leader of the Opposition (Hon. A. Hamilton) to-day. “Air Savage states that two years of Labour rule have brought New Zealand to the highest level of prosperity n lias ever experienced. There is » typical lack of modesty about that statement, but there is almost an^ entire disregard of the actual tacts. Mr Hamilton said that a moment s thought was sufficient to prove the most potent cause of the present wave of prosperity was the results from the high prices of exports of our primary produce, and it was obvious that even the complicated guaranteed price scheme for dairy exports had been, made possible only by the rising overseas market. Ihe Minister had been studiously caret ul to select from the Abstract of Statistics only those returns and figures that suited his argument. He talked about increased production over two years, but remained discreetly silent concerning the extent to which overseas prices had contributed to that increase. He talked about the value of last year’s factory production, hut omitted to mention that it was achieved only by a titanic effort to increase production before higher costs brought about an inevitable decrease in purchasing power. He talked about wages and employment in factories, but confined himself to last year’s figures and ignored the fact that factories all over the country at present were faced with the prospect of shortening their staffs or of working short time. LIVING UP TO INCOME..

The Prime Minister saw only what he wanted to see, but the fact remained that at a time of high prices overseas New Zealand was living right up to her income, and possibly a bit beyond, said Mr Hamilton. Two facts alone were sufficient to wipe out the whole of the Prime Minister's picture of lasting prosperity. The man on a moderate income to-day supporting a wife and one or two children found that in payment of direct taxation alone he was working for the Government for six weeks in every year for nothing. With an extension of the Government’s programme the chances were that he would work even longer for nothing, and at the same time both he and his wife found purchasing value of every pound they had left stendily decreasing. Mr Savage did not record that organised labour was clamouring for higher wages. Probably he did not care to think the need for higher wages was the direct result of the Government’s policy of endeavouring to spend its way into prosperity.