PREMIER’S CLAIMS

Manawatu Standard, Volume LVIII, Issue 52, 29 January 1938, Page 2

PREMIER’S CLAIMS

STATE OF PROSPERITY. REPLY TO MR HAMILTON. Pei- Press Association. WELLINGTON, Jan. 28. “The Leader of the Opposition has made another futile attempt to belittle the rising tide of prosperity in New Zealand,” said the Prime Minister (Rt. Hon. M. J. Savage) to-day “He refers to my recent statement concerning the impressive evidence oh prosperity under Labour rule during the past two years as a parade of statistics and glib talk of millions. Indeed, after several days of reflection Mr Hamilton came to the conclusion that 1, as Prime Minister, had to be content with painting the clouds with sunshine. Even if that were so, surely that must be better than following the Navionalist Party’s practice of blackening the outlook with pitch. “Mr Hamilton, at least, has the loyalty of a man who clings to an obsolete policy. As a Minister in the former depression Government, and as an incurable pessimist, lie has been so used to drabness that he cannot appreciate luminous facts. His political and economic ideas take the form of menacing shadows. Do Mr Hamilton and his friends want to go back to the days and ways of social misery and unexampled impoverishment of the people? One can only feel sorry for a party leader whose daily joy is found only in predicting economic disaster. Is the Nationalist policy still based on wage outs and the parsimonious treatment of the aged and poor ? Is that the reason why the party consider it imprudent to disclose their policy? “It would seem that Mr Hamilton is angry over the great increase in the value of production. The conditions are so novel to him that he is disgruntled. Under his Government’s disastrous rule the total value of production dropped thirty-seven million pounds in two years. Although the farmer worked harder than ever before, his reward generally was bankruptcy. Under Labour rule the value of production has increased in two years by £39,100,000, while the small farmer’s weekly income lius risen from £2 to £5 15s—his net income after paying rent, interest, and working expenses (including wages). This may seem a lavish use of statistics, but they happen to be facts. Again, under the guidance of the former Conservative Administration, the aggregate income decreased within two years by twenty millions. Since the country wisely dismissed the ‘black cloud’ Government, the national income has been raised by thirty-seven millions. What is the use of Mr Hamilton saying that taxation has wiped out prosperity when it is prosperity itself which is bringing in the additional revenue? The people have more left after paying taxation and more than half the taxes goes directly back to the people in social services. What is the use of saying purchasing power is decreasing when Wages have increased more than prices? Wages are higher than in 1929, but prices are lower. Mr Hamilton says lam an optimist when I say the people are enjoying their prosperity. Does he mean that they are miserly enduring it? This is 1938-—not 1932. The holiday season just passed has been a record one in every respect, and I do not need to make any parade of statistics to prove that the people are enjoying prosperity.”