THE HAURAKI ELECTION

Otago Witness, Issue 4028, 26 May 1931, Page 36

THE HAURAKI ELECTION

Candidates. W. W. Massey, Reform. E. Allan, United. C. R. Petrie, Labour. A. A. Ross, Country. Polling Day, May 27. Last Election. A. W. Hall, Reform .. .. 3826 E. Allan, United .. .. 2935 C. R. Petrie, Labour .. 2411 PRIME MINISTER’S ADDRESS. THE ECONOMY MEASURES. . AUCKLAND, Alay 20. Justification of the Government’s economy measures was voiced by ihe Prime Minister (Mr G. W. Forbes) in a speech at Otahuhu this evening in furtherance of the campaign of the United 1 arty candidate in the Hauraki by-elec tion. Interjectors were active through out the address.

Mr Forbes said that in attempting to balance the Budget it would be realised that no half-measures would be effective. If they were to preserve the country’s reputation they had to set the country’s house m order. Much criticism had been levelled in regard to the 10 per cent cut in the public service salaries, but the Government had been faced with the necssity for asking the people to make sacrifices. It was not likely that he would have taken such a step if his own politi cal safety was his only consideration. The C i Ost j the public services had to be re“u.c.ed - ™ he reven «e of the country was fully £20.000.000 less than it was two years ago, and the Government had been faced with the alternative of reducing wages or dismissing men. A voice: You have done both. Mr Forbes said they had had to discharge some men, as the public works >n uhieh tliey were engaged had been completed. Over £2,000,000 was still required to balance the Budget in addition to the losses on exports. The farmers had received £10,000,000 fess for their produce sold in New Zealand. The reductions in revenue were:—Meat. 30 per cent.; wool, /3 per cent.; hides, skins, etc., 55 oer Ce v' : i dai . ry P r °duce, 35 per cent, tr ii ,°rbes denied the statement of Mr Holland that the Government had promised never to cut wages, and said it was no good talking now about what it was intended to do in the past. They had to realise the problems of to-day and make provision for the future. The unemployment problem was one of the biggest difficulties with which they had to grapple, but after studying the measures adopted in other countries he was satisfied there was no place in the world that could offer a lesson to New Zealand. He had seen the effects of the dole in Britain and was satisfied that the people of New Zealand did not want the-dole. It was hoped in future, said Mr Forbes, that some arrangement would be made' with Canada for the removal of the high against New Zealand butter. He had been in constant communication with Canada, but so far without result. With regard to the geneial reduction in wages, he was confident that people realised they had to adjust then’ expenditure to meet the times. He nad sufficient faith in the commonsense of New Zealanders to believe that they would realise the position.

In Connection with his proposal for a National Party, Air Forbes said be realised that the utmost co-operation was necessary to avert disaster. He did not expect to bridge all the differences of opinion, but be was sure there were some points that could be bridged. The Labour Party did not offer co-operation in any economies, and it was no use talking further to them. ’The Reform Party, he was sorry to say, had declined his proposal, though he was stil] hopeful that something more satisfactory would be obtained from .the Reform Party in future. A vote of thanks was carried for the manner in which Mr Forbes was facing the country’s difficulties and of confidence in his policy and leadership. ADDRESS BY MR RANSOM LAND SETTLEMENT POLICY DEFENDED. AUCKLAND, May 21. A denial that the support of the Reform Party was essential to the safety of the United Government was voiced by the Alinister of Lands (Mr E. A. Ransom) in a speech at Papatoetoq this evening in the course of the Hauraki campaign. Air Ransom said the economic crisis facing the Dominion was of such a

character that Air Forbes believed that no single party should be asked to bear alone the task of putting the country’s house in order. The proposal for a National Party was the result. Replying to Air Massey, the Reform candidate in the by-election, Mr Ransom said it was impossible to balance the Budget without further taxation. Criticism had been levelled concerning the expenditure on roads, but no curtailment of expenditure had taken place. Air Ransom said he believed that in the past there had been expenditure of a luxurious character upon highways. If the highways funds had been used more for the backblocks’ roads than for roads which ran parallel to railways the country would have been in a more prosperous condition. The United Government, continued Air Ransom, had pursued an active land settlement policy in spite of the denials of its opponents. It had purchased 52 properties, totalling 110,000 acres, at a cost of £847,000. These would make 350 holdings. Wonderful work also was being done in the settlement of idle Crown lands. The total area in hand was 135,000 acres, and yet they were charged with having no land policy. Mr Ransom gave details of the blocks being opened for settlement, and said the Government intended not only to place men on the land but also to stock their holdings with good cattle. If men were started right they would finish right. BORROWING POLICY CRITICISAI BY AIR COATES. AUCKLAND, May 21. The Leader of the Opposition (Air J. G. Coates) addressed a public meeting in the Hauraki electorate to-night. Air Coates said he did not lay all the present troubles of the country at the door of the Government. He knew it had been _ elected on a policy impossible of execution and it had aggravated the position by a delay in realising this, so that the reaction was greater than otherwise it would have been. The Government’s hesitancy in going on with its original policy was an advantage to the Dominion and a credit to the Government. Air Coates drew attention to the dangerous position the country had been getting into during the present Government’s regime. He recalled that in 192526 a total of £11,000,000 had been borrowed. During the next three years when Reform was in power, borrowing had been progressively reduced until in 1929 £5,150,000 had been borrowed in the first eight months of that year. The United Government had been in power during the last four months of that year and had borrowed a further £2,262.000. In 1930 its borrowings had reached £8,600,000 and in 1931, £9,256,000. Regarding fusion, Air Coates said that Reform took a wide view of the position, placing the well-being of the country before party interests. Reform reserved the right of criticism, but the Government need have no great alarm that co-opera-tion would not be forthcoming. Mr Coates described as a fallacy the Labour Party’s argument that wages must be high to increase the purchasing power of the people. It was not what was spent in New Zealand that affected the purchasing power, but the price that the great bulk of our products commanded in the world’s markets.