VIGOROUS ATTACK

Rotorua Morning Post, Volume 1, Issue 84, 30 November 1931, Page 5

VIGOROUS ATTACK

LABOUR LEADER CRITICISES COALITION LACK OF POLICY MR. HOLLAND IN ROTORUA VOTE OF CONFIDENCE CARRIED BY VERY LARGE CROWD . Vigorous criticism of the lack of policy of the Coalition Party and a critical examination of the sins of omission and commission perpetrated hy its component parLes, was the tenor of a speech delivered hy the Leader of the Labour Party, Mr. H. E. Holland, in Rotorua oh Saturday evening. The Lyric Theatre was filled to overflowing and hundreds of people were unable to gain admission to the hall. , • Mr. Holland propounded the Labour policy and claimed •that all that the Coalition had to offer the country was a hlank cheque. They were asking the people to shut their eyes, open their mouths and see what the coalition would send them. He stated that if the Coalition was returned to office, wholesale dismissals and reductions of wages and pensions would inevitably follow.

At the conclusion of the meeting a vote of thanks and eonfidenee in Mr. Holland was carried by a very large majoi-ity, only a few isolated voices showing dissent. The meeting broke up with cheers for the Labour candidate for the Rotorua seat, Mr. A. F. Moncur, and Mr. Holland. The Mayor, Mr. T. Jackson, who had Mr. Moncur with him on the platform, briefly introduced Mr. Holland to his audience, "First and f oremost, I am here to speak for the candidature of my eolleague and friend, Mr. Moncur," stated Mr. Holland in opening his address, "and without reflecting on anyone who has previously oceupied the position as your memher, I am sure that when Mr. Moncur is elected on Wednesday, Rotorua will have the very best memher it has ever had." Wanfc of Policy In addition, however, Mr. Holland stated that he was there to deal with the policy of the Coalition Party, or rather its want of policy, and to place before the electors of Rotorua the policy of the Labour Party. He had no complaint to make about the fusion of the two older pai'ties, Years ago when he had been defeated for the Wellington South seat he had predicted that the day would eome when the country would have the Reform and Liberal Parties in one camp with Labour fighting for the Treasury benches." That day had come and he welcomed its advent because it meant that the line of demarcation between the Labour Party as the official Opposition and the two parties making up the Coalition was now clearly drawn. Economic Committee Go-'ng back to the setting up of the speeial econom'c committee in August last, Mr. Holland said that though the Coalition was said to have been arranged in the interests of the country it was really the result of the desire of a number of Wellington business men to prevent Labour from coming into power. The Wellington business men sent an ultimatum to Mr. Coates, and at last he yielded, with the result that the special economic committee was set up. Labour agreed with the setting up of the committee, hut was not prenared for any political bargaining that would deprive the people of New Zealand of any of their rights. Labour would have supported putting 'nto legal effect the decisions of the economic committee had sonnd and definite decisions been arrived at, but such was not the case. Illummating Suggestion Evidence was taken from a great number of people, and the least satisfactory evidence of all was that of the bankers. They had not a construcfcfve idea. Sir Ilenry Buckleton put forward the illuminating suggestion that he could solve the unemployment prohlem hy sending haclc to Australia all the workless Australians. After a three weeks' session it was found that Labour and Mr. Wilkinson were the only ones who had any concrete proposals to put forward. Mr. Coates had a statement partially

reaa, ana xvxr. r oroes, as usuax, nau nothing whaevere ready. During a shox-t adjournment for the alleged ourpose of preparing suggestions, the Labour Party accidentally discovered that sections of the committee were meeting in Mr. Forbes' room for the purpose of political bargaining. The result was that Reform and United were living for the time being in political adultery. (Laughter) . Already quarrelling had hegun. Manifesto in Instalments The country had been told by both j elements that the Coalition had been formed to save New Zealand. Their manifesto was being issued in instalments. On Monday week last came the first instalment, and on Tuesday the second instalment. He was still waiting for the third instalment. In the second instalment it was said that "recent writers overseas had given high praise to New Zealand" because of the Coalition policy; but in the Reform Party's first circular it was clearly explained how the opinions of the London "Times" regarding New Zealand were manufactured. In that circular it was set forth that the New Zealand correspondent of the "Times" was the leader writer of the Wellington evening paper, that this man sent his statements to London. where they duly appeared in the "Times," and were then cabled back to New Zealand, with all the authority of the "Times" behind them. Mr. Coates could probably tell them that the opinions of other papers were_ similarly manufactured. Sacrifice of Identity Addressing in particular the "oldtime Liberals who had a political association with Ballance and Seddon." Mr. Holland xef erred to a -Reform Party circular that the United Government's call for a National Government was obviously an electioneering stunt in the hope of saving the United party from extinction at the polls. That sounded vastly different from the reason now put forward. Almost at the same moment that Mr. Coates was telling Parliament that "the time has arrived, and the time is here now, when one could do nothing else hut put the country's dire necessity hefore any other considerations,'r the same man was explaining ' to his own followers that the Forbes , Government had accepted the Reform • Party's policy, and that the party was : not involved in any sacrifice of its > separate identity. I Surrejidered Sir Thomas Sidey had been let

down when the leadership of the Liberal Party had fallen vaeant and Mr. Forbes had succeeded Sir Josepli Ward. Mr. Forbes had lifted Mr, Masters over Sir Thomas Sidey 's head, and then because the Reform Party wanted to get Sir James Par-r out of the way the latter was lifted over the head of Mr. Masters and placed in Sir Thomas Sidey's place, That was only one instanee of the manner in which every vestige of the old-time Liberal Party had been surrendered.by Mr. Forbes and his party to the historie enemies of the political movements led hy Mr. Ballance antj Mr. Seddon. It was the policy of the Reform Party that they were going to vote on at the forthcoming election. Actually, Mr. Holland predicted, if he Coalit'on was returned, the electors would. find that Mr. Coates would become the Prime Minister of the eountrjr, and that Mr. Forbes take over Sir Thomas Wilford's position as High Commissioner in London. Kept Samoa Then the portfolio of Education had been given to Mr. Masters, president of the United Party. It was total ly wrong in principle .to have such a portfolio held in the Legislative Council, and it must be returned to the House of Representatives. Svery important portfolio had been handed over to the Reform Party by Mr. Forbes. It was aptly said that he had handed over the whole country to Mr. Coates and had kept Samoa for himrelf, (Laughter.) Dealing with the depression, Mr! Holland contended that the position was not so bad as it had been painted by the Coalition Party. Their idea of meeting the situation appeared to be to drag everybody down to the utteL'•nost depths. Labour contended that the position could be met hy energesisf measures for the rehabilitation of the country. Increased Production New Zealand had not control over Ihe prices of New Zealand produce, ■ontinued Mr. Holland, and the only vay to make up for decreased prices vas increased production. Mr. Fawr cctt, economic adviser to the Agricultural Depart'ment, and a noted New Zealand economist, had shown hat by the use of fertilisers, with Government assistance, the production of farm lands could be very greatly increased, and nad shown how 'he numbers and status of dairy cerds could be increased. Mr. Williams, an economist at Massey College had shown how the high overhead oharges of the dairy factories could be reduced. Labour, on accession to power, would bring into effect part of Jie suggestions of these economists, cnd would pay particular attention to higger production and better marketing. The first step in the important phase of marketing would be to encleavour to make arrangements for a reciprocal trade between New Zealand and Britain in the first place, New Zealand and the other Dominions in the second place, and New Zealan4 and foreign countries in the third place.

At present, for instanee, motor aecessories were nearly all being bought from America, the worst customer of New Zealand. A Labour Government would concentrate on making New Zealand as self-contained as possihle, but capacity to export was determined by capacity to import, and vice versa. If the purchasing power of the people of New Zealand was dragged down it automatically affeeted the capacity to import. He could not understand how it was that while there was ample of the necessaries of life in New Zealand people were on the verge of starvation. Why was it that while the miners of the West Coast were starving the Government was sending to Australia for coal? Farmers were on the verge of insolvency on every side because they could not sell the "goods they had on hand. Why should the country tolerate a financial system under which people could not sell the goods they had for sale. Dealing with the control of curT r ency, Mr. Holland contended that under the control of private organisations the banking system had broken down. Labour advocated setting up a State bank with the sole right of issuing notes, a measure which he stated would enable currency to be controlled in the best interests of the people. Unemployment Turning to unemployment, Mr Holland said that there were said to he 50,000 unemployed in New Zealand, but if the true figures were known they would he nearer 100,000. Work must he found for these men aiid women, and not at 5s and 7s a weefc. There were large holdings in this country carrying one family to-day and capable of carrying twenty, that had to be broken up, and that was what Labour was out to do. (Applause.) Labour contended that the only solution of the unemployment probiem was the rehabilitation of all the unemployed in industry, and at a wage that would give a decent staiidard of living. Labour realised that if it came into power it could ndt clean up the mess in a day; but it would concentrate on giving a living wage to everybody, and on land development. Development of Industries Mr. Holland went on to explain how Labour would devote attention to the re-organisation and development of primary industries such as

VIGOROUS ATTACX

(Continued.) coal mining and. the timber industry. On the subject of the timber industry, the speaker spoke particularly of sleeper-getting. Sir Joseph Ward had, he said, brought forward a sound railv/ay policy — the completion of the main trunk lines. Now the Government had stopped every new line in Ne\v Zealand except the StratfordMain. Trunk line, and had left that only beeause it was so near completion.- Sleepers and rails had been moved- from one place to another, frcrm the North Island to the South. Sleeper-getters in the South Island were out of work, and at the same timo the Government was importing sleepers from Australia. In addition, there were a number of secondary industries in New Zealand that required encouragement and bujlding up, such as the carbonisation of coal, the flax industry, the manufacture of woollens. There was. a field for the employment of thousands of workers in the secondary industries. Out of New Zealand Mr. Holland produced a telegram which stated he had received from Mr. Walter Nash, member for Hutt. In this telegram Mr. Nash stated that he understood on reliable authority that an order for 13,000 axle boxes had just been placed in Sweden by the Railway Department. All the necessary plant and material for the construction of these boxes was available in New Zealand, yet in spite of this, a large number of the men who could have earried out the construction had been dismissed and were now in the ranks of the unemployed. These were the tactics which were being pursued by Messrs. Forbes and Goates who, with himself, had scattered appeals throughout the country asking the public to buy New Zealand goods and support New Zealand industries. Mr. Holland added, however, that he doubted whether the Coalition leaders were now associating his name with the appeal. Interest Charges On the subject of fixed interest charges, Mr. Holland stated that the Labour Party had from time to time brought down in the House proposals for a proyisional moratorium to save the mortgagors from foreclosure. Then the Government had brought down the Mortgagors Relief Bill, a measure which merely gave power for the postponement of interest. Then two days before the end of the last session, the Government had brought down an amendment to this Bill. T'his amendment was an extremely impor- . tant measure and Mr. Holland contended that in view of its widespread importance it should not have been brought down so late in he session. at a time when no opportunity was glven for a thorough discussion. Even in this Act there was a nigge in the woodpile, for there was no relief for the mortgagor un'.ess thc mortgagee first moved to foreclose. If the mortagagee chose to sit euict and make no move, then the mortgagor would be helpless. The main weakness of the Act lay in the faci that the onus was on the mortgago"to move the Court, and then oni;v when the mortgagee threatened to foreclose. Labour proposed a n-*o visional moratorium, which would afford an opportunity for read.iustments f be made as between mortgagor and mortgagee, and lessor and lessee. If no sett'.ement were elFecie.within a period of three months then a 20 per cent. reduction would bo enforced, the mor.gagee being le-ft with the right to appeal. Laboin held t'afc if wage reduct:ons were enforced, then interest reductions should automatically follow. Mr. Goodfellow had said that to reducc interest rates would "tarnish the good name of New Zealand," but he was quite agreeable to reduce wages to 8s a day, Political Events In 1922 the Government instituted the wage reductions, when there was a. cash surplus of several millions. In the same year the Reform Party brought in the graduated land tax, and removed the income tax on farm£rs' incomes. There was no smali farmer who had benefitted by these actions. All the benefit went to thc big landowners. As a result of theii policy, Mr. Coates' party went out of office in 1928. Sir Joseph Ward then came forward and was returned. and it was to his credit that while he lived he honoured his promises. By refusing to put the Reform Party on the benches, the Labour Party staved off wage reduct'ons for twc years. Then Sir Joseph died. He was succeeded by Mr. Forbes, whr went went away to the Imperial Conference pledged against wages reductions. When he came back he wa: prepared to scrap every item of thc programme on which he was elected He aqcepted in part the Reforn Party's policy, and the Labour Party voted against him. And now whai had happened? The Coalition haci been formed, civil servants had beer pushed out of their jobs before their .allotted years of service had beer eompleted, in many cases with sinaisuperannuation. Mr. Sterling dic not eome under this drastic measure The present Government was so busy cutting down the small men that the bigger paid men escaped notice. Burden on Small Man - Elaborating his point regarding th( incidence of the graduated land tax Mr. Holland contended that the Coal ition Party had deliberately endea voured to m'slead the electors inte beueving that the tax which replacec' it did not bear so heavily on the small farmer as on the large holder. Act ually the figures showed that undethe new proposals a man with a tax alffo balance of £2000 would obtair. 8s 4d relief; a man with £0000 tax able balance would obtain £4 3s 4d' a man with £20,000, relief amountmr to £80; a man with £100,000, relier of £2062; and a man with £120,000 J'ehef of £2975. These figures would show how accurate Mr. Forbes wawhen he contendecl that the relief measures in regard to the tax were in favour of the small farmer. Mr Forbes had said that the holders of large estates we^e being comnelled to d^aw on their reserves in order to nay the tax, and h'e argued that they should not be compeiled to do so. But wbat was h;s attitude towards Aho small farmer or wage-earner who had perhaps scraped together £100 in savings which constituted his total reserve. If that man got out of wovl: ar.d sought unemployment relief he could not obtain it until he had dis-

posed of the whole of his reserve. The Gove'rnment apparently did not believe that the large holder should be compeiled to draw on his reserves but was quite willing to f orce the man with a few pounds saved to do so. Let them examine the incidence of the new income tax. On a salary of £5000 the increase in the income tax was 130 per cent., .on £600 it was 112 per cent., on £5000 it was 34 per cent., and on £10,000 it was only 27 per cent. Credit aird Curremcy In the four years pf the war 100,000 of the best manhood of New Zealand were withdrawn from industry, and a great many others had their ordinary occupation changed. Yet at that time there was no diffieulty in raising whatever money was wanted, and in four years the Government raised £80,000,000, £55,000,000 of which was raised within New Zealand. The Labour Party said it would use the national credit for eeonomic reconstruction and rehabilitation. Further, if in a time of international stress the Government could raise money at the rate of between £13,000,000 ancf £14,000,000 a year, then in a time of economic stress — where men, women and children were starving while food was there to be consumed — there should be no diffieulty in raising £8,000,000 or £9,000,000 a year, spread over a certain period. Reformers Decline In 1921, said Mr. Holland, there was an aeeumulated surplus of £21,000,000 and a cash surplus of £6,000,000. In 1922 there was a small deficit of £300,000. That was the year of wage cuts in the Civil Service and the purehasing power of the people was reduced by £9,000,000 to £10,000,000. Having made those cuts, the Reform Party went to the country and was saved from defeat on its return by the votes of two renegade Liberals and one Independent. Moving on to the elections of 1925, one could sense impending disaster to the Reform Party, but then Mr. Massey died. Mr. Holland paid a tribute to Mr. Massey as a fighter. His death staved off defeat for the. Reform Party and the papers boosted Mr. Coates 'to the skies. The story the Coalition was telling he electors to-day was only what they vere teiPng the country in 1925. They could return Labour and the "armers would lose their farms and the country would become bankrupt. They promised reduced interest rates and, with the help of Mr. Davey, came '■ack with the second largest majorty in the country's history. Less than !0 days after they were returned they 'iad raised the rates of interest by per cent., they had pagsed the Tam'Jy Allowanee Act giving 2s intead of the promised 7s 61. In a ■'ery short time, as they moved on to ' 928, the unpopularity of the Reform hirty increased and it looked as if hahour would again have its chance. Broke Contracts Just as 'there had been the floeking o Mr. Coates in 1925 so there was mother floeking to Sir Joseph Ward n 1923. Immediately the Reform Party came in behind Mr. Forbes. Mr. Forbes reduced the relief rate of >ay and the amount of relief work ivailabie and broke moral contracts vith the Public Service, and men who :ad Ix-en banwing on 40 years' ser/ee found themselves pushed out •Ter only 30 years' service. Fosition of Women Speaking to the women, he said hnt the Coalition policy affected hem in many ways, by excluding hcm from unemployment relief beneris and cutting out or reducing varous allowances. Grants to hospital viard.-i were reduced, and the salaries »f the nurses, who were among the ower-t paid of the social service workrs. were also cut. Nurses should lave been thc last to come under the rrurung hook. The Hospital Boards vvere faced with a serious position and had to undergo many difficulties to ;arry out the Government's demands. Notwithstanding .Sir .Joseph Ward's pledge that school dental treatment •vas to be free, the Government was now demanding a fee. Similar ihanges of policy affected the teaching profession, while even the charwomen in the Government buildings, many of whom had families depend'ng upon them, suffered reductions. Those who had 16 years service to ;he!r credit were entitled to a bonus of 4s ld a week. Mr. Forbes in his anxiety to effect economies, took this bonus away, and in addition reduced their wages. Blindfold If the Government got back to office the public might rely on it that several things would happen. The salary and wage reductions already made would stand, and further reductions would follow. In his supplementary Buuget the Minister of Finance (Mr. Stewart) said, "The Govoinment. has resolved that expendiure is to be reduced by £1,000,000 mr annum." The House was not told what form the economies would take, but members were promised that "defcails would be furnished to the House in duo course." The details had not been 'furnished, and as a result the mople wrere going into the election bPndfold. They were being asked to •ihut their eyes, open their mouths, and see what the Coalition Government would give them. Old-age pen-i'-ons, rainers' pensions, widows' pen■ions, soldlers' pensions, and pensions for the blind had all been laid aside until pollmg day. Certainly if the Coalition Government returned to office wholesale dismissals and whole•ale reductions of wages and pensions would snrely come. Fear For Awards Mr. Coates had stated that an extra ld might be added to the wages tax, ind had also 'stated that it might be--iccessary to relax the restrietions against the employment of labour on m eeonomic basisl What that meant \vr,i that every industrial award and •very agreement, whether registered or not, would go by the board. The Labour Party did not come ' ^gging and praying for votes. It came nrerenting what it believed to be a sound political and economic programme for the country. On election day the people were to be asked to vote noc on tbe programme of the United Party but on the ^Tgrvmme hnrosed cn the United P rty by the Ileform Party. The Labour Party to-day reflected the industri ti mind of the country, reflected the d.mocratie-minded smaller farmer, reflected the mind of the intellectual clc ;s r.nd the thinking woman. It uemanded the votes of those capable of thinking for themselves.