“DISTORTION OF FACT”

Sun (Auckland), Volume II, Issue 483, 12 October 1928, Page 12

“DISTORTION OF FACT”

MR. McLEOD REPLIES TO LABOUR LEADER FINANCE AND THE LAND Press Association WELLINGTON, Thursday. Insincerity and distortion of fact are the charges levelled against Mr. H. E. Holland, Leader of the Opposition, by the 1 Hon. A. D. McLeod, who this evening replied to Mr. Holland’s Masterton address. Mr. Holland endeavoured to make believe that the value of money based upon a gold standard could remain for long periods on some other than an approximate equality of value basis, said Mr. McLeod. w#ile the necessity for inter-Empire and international exchange must correspond with interEmpire and international trading. Labour parties in various parts of the Empire had had to drop their academic political financial proposals. “Let Nr. Holland cease platitudes and point to any one of the Labourgoverned States in Australia, where money for farmers and workers has been cheaper or advanced to a greater extent than in New Zealand," said Nr. McLeod. STATE ADVANCES PROFITS “Mr. Holland features the fact that the State Advances Office made profits of over £1,250,000. To my mind the £ 1,250,000 represents a reserve fund of less than 4 per cent, against a total amount of loans outstanding of just on £36,000,000. No concern working on safe lines would consider such a sum excessive. “The Prime Minister himself will deal with the appointment of Mr. H. H. Sterling as general manager of railways, but referring to the statement of illegality of appointment and reinstatement of superannuation rights, how often has the Prime Minister in this and other countries made bargains subject to confirmation by Parliament? “I am in agreement with those who say the whole question of rights of superannuitants should be fully investigated, and this is being done by Government, but to say all those who for their own betterment or convenience left the service and later came back should be granted indiscriminate reinstatement is something the Government cannot agree to without complete and full investigation of all the circumstances.” Mr. McLeod said he would deal at a later date with Mr. Holland’s jumble of figures respecting land and its occupation. In five years up to 1928 the Reform Government had provided for housing purposes a total of no less than £10,621,000, so that people might own their houses. In addition to this a sum of £8,726,000 for providing of houses on a similar basis for returned soldiers had been expended. This made a total of £19,347,000, an amount unequalled in any other country in the world on a population basis. LIMIT TO CREDIT “There is a limit to which public credit can be used in borrowing, and this fact alone has responsible for any easing up during the last year," continued the Minister. “Mr. Holland, when pointing to a similar easing in rural advances, made through the State Advances Office, neglected to point out that, largely as the result of Government assistance, a branch of that office, lending on rural securities through the long-term rural advances alone, last year authorised loans totalling no less than £1,146,000, which counteracts the decrease in the amount loaned under the State Advances Act, a’s compared with 1927. At March 31 last £751,900 of this amount had actually been paid over. “Since the long term Rural Advances Act first functioned on April I, 1927, until October 1, 1928, loans have been authorised and monetary provision made for a total of £2,015,805 while £1,294,985 has actually been paid over. The reason for authorisation being so much in excess or the actual payments is that, in the case of most rural mortgages, three and six months’ notice must be given to terminate an existing mortgage, and thus avoid the payment of a penalty by mortgagors.” “Those who suggest that this Dominion is capable of carrying a population of 10,000,000 as a result of primary expansion alone are talking nonsense,” continued Mr. McLeod, referring to the industrial position. “If we are to expand in population and production m these days of keen world competition we must establish a firm basis on efficiency. With all its power the Government resisted last year great pressure from manufacturers for higher and still higher protection. To political Labour we have said that a high wage standard may be possible of attainment temporarily by their gaining office as a result of political subterfuges, but the per-; manent maintenance of the high-wage standard is possible only as a result of a high standard of efficiency and a determination to render a maximum of service for every hour worked.”