Back to Prosperity

Sun (Auckland), Volume II, Issue 488, 18 October 1928, Page 13

Back to Prosperity

PRIME MINISTER’S REVIEW Aid for Suburban Producers VMF Press Association CHRISTCHURCH, Wednesday. ELECTORS would prefer to put their trust in an administration which had been well tried and never found wanting, said the Prime Minister, the Rt. Hon. J. G. Coates, concluding the opening address of his election campaign here this evening. The audience, which filled the hall to overcrowding, signified its approval by carrying a motion of confidence, the applause and “ayes” dominating the cries of “no.” Fifty minutes before the speech began the doors were closed, and a large crowd waited outside listening to the speech through amplifiers. Rain began to fall, however, and dispersed the listeners.

In 1325 the Government set' out with a clear programme which, with the deliberate omission of fanciful promises, was considered by most people as aggressive and sound, said Mr. Coates. Unfortunately, in 1926, obviously through causes over which the Government had no control, there was world-wide economic depression, of which one result was a fall in the prices of New Zealand’s principal exports. This misfortune was accentuated by excessive importations, with consequent widespread financial stringency. This temporary set-back gave rise to pessimism in certain quarters. The Government, however, did not lose its confidence in the ability of the country to regain its prosperity. Toward this end the Government went steadily forward with its programme, which helped largely to counteract the effects of repression. While the Government was actively engaged in carrying out its policy some political opponents w‘ere doing their best to create an impression among the public that the Government was making a poor attempt to do its job. IMPROVED TRADING The Dominion’s trading position to-day was exceedingly healthy. Expurls for Uio year ended June 30, 1928, amounted to £55,619,285 and imports to £43,497,942, the excess of exports being £12,121,343, as compared with an excess of imports amounting to £978,605 in the preceding "12 months. The volume of exports, alter allowing for price changes, had increased by 44 per cent, since 1913-14, in spite of an increase of over 300,000 in population during the period. The bank returns also revealed a return to prosperity. Deposits increased from £47,000,000 in the September quarter of 1927, to £54,000,000 in the corresponding quarter of 1928. Advances, which were £49,000,000 in the September quarter of 1927, had fallen to £45,000.000 a year later. The position as disclosed by the deposits and advances thus showed an improvement to the extent of nearly £11.000,000. • . Comparing New Zealand finance with that of Australia • the Prime Minister said during the last three years. tlie Government had managed- the public finances with care and economy. This w.as proved by the tact that it had in each year balanced the Budget and produced a surplus. Queensland, with a Labour Government, had budgeted tor a deficit this vetrr ot £173,896 South Australia for a deficit of £600,000, and Western Australia (Labour Government) had also budgeted for a deficit. The Commonwealth announced a deficit last year of £•' 630 337. Financial authorities were quoted by Mr. Coates in support of tho claim that the Dominion s credit was high. . , In the last six years New Zealand had paid £9.890,000 off the war debt. Tlie new loans were for reproductive works. Tlie gross interest on the ordinary debt (including the war debt) was £7,460.000, but only £2,100,000 was obtained from taxation. This meant that the ordinary debt was productive to the extent of over 70 per cent. “It has been repeatedly stated by the Leader of the Opposition that if the Labour Party got into office it would not borrow outside New Zealand. said Mr Coates. “What policy would the party adopt? Any such policy as the Labour Party advocated would be unthinkable. Any reasonable critic must admit the Government is on the ' with taxation, the Prime Minister said it was hoped a continuation of the careful management of the country’s finances would permit ot relief to taxpayers. That was the Government's aim, and as soon as a readjustment was practicable it would be made. FARMERS’ FINANCE Regarding farmers’ finance. Mr. Coates emphasised the danger of shortkrm loanl He said that during the past five vears the Government liad loaned £16,000,000 to settlers and the total amount of advances to settlers outstanding to-day amounted to £20,000,000. Although the Credits Act had been in operation less than two years, approximately o l 500 000 had been lent. The Intermediate Rural Credit Act gave Promise enactments o'n the sTatute Boffit for tho assistance of the f<umin o in dustryf providing for the advance of money at reasonable rates of mteiest. lliwral terms of repayment, and wUh the assurance that the loans made -S d ere n °4aracfairo r farmer whose chief asset consisted of his own ability- and readiness to work amd although these cases did not come within the limits of the existing scheme of rural intermediate credit, the Government was giving close consideration to the matter, with the object of assisting such men to take up farming on their own account. It was tho mtfntion of the Government to introduce a scheme dealing with this o crippt of rural finance. The Government had also had under close consideration the needs of aiarge , country and suburban settlers who! while not dependent entirely upon their ’.and for their income, used it for the purpose of supplementing their earnings trom other sources. Tlie scheme which the Government had under consideration would apply only to persons who were already encased or who wished to engage in production of such exportable commodities as poultry, eggs, honey, pork and dairy produce. Two classes of settlement would be encouraged—(a) small biddings (either individual or m groups fn Gie vicinTty of large towns); <bj country small holdings. In regard to the first-named class it was recognsied there were large numbers of city dwellers who would welcome the opportunity of taking up small areas of from five to 10 acres and situated at a reasonable distance from town These areas they could cultivate in their spare time and utilise as means not only of lessening the cost of living by reducing the cost of vegetables milk. etc., for their own use. but also of supplementing their income bv growing exportable produce It was thought the firm establishment on a considerable scale of this class of small holder would be a great step toward the solution of the problem of seasonal unemployment, particularly in trades where unemployment occurs

at seasons when the land makes the greatest demands upon the holders’ time. The outlook to-day for the rural industries was better than it had been for some years past, and the Government could definitely say further land settlement could now be undertaken with reasonable prospect of success. The legislation passed a few weeks ago made it possible for settlement, by purchase or acquisition, or under the new legislation, by group settlement, to be energetically pushed forward. PUMICE LAND SETTLEMENT Further, the Government was making arrangements for a forward move in the development of the clay and pumice country. The Rotorua railway had for its object the opening of an area of about 1,500,000 acres of pumice country lying in the Taupo region. Returns of butter-fat at established factories in pumice country were most satisfactory, and the freights in prospect for this developmental railway should render the line a valuable asset to the railroad system. In addition it would permit the carriage of fertilisers at the cheapest possible cost. The cost of freight transport by road made the proposal impracticable, whereas by rail it was possible to break the country in at the lowest economic cost, to carry fertilisers at a cheap rate and to carry stock out at a cheap rate. “Our opponents are saying thousands upon thousands of settlers have been forced off their holdings in recent years as a result of the Reform Government’s maladministration,” said the Prime Minister. “Any unbiased person examining the records of other countries will say that by comparison this country has pulled through exceedingly well, and not a little of the reason for this is the fact that the Government has strained the country’s financial resources to the utmost in an endeavour to assist those settlers who got into difficulties as a result of the depression.” The total number of occupied rural holdings exceeding one acre in extent at present approximated 86,000, and of this total at March 31 no fewer than 29,558 held permanent tenures. direct from the Crown. Complete statistics of those tenures were available. The movement of holders on every holding was accurately compiled every year, and the reasons for removal were given in every case. Since 1908 surrenders and forfeitures annually had averaged 1.107 per cent. During the last five years, 1924-1928 inclusive to March 31 in each year, the average per cent, had been 1.286. For the five years, 1908-12, inclusive, prior to Reform taking office, the percentage was 1.259. The worst year during Reform’s administration was 1928, with 1.533 per cent., and the worst year in five years prior to Reform taking charge was 1910, when the percentage was 1.551. No statistics were in existence to show the movement on freehold holdings, and those held under tenures apart from the Crown, but carefully prepared reports indicated that the percentage was certainly not larger in respect of these holdings than in the case of holdings held direct from the Crown. MANUFACTURING INTERESTS Dealing with the Government's policy of assisting secondary industries, Mr. Coates said those industries which proved suitable to New Zealand, more particularly those which used New Zealand raw material, had in many cases received assistance. The policy had been to grant increases in the tariff where it was shown that an industry efficiently conducted required assistance to enable it to compete on level terms with countries paying lower wages or having other -advantages of production as compared with the more limited local mar/iet of the New Zealand manufacturer. The policy had also been to give free customs entry wherever possible to industrial machinery and raw materials used in New Zealand industries, except where it could be shown that such machinery was efficiently and economically manufactured in New Zealand. Proof that the Government’s policy had encouraged manufacturing enterprise was seen in statistics of factory production, which showed that substantial development had taken place in recent years. A comparison of figures for the year ended March 31 last year .with those of the year ended on the same date in 1923, showed an increase of 17 per cent, in the number of establishments, 11 per cent, in the number of persons engaged, and 24 per cent, in the total amount paid as wages and salaries. The cost of material operated upon increased from £45.000,000 to £50,000,000, or by 11 per cent. The total value of products jumped from £74,000,000 to £83,000,000 —an increase in this case of 12 per cent. After referring to the success of the industrial conference, and expressing the hope that a further conference would find a solution of the points still at issue, Mr. Coates said the main consideration was to evolve a scheme that would meet with goodwill on all sides, and that would enable both employers and workers to pull together. It was not necessary, concluded Mr. Coates, to refer at length to the two opposing parties—tlie Labour Opposition and the more or less mysterious United Party. The Leader of the Opposition, in opening his campaign last week, “served up the same old political pottage.” The United Party, which was responsible for a long-sustained guessing competition among the public in regard to its leading personnel and principles, was not apparently taken any more seriously by the Opposition than it was by the Government. It was simply a case of the “outs” crying for seats on the Treasury benches. The following motion was carried: “That this meeting accords a hearty vote of thanks to the Prime Minister for his able address. It also extends its appreciation of the manner in which the Administration of the country had been conducted during the last three years, and, further, desires to express its continued confidence in the Government.” I

The motion was loudly applauded, and when put to the meeting, was carried by a large preponderance of “Ayes” over “Noes.” _