FROM PLEDGES TO ACTION

Sun (Auckland), Volume III, Issue 681, 5 June 1929, Page 6

FROM PLEDGES TO ACTION

Prime Minister Reviews Policy HUGE CROWD IN TOWN HALL BEFORE an enthusiastic and good-humoured crowd of 4,000 in the Auckland Town Hall last evening, the Prime., Minister, the Rt. Hon. Sir Joseph Ward, expounded for an hour and a-half the policy of the Government in the coming session. He referred to finance, extensions in land settlement, the problems of unemployment and the construction of railways in the country. His speech was characterised by clarity and by flashes of wit at the expense- of occasional interjectors. The Mayor of,Auckland, Mr. George Baildon, occupied the chair.

There was not the feverish rush for seats, which meufked Sir Joseph Ward’s visit to Auckland for his policy speech before the General Elections in December, but every seat in the huge hall was filled before 7.30, and thence till eight o’clock the crowd trickled steadily in until every corner around the building was packed. When eventLially the Prime Minister entered the hall preceded by a pipers* band, which had played him down the street, the huge crowd displayed an enthusiasm which was equalled only by the remarkable demonstration accorded Sir Joseph on his last visit to this city.

The big concourse rose as one man, and cheered and clapped with, a vigour that increased as Sir Joseph and his party, which included the four Cabinet Ministers, Mrs. B. B. Wood and the local Government members of Parliament, approached the platform.. After the National Anthem had’beer* sung and cheers given, little Gwennie Baulfe presented Mrs. Wood with a bouquet, and further cheers broke out for Mrs. Wood.

Some of the supporters of the party had waited for well over one and ahalf hours for the Prime Minister, and the skirl of the pipes preceding Sir Joseph’s arrival quelled the impatience of a few who were calling spasmodjcally, “Where’s Joey?” After being introduced briefly by the Mayor, Mr. G. Baildon, the Prime Minister rose to speak in a roar of applause.

Sir Joseph briefly reminded the audience of his earlier policy announcements, saying that already the Government was putting into operation the planks of its platform. It had prosecuted with the acquisition of landed estates for closer settlement, having taken over eight properties with eight settlers. Now there were 50 settlers. Sir Joseph intended seeking more money for this purpose in the coming session, as at present the Government was tied down to £1,000,000. ADVANCES TO SETTLERS AND WORKERS

With regard to advances to workers and settlers, from December 10 to May 31 last, the sum of £3,373,325 had been advanced, 1,465 settlers getting £1,762,770 and 1,866 settlers getting £1,C10,555. New loan moneys added since December 10, 1928, totalled £3,536,900, and the balance of loan money held available for investment as at May 31, 1929, was £2,480,385.

There was no such thing in the House of Representatives as an interisland jealousy, for the members were actuated by a desire to serve the whole Dominion. The allocation of money for public works was based upon the requirements of the respective Islands according to the settlement of its population, and if the North received more than the South it was because its public works were more numerous than the Southern jobs. CLOSER SETTLEMENT

Regarding closer settlement, Sir Joseph said that the Government’s policy would help to relieve unemployment in the cities. The land was provided as cheaply as possible. In fact, it was proposed to alter the system of land valuation and acquisition in the Dominion. The Government wished to purchase, under a fair system of valuation, areas of land from people who already had more than was necessary to them. The time had arrived when this pressing need had to be put into active life, and he proposed to legislate next session to help men to get on to the land, and at the same time see that no injustice was done to the land-owner. STATE SUPERANNUATION

One question engaging his attention was the position of the State superannuation funds, which, he regretted to say, were not satisfactory from the financial point of view. Several factors had combined to increase greatly the burden on these funds.

For instance, yie altered price levels and ‘the resulting salary increases arising out of the war had led to larger retiring allowances, while the accumulated funds, of course, had not been increased proportionately. For this reason State subsidies to the funds should have been increased. Retirements at a much earlier age, particularly in the railway and post and telegraph branches of the service, than had been originally contemplated also were adding considerably to the burden on the funds. _ .... . “I may say,” said Sir Joseph, that I am going to have the whole position of the superannuation funds thoroughly investigated, so that the Government may be in a position to consider what steps must be taken to \ilace them on a sound footing.” Through the Government subsidies since the war being less than what the actuary had certified as necessary to make up the amounts required, part of the pensions of those who had retired was being drawn from the accumulated contributions of current contributions. which was quite unsound. The accumulated shortages against current pensions in two of the funds were: —Public Service, £1.060.000. teachers. £607,000. In addition, there was a considerable shortage in the railway fund, the actual figure being unavailable at the mpment UNEMPLOYMENT RELIEF With regard to unemployment, Sir Joseph claimed that the Government had done more in alleviating the problem than the previous administration. The number of men employed on public works, excluding local-body employees, at the end of May, 1929, was 13.611. as against 11.324 at the end of May, 1925. This meant that this year over 2,000 more men had been given employment. Of the men working this year, 9,747 were in the North Island and 3,864 in the South. Since December 10 last, when the Government had taken olfice. the sum of £150,485 had been paid in subsidies as against £61.155 paid during the eight and a-half months of the last financial year by the previous Government. The Government’s actions could be compared more than favourably with those of the previous administration. OFFER TO AUCKLAND Sir Joseph said he had made an offer of £25,000 to Auckland to undertake works which, though not maintenance works, would be useful new works. The Government had increased the rates of pay from 9s to 14s a day on relief works —(applause) —and had helped local bodies all over the country. If the Auckland City Council, along with other councils, undertook to carry out work of the nature specified, £25,000 was available

on the basis of £1 for £1 subsidy. “This question has been before me every day of my official life since I took office,” he went on. “The time will come when we will absorb most of these men on the landed holdings of the country, instead of having them in the cities. PLEDGES IN OPERATION Sir Joseph claimed that the Government had put into operation every cardinal feature of its election programme. He had promised a programme under which £70,000,000 would be raised, a programme about which he had been seriously misrepresented. He had succeeded in getting his conversion loans of £18,000,000 carried through, and also an extra loan of £7,000,000 at 4h per cent, on the London market. None of this money had yet been touched. Moreover, the Government had to be careful in its expenditure and cut its coat according to its financial cloth, and when it was considered that a big programme of hydro-electric and railway works had yet to be completed, a great sum was required. If all the claims on the Treasury were met, about £23,000,000 would have to be raised annually. This country could* not stand such a strain. Everyone was in a hurry with their claims on expenditure and the country could not keep pace if everyone were to be satisfied immediately. WARNING ON BORROWING

Members of Parliament and the Government were being approached for money and for public works, but a word of warning was necessary in such an era demanding too speedy a development by borrowing. With losses in revenue and in the superannuation funds, there had to be made up a deficit of £2,000,000. This had to be considered in addition to ordinary works in progress. The country could not carry on under the demands being made by people at present. “The requests that have been made upon me as Minister of Finance this session are appalling,” Sir Joseph added, “'and' the total amount we have borrowed was £7,000,000. “Now, if anyone can tell me how they can make £7,000,000 provide for £23,000,000, then let them come and join the Ministry. (Laughter.) We cannot do it, and nobody in the Cabinet can do it. . . .” A Voice: You could do it before the election*. Sir Joseph (quickly): Oh, no; I mentioned £70,000,000 then! (Laughter and applause.) “But,” the Prime Minister went on, “that money was for works which are required .over the programme of development which lias already been mapped out. That is a horse of a different colour.” (Renewed applause.) NON-PAYING RAILWAYS Speaking of the enormous developments in ,New Zealand, Sir Joseph said that £900,000 annually- was required for hydro-electrical works. The sum of £4,100,000 was needed for additions to the railways. By stopping two non-productive railways, the Government had saved the country £1,400,000 and the stoppages were justified by the Government and by outsiders. (Applause.) The Government had to consider doing away with some of the railways. The short-distance railways of New Zealand —except for one, perhaps, oh the West Coast —-were not returning one-half of the rate of interest on the money put into their construction. Some of them were running two trains a week, and one the Government stopped had run one train a fortnight! (Applause and laughter.) CHEAPER MONEY The Government had fulfilled or partly fulfilled the promises made before the election. It had abolished the C.O.D. system, had obtained cheap money, and was investigating the railways of New Zealand. The effect of the Government action had been seen in Christchurch, where money was being lent privately at 6 per cent. Cheap money was necessary for the town, the country, and those who had not got it! (Laughter.) The proposal to get cheap money had been classed as a bogus one, but the Government had £7,000,000 at 41 per cent, available, and would get.more. He said that the South Island-Aus-tralia mail service had been obtained, and would be continued, as it was a good thing for the country as a whole and not only South Island. VOTE OF CONFIDENCE Prolonged applause greeted the end of Sir Joseph’s speech. Dr. D. B. Gunson moved a hearty vote of thanks to and confidence in the Prime Minister, referring to Sir Joseph’s notable career, and the benefits he had conferred on the country by one of the first of his great pieces of legislation—the institution of the penny postage. 4 Mr. C. G. Maclndoe seconded, and the roar of “Aye” which greeted the Mayor whe/i he put the motion was sufficient proof of the unanimity of the crowd. The pipers played once more to honour the Prime Minister, ans more cheers and the singing of “For He’s a Jolly Good Fellow” ended a great meeting.