PARLIAMENT

Ashburton Guardian, Volume 51, Issue 129, 13 March 1931, Page 3

PARLIAMENT

NO-CONFIDENCE MOTION. LABOUR OPPOSES WAGES “CUT” (Abridged from Press Association.) WELLINGTON, March 12. In the House of Representatives this afternoon, Mr A. E. Jull (Waipawa) moved “That a respectful Ad-dress-iti-Reply lie presented to his Excellency the Governor-General.” Mr Jull expressed the appreciation of the people of Hawke’s Bay lor the kindnesses rendered 'by Lord and Lady Bledisloe at the time of the earthquake. He also paid a tribute to the manner in which the Rt. Hon. G. AA. Forbes had represented the Dominion at the Imperial Conference. Referring to the fall in the Dominion’s revenue, Mr Jull congratulated Mr Forbes on the manner in which he had taken the country into his confidence concerning the economic position. He expressed his sympathy with the people of Hawke’s Bay in the earthquake disaster. and praised the Prime Minister and the Cabinet for the manner in which they had handled the situation. The people of the district wished to thank the rest of New Zealand also for its assistance. Mr Jull appealed to the House to treat the cost of repair of the earthquake damage in the same way as the war debt, by saying that the money must be paid lor reconstruction. He suggested that the State should assume all the earthquake poli--1 cies in the area and raise a loan for paying out. He thought that the question of earthquake insurance should he a straight-out State monopoly. He described the proposal to reduce wages by 10 per cent, as a startling illustration of the country’s needs. No one liked to reduce wages, but everyone had to share the present burdens.' He believed that if there was to be a reduction it should he a general one, and he was ’•satisfied that a substantial fall in the cost of living would follow. The Rt. Hon. J. G. Coates (Leader of the Opposition), said it was not his intention to hinder, -but rather to help, Mr- Forbes to bring the business he regarded as necessary before the House, while reserving the right of criticism. He felt it to be in the interests of the country that such criticism should be withheld until the particular measures came before the House. Mr Coates said the country; was unanimous in extending sympathy to Hawke’s Bay, and everyone was anxious that the work of rehabilitation should be tackled os soon as possible. The disaster had come at a very bad time, but the district was su'ch that it would speedily recuperate and! it should be given every possible assistmice. Mr Coates said the economic position r at the present time was such that urgent measures were necessary. In'view of the situation of national emergency that had arisen, the Reform Party had departed "from the traditional practice of the official Opposition Parties and had gone so far as to suggest measures to the Government that it regarded as essential in the interests of the country. The Government had, to some extent, met those suggestions, but he was satisfied more would have to be done for the primary producer, on whom the country depended so much. The interests of the primary producer were, also vital to the interests of all sections ot the comtaunity. Wages costs were not the only difficulties to be faced; there were interest costs as well. He was not suggesting that the Government should pass legislation compelling the people to reduce the rate of interest at which they had lent money, but the Government itself was in the money market, and it could do much by| reducing the amount the State was paying “over the counter” lor loans. Such a 'reduction would have a substantial effect on interest rates. It- was essential. he added, that the question of fertilisers should not be overlooked. The whole country would suffer if farmers were unable to obtain adequate supplies and be urged that every possible step’should be taken to bring prices down.

Amendment MovedA The Leader of the Labour Party (Art H E. Holland) moved an amendment to the effect that the Government did not possess the confidence of the House or country. In referring to the earthquake, Air Holland said lie was sure there was no division, of opinion iff the House on the subject, and lie endorsed the remarks of the previous speakers. He contended that- it was- the duty of the Go\ ei lime nt to get the opinion of the country before endeavouring to put into opeintion such drastic changes in policy as it proposed. Among other things, the United Party had gone into office on a policy of railway construction and a refusal to reduce wages, hut it nau now jettisoned those pledges and sin - rendered to the Reform Party. He knew that the country was undergoing a period of deflation,, hut there wei e people who were reaping the benefit or such conditions. He contended that the holders of mortgagees in Australia had gained considerably under similar conditions, and it seemed that such people, wherever possible, would dictate to Governments. It appeared that the Government of New Zealand had yielded to two influences, the Reform Party on the one hand, and the bankers on the other.

Equality of SacrificeMi- Holland quoted the Minister for Railways as having said on former occasions' that the reduction or wages ivas a lazy man’s solution of the difficulties in industryand . that there should be no reduction of wages till the cost of living had fallen The Labour Party was in favour of balancing the Budget, but it should be done on the basis of equality of sacrifice. The Government, for instance, was proposing to obtain one-third of the amount required to balance the Bridget by reducin'?' the salaries of Public Sei \ ants. Public Servants constituted one-ninth of the wage-earners and an immensely smaller proportion of the whole population. Where was the equality cl sacrifice there? Mr Holland insisted that the burden on the people should be graduated. The Government should do nothing to endanger the standard of life of the working people. lne Prime Minister had informed the primary producers that he hoped the prices of their produce would go up, but he had informed the workers lie vras confident the cost of living would comedown. How was the cost ot living to come down if the prices lor primary products were to go« up ? The Government should not have come down to all attack on the basic wage until every other possibility - had been exhausted, and if every other possibility was exhaustedl there would he no need to attack wages. The amendment was seconded by Mi E. J. Howard (Labour, .Christchurch South). . . The Hon. E. A. Ransom. (Minister ot Lands) referred to the difficulties being experienced in Hawke’s J3ay and point-

'ed out that in addition to the earthquake, the residents there were suffering from a drought and finding difficulty in disposing of their stock at reasonable prices. It therefore was essential that they should ho given every possible assistance. He declared that tiie present occasion was one on which the Government could afford to give no attention to its own political wishes or prospects. It had to bring' forward ■measures that would not be popular with many electors, but it had to do what was necessary in the interests of the country at a time of national emergency. , In reply to Air Coates, the Minister of Lands said it was the Government’s desire to protect the interests of the primary producers in every possible way. It fully realised that the difficult economic position of to-d'ay was a direct result of the fall in the values of products and the Government kept the interests of the farmers constantly before it in framing all its legislation. Air Ransom said credit must lie given to the Unemployment Board for the manner in which it was rendering assistance to the primary producers. The question of how it would be possible to reduce interest rates had given the Government considerable concern. He was sure there would not be many who would advocate legislation necessitating a breach of contract. The suggestion to reduce the interest rate paid by the Government for loans “over the counter” had been given consideration, but it was likely if sdeh action were taken that the Government would not be able to obtain loans in this manner. It might eventually be possible to devise some means of reducing interest rates, and he for one would make every effort to attain that end. The Government’s attitude toward wages was not a matter of a change of policy but one of a very serious change in the economic position. It was hoped that the reduction of wages would eventually benefit the wage-earners themselves and result in increased employment. Replying to the suggestion that there should be a graduated cut, Air Ransom said a 10 per cent, cut in the Civil Service would result in a saving of £1,391,697, while a graduated cut ranging from 15 per cent, on incomes over £IOOO to 5 per cent, on incomes of £2OO andi under would result in a saving of only £739,252.

Moratorium Advocated. Air H. G. R. Mason (Lab., Auckland Suburbs) advocated tile institution of a moratorium with respect to the repayment of capital as a means of giving relief. He thought that the suggestion that mortgagors should at a time like the present he called, ’upon to pay interest rates only was a reasonable one. _ | Air C. Carr (Lab., Timaru) said some people bad profited ip times of prosperity, and some were profiting to-day, though not so many. Those were the people Who should be called upon to bear the burdens of the country. They were better able to do so than the lower paid Civil Servants. Air Walter Nash (Lab., Hutt) said that while admiring the Prime Alinister’s courage he feared that his lack of imagination.- would, in the event of his proposals becoming law, result in the country going further back than it was now. The proposals would) result in the people of New Zealand having less access to world production than th 03' had to-day. The Standard of Living.

Air W. E. Parry (Lab., Auckland Central) said if the Prime Alinister thought he was going to bludgeon through legislation that was going to attack the workers’ standard of living he would find it was going to be a fight. Personally he would exhaust every privilege lie held under the Standing (r ~ers before such legislation would get through. Air \V. E. Barnard (Lab., Napier) said the' Hawke’s Bay district bad realised to the. full tlie wave of sympathy that bad passed over the whole Dominion and it had been a great help to them in facing the disaster. He also expressed his appreciation of the manner in which the Government, outside municipalities, the Navy, and others, had promptly come to the aid of the stricken area.

A World Problem. All* H. >. At. Rusliworth (Country Party, Bay of Island) said the present economic turmoil throughout the world appeared to have developed unconsciously and along undirected' lines. The trouble seemed to have arisen as a result of the transfer of gold in an endeavour to settle the question of war debts. Gold had gravitated largely into two countries in which it was impossible to put it- all into potential circulation. Ho believed the cancellation of war debts would eventually provide t-lie solution of world economic problems. An alternative solution might he found in the abolition of the gold basis as the international standard and the substitution of a chattel basis. The House adjourned' at midnight till 2.30 p.fn. to-morrow. '