INQUIRY URGED.

Auckland Star, Volume LXIV, Issue 252, 25 October 1933, Page 10

INQUIRY URGED.

MONETARY SYSTEM. BRISK DEBATE IN HOUSE. MR. FORBES NOT IMPRESSED. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this clay A unanimous recommendation that a Parliamentary Select Committee be set up immediately to conduct a full and open inquiry into the present monetary system of New Zealand, and possible alternatives to it, was presented to the House yesterday afternoon by the Petitions Committee, which considered numerous petitions on the currency system. Following a brisk discussion, the Prime Minister, the Rt. Hon. G. W. Forbes, gave no intimation that the report of the committee would be adopted. ,"I don't think there is anything in setting up a fresh committee," he said. Submitting the report of the committee, the chairman, Mr. F. Lye (Coalition United, Waikatoi said it was felt by members that in view of the public demand for the investigation, a Parliamentary Committee was quite competent to provide the opportunity desired by petitioners. According to Mr. J. A. Lee (Labour, Grey Lynn), the recommendation implied that Parliament «bould have some say in the legislation imposed on it by Cabinet. Mr. P. A. de la Perrelle (Coalition United, Awarua): Parliament has. The Party Whip.

Mr. Lee: Yes. When the issue is made a party one you spring to attention, click your heels, and with your toes apart at an angle of 45 degrees you march into the lobby into Which the Whip directs you. You know it, and eo does the country. Members indicate their opposition to a certain pleasure, and when the party whip cracks they swallow the pill as the opponents of Mussolini once swallowed castor oil. *

The contention was made by Mr. Lee that adoption of the committee's recommendation could create a national Government almost within two minutes. If it were the purpose of Parliament to institute a system of banking that would enable the people to enjoy the productivity that belonged to them, every member of the House would, on that basis, be prepared to co-operate at once, but united effort was impossible so long as machine civilisation was shackled to an Old World system. On the other hand, the committee should be made the basis of a national effort that would lift New Zealand out of the depression in a short time.

Mr. Forbes Attacked. The point was made by Mr. A. J. Stallworthy (Independent, Eden) that although some of the petitions were a year old, the Government had done nothing to give effect to the prayer, but rather had taken steps to. superimpose the existing monetary system on New Zealand. The Government was out of step with public opinion and any administration so situated must sooner or later go to the wall. The Prime Minister's suggestion that the committee which.dealt with the petitions could also have conducted the inquiry was evidence of colossal ignorance and a lack of acquaintance with the subject that was altogether deplorable. Was the Prime Minister trifling with the country? The inquiry recommended must take place, whether the Government liked it or not. The monetary system was shrouded in a mvstery that did not belong to it. An example was the failure of the Government to disclose the terms of the agreement entered into with the associated banks on the exchange question.

Inferiority Complex. The Prime Minister reminded the House that hours and hours had been spent during the present and past sessions in discussions as to what was wrong with the present system and the proposed methods that should replace it. He asked the Petitions. Committee what evidence it had taken on the petitions under review to justify the statement that petitioners had a claim for tlie investigation sought. Mr. Lee: Superabundance of productivity—and starvation. Tlie Prime Minister said that if another committee, _ consisting of ten mombers, were appointed, it would not be composed of better brains than those of the members of the Petitions Committee. He had thought the committee would have taken evidence itself, and asked for further powers after pursuing the question to a certain point. It soemed that the committee was troubled with an Inferiority complex. He did not think there was anything in setting up a fresh committee. It Would be possible for a member now to move that the report be referred back to the committee so that evidence could be heard. Mr. Samuel: The committee would have no power without a special resolution. The Prime Minister: It has the right to ask petitioners on what grounds they are asking the Government to order an inquiry. " Hopeless Government." "The Government is hopeless, and the Prime Minister has practically admitted it," said Mr. M. J. Savage, Leader of the Opposition. "He wants to know what evidence was submitted to the committoe. What evidence did it need? The committee could have spent weeks taking evidence to justify the recommendation that an inquiry be held. But what a ridiculous position to put itself in. Petitioners naturally expected that a special 6elect committee would be appointed. The Prime Minister: What evidence did the committee have in front of it?

Mr. Savage: What evidence did it need? The people are not asleep, even if the Government is. Everyone cxccpt the Government knows that something is wron". The Government does not want to°do anything. It has no policy, and it wants to hand over the monetary system to someone outside New Zealand. It will do anything but the right thing. Replying to the debate, Mr. L.ve said the committee had considered '25 petitions, containing, thousands of signatures, and the occasion was the first on which it had come in contact with the subject matter of the representations. It had properly dealt with the matter, and it had not suffered from any inferiority complex. It was not within the province of the committee to hold an inquiry into the monetary system; the committee had made its recomnien-* dation, and the responsibility now rested with the Government.