Parliament and the Depression.

Press, Volume LXVIII, Issue 20711, 23 November 1932, Page 10

Parliament and the Depression.

Tho "Prime Minister announced yesterday that owing to tlio failure of primary produce prices to show any upward trend it would probably be necessary to call Parliament together early in the new year in order to consider measures designed further to reduce interest and other overhead charges. There are many reasons for hoping that such a session will not be necessary; but the Prime Minister is undoubtedly wise in taking the attitude that any worsening of either the general economic situation or the state of the public finances will require immediate action on the part of the Government. The Budgetary position, even on the assumption that the depression will not grow any worse in the next six months, is barely satisfactory; but, as the Prime Minister points out, the indications are that the coming year may be oven worse economically than 1932. The position of the fanning industry cannot by any stretch of imagination be considered satisfactory; and unless farming costs are reduced or returns increased by raising- the exchange it will become desperate. Tho fact that the measures so far taken to cope with tho depression in Isew Zealand are not proving adequate is apparently recognised also by the Loader of the Opposition, who suggests that a Parliamentary Committee be appointed to report within a fortnight on the exchange rate, monetary policy, the plight of the farmers, unemployment, and several other problems. The proposal is ludicrous and shows a complete misconception of the functions of Parliament. • A Parliamentary Committee, I oven if it cpuld compose its-political differences sufficiently to enable it to examine facts atul figures dispassionately and expeditiously, could say nothing about any of the problems mentioned by Mr Holland which would carry weight, or deserve to carry weight, with either the Government or the community. If the Government wants advice—and it seems to need advice—it would do well to appoint another Committee oC Economists to review the country's economic and |

financial position. Or, alternatively, if, might adopt the practice of most other Governments ancl create a permanent advisory council of economists.