SPEECH FROM THE THRONE

Press, Volume LXXXVI, Issue 26151, 29 June 1950, Page 6

SPEECH FROM THE THRONE

PARLIAMENI

Proposed Legislation Reviewed GOVERNOR-GENERAL’S TERM EXTENDED (From Our Parliamentary Reporter.) WELLINGTON, June 28. The ceremonial opening of the twenty-ninth Parliament of New Zealand by the Governor-General (Sir Bernard Freyberg) this afternoon was marred by steady drizzling rain. There was no guard of honour on parade, and only a small crowd braved the weather to watch Sir Bernard Freyberg arrive. Unusual public interest was taken in the opening of the session, however, and the galleries in the Legislative Council Chamber were crowded with invited guests when his Excellency entered to read the Speech from the Throne to Legislative Councillors and members of the House of Representatives, who were summoned to the Chamber by Black Rod (Captain D. I. C. Bryan). A small crowd waited outside in the rain to hear the Speech from the Throne, which was broadcast over a sound system. In the House of Representatives the main public gallery and other galleries were filled before the formal business began. Except for an announcement that the Governor-General’s term of office had been extended for another year until 1952, the Speech from the Throne contained no legislative surprises. It held out little prospect that major tax reductions will be made. The speech reviewed the international situation and defence measures in New Zealand, and gave a general outline of the Government’s proposed legislation. It also expressed optimism* about the future of the Dominion’s farming and manufacturing industries.

The Governor-General said:— “Honourable members of the Legislative Council and members of the House of Representatives: I am sure that I voice the loyal sentiments of Parliament and of the people, both Maori and European, in expressing at the opening of this first session of the twenty-ninth Parliament heartfelt relief and thankfulness at the continued improvement in the health of His Majesty King George VI. We have learned with especial pleasure that this improvement justifies the confident hope that Their Majesties will visit our shores in 1952. It will be the fervent wish and prayer of all sections of the community that they may have this long-desired opportunity to demonstrate their traditional attachment and loyal affection towards His Majesty’s th’-one and person. “In June of next year 1 shall have completed the normal period of five years in office as Governor-General, and I recently intimated to my Ministers that, subject to the King’s approval. I shou’d relinquish the appointment in May next. The Prime Minister has advised me that it is his wish and that of his colleagues that Lady Freyberg and I should remain in New Zealand for a further term, during the course of which, it is earnestly hoped, the Royal visit will take place. .At their invitation I submitted the proposal to His Majesty, who has been graciously pleased to approve of my holding the office for a further year, that is. until June, 1952. This is a matter of the greatest pleasure to my wife and me.

“My advisers regard with grave disqu et the deterioration in the international situation and the continued failure to overcome the state of deadlock which affects so many of the problems dividing the nations to-day. While giving firm sunport to the programmes and principles of the United Nations., my Government are bound to admit their sense of discouragement over the meagre results so far achieved and to express their profound regret that the United Nations should continue to suffer from the disturbing attitude of some of the members. “Nevertheless, despite the disappointment of the high hopes of the founders of the United Nations, my Ministers retain the belief that there may yet emerge in the fullness of time an effective international organisation, based on collective securitv and firmly founded on confidence and mutual trust, which will secure that state of universal peace for which we all most earnestlv yearn. “In the widespread uncertainty characterising the international scene, my Ministers are glad to recognise bv contrast in that smaller group of the British Commonwealth a firm nucleus of strength and integrity of purpose. It is their determination to do whatever lies in their power to strengthen the British Commonwealth and Empire as a bulwark of peace, stability, and progress in the world.

“My Minister of External Affairs took part in the meetings of Commonwealth Ministers held at Colombo in January and at Sydney in May These meetings seem to" my advisers to have been of special importance, both in respect of their discussions and as affording proof that the springs of Commonwealth action are not confined to any one geographical centre or to any one racial group. “The far-reaching changes which have taken place in the Pacific region are matters of deep concern to my Government, who remain in constant touch with the other Governments of the British Commonwealth and the United States of America.

“In regard to the situation in China and its implications for the United Nations, it is recognised by my Ministers that the existence of extreme poverty in large areas of the world creates special problems for the nrnre favoured, and provides the fuel which so readily spreads the consuming flames of social upheaval and political revolution. They feel that. New Zealand can contribute best towards the solution of some of these problems by the provision of technical assistance, and they have accordingly taken an active part in the relevant Commonwealth and United Nations discussions in this field “My Minister of Island Territories has recently visited and was most warmly received in the trusteeship territory of Western Samoa, where he was able to observe the steady development being made by the Samoan people in their social, economic, and political affairs. It is most satisfactory to record that the Trusteeship Council have in their examination of New Zealand’s annual report signified their approbation of this steady progress “It is the firm conviction of my Government, reinforced by bitter memories of past experience, that the people of New Zealand, while contm-i ing to hope and strive and make sacrifices for peace, annot at the same time afford to risk the dangers of military unpreparedness. Already in accordance with the wishes if the people as so clearly expressed in the referendum last year, my Government have pu + into operation the ' 'heme of compulsory military training, and are proceeding with other measures for the expansion and strengthening of the armed services

“In this period of international tension every effort must be made to en sure the speedy execution of those defence plans which have been adopted in accordance with the nest available advice and are within tr t resources of the Dominion. My Ministers have lately had most valuable discussions with the Chief of f he Imperial General Staff (Field-Marshal Sir William Slim) and with the Inspector-General of the Royal Air Force Air Chief Marshal Sir Hugh Saunders). “It is the inevitable alteimath of the titanic struggle out of which we have only i ecently emerged that there should be a host of diSculties and complexities, the solution of which requires both time and wisdom. “My advisers consider that the greatest economic evil confronting New Zea-

land to-day is that of i illation, and they are ever mindful oj the obligation which their election to office has laid upon them to curb and to eliminate this insidious danger to the wellbeing of the wage-earner and other people in the lower-income groups. “One of the first duties of my Government on assuming office was to examine the country’s finances, the soundness of which they firmly believe must always be the very foundation of the living standards of the: people and the best safeguard of their earnings and savings. “After this examination my advisers found that in order to keep the Budget within manageable proportions and restore reality to the structure of prices it was desirable to abolish certain subsidies and reduce others. My Ministers consider, however, that without some compensating adjustment in wages and other forms of fixed iuccme the corrective measures they have initiated would fall too heavily* upcr. those least able to bear the strain. Steps were therefore taken to enable the Court >• Arbitration to make an interim wage order, without prejudice to the making of a final award later .hi when the full effect of the removal or reduction of subsidies upon costs and prices can be gauged with more reliability. “Furthermore, various benefits undej the Social Security Act are being increased by cost-of-living bonuses in consonance with the anticipated in crease in prices of items in the basic food and other groups “Mr Speaker and Members ot the House of Representatives: As has already been announced, the new Ad ministration found that order to provide for that part of the capital programme which could noi be inanced from other sources, such as national savings, a loan of £20.000.000 was needed. The -ise of Reserve Bank credit at a time when the volume of money in circulation was alreadv expanded. when both production and prices were at record levels, and when there was full employment would, in the opinion o± my advisers, merely have served to aggravate inflation They therefore deemed t wise that the moneys required should be borrowed within the country

“The generous response which the people have made in oversubscribing the recent loan affords unmistakable evidence of public confidence in the measures which my Government are taking to promote economic stability and social well-being. The funds provided will enable the Government to meet essential capital lequirements without the creation of new money. “Although the state of the country s finances holds out little prospect of major tax •'eductions this year, it is nevertheless proposed to make some adjustments. My Prime Minister has already announced the abolition of the 33 1-3 per cent, penal tax on certain Cjasses of income. It is considered by my advisers that this measure of relief to a considerable section of the community will remove a long standing injustice

“Another matter for which legislation will be introduced will he a change in the basis of assessment of land-tax.

“Legislative provision will be made at an early date to remove the Reserve Bank from direct Ministerial cuntro 1 and vest in the bank the responsibility for action in the monetary field consistent with the policy cf economic stability for which the Government hold a mandate from the people This proposed legislation will, however, ensure that the .Reserve Bank shall be obliged to heed the wishes of the people as expressed from time to time by resolution of Parliament.

“Honourable Members of the Legislative Council and Members of the House of Representatives: It is the intention of my Ministers to place before you legislative provisions designed to apply as soon as possible the principles upon which they have been elected to office. “In order to avoid an accumulation of legislation at the end of the session my Ministers have given considerable attention to the preparation of bills, and some 40 ar? either ready or almost ready to be introduced. This practice will, it is hoped, give members and the public ample time to consider the measures laid before Parliament.

“In addition to those important measures, to which reference is made elsewhere, legislation will be introduced dealing with social security, land sales, tenancy, transport, marketing. the rating of vacant land in counties shipping and seamen, harbour boards, a medical research council national parks, hospitals, and the codification of the acts governing the Armv and Air Force “In accordance with the terms of their election policy my Government will also introduce a bill for the abolition of the Legislative Council, the continued exist°nce of which as now constituted thev consider unjustified It is the further intention of my advisers to explore means of guarding against the possib’litv of undue has>e and insufficient deliberation in the eno f legislation.

“There will be placed before you at an eai »y stage a bill to restore capital punishment, and a further bill to restore corporal punishment :n ‘serious cases in accordance with the pledge made before the election However. mv Ministers will submit thes*» two measures to a free vote of the House. “It is a matter of much satisfaction to mv Ministers that the long-sus-tained and strenuous efforts of the farming communitv continue to be rewarded with a high degree of prosneritv which is reflected throughout all sections of the community. Butter chees« exports last season reached the highest totals yet recorded. Though the June figures for meat ex’norts are not yet available, their total will show a substantial increase over 1948-49 Last season’s wool production was the second highest on record, and nrmes continue at high levels “Negotiations are being conducted at the present time with the United Kingdom Government concerning the prices to be paid for the coming sea-

son’s exports of meat and dairy produce. It will be the constant endeavour of my Government to do everything possible to promote and secure favourable prices for exports and to ensure thereby that the national income as a whole will remain at buoyant levels in the foreseeable future.

“The close co-operation between primary producers and my Government has been strengthened by the formation of a Primary Production Advisory Committee under the chairmanship of my Minister of Agriculture, and it is confidently expected that this body will play an important role in the furtherance of my Government’s policy of 'ncreased primary production.

“Legislative provision will also oe made for placing on a permanent basis a new marketing advisory body “One of the major administrative changes foreshadowed by my advisers before their election to office was the setting up of a board of trade to advise on matters connected with import control, trade, and tariffs. These are matters of the greatest importance to our trading community, primary producers and especially the consumer.

“As a preliminary step an advisory committee under the chairmanship of the Honourable Sir David Smith has now been appointed to advise on ways and means of putting the Government's policy into operation. Mv Ministers are confident that the com'rmt’ee and the board, when it is established. will be able to recommend measures which, white providing reasonable orotection for efficient local industries. will ensure that our overseas funds are used to the best advan--12 the goods we need and that traders are enabled to develop their businesses with the maxiamount of freedom. tn ste ?' * is he intention £ emove import restrictions entirely v?Sn a ™ lde . ran § e of goods. Parallel h tu besn taken internally to Fn^Y e those . restri ctions which n O iwstified. such as rationme and price controls on goods >n land'saies' UDD ' V 3nd cnntro ’ s on urban

" T ?u ese ste P s are designed to restore healths pe °P I P , f he advantages cf hS? comDe ‘itive forces in the national economy. They are an essen. being C< taken rP t art °t the action no ' v an"ncill Stkir/ or s econom ‘c and wi>& S^^Xve^ d o^ g o e f th t e h r e cer? e ve O ars' nCreaSed Hvins costs in re ‘

„ ‘? n the , fieJds of health, education and social security my Government for thelo FP that the mone ys allocated A 2? , se servlces are efficiently spent terms of ,? e greatest value in a whole th fare ° f the People as

? h “ Ve ™ ment has examined closely the programmes of national development which are needed to increase New Zealand’s oroductiv tv ?n wo I year ?„ ahead - Essential public Wl l l . a e Proceeded with and transnnrt elated to the co -ordination of transport services. So long as deS nm P d me K nt • w ?£ ks are financed on a sound basis the cost of the agreed Programme will be well within the capacity of ,the country. “In promoting the effective rehabilitation of all those who served in the recent war my Ministers will direct particular attention to housing and land settlement.

In the furtherance of mv Governments housing policy generally the aim will be to encourage the fullest aegree of occupation of homes by amines on an ownership basis. With this end in view provision is being made for more generous loan facilities designed to encourage private housebuilding to meet the housing requirements of the rural community and to assist tenants of State rental houses to purchase their homes. ‘The Land Sales Act will be abolished in progressive stages, but so long as it is necessary to ensure preference for eligible ex-servicemen in obtaining farm properties some measure of control must be retained. “Legislation will, however. be brought down to ratify the action already taken by my Government to vary the basis of valuation of farm properties and to exempt sales of urban land.

“In the important field of Maori affairs, land development will be carried forward as expeditiously as possible. Generous loan provisions for individual Maori homebuilders will enab 7 e a substantial increase in the number of houses built, while in the cities and towns provision is being made for Government hostels so urgentlv needed for Maori youths.

“Although the labour force continues to expand, there still exist acute labour shortages in essential industries and services. In seeking remedies the Government are ex + **nd’ng the immigration scheme with the object of bringing to New Zealand an average of 10.000 assisted immigrants annually over the next 10 years. This total cannot, however, be realised immediately. as it wiH first be necessary to expand the accommodation facilities here, a task to which my Ministers are givinc hieh priority. “Recognising that the maintenance of industrial peace is essential to national well-being, my Ministers will strive to encourage the utmost cothe employers* organisations.

purchase of more imports, both of consumer goods and of raw materials, for the development of local manufacturing production. “Flourishing conditions in the business world will thus be maintained, and the benefit will not merely be shared by a few but will be spread throughout the community in the form of, full employment at good wages. “At the same time social services will ensure that conditions of security are available to all.

“Practical measures are being taken in all fields suitable for Government action.

“Apart from these measures, however. it is the conviction of my advisers that the maintenance of prosperity depends ultimately on continued individual effort throughout every section of the community. By working together all can achieve still higher levels of real income and thereby ensure that this small and comnaratively voung country may look forward with confidence to a period of steady progress in the years that lie ahead.

“In the view of my advisers the maintenance of harmonious industrial relationships necessitates the nrovis ; on of special and adequate machinery for investigation, for speedy interpretation. and for adjudication unon matters in dispute. It is proposed to amend certain sections of the Industrial Conciliation and Arbitration Act with the object of enabling industrial unionists, where they so desire. to express their views by democratic methods, such as the secret ballot, on comnulsorv unionism and other issues. “The staffs of the public services can be assured of favourable terms of employment in recognition of the value of their work in administering Government policy, and every effort will be made to ensure the maintenance of their high standards of efficiency and loyalty. “In the light of this review of the country’s prospects in various fields there is good reason to be optimistic about the future. Conditions in the farmin : industries are favourable to an expansion of production. Increased exports will provide the means of exchange so necessary to enable the

‘‘My Government are deeply conscious of their resnonsibilities in all these matters, and I earnestly pray that with God’s blessing your deliberations thereon may prove to the lasting benefit of th® n pnr>te of N«>w Zealand.”