PARLIAMENT Supply Debate Ranges From Hops To Economics

Press, Volume XCVIII, Issue 29004, 19 September 1959, Page 14

PARLIAMENT Supply Debate Ranges From Hops To Economics

(New Zealand Press Association) WELLINGTON, September 18. A rambling Imprest Supply Bill debate ended in the House of Representatives this afternoon when the Minister of Finance (Mr Nordmeyer) declared that in spite of Opposition attempts to disparage the Government’s efforts to improve the economy of the country, production, though there had been some reverses, would continue to increase. The debate, to which urgency was applied for the first time this session, ranged from the hop-growing industry to various economic and industrial aspects. Almost all the points raised on the latter subjects have already been dealt with in previous debates. Supply of £45 million for four weeks was granted.

The Leader of the Opposition (Mr Holyoake) said hop-growers :ould not dispose of their surplus because the Government would not let Guinness’s stout into New Zealand in return for Guinness’s buying the hops surplus.

The Minister of Agriculture (Mr Skinner) said Guinness’s would in no way give an assurance they vould import New Zealand hops, ?ven if New Zealand allowed the importation of Guinness stout. It was a matter entirely of the quality and price of the hops. Mr Holyoake, who is a former chairman of the Hop Marketing Committee, said growers had not previously had any difficulty in disposing of their surplus hops. Most had been bought by Guinness’s Breweries in Ireland and Australian breweries. Guinness's had suggested entering into a 10year contract with New Zealand growers. The growers agreed to this, and agreed to produce more hops. Last year, instructed by Mr Skinner, departmental officers urged growers to grow more in anticipation of the 10-year contract. Mr Holyoake said. When it was apparent there wquld be a surplus of hops this year, the growers advised Guinness’s and i-he Australian breweries, but Guinness’s said they did not want the surplus this year. “But Guinness’s said that as

the New Zealand market for stout was of interest to them they would take some of the surplus hops. Because of import controls, however, they could not sell their stout here and so they said they would not buy the surplus hops,” said Mr Holyoake. Mr Skinner said that at present New Zealand could not compete with the price and perhaps the quality of overseas hops imported by Ireland. Australia had not taken any hops this year, because of a large home surplus. Circumstances had combined unfortunately against New Zealand hop producers and there was little the Government could do although it was prepared to do all in its power to restore confidence in the industry. Mr S. A. Whitehead (Government, Nelson) said the Government had done its best to sell the hop surplus overseas. Representatives of the Government’s trade commissioner service had tried to sell the hops in South Africa, Australia, Suva, Hong Kong, Japan, Denmark, Central America, Jamaica, the United Kingdom, Singapore, Eire, the United States and Central Europe. Home Appliances Sales

Mr W. B. Tennent (Opposition, Manawatu) said that in the 21 months Labour had been in office, sales of refrigerators had dropped by 65 per cent., washing machines 27 per cent., electric ranges 66 per cent., lawnmowers 40 per cent., and radios 11 per cent. Taxation had reduced the ability of the people to save. There had been no increase in the volume of industrial production, and boot and shoe manufacturing output had dropped. In the retail trade, sales had fallen away to a large extent The Minister of Customs (Mr Boord) said Mr Tennent had omitted to point out that New Zealand was faced with the impact of an overseas recession last year when he was dealing with industrial production.

Mr W. H. Gillespie (Opposition, Hurunui) said it was the Government’s job to provide incentives for industry. Mr Nordmeyer, said Mr Tennent had tried to show how manufacturing had decreased under the Labour Government. But the number of washing machines produced in 1958 was 38,304 compared with 34,360 in 1957, he said.

Mr Nordmeyer said the value of company shares had increased since the last Budget. “This is a clear indication that, notwithstanding dividend or retention tax. investors realise that investment in companies is still a highly profitable venture.”