PARLIAMENT IN SESSION

Dominion, Volume 22, Issue 261, 31 July 1929, Page 12

PARLIAMENT IN SESSION

A BRIEF SITTING BENT RESTRICTION LEGISLATION The House of Representatives had a brief sitting yesterday, adjourning at 3.50 p.m. The Legislative Council, however, sat well into the night, discussing the Imprest Supply Bill No. 2, which was passed. The main business transacted by the House was the passing of the Rent Restriction Continuance Bill, the

House adjourning, after that subject had been dealt with, as a mark of respect to the memory of the late Mr. J. F. Arnold, a former member of Parliament.

LEGISLATIVE COUNCIL IMPREST SUPPLY BILL DEBATE

The Legislature Council met yesterday. ... The Hon. Sir James Allen and the Hon. B. W. Alison (Auckland) were .each granted two days’ leave of absence, the former owing to urgent business and the latter on account of illness. The Hon. G. M. Thomson (Otago) gave notice that on next sitting day he would '■'ask leave to introduce the Education Amendment Bill. The Imprest Supply Bill, which was accorded urgency, was read for the first time. • The Hon. J. Craigie (Canterbury) said -that while it was unusual to discuss the Supply Bill, he wished to deal with the finance of the country. The Canterbury Chamber of Commerce had said the national debt and interest bill "was among the highest in the world per -head of the population. The gross State ■ and local bodies’ debt of New Zealand was 317 J millions sterling, equal to £215 uper head of population. He said that expenditure in many directions was justified, but he described the present volume of expenditure in the direction of imported motor-cars as gross extravagance. He thought that higher duties should be levied on motor-cars, particularly in view of the fact that the money was mostly going to the Unit- ‘ ed States and not to England. He said New Zealand would continue to be a primary producing country for a considerable time to come, and for that reason he considered the country would benefit by a policy of free trade. Mr. Craigie spoke at some length on land settlement, and said his remedy was to place a steep graduated tax on large land holdings. The Hon. A. S. Malcolm (Auckland) said that despite the fact that wheat was dearer in England than in New Zealand, the price of bread in this country was higher than it was at Home. Desirable as it might be that New Zealand should grow its own wheat we could buy self-reliance at too dear a price. There , was a demand for cheaper bread even . if that demand were not a noisy one. If anything reasonable could be done to benefit the farmer Mr. Malcolm said he would be the first to support it, but the • high price of bread was benefiting the miller, and baker, and not the farmer. - Since the sliding scale of duties had come into force our exports of wheat had dropped away to practically nothing, and the.farmer had found he was still getting ’ a poor price. Mr. Malcolm believed it had not been the intention of the sliding scale . to benefit the -miller, but that had been the case. In addition, the sliding scale was, by means of the unheard of prices now asked for fowl wheat, seriously threatening the egg industry. A number of industries in New Zealand had gained a protection they would not have obtained had the farmers been strong against protection.' It was not fair to the people of New Zealand to place a tax on their staff of life. The Hon. E. Newman (Wellington) said it would be a bold man who would seriously suggest to-day a policy of free trade for New Zealand. Mr. Malcolm had dealt with a very diffl- > cult problem with regard to wheat. What the Government was best advised to do was to inquire not so much into the price of wheat as into the profit that went to the middle- ■ 'man. In dealing with the development • of industry he said he believed this coun- • try could carry a population of five million people and its production from the land could be quadrupled. The Government, in buying land, would have to pay higher prices than were received formerly, because the produce from the land was worth more to-day. Mr. Newman said he had already stressed the need ;for classification of land in New Zea- ■ land before a graduated tax was applied ■in order that injustice would not be done to the owners. Theye was an enor- , moua demand in New Zealand to-day for farm land by people who wanted to raise their families there. With regard to ‘ deteriorated lands, Mr. Newman said that restrictions as to area should be removed ■ and that the scope of the graduated land tax should not include those deteriorated : lands. ;

(<-. The Hon. G. M. Thomson (Otago) said he considered it foolish to bore for oil in New Zealand. What was the use, he asked, of obtaining hundreds of gallons of oil a day at Taranaki when thousands of gallons a day could be bought at Ran- " goon for fourpence a gallon ? Oil was Snot obtainable in New Zealand in sufficiently payable quantities. He said he regarded as dangerous the proposal of the Department of Scientific and Industrial Research to introduce a moth to New Zealand to destroy, gorse and ragwort. The history of such naturalisation in New Zealand, he said, was a disastrous one, and he regarded the pro- ■ posal with apprehension. He also urged that the fisheries of the country be ..brought under one control. Also, he thought the acclimatisation societies of New Zealand should be overhauled. He did not think it right that the societies should pocket the fees for licenses to shoot opossums. The South Canterbury ' Acclimatisation Society was the only "' society giving consideration to the scientific improvement of fisheries. Mr. Thomson concluded by expressing the opinion that the Dominion Museum, which was at present controlled by a Government , Department, should be under the control of a board of trustees. He had ’ -nothing to say against the Department, ’but people would not contribute to a ■ Government concern. The Hon. W. Earnshaw (Wellington) ” criticised the address of the Hon. E. Newman. He said the large number of applications by ballot that had been received for land sections had merely shown the extent of the gambling spirit. The policy of the Government in regard to relieving the unemployed was a •. disastrous one for the State, and for the men concerned. The unemployed were being paid more than the best picked gang of the Public Works Department. The loafer on the job set the pace. There was plenty of evidence of that in the gangs < at work in Wellington. Had the work been done properly the Government subsidy would not have been needed. He predicted that even if the men engaged by the Public Works Department was increased fifty per cent., next year there would be just as many men in the cities wanting work, owing to the influx from Ihe country to the cities. Mr. Earnshaw believed that the work should be given in small contracts. The Government needed to be humane, but strict. Also, he thought the same standard of pay per yard should be given as was paid the men of the Public Works Department. Even as things were, it would be very difficult for this country to get back to the right feeling between employer and employee. The Hon. G. J. Garland (Auck- ‘ land) endorsed the remarks made by the Hon. J. Crdigie with regard to the financial position of the country. Could local bodies, he asked, • go on hiding up loans and increasing the indebtedness of the country? In addition, the private debt of the country was ns great as the national debt- H® saM

were too many public servants employed for the population, and efficiency was not being given by those 58,000 servants. He thought provision should be made so that superannuation provision would not be a charge on the taxpayer in the future. He said in regard to wheat that the avenues of reciprocity of trade between New Zealand and Australia and Canada, had not been fully explored. . .Yhe Hon. Sir Thomas Mackenzie (Otago) said that timber imported into New Zealand should be first stripped of bark in order to prevent the spread of obnoxious insects. With regard to the financial position of the country, he said enormous taxation was needed, or else 8 ™ tt capital to balance the situation. The Hon. W. H. Mclntyre (Nelson), representative of the Council on the Cawthron Institute, replying to the Hon. M. Thomson, said there was no fear that insects imported to this • country to destroy noxious weeds would cause damage to other plants. If they did, they, themselves, were destroyed. The Hon. V. H. Reed (Auckland) said he could not agree with a policy of placing on the large farmer so heavy a graduated land tax as to amount to confiscation. He thought it unfair that farmers should be so attached, and that other large interests in the country should go free. Farming was not popular to-day, and there was not the cry for land, as had been stated by a previous speaker. There was a feeling against land-owners arising from the cities, and that did not encourage boys to take up farming. If income tax, as well as land tax, was placed on the farmer, further discouragement would be given to fanning. In addition, the farmer had to pay local taxation which the city man did not have to meet. He thought that rather than try to “make the big farmer disgorge,” the Government should assist settlers to go on available lands—deteriorated or pumice lands.

In replying, the Leader of the .Council (Hon. T. K. Sidey) said that in considering the matter of the country’s indebtedness we had to remember the amount of money represented by national undertakings. We had to. remember also, with regard to the land, that more people in New Zealand to-day were dependent on secondary industries than on the farming industry. In connection with wheat, bread was really a small item in the average household, so the question was not as big as it appeared on the surface. Regarding unemployment and the matter of full service for money earned, the public works men were employed on a co-operative system. Points that had been made had been referred to the Ministers whose departments were concerned. The Bill was read the second and third times, and passed without amendment. The Christ's College Canterbury Bill was read for the first time. The Council then adjourned until toda*

FORTHCOMING BUSINESS FINANCIAL STATEMENT TO-MORROW

According to an announcement by the Prime Minister (Rt Hon. Sir Joseph Ward) yesterday, the Financial Statement will be delivered to the House tomorrow night Sir Joseph Ward added that this afternoon Ministerial replies to members’ questions would be taken, and that in the evening consideration would be given the report of the Select Committee, which has inquired into alterations of the Standing Orders. It is hoped to commence the financial debate on Tuesday next. LONDON LOANS AN INVESTIGATION WANTED The determination of the Reform Party to get to the bottom of the Prime Minister’s suggestion that borrowing in London had been prevented for two years was indicated by the Leader of the Opposition (Right Hon. J. G. Coates) in the House of Representatives yesterday. Mr. Coates gave notice to ask Sir Joseph Ward when he proposed to_ afford the House an opportunity of investigating bis allegations that he was prohibited from going on the London money market for two years owing to some action on the part of his predecessor. THIRD PARTY RISKS

SUGGESTED EXTENSION. An important amendment of the Motor Vehicles Insurance (Third' Party Risks) Act is sought in a question given notice of in the House of Representatives by Mr. W. A. Bodkin (Otago Central) yesterday. Mr. Bodkin gave notice to ask the Prime Minister if he was prepared to amend the Act so as to appropriate a percentage of every insurance premium collected under section 5 of the Act, in order that a special comprehensive third party insurance policy might be effected covering such persons as might be injured in accidents where the identity of the offending motorist had not been ascertained. DECEASED MEMBER ’TRIBUTES TO MR. J. F. ARNOLD. Appreciation of the faithful services rendered to New Zealand by the late Mr. J. F. Arnold, member of Parliament for Dunedin constituencies from 1899 to 1911, was expressed in the House of Representatives yesterday. Mr. Arnold died at Timaru, aged 70 years, on July 10. Moving the customary motion of appreciation, the Prime Minister (Right Hon. Sir Joseph Ward) said that Mr. Arnold was a man who had played a useful part in the political transformation that had marked the close of the last century and the early years of the present century. Mr. Arnold had been one of the old school of Labour members, and was a man with very sincere and strong liberal convictions. The Leader of the Opposition (Right Hon. J.- G. Coates) said that he had always been impressed with Mr. Arnold’s obvious sincerity. Mr. E. J. Howard (Christchurch South) paid a tribute on behalf of the Labour Party. The Houqe adjourned until this afternoon as a mark of respect to the memory of the late Mr. Arnold.

RENT RESTRICTION LEGISLATION CONTINUED HOUSE IN AGREEMENT “A NECESSARY PROVISION” The House of Representatives yesterday decided to continue for a further twelve months the existing rent restriction legislation. The Government measure on the subject was agreed to after a brief discussion. Moving the second reading of the Rent Restriction Continuance Bill, the Minister of Labour (Hon. W. A. Veitch) explained that the measure was .merely a continuance of the Restriction Bill of last year. The provisions had not been altered in any way. Giving his reasons for the extension of the legislation, Mr. Veitch said that the records of the Labour Department, which had gone into the matter very fully, indicated that, with the prevailing unemployment and hard times, a hardship would be imposed upon a certain section of the people if the legislation were allowed to expire. The pressure was confined to the chief centres, particularly Wellington. Reports of the officers of the Department showed that in Auckland the position was still acute in the slum areas, and that the removal of the restrictions would not mean more building. In Wellington, the reports showed, the removal of the restrictions would involve a considerable amount of hardship The position in Christchurch was not quite so acute. The pressure in the provincial towns was not very acute at the present time. The Hon. W. D. Stewart (Dunedin West): Is there any report from Duned The Minister: Yes. It is to the effect that the removal of the restrictions will not encourage building. The position there is not regarded as acute, as it is in Wellington. Mr. H. S.' S. Kyle (Riccarton): How about Wanganui? The Minister: “House rents there have a downward tendency and there is no pressure.” The Minister added that in general terms what he said applied to conditions in cities throughout New Zealand. As members knew, the legislation applied only to houses let for the first time prior to November, 1920. All houses built or let for the first time during the last eight years were thus exempted from the provisions of the Bill. Mr. R. McKeen (Wellington South): How will it discourage building? The Minister: I was going to point out that the extension of the provisions of the rent restriction legislation will not in any way discourage building, since the provisions do not apply to new houses or those built or let for the first time, since November, 1920.

Wellington Rentals. Mr. P. Fraser (Wellington Central) expressed his gratitude to the Minister for his decision to extend the term of restriction for twelve months. He agreed that the reports read by the Minister were correct. Perusal of local advertisements showed that in some cases the rental of rooms in Wellington went as high as thirty shillings a week. Unemployment at the present time was widespread, and it was difficult to know how some of the working-class families made both ends meet. The protection in regard to the amount of rent that could be charged was quite small, but it was essential that that protection be retained. The Hon. W. D. Stewart said that the primary objective of the legislation was to protect tenants against exploitation and unduly high rent with as little hardship as possible to the landlord. He instanced a case where hardship had been imposed on people of small means who had invested their life-savings in house property, through a man having to pay taxation on a different valuationfrom that on which the rent was assessed. It might be possible for the Minister to look into that point so that the anomaly could be modified or removed in the interests of people of small means who had monev so invested. The Minister said that when rents were being fixed the Magistrate decided upon the evidence of the actual valuation of the property. On the whole it was a question of fixing a fair valuation rather than a monopoly valuation of the property, and that was a sound principle that should be kept in mind in view of the economic conditions that prevailed. Wrong in Principle.

The Leader of the Opposition (Right Hon. J. G. Coates) said that in principle he thought the legislation was wrong. It was not wanted from the point of view of investors, and in the end it might be the means of injuring those seeking assistance under it. He had received only one letter complaining against the proposed extension; therefore, he did not think there was a necessity to express open opposition to the proposal. If pressure had disappeared and business had returned to normal, the legislation could be dropped from the Statute Book, but such was not the case. “The sooner we can get along without legislation of this kind,” Mr. Coates added, “the greater will be the inducement to capital to invest money in this class of security and provide the quickest way of removing some of the difficulties we are up against.”

Describing the legislation as timely, Mr. R. McKeen (Wellington South) said that some landlords had anticipated that there would be no extension of the provisions after August 1, and had made preparations to reap a harvest? In some cases in his own electorate tenants six months ago had received advice that their rents would be increased. In one instance the advance proposed was from twenty-five shillings to thirty-five shillings a week for a very old house. In the opinion of Mr. C. H. Chapman (Wellington North) the passing of the legislation would allay anxiety in his electorate. Notices of increases had been, served, and it had been anticipated that unless the restrictions were reimposed there would be considerable advance in the rents. Accorded urgency, the Bill was passed. Bill Before Council, In the Legislative Council last night the Bill was read the first time. The second reading was set down for to-day. PERFORMING RIGHTS QUESTIONS IN HOUSE. Can an association called the Australian Performing Rights Association legally levy a yearly fee upon music and hall societies for using music it claims to control? Giving notice of the above question in the House of Representatives yesterday, Mr. J. Linklater (Manawatu) said that during the last two years many hall and music societies in New Zealand had received a demand for an annual fee. The demand seemed unjust, because the music had been purchased by those societies, and their members were under the im. pression that no further payment was required by them. In the House of Representatives yesterday, Mr. C. H. Chapman (Wellington North) gave notice of his intention to ask the Minister in charge of the Government Printing Office: (1) Whether his attention had been called to the fact that employees in the Government Printing Office, who'had the misfortune to suffer accident necesssitating medical attention, were called upon to pay the whole of the expenses except the first pound, whereas formerly the expenses were paid by the Department; (2) whether this curtailment of privileges was through intervention of the Public Service Commissioner; i would the Minister take steps to reinatata tba privilcss!

PREFERENTIAL VOTING PRIVATE MEMBER’S MEASURE Sponsored by Mr. J. McCombs (Lyttelton), the Preferential Voting Bill was introduced into the House of Representatives yesterday.’ “When does the honourable member desire the second reading?” inquired the Speaker. Mr. McCombs: August 21. “It will never arrive,” scoffed Mr. W. D. Lysnar (Gisborne). Mr. P. Fraser (Wellington Central): The Jeremiah I CASH ORDER TRADING REPORT COMPLETED

The finishing touches have now been put to the report of the committee which Inquired Into the cash order trading system In New Zealand. The Minister of Industries and Commerce (Hon. J. G. Cobbe) announced yesterday that the report would be made available for publications at an early date. LOAN RENEWALS A BUDGET POINT “In the course of a day or two the Budget, will be delivered, and all the information sought by the member will be found there. I don’t think it is necessary to go into details at the moment,” said the Minister of Finance (Rt. Hon. Sir Joseph Ward) in the House of Representatives yesterday, in reply to a question by Mr. H. S. S. Kyle (Riccarton). Mr. Kyle had asked for information of the amount payable annually for interest charges in respect of renewal of loans, and the resulting increase in the public debt.

“I ask this question to draw attention to the financial outlook,” explained Mr. Kyle. “It gives rise to grave— The member got no further, Mr. Speaker interrupting him with the statement that he was imparting information and not seeking it.

ROTORUA-TAUPO ROAD IMPROVING THE STANDARD. “It is hoped that arrangements will shortly he made to commence the improvements,” said the Prime Minister (Rt. Hon. Sir Joseph Ward) in the House of Representatives yesterday, when replying to a question by Mr. C. H. Clinkard (Rotorua), who had asked what action would be taken in regard to bringing the Rotorua-Taupo road up to a standard necessary for heavy traffic, as indicated in Sir Joseph Ward’s speech at Rotorua. Mr. Clinkard added that the special reason for asking the questioi was that the road was practically blocked for traffic during the winter months for want of development, and it was urgent that it should receive attention at the earliest moment. The Prime Minister replied that in order to protect the existing standard of the road it had been limited as far back ns 1906 to a maximum carrying capacity of four tons. He was not aware of any suggestion that the road was closed during the winter months, and even if such were the case, it would have no bearing on the Government’s decision to improve the standard of the road, as already announced. AGRICULTURAL DEPARTMENT INVESTIGATION OF CHARGES. Pointing out that charges of misrepresentation, plagiarism, and incapacity had been made against officers of the Department of Agriculture, Mr. W. J. Polson (Stratford) asked the Minister of Agriculture (Hon. G. W. Forbes) in the House of Representatives yesterday whether his attention had been drawn to allegations which were made in the last issue of the "Exporter,” and what steps he had taken to investigate them. Mr. Polson asked further whether the Minister was aware of the general feeling of uneasiness in the minds of producers in regard to such criticism, and whether he contemplated any scheme of reorganisation that would reassure the public. The Minister suggested that the question be placed on the Order Paper to enable a considered reply to bo given, as he had not yet. had an opportunity of going thoroughly into the question.