PARLIAMENT IN SESSION

Dominion, Volume 24, Issue 231, 26 June 1931, Page 10

PARLIAMENT IN SESSION

Large Gathering at Opening Ceremonies GOVERNOR’S SPEECH FROM THE THRONE Unemployment Relief Legislation To-day (From Our Parliamentary Representative.) Customary ceremony and colourful scenes, honoured by tradition, marked the opening of the fifth and final session of the twenty-third Parliament by the Governor-General, Lord Bledisioe, yesterday. The brief formalities were witnessed by a large gathering in the grounds of Parliament House and by crowdec. galleries within. There was a full attendance - of high officials anc others present in the Legislative 'Council Chamber to hear the Speech from the Throne read by his Excellency, and this, apart from a short sitting of the House of Representatives, constituted the sum of the day’s activities. •- Although long, the Speech from the Throne was much less informative than usual. It contained a lengthy review of steps already taken by the Government to combat the, economic depression, but apart trom one or two brief references, it gave little indication of the work Parliament will be called upon to undertake during the coming weeks, in referring to the Government’s effort to balance the Budget for the current financial year, the Speech intimated that drastic measures involving considerable sacrifice on the part of the whole community would be necessary. Proposals are also to be brought down for the facilitation of the more active development of New Zealand industries and their more effective co-operation with scientific researches carried on by the Government As a result of the destruction of land transfer records in the Hawke’s Bay earthquake, it is proposed to introduce a Bill to provide for the reconstruction of the Land Transfer Register in that district. A brief review of other measures already outlined was also given, and reference was made to various State activities concerning land settlement and agricultural production. Mr. W. W. Massey, the new Reform member for Hauraki, was sworn in as soon as the House of Representatives asseinbled for a short sitting. He was supported by Mr. P. Endean and Mr. A. M. Samuel, and he has been allotted a seat with Mr. Endean on the Reform back benches. A host of questions was directed to members of the Ministry from all quarters of the House, after which, in accordance with custom, the Expiring Laws Continuance Bill was read a first time. This measure never passes, being merely a survival of the days when Parliament was jealous of its rights and its hold upon the Exchequer. The 1 adjournment was taken at 3.35 p.m. until 2.30 p.m. to-day when unemployment relief legislation will be introduced. It is likely the House will sit late to-night as both the Imprest Supply Bill and the Local Authorities Empowering (Relief of Unemployment) Extension Bill will be put through as matters of urgency;

ADJUSTING FINANCES

Outline of Legislation GOVERNOR’S REVIEW His Excellency’s speech was as follows: Honourable Gentlemen of the legislative Council, and Gentlemen of the /House , of Representatives:— it affords me much pleasure to meet you again at the opening of another seeion of Parliament. During my visits to various parts of the Dominion since I assumed the office of Governor-General I have been impressed by the deep-seated loyalty of the people of this Dominion and gratified by. the kindly welcome to myself. The deliberations ou constitutional questions of the Imperial Conference of 1930resulted in the preparation of a draft Statute of Westminster to clarify the constitutional position and the powers of his Majesty’s Governments in the United Kingdom and in the Dominions. It is proposed that this Statute should be passed by the Parliament of Westminster on the receipt of approving resolutions from the Parliament of each Dominion, and a suitable resolution will be placed before you for that purpose during this session. My Prime Minister believed himself to be interpreting the general view on this question in taking the position at the conference that no desire existed in this Dominion for any alteration of its present constitutional position. IA view, however, of the general desire of other Dominions for a formal recognition of alterations in their status and of the requirement that the necessary enabling legislation must be approved by the Parliament of each Dominion, my Ministers are of the opinion that the best interests of the British Commonwealth of Nations would be served by the approval of the draft Statute of Westminster, which will in any case, notwithstanding such a resolution; have no application to this Dominion until legislation applying it thereto has been passed by the New Zealand Parliament. The failure of the Imperial Conference to arrive at any effective conclusion on the economic policy of the British Commonwealth, and the reference of this vital subject to a future Economic Conference to be held at Ottawa, have given my advisers much concern. The subsequent postponement of this Economic Conference from the date originally suggested in August of this year until 1932, which will allow more time for the formation of. public opinion upon the necessity of a common economic policy among all members vf the Commonwealth, is not regarded by my Ministers as entirely disadvantageous. On May 21, in common with other Governments of his Majesty, my Government notified their adherence to the General Act for the Pacific Settlement of International Disputes, a convention formulated under the auspices of the League _of Nations, by which all signatories bind themselves to refer any international dispute that may arise either to arbitration or to judicial settlement, as the 00*86 may be. In view of the undoubted improvement in international confidence resulting from the increasing acceptance of the General Act and other steps toward the peaceful solution of international disputes, my Ministers earnestly trust that the Disarmament Conference to be held next year by the League of Nations may result in some general and effective reduction in armaments, which are not only a menace to the peace of the world, but involve a heavy financial burden, and are, in the opinion of my Ministers, a factor in the present widespread depression. In April, 1931, Colonel S. 8. Allen resigned his appointment as Administrator of Western Samoa, and BrigadierGeneral 11. E. Hart was, on the advice pound. My Ministers have for the past The marked improvement of conditions in the Territory indicates the success of Colonel Allen’s administration.

The difficulty of disposing at a profitable rate of the Dominion’s principal products was intensified last year by tariff alterations in Canada, which increased the import duty on New Zealand butter formerly- admitted into that Dominion, in common with Australian butter, at a rate of 1 cent a pound, to 8 cents a pound. My Ministers have for the past twelve months been endeavouring to initiate negotiations by which this and other trade questions at issue between the two Dominions might be satisfactorily adjusted, but they have been unable to arrange for effective conversations. They have therefore been obliged to consider whether, in the present condition of the finances of-this Dominion, they would be justified in continuing th® admission of Canadian goods into New Zealand. at British preferential tariff rates, which involve considerable remissions of duty on the entry of Canadian goods and which have facilitated an increase in Canadian importations into New Zealand to a value far exceeding that of New Zealand importations into Canada, even during, the currency of its maximum trade in New Zealand butter.

My advisers have reluctantly . been forced to the conclusion that in existing circumstances the benefit of British preferential tariff rates on Canadian goods must bo suspended until arrangements can bo made to ensure a more even balance of trade between the two Dominions. Action has been taken accordingly, but the matter is still the. subject of communication with his Majesty s Government in Canada. Prompt steps were taken by my Government to deal with the many

problems arising out of the Hawke’s Bay earthquake disaster. Moneys were made available immediately to ensure that proper provision was forthcoming for those in urgent need. A public fund for the relief of sufferers was opened and a most generous response was made both in the Dominion and elsewhere. This fund, which is being administered by a central committee, is being used for the immediate relief of distress and the restoration of homes. The rehabilitation of the residential area is proceeding expeditiously, and practically the whole of the former population of the devastated area have returned. To assist in rebuilding the business area, the Government have obtained statutory authority to provide the sum of • £1,250,000 for individuals, and £250,000 for ..local bodies, in need of assistance. A Rehabilitation Commission has been set up to consider applications for assistance and to make such recommendations as it sees fit. Many difficult problems will arise in adjusting the rights and liabilities of parties affected bv the earthquake. The Government have accordingly set up, under statutory authority, an Adjustment Court, which will 'have power to determine questions affecting such rights and liabilities, and to make such orders as seem equitable. In almost every country the depression in trade and industry existing today appears to be unprecedented, and in consequence the problem of widespread unemployment has becomi more acute. The question of devising a practicable solution has been, ajid is still, engaging the close attention of statesmen and economists in all parts of the world. In this Dominion it has been possible, under the provisions of the Unemployment Act, 1930, materially to relieve the position,, and in co-operation with local bodies and private individuals my Government have succeeded in ameliorating considerably the condition of a large number of persons who would otherwise have experienced great hardship.

The Unemployment Board is making every effort to cope with the problem, and as much work as possible is, in addition, being provided on public works and other State activities. It is evident, however, that increased funds must be placed at the disposal of the board, and proposals to this end will be submitted for your urgent consideration.

With the great decrease in revenue, my advisers were reluctantly compelled to impose reductions in the salaries and wages of Public Servants. The Court of Arbitration similarly decided that prevailing economic conditions necessitated the issue of a general order reducing the minimum rates of pav prescribed by its awards. General reductions have also been made by public bodies and private employers. My Ministers are confident that the action being taken will result in the retention in employment of a large number of workers who otherwise would have to be dispensed with owing to the substantial reduction in the income of employers and thus swell the ranks of the The spirit of self-sacrifice di.x’ayed by all sections of the community is commendable. When I last addressed you I indicated the intention, of my advisers to submit legislation constituting a board to con-' trol the railways, and generally to manage the affairs of the Railways Department in accordance with business principles. Legislation was duly passed; the board has since been constituted and has now commenced its duties.' My advisers are of the opinion that this action will result in improving materially the financial position of the railways and thus promoting the welfare of the Dominion. '

The suspension of compulsory military training due to the necessity for a reduction of Defence expenditure enabled many members of the permanent Defence Force to retire on superannuation under the provisions of the Finance Act, 1930 (No. 2). My advisers have recently approved of the reorganisation of the Defence Forces on a voluntary basis. The organisation of the Territorial Force will remain on the divisional basis which has proved satisfactory in the past, and will preserve the traditions of the units. It will provide for the training of approximately 10,000 men. In addition, every encouragement will be given to the training of cadets at secondary schools. The Government seeks the cooperation of employers in making a success of the new scheme by encouraging their employees to enlist and carry out their training. An Act was passed last year to promote the re-establishment in civil employment of disabled ex-members of the New Zealand Forces. Unfortunately, owing to the financial position of the Dominion, it was not possible for my Ministers to make arrangements to give immediate effect to the Act, but the necessary machinery is now being set up, which it is hoped will substantially benefit the large number of disabled ex-soldiers who are either wholly unemployed or have no regular employment. Mr. Speaker and Gentlemen of the House of Representatives— The Dominion is still beset with great difficulties arising out of the world-wide fall in prices. As a direqt result, notwithstanding the industry of our producers, the value of our exports for last financial year amounted only to £39,527.000, a decline of £17,626,000 in comparison with the financial year ending March 31, 1929. This immense fall in prices over so short a period has suddenly reduced the productive value of land, thereby placing many farmers in serious financial difficulty.

Indeed, it has prejudicially affected the economic position of the whole commun-

ity, and brought about stagnation in business, the most disturbing and regrettable feature of which is the want and suffering resulting from the large increase in the number of persons who are unemployed. Every section of the community, however, is affected, and the problem is one that urgently demands national co-operation in order that the difficulties may be speedily overcome. The public finances, although seriously affected only toward the end of the financial year, reflect the position with a deficit for the year of £1,639,000, which, while regrettable, was, under the circumstances, unavoidable. The full effect of the economic crisis ou the nation’s finance will be felt during the current financial year, and drastic measures involving considerable sacrifice on the part of the whole conununity are unfortunately necessary to enable the Budget to be balanced. ’ As the level of world prices lies beyoud our control, my Ministers are satisfied that the only sound method of solving our ■local difficulties is to restore economic equilibrium by lowering overhead expenses and the cost of living. Consequeiit on legislation passed during the last session of Parliament, and with the co-opera-tion of the business community, considerable progress has already been made in this direction. Apart from the operation of the Mortgagors Relief Act in preventing special hardship in isolated cases, it is pleasing to record that the difficulties of our farmers are being largely mitigated by voluntary arrangements between the parties concerned aided, in many instances, by the adjustment commissioners appointed for that purpose. As a further means of promoting national economy and assisting the primary producers in particular, it is proposed shortly to set up a Royal Commission to investigate, the whole question of the incidence of local bodies’ taxation and the possibility of giving some measure of relief to rural ratepayers by a general reorganisation of the system of local government It is recognised by my advisers that, while it is essential for the national wellbeing that the Budget should be balanced, the burden' of taxation should not be unduly increased.. Accordingly an economy committee has Men engaged for some months past in carefully investigating every item of public expenditure, with a view to effecting all possible reductions. A loan of £4,000,000 was recently raised in London to provide additional capital for carrying on the programme of public works, and a further sum of £1,000,000 to provide for the redemption of certain maturing securities. In view of the unfavourable state of the London money market, and the effects of the present high rates of exchange, the issue took the form of three-year bonds bearing interest at 5 per cent. My Ministers recently obtained a report on the banking system of the Dominion from Sir Otto Niemeyer, of the Bank of England. This report will shortly be submitted for your consideration. Honourable Gentlemen of the Legislative Council and Gentlemen of the House of Representatives My Ministers have given close attention to the vital question of increasing the volume of the Dominion’s primary products, and of providing additional avenues for the employment of labour through the prosecution of an active land-settlement policy. Energetic endeavours have been made'to bring into production idle Crown areas capable of successful development. As the result of the provisions of the Land Laws Amendment Act, 1929, a large number of sections which had been abandoned by former tenants have been reselected, and numerous sections of virgin Crown land have been taken up. The system of granting financial help to the selectors of undeveloped areas has proved of material assistance to them. ' The work of developing suitable blocks of Crown land prior to selection is proceeding steadily, and in connection particularly with the development of pumice land my Ministers are pleased to record that the operations already carried out give every promise of success. ;■ The acquisition of private lands for closer settlement has also received attention, and almost all the subdivisions offered have been selected. A new feature of this policy has been the purchase of estates which afford scope for development work by the State prior to offering the land for selection.

My Ministers are confident that by placing large numbers of settlers on the land and providing reproductive employment for many others, a substantial contribution will be made toward alleviating the problem of unemployment. Satisfactory progress is being made in the development of Native lands. At the end of last financial year there were in active operation schemes affecting twenty areas in both islands, while preparations were made to commence others affecting eleven areas. The Maori communities concerned have displayed the greatest interest in the schemes, which by providing much needed employment on productive work are assisting large numbers of them during a very difficult period. Agricultural practice generally in the Dominion is keeping well abreast of modern methods, based on the world’s latest scientific knowledge, and the instructional and advisory services provided by the Government are extensively utilised by farmers in connection with all phases of primary production. It is satisfactory to note that the volume 5f output has been well maintained. In connection with the dairying industry the continued fall in the market-price of New Zealand cheese has been receiving the earnest attention of the Government. Research now in progrss, and its application, will, it is believed, lead to the removal of major, defects in manufacture and to the production of a high-grade quality, which will restore New Zealandmade cheese to the position which it formerly occupied in the British market. An extended trial has been given in recent years to the manufacture from hightesting milk of eheese of standardised fat content. This has proved unacceptable to buyers, and a strong prejudice has arisen against it. My Ministers con-, sider it desirable that the manufacture of this type of cheese should cease entirely. as being calculated seriously to hamper successful marketing and to alienate the goodwill of British purchasers. My Ministers have had under consideration the. steps necessary to facilitate the more active development of the Dominion's industries, and their more effective co-operation with the scientific services provided by the State. Proposals for this purpose will be placed before you. including, in particular, provision for a greater measure of specialisation in those departments responsible for scientific research and for closer contact between both primary and secondary industries which they are designed to assist.

The question of the future prosecution of railway construction work in connection with both old and new schemes has been referred for investigation to the Railways Board, whose reports will be duly laid before you. The construction of the key stations for the supply of hydro-electric energy to all parts of the country, and their interconnections, will be proceeded with expeditiously, while transmission lines will be extended as the demand expands.

The ideal of having a road, capable of use under all weather conditions, from the property of every producer to the nearest railway station or port will still be pursued. While it may not be possible to proceed at the same rate with the programme of improvements which has of late years been followed on the roads, their maintenance, which is necessary to prevent dissipation of capital already expended, will be kept up to the present satisfactory standard. Irrigation works to serve the regions in the South Island, which cannot be otherwise fully developed and utilised, will be continued, as will also other reclamation works involving drainage and river control. The inadequacy of existing legislation to regulate efficiently commercial road transport lias been particularly emphasised during the present financial depression, and proposals will be placed before you with the object of providing suitable administrative machinery with tills object. and especially to bring about, in the public interest, closer operating relationship with the national railway system.

The financial loss which has occurred in railway working has been in a large

measure caused by an overlapping in transport facilities. Moreover, the unrestricted use of our road system is continuing to Impose heavy burdens on the country ratepayers, and thus accentuating their financial difficulties. My advisers are confident that their proposals, which in many respects have been framed on similar lines to those adopted in other countries, will affect considerable national economies without imposing hardship on any section of the community. Consequent upon the destruction by earthquake and fire of the records of the Land Registry Offices at Napier, an amendment of the Land Transfer Act will be introduced to provide for the reconstruction of the Land Transfer Register for the Hawke’s Bay district. A Building Construction Bill will also be introduced, imposing on local authorities an obligation to make by-laws for the design and construction of buildings, with a view to securing a better degree of resistance against earthquake. Bills will also be laid before you dealing with air navigation, defence, public works, hospital and charitable institutions, rural intermediate credit, trading coupons,- the National Provident Fund, and other subjects. The various matters to which I have referred are commended to your careful consideration, and I earnestly pray that with Divine guidance your deliberations may promote the happiness and prosperity of the people of this Dominion. NAPIER POST OFFICE Work of Reconstruction EARLY START PROMISED A promise that the work of reconstructing the Napier Post Office, which was destroyed by the fire following the earthquake of February 3, would be put in hand within the near future was made by the Postmaster-General, Hon. J. B. Donald, in replying to an urgent question by Mr. W. E. Barnard (Lab., Napier), when the House of Representatives met. Mr. Barnard uged that the work of reconstruction should be undertaken, and asked if any indication could be given as to when it would be completed. He said the postal staff was still housed in the Hastings Street School, to the inconvenience of both pupils and parents. The Minister said it was the Government’s intention that the post office should be restored. The work would be put in hand by the Public Works Depart-, ment at an early date. It was impossible to say at the moment how long the reconstruction would take, although it would probably extend over a year. POOR TENANTS Help in Payment of Rent Increased subsidies for hospital boards in order to enable them to assist unemployed men to pay their rent were urged by Mr. W. E. Parry (Lab., Auckland Central), who addressed an urgent question on the point to the Prime Minister, Rt. Hon. G. W. Forbes. Mr. Parry said acute hardship existed in Auckland, and it was desirable that more money should be made available to hospital boards in order that some payment might be made on account of rent in necessitous cases to avoid hardship and to prevent destitute persons be-ing-turned into the streets during the winter. There was growing dissatisfaction with the present law under which a landlord could evict a tenant without recourse to law. The Prime Minister said the question would be taken into consideration and dealt with in the near future. , Mr. Parry: But you recognise the seriousness of the position and the urgency of the question? Mr. Forbes: Yes. PRIVATE MEMBERS’ BILLS Several in Prospect Although the Government will not be anxious to give time for legislation other than that it considers essential at the moment, several members gave notice of their intention to introduce Bills. Mr. H. G. R. Mason (Lab., Auckland Suburbs 1, one of the most prolific members in the House for the production of private Bills, intimated hi? intent ion of introducing a Currency Bill, the Local Elections and Polls Amendment Bill, the Divorce and Matrimonial Causes Amendment Bill, the Crimes Amendment Bill, the Deaths by Accidents Compensation Bill, and the Shipping and Seamen’s Amendment Bi]J. Mr. C. H. Clinkard (U.?Rotorua), intended to introduce an amendment to the Electoral Act of 1927, and the Rotorua Empowering Bill, and Mr. H. T. Armstrong (Lab., Christchurch East) gave notice to introduce the Gaming Amendment Bill, which he failed to get past the first reading in 1930. CURRENCY PROBLEMS Petitioner’s New Scheme Discussion upon currency and the need for the adjustment of the monetary system, particularly as it affects New Zealand, are likely to occupy a prominent part in the work of the session. There is believed to be a growing school of thought among some members of Parliament that the currency of New Zealand could be satisfactorily adjusted independently from the rest of the world, and, despite the known grave difficulties to this move, advocacy of this will probably be heard in the House. In a petition presented to the House yesterday by Mr. P. Fraser (Lab., Wellington Central), Sydney Wyndham FitzHerbert, solicitor, of Wellington, asked for leave to explain to a committee of the House his plans for the establishment in New Zealand of a new system of finance. The petitioner explained that he was one of the creators of a new system of economics, which included a new plan of finance, the chief characteristic of which was the transformation of the basis of finance from gold t° total national wealth. Under the proposed system a pound note, instead o-f representing a claim redeemable in gold, represented a claim redeemable in a share of total nation! wealth. This new system could lie put into operation in New Zealand at once, but it would require many modifications in the law, the creation of new financial institutions and the modification of others. When completed. it would be a credit system, based unon (1) the lands of New Zealand, and (2) a mathematical scheineata. The immediate benefits which wofild accrue through the adoption of the system would be the abolition of unemployment, relief to farmers, restoration of wages, increased production, resumption of building of publip works, and the cessation of borrowing. CAPITAL PUNISHMENT On behalf of C. Golding, of Hamilton, .and 345 others, the Rev. C. L. Carr (Lab., Timnru) presented a petition urging the abolition of capital punishment in New Zealand. WHEAT DUTIES Amending the Tariff Notice was given by Mr. C. A. Wilkinson (Ind., Egmont) of his intention to ask the Prime Minister whether the Government had definitely decided to recommend Parliament to amend the tariff

on wheat and flour; and, if so, would the scale of amended duties be as published in “The Dominion” on May 12 last. He asked whether it was correct that under the proposed schedule of duties wheat could not be imported into New Zealand under C/5 per bushel, and that flour could not be imported under £l4/12/- per ton. “Does the Government propose to add to the protection by calculating the duty on the basis of Australian depreciated currency, and, if so, what will be the amount of the additional protection on both wheat and flour?” he added. EX-JUDGE’S -EARNINGS War Pensions Work The earnings of the chairman of the War Pensions Appeal Board were referred to in notice of a question to the Prime Minister by Mr. R. Semple (Lab., Wellington East). Mr. Semple naked “whether it was a fact that the Reform Government appointed an ex-judge of the Supreme Court as.chairman of the board, so that he drew a pension of approximately £9OO per annum, a salary of £9OO per annum in addition, board fees of £2/2/- for each sitting, a travelling allowance of £2/2/a day plus expenses for each day he was absent from his headquarters, which was fixed as being at Christchurch, whereas he always lived at Auckland, nnd railway passes for himself and wife for four scats in the train.” He asked what alterations had since been made by the Government. In a further notice of a question to the Prime Minister, Mr. Semple asked whether the Government “would revise the present excessive rates of travelling allowances paid to judges of the Supreme Court and Arbitration Court of £2/2/- a day. and bring them, at least, into line with those now paid to the Prime Minister and other Ministers of the Crown.” LEGISLATIVE COUNCIL A brief sitting of the Legislative Council was held yesterday afternoon. The Hon. Sir Edwin Mitchelson gave notice of his intention to move the Ad-dress-in-Reply on Wednesday. next. The Council adjourned until Tuesdav afternoon.