PARLIAMENT IN SESSION

Dominion, Volume 24, Issue 236, 2 July 1931, Page 10

PARLIAMENT IN SESSION

Continuation of Address-in-Reply Debate

MORE LAND DEVELOPMENT URGED Members Concerned About Currency Question (Ifrom Our Parliamentary Representative.) '■ Eight speakers participated in the Address-in-Reply debate • in the House of Representatives yesterday and, although this much progress was made, members - were again disappointe y the failure of the Prime Minister to bring down the unemployment proposals by which more funds are to be provided for relief. The Bill had not been finally drafted late last night, so that there is no guarantee that it will make an appearance to-day.. It is believed that the Government has. had a busy time putting the measure together and that delay has been caused chiefly through a series of redrafting processes occasioned by .various ‘ proposals being found unsuitable. The latest proposal is that extra money for unemployment should be found by the imposition of a minimum levy to be supplemented by a wage tax and a special income tax as well, an admittedly formidable proposition. A final survey of the draft was made last night, and when the House rose the Prime Minister said he hoped to introduce the Bill this afternoon, although he was not sure that he would be able to do so.. If he were not able to obtain the measure from the law draughtsman m the afternoon, it would probably be ready in time, for introduction in the evening, in which case the Address-in-Reply debate would be interrupted. Several important questions were discussed by the Leader of the ' Opposition, Rt. Hon. J. G. Coates, the first speaker in the Rebate yesterday. He criticised the operation of the No. 5 unemployment scheme; i complaining that the work being done was useless and that to all intents and purposes the men were being paid the dole. He advocated increased * • land development by the ’ unemployed as a better means of finding work, "' and he also urged the Government to give a lead in a reduction of ■' interest rates. Both the Minister of Railways, Hon. W. A. Veitch, and " the Minister of Lands, Hon. E. A. Ransom, spoke, which would seem to Indicate that, as was the case last session, the Government is not anxious , to prolong the debate, and that it intends to put forward its . chief spokesmen as early as possible. ' The debate ranged over a wide variety of . topics, and it was noticeable that the question of currency found a prominent place. It is apparent that several members are anxious that some revision of banking legislation should be introduced, although it does not appear as though the Prime Minister will do anything in this direction this session. It appears as if the Labour Party has been put in |a somewhat awkward position as a result of the non-appearance of the unemployment ‘ legislation. The general opinion was that a no-confidence motion would come from the cross benches very early in the session, but once this motion was placed before the House it would have to be talked out and no other business could be taken until it was disposed of. It is therefore unlikely that the Labour Party will move any motion until the unemployment legislation has been brought down, but some action is fairly certain to be taken, as soon as this has been done.

HELP FOR WIDOWS , Earthquake Sufferers 1 ' TEST ACTION DELAY The position of widows whose husbands were killed in the Hawke’s Bay earth- • quake was mentioned by Mr. W. E. Barnard (Lab., Napier), in an urgent question addressed to the Prime Minister when the House met. He asked if the Prime Minister were aware that the, insnrance companies concerned had removed the test proceedings taken in the Arbitration Court on behalf of earthquake widows to the Supreme Court under the Declaratory Judgments Act, and that an appeal would lie from the Supreme Court to the Appeal Court and then to the Privy Council. . ■ z Mr. Barnard eaid the taking of the question to the Privy Council would involve a delay of twelve months or more in obtaining a final judgment. In the meantime the widows and orphans were inadequately provided for, and in some 'instances they were in financial trouble. He asked the Prime Minister whether immediate steps would be taken to provide adequately for the widows, and their children, and whether an indication of . the procedure to be adopted in securing proper relief would be given. “I was not aware that the insurance companies concerned had removed the test proceedings to the Supreme Court under the Declaratory Judgments Act. Mr. Forbes replied. “It may naturally be .expected that if an appeal is made to the Privy Council, there must be some delay in obtaining a final decision. “The relief committees have already taken steps to ensure that widows and orphans are adequately provided for. For instance, at a meeting of the central committee of the Hawke’s Bay earthquake relief fund held on March 2-1. it was decided that the granting of personal relief in the nature of food, clothing, and sustenance, should be dealt with by the ' hospital board, for the district, arid imthe relief being later recouped to the hospital boards out of the relief fund. “In consequence of this decision, arrancements were made for the hospital boards throughout the earthquake area to undertake personal relief to earthquake sufferers, among whom would be included the widows and dependants of those killed in the disaster. If any sufferer is in need and considers that sufficient assistance is not being provided, he or she should get into touch with the hospital board for the district, and immediate investigations will be made with a view to assistance being provided as a charge against the relief funds. . “It is also competent for the widows and dependants of those killed in rae disaster to make application to . the Hawke,’s Bay Rehabilitation Committee for some measure of permanent assistance. In the meantime, immediate assistance will be provided wherever necessary.” SILVER & COPPER COINAGE • I Profit in Minting “New Zealand is the only country of importance that does not mint its own coinage,” said Mr. C. A. Wilkinson (Ind., Egmont), when explaining his Silver and Copper Coinage Bill, which was read a first time. “All other B/itish Dominions have their own monetary system,, but here we seem to have lagged behind.” Mr. Wilkinson said the object of the Bill was to produce a profit for the country. No doubt if the proposals were given effect to the' Dominion’s funds would be augmented to a very considerable extent. ! The coin now in use could be sent back to I where it belonged. That was done in Aus- < tralia when that country undertook the minting of its own coinage. The silver in circulation could be got rid of quite easily by lifting the foolish embargo on its export, when it would flow out of the country of its own accord. Quite a lot of Australian coinage was circulating in New Zealand. If Zealanders attempted to circulate m Australia money minted here they would be 48 fined anything up to £2O. Had he his way he would bar Australian coins, for there was no reason why New Zealand should not have the profit on them. A two shilling piece was worth only fourpence. Mr. Wilkinson nsked the Government to give careful consideration to the proposals in his Bill. If it became law it would bo,a profitable proposition for .New Zealand. HARBOUR DISMISSALS Minister Gives Reasons

The sudden dismissal o£ 57 harbour board employees at Westport as a result of tlio shipping hold-up at that port was

referred to when a long question upon the subject was directed by the Leader of the Labour Party, Mr. H. E. Holland, to the Minister of Marine, Hon. J. B. Donald. On account of reduced revenue through the shortage of coal handled, the Minister said, the harbour employees had been dispensed with. Mr. Holland asked whether the employees had been dismissed as a consequence of the waterside workers’ decision riot to handle certain coal, and, if so, would the Minister end the lock-out, as the harbour employees were in no way involved in the handling of coal nor in the loading rind unloading of .“hips, , If the reason given in the report were incorrect, and the dismissal of the employees was not a tactical move by way of retaliation against the waterside workers, Mr.'Holland asked the Minister, to explain the dismissals. Did the Minister know, Mr. Holland asked further, that the dismissals and the closing down of all harbour works was likely seriously to affect the state of the river and the depth of water on the bar, which required constant dredging? Mr. Donald, explained that the export of coal from Westport, which usually averaged 50,000 tons a month, had in April' fallen to 29,000 tons. The breakwater extension work was being carried on out of savings and current revenue, but owing to the effect of the greatly reduced outpujt of coal on the revenue from which the port was financed, the department could not carry on the work, and Cabinet had decided to close it down as soon as certain work necessary to round off and safeguard what had already been done was completed. This was the reason why the inen had been paid off. The reason for the issue of the dismissal notice to casual harbour employees was that the department had sufficient, coal to last for only three days of its dredging operations, and it had been decided to lay up the dredges until coaling operations again began. “It by no means necessarily follows that the state of the river and the depth of water on the bar will be prejudicially affected.” Mr. Donald added, “and it js earnesUy hoped that any undue delay in resumption will not have the effect; apprehended . by the Leader of the Labour Party.” ' Mr. Holland: Does that mean there is no dredging now? Mr. Donald: Not in the meantime. VITAL PROBLEMS Work for Unemployed LAND DEVELOPMENT High Interest Rates Unemployment and the need for greater activity in the direction of placing workless men on the land, the necessity for reducing interest charges' and the burden of rates on farm lands, were the main subjects discussed by the Leader of the Opposition, Rt. Hon. J. G. Coates, in speaking on the Address-in-Reply motion later in the afternoon.

He concluded by saying that he would continue Ills policy of helping rather than hindering the Prime Minister to put through important and necessary business, and lie expressed the hope tliat the House would get down to a consideration of the serious questions awaiting solution as soon as possible.

Mr, Coates said it was surprising that the Speech from the Throne did not contain any indication of what the Government proposed to do this session. It was also remarkable that no reference was made to the primary producer and what steps were to be taken to assist him. One expected the Government to give some idea of what measures it proposed to meet the serious problems facing the country. Turning to the question of unemployment, Mr. Coates said he believed the country was demanding that whatever future action was taken, the unemployed should be put to better work than they were being given under the various relief schemes and for which provision was made in the present Act. The Unemployment Board should be given credit for what' it had tried to do, but its efforts were falling far short of requirements. The position had degenerated largely into the giving of the dole, for no other interpretation could be placed on the nature of the work being carried out. Public comment led one to suppose that much of the work being, carried out under the No. 5 scheme w’as of no practical value at all.

New Ideal Needed. His own impression was that whatever was undertaken in the future should be actuated by an entirely different ideal from that influencing activities under the No 5 scheme. Both the mover and seconder of the Address-in-Reply had given the impression'that there was little land that could be developed, but that was not

bo. The right course would be to place men on the land instead of giving them relief work in the cities, and one could point to areas that were capable of immediate development. . • Mr. W. L. Martin 1 (Lab.. Raglan): Why did you not do the job when you had the opportunity? , ~ , „ . Mr. Coates said that the Reform Party manifesto of 1928 actually advocated the development of idle Crown lands by placing unemployed men on them. It was not to be expected that the full cost of the development would be returned, at least for many years in some cases, and the Minister of Lands would be an optimist if he thought he could get a full return. The Minister of Lands. Hon. E. A.. Ransom: In some cases we will. Mr. Coates said that taking everything into consideration it would be better to place'men on even the clay lands of the north or the lands in the centre of the North Island, than to give them useless work in the towns. Thousands of persons believed that the work under Ao. 5 scheme was useless, and that some other form of activity should be undertaken. For instance, hundreds of men were .engaged in rounding off corners on highways. This work was all very well, but it would not return one penny piece to the country, and the money, could be spent to better purpose. Similarly, work was being done on back-country roads, bitt the settler did not want great, wide highways. ’ All he wanted was an allweather road, and there was no need to spend large sums on this work at present. Co-ordinating Relief.

The time had arrived for the effective co-ordination of relief activities in the main centres. At present various organisations- were carrying out relief, but the work could be made far more efficient if an officer were appointed to bring about co-ordination. There was far too much overlapping, and efforts should be made to abolish it; „ The Minister of Labour, Hon. o. G. Smith: We have asked the four centres to do that. ■ Mr. Coates said it could be carried much further. The nature of the unemployment relief had had the effect of concentrating men in the cities. They should be sent into the country as much as possible, and this was especially applicable to single men. County councils could do much to assist farmers who were in real difficulties-. ■ T \ The member for Waikato (Mr. F. Lye) had said the Reform Party had entered office on the rising tide of prosperity. However, the Liberal Party also entered office at a prosperous period. He had overlooked the slump of 1921, when the Reform Party took drastic measures to cut down expenditure, making it possible for the Budget to be balanced. It had been said that the public debt increased by £120,000,000 during Reform’s period of office. However, about £70,000,000 of this •was on account of war expenditure. In periods of prosperity a Government was justified in carrying out national development work. The Reform administration had done this, but it tapered off borrowing when times became more difficult. In 1925-26 the national debt was increased by £11,000,000. The next year the increase was £7,000,000, and the next year it was £5,500,000. During the first year of the present Government’s administration the net debt increase was £7,400,000, and the following year it was £B,600,000. As far as could' be ascertained the net increase for the current year would be about the same as the lastnamed figure. Money Too Deal - . Discussing interest rates, Mr. - Coates said the Government had failed to, recognise the position. During the 1930 session it had been pointed out to the Government that the mere fact that it remained on the market at 54 per cent, contributed toward keeping rates up. The Government had been asked to show why it was impossible for it to reduce interest rates on money required in the country.' He had discussed the question witji men well versed in the country’s finances, and the general opinion was that the Government was quite competent to reduce the price of money, and that if this were done the State would still be able.to provide the most attractive form of investment in the country. '

The Minister of Health, Hon. A. J. Stallworthy: Did not the Reform Party raise the interest rates in 1926? “Not to 54 per cent., or anything like it,” Mr. Coates replied. “It was 5 1-8, and it was increased to 54 by/ the present Government. The position has entirely changed. Where can money go from this country? Certainly not to Great Britain.”

Mr. Ransom: Does the honourable gentleman know that money does not come in freely at that rate? Mr. Coates: I cannot say. The hon, gentleman can say that himself. Mr. A. M. Samuel (Ref., Thames): It shows laek of confidence. Mr. Coates said the effect of the high interest rate was to keen up bank rates, mortgage rates, and all other forms of lending rates throughout the country. Continuing, Mr. Coates asked if no effort was being made to reduce rates on farming lands. He considered the amend; ment of the Highways Act in 1929 had been quite unnecessary, and that the Government should not have interfered with the Act, even if it did want money to balance the Budget Had there been balances in the highways account, he did not think the country would have objected seriously if use were made of them in a time of national emergency for the purpost of. assisting the national income. Fie was considerably concerned at the Prime Minister’s statement that special taxation for a special purpose was unsound. One wondered if that meant there would be an attack on the Highways Act. Derating Being Helped. This Act was the only one operating at present with any likelihood of giving relief to the farmers, and of lightening the burden on the farm lands. The Act contained all the requirements for carrying out derating. In eight counties in the North it had been possible to reduce rates as a direct result of the Highways Act It Was quite sound that there should be special taxation for special purposes, provided those purposes themselves were sound, and it was feared that t|ie Prime Minister might destroy the only legislation now giving relief to rural rates. Concluding, Mr. Coates said the position he would take up this session would be the same as last session. He was prepared to assist the Prime Minister rather than hinder him. There would be important business for Parliament to sider, and the sooner they could get down to it the better.

USING IDLE LANDS Work at Galatea UNEMPLOYMENT RELIEF Land settlement and its relationship to the unemployment problem was dealt with by the Minister of Lands, Hon. E. A. Hansom. He defended the purchase of the Galatea block for closer settlement and explained the development work that is proceeding there in readiness for throwing the block open for selection. Reference was made by the Minister to the statement by the Leader of the Opposition that the Unemployment Board should place the unemployed on works of national importance. The Minister said all realised the value of that, but when regard was paid to the fact that thousands had to be dealt with and that a limited amount of finance was available it would be agreed that the board had a very difficult task. To attempt work of national importance would be almost’impossible oh a scheme of parttime employment. In the majority of instances it was a case of finding work of a more or less temporary nature. To establish camps and to carry out works of national importance would practically mean permanent employment. The best had been done in the circumstances, and although perhaps some of the works undertaken might not be of great value, he knew that in numerous cases considerable benefit had resulted from the schemes undertaken by local bodies to provide relief for the unemployed. Waste Lands Development. Many people would be surprised to know that the bulk of the waste lands

of the Dominion were not Crown lands but private lands. He was pleased to know that the Leader of the Opposition was in agreement with the policy of the Government, namely, the development of the waste lands. It was the policy of the Government to get such lands into production as soon as possible. Much of the Crown land could be developed into a state of high production and without any writing-off whatsoever. The Minister mentioned that Mr. Coates had expressed the view that Galatea could not be settled without a loss to the country. He did not agree with that view and believed that Galatea would prove one of the finest investments the Government had made. The block would be cut up into 120 dairy farms The land was in a good state of production and at the foot of the ranges there was probably some of the best land in the country. The crops he had seen there were equal, if not superior, to any he had seen this season. Much of the land had already been ploughed and subdivided; Some 300 men were engaged on the block on road formation. It was the intention of the Government, before opening the land for selection, that every holding should, have at least 50 acres of good grass and that the sub-divisional fences should be erected. A contract had been let for the splitting of fencing posts. He was satisfied that the land would ultimately prove to be ex cellent dairying land. It cost £4/10/ per acre and even if another £4/10/were spent on development—he was satisfied it would be done for that figure—it would be cheap dairying land. Opening Up. New Country. To start out and open up new country, develop it and place men on it, was very much more difficult than one would imagine. It would be apparent that after the land had been cleared and the scrub burnt off the amount of work available for unskilled labour was very limited. The erection of fences, plantation work, cultivation and the handling of tractors and so forth required men of experience. The Government was endeavouring to do as much as possible in the way of finding employment, but the suggestion that thousands might be put on the development of such lands was not practicable, unless perhaps there was a huge tract of bush country that men could be put on to clear., The Minister stated that the Government had not lost sight of the fact that the farmers needed help in regard to fertilisers. Farmers were still assisted in respect to the carriage of fertilisers by the railways, while £lOO,OOO had been made available for the purchase of fertilisers by way of rural credits. It was mentioned by Mr. that the Dominion’s holdings totalled 85,167, and that 15,000 occupiers had less than eleven acres. That meant that the total production came from practically 70,000 holdings. ' Primary products represented 98 per cent, of the country’s exportable wealth. The population of the Dominion was 1,530,000, and each holding therefore provided for approximately 21 of the population. From that it would be seen that every farmer put on his own holding, not only made provision for himself and his family, but also for several other households. Figures were given by Mr. Ransom to show the sharp decline in the value of the country’a exportable products. Crown Tenants’ Grants.

■ The Minister referred to the legislation of 1929 making provision for a grant of £1250 to Crown tenants requiring financial assistance for development purposes. That legislation, he said, had proved a great help to numerous settlers in carrying out development work. The applications for assistance numbered 228, and £96,500 -had been advanced. None of the settlers had drawn the full amount, but as they made improvements they could draw on the funds until the maximum was reached. The development that had taken place at the Ngakura block near Rotorua since it was taken over about two years ago was outlined by Mr. Ransom. CURRENCY CONTROL

State Action Urged

The opinion that the Government should step in to force the freer use of money for development purposes, was expressed by Mr. M. J. Savage (Lab., Auckland West). He complained that too much money was lying idle on fixed deposit, and he said’ the State should play a greater part in controlling the uses to which currency was put. Mr. Savage criticised the gold base fetish.” stating that the amount of gold held by a country bore no relation to the financial needs- of that country. Had New Zealand relied on the gold basis when war broke out. it would have been impossible to carry on war activities. Currency should be used in conjunction with taxation. For the past seventeen years holders of bank-notes had not been able to demand gold. He gave a long review of State action dealing with currency questions, stating that while industry needed more life everyone blamed gold and thorie who held it. Gold was not to blame, but men themselves. In the war days there was little or no difficulty in raising money, for the Government took the power to compel people with certain income to subscribe to the war purposes loan. The patriotism of the people was relied on in the first instance to provide the money, but for all that, power to raise money by compulsion was actually taken. The Minister of Finance had power to compel a person to contribute six times the amount paid in land and income tax. Currency should not be substituted by taxation. It was not too much for Parliament to ask people to-day to put some of the £33.000,000 at present on fixed deposit into industry. .... Mr. W. E. Parry (Lab., Auckland Central): That is good stuff. , , Time to Interfere. Mr. Savage said fixed deposit money was usually loaned out by the banks at sb<rt call, and often on' questionable security. It was certainly not left in the bank vaults like frozen meat. Money was being snent in luxuries, and: it was time the State took a, hand. Children were leaving school without a chance of getting work, yet money was withdrawn from primary and secondary industry. The State had built huge railway workshops. put engineering firms out of business, and then turned railwaymen adrift. Now the Government was trying to balance its Bridget by running the rolling stock to pieces. The Government seemed unable to face up to the financial problem _ , . “The financial methods adopted during the war could well be adopted at the present stage. The currency should be used in addition to taxation in accordance with the requirements of the State and Industry. The State should play a greater part in controlling the uses to which currency was .put. He would take power to compel a portion of incomes to be lent for development purposes. That was preferable to taxation. The State had to get money for development purposes, and if not by loan then by taxation.

EMPIRE CONFERENCE Prime Minister’s Efforts The Minister of Railways, Hon. W. A. Veitch, said that the suggestion had been made that something had been withheld in respect to the business transacted at the Imperial Conference. Nothing was further from the truth. The I’rime Minister, with the assistance of Prime Ministers from some of the other Dominions, had endeavoured to secure a modicum of preference for Empire products. A Member: What about bulk purchase ? Mr. Veitch: I am definitely opposed to it. It is unpracticable and dangerous. The member for Auckland West, continued Mr. Veitch, had stated that New Zealand should get away from the gold base and carry on its own currency, according to its requirements. The Dominion was not now on the gold standard with its note issue. Mr. H. T. Armstrong (Lab., Christchurch East): It is on the rocks. Mr. Veitch said that even if they succeeded in establishing a policy of inflation

they would have to pay their overseas debts on the basis of the gold standard. There was no need to make special provision to prevent overseas investments, because of the heavy rate of exchange. Railway Dismissals. Referring to dismissals from the Railway Department, the Minister said it had been laid down that only such men ns were required to carry on the business of the department were to be employed, and that the department was not to be used to relieve unemployment. It would be a giave injustice to the men in the department if they were to carry a number whose services were not actually required. It was true that during a special effort, when the late Sir Joseph Ward was Prime Minister, some unemployed men had been placed in the department, but with the adv.ent of the present Government the principle he had outlined had been laid down. Only the men who were unnecessary had l;een dispensed with.

The public finances had been handled more wisely by the present Governriient than for many years past, the Minister clairiied. A progressive land settlement policy had been carried on despite the difficult times through which they were passing, and unemployment relief provided equal to anywhere in the world. A lot of criticism had been levelled at the unemployment relief schemes, but there was an outcry from one end of the country to the other when it was proposed to stop the No. 5 scheme temporarily. EXCHANGE RATES Effect on Producers The effect of exchange rates on the position of the farmer was dealt with by Mr. D. Jones (Ref., Mid-Canterbury). He contended that. the Government’s policy of “pegging down the exchange” was strangling the ]>rimary producer. Mr. Jones said that the Reform Party could not convince the Government that it had made such serious inroads into the wealth and taxable assets of the Dominion that its estimates of revenue would be all astray. Almost every screw of taxation last year increased unemployment, just as every drop in prices did the same. The House and the country were entitled to a definite declaration of the Government’s policy. The fact that it had stated in its loan prospectus in London that the money would be used mainly to buy British material indicated a big development policy in railways, electricity, or in some other way. >The fact that stood out clearly and definitely in the failure of the last London loan was that New Zealand must not expect to go on the London market again, but must live on its own resources. "Robbing the Farmer.” Mr. Jones said he was not viewing with alarm the. stoppage of borrowing in London, providing we took immediate action to safeguard the future. It should not be necessary to emphasise further the seriousness of the farriiers’ position, and it was only a plain statement of fact that, unless effective remedies were found, a serious breakdown was bound to take place—particularly among pastoralists. Australia foiind it impossible to borrow abroad to-day, and' the result was that her exchange rate was 30 per cent., and higher rates than this were being paid outside rihe banks. The Argentine could not,' or would not, borrow abroad, and her rate of exchange was 28 per cent. Heavy borrowing in London was keeping down the rate of exchange in New Zealand and robbing the farmer of what he was justly entitled to. The export producer of the Dominion was the only person who created credits abroad, and the recent £5,000,000 loan prejudiced the farmer to that extent, and in reality prevented £5,000,000 going into his pocket. If this money had not been borrowed in London the Government would have been in open competition with the importers, for the farmers’ credits and exchange would have advanced. The Government's studied policy had been to peg down the exchange; in this they had had the support of many financial interests, but that policy was strangling the farmers. Credits in London. If borrowing in London ceased there would almost immediately be an everincreasing demand for our credits in London, and our rate of exchange would go up to a parity with Australia and the Argentine. This would mean an advantage to ■ the New Zealand producer of between £7,000,000 and £8,000,000 per annum. Such an amount as this w-ould pay the fanners’ interest bill, expand production, substantially restore his purchasing power, and absorb a large number of the unemployed. It would also have n stimulating effect on manufacturing in the. Dominion, and materially check imports. It was almost certain that the exchange rate in Australia would further increase, and any such increase, in which we should probably participate, would be a further bounty to the producer. To-day, Australian and Argentine producers were obtaining a higher net price for an inferior article than were the New Zealand farmers, and increases of exchange rate to the Australian level would increase the .'price of our butter 2jd per lb, lamb and wool over Id per lb, pork per lb," while its effect on low-priced lines, such as beef, would be exceedingly valuable. No business could live against a competitor with a 20 per cent, advantage, and we were nt that disadvantage over ■ our Competitors.

The Secondary Industries. Mr. H. T. Armstrong (Lab., Christchurch East) declared that industry was dying in New Zealand. He taxed the Government with having done practically nothing to develop the secondary industries, and said that little had been done to promote the primary industries. There were less people on the land to-day than when the resent Government came into office. What was wrong with New Zealand was the unfair distribution of the things that were produced. The land was not the one and only problem that confronted New Zealand. Land development was certainly important, and anything that Was done to bring waste land into use or to increase production was good work. There was a necessity,- however, for a greater development of the secondary industries. The Government

should turn attention to them. Attention to primary production alone would not solve their problems. The Labour Party was prepared to co-operate with any party to improve the lot of the mass of the people and to get the country out of its present difficulties. So far the only move to balance the Budget had been by making the poor poorer. The Labour Party was prepared to co-operate provided the sacrifice was equal and the burden was placed on those best able to bear it.

Banking Policy. Colonel T. W. McDonald (U.. 'tfairarapa) expressed the opinion that the banking policy of New Zealand was largely responsible for accelerating the trade and economic depression in this country. Until the Government insisted upon the banks and others reducing the cost of money, the Dominion would never return to a state of prosperity. He deprecated the hoarding of gold in the hanks, and declared that there was dire necessity for an immediate change in the monetary system. He urged that gis a first step a Royal Commission should be appointed to inquire into the banking and currency policy of the Dominion. Spreading the Burden. Mr. K. S. Williams (Ref., Bay of Plenty) appealed to the Government to consider placing unemployed men on reafforestation work. He said that unless the Hutt watershed was replanted there would be a danger of flooding. Dealing with the problems of the farmers. Mr Williams said one of their chief burdens was rates. The primary producer was up against the problem that whatever he produced had to be sold in an open market. Mr. Williams said he was one of those who hoped that the Prime Minister would not strain every nerve to get every penny out of New Zealand in order to balance the Budget. He did not know that there were many people who would be able to balance their own private budgets this year. He could not see any harm in the i Government spreading the burden over a I period rather than extracting every penny I out of the taxpayers in the one year. |

GALLERY GLEANINGS What Members Say BUDGET BALANCING “We must take control of our imports to assist our balance of trade,” said Mr. D. Jones (Ref., Mid-Canterbury) last evening. “It will materially assist our recovery if we prohibit a considerable range of goods from coming into the Dominion, and ration many other lines. When I supported this on previous occasions, the reply of the late Minister of Finance and the present Minister of Finance was, that they could not afford to sacrifice revenue from Customs. “That is a very short-sighted policy. The continuous cry of the Government has been, ‘We must balance our Budget.’ That is not our most pressing problem. In thinking this the Government’s vision has been distorted. It is more important that the farmer should balance his budget than that the Government should balance its Budget, and as things are at present it is impossible for the farmer to do so. The national Budget is not balanced in the proper acceptance of the term if, in' balancing, the individual and collective capacity of the taxpayer to meet the demands of the future is destroyed. It is far more important to secure a sound -balance of trade than to balance a Budget, and at the same time undermine the national resources.”

Highways and Rating

A contention by the Leader of the Opposition, Rt. Hon. J. G. Coates, that the operation of the Main Highways Act had resulted in the burden of local body rates being eased, was refuted by the Minister of Lands, Hon. E. A. Ransom, yesterday afternoon. “The operations of the Main Highways Fund have not relieved local bodies of the burden on their rates,” said the Minister. The maintenance of the highways formed by the Highways Board, he added, constituted a bigger charge on the rates than the highways had imposed before any assistance was received from the fund. The policy of the Highways Board had resulted in excellent roads being made parallel with the railways, but the backblock roads had not received the advantage they should have received from the fund.

Mr. A. M. Samuel (Ref., ’ Thames): What are you going to do for them? Mr. Ransom: “We tried to give them n penny tax on petrol last session, but had to drop it owing to the attitude of Reform members.” He said he agreed that some system of derating should be considered, but it would have to be done in such a way that the cost of reading would not come back to the farmers by some circuitous route.

Mr. Samuel: Why not put forward a definite scheme? . Mr. Ransom : I’ll put forward all I can if you will give me a chance.

♦• ■ • A Notable Omission

“It is remarkable that the GovernorGeneral’s speech avoided the problems of the primary producer,” commented the Leader of the Opposition, Rt. Hon. J. G. Coates, yesterday, in referring to the Government’s legislative programme for the session. “I do not know whether ■ this was done purposely or inadvertently, but I believe there should have been some indication in the Speech of how the Government is going to deal with the awkward problems the primary producers have to face at the present time. I recognise that the difficulties of the Government are great just now, but this is one of the,things which cannot be overlooked.” • » • Bible in Schools Several changes in the Religious Instruction in Public Schools Enabling Bill that is being sponsored in the House by Mr. H. Holland (Ref., Christchurch North) distinguish the measure from previous Bills on the question introduced into Parliament. The main innovation is a provision for removal of the obligation to secure individual exemption.

One clause secures the right of exemption for individual teachers and pupils who do not desire to participate in religious observance in school, the notification of this desire to the head teacher automatically securing the exemption. Another clause provides for the exemption of members of religious bodies as a whole. Any church may apply to the Minister of Education for a general exemption of teachers and children belonging to that church, and the exemption will be gazetted by the Minister. The Bill seeks to empower a representative committee to draw up a syllabus or manual of selected Biblical passages, prayers and hymns for use in religious observance in schools, and the Ministei of Education is directed to call this committee together within six months of tlio passing of the Act. It is provided that in every public school, subject to the exemptions previously provided, each school-day shall be opened with religious observances or instruction in accordance with the syllabus accepted by the committee. The instruction is to be given in school hours, and during the time exempted teachers and pupils shall engage in educational work. « * • A Maori Petition Picturesque phrasing usually distinguishes Maori petitions presented to the House of Representatives, but one now before Parliament, in addition to the usual wealth of fine-sounding passages, finishes with a touch of gentle irony which lodes nothing from the fact that it is not intentional. In the course of the petition, written in good Maori, 95 aboriginal natives of Hauraki, the area embracing the Thames, Coromandel, and Ohinemuri goldfields, ask for the payment to them of the mining rights revenue for the goldfields extending from' Te Aroha to Moehaji, and having finished their appeal append the single word “enough,” doubtless as an oratorical effect. They will probably find that the Government will come to the conclusion that it is too much. » • • The Outward Sign

The outward and risible sign that Parliament is at work has for many years been provided by a flag flying from the tower over the old wooden portion of the House. At night three lights showed from the flagpole. From yesterday the flag will fly from a pole over the main entrance facing Molesworth Street. The group of lights will also be located on this pole. It is customary for the flag to be flown when the House is sitting in the day time, and it is taken down as soon as', there is an adjournment. Similarly, at night time, the lights are extinguished as soon as the House rises.

LEGISLATIVE COUNCIL

Address-in-Reply Debate VARIED TOPICS Most of the afternoon in the Legislative Council yesterday was devoted to the debate on the Address-in-Reply, which was opened by the Hon. Sir Edwin Mitchelson. The seconder was the Hon. Colonel G. J. Smith, the only other speaker before the adjournment being the Hon. Sir John Sinclair.

Sir Edwin Mitchelson said that, as a member of the Reform Party, he made no apology for moving the Address-in-Reply, for he believed there should be no party in the Council. He said that the Unemployment Act had already broken down and disapproved of the manner in which money was being spent on unremunerative works. He was sorry that financial circumstances had made necessary a reduction in the money wages of the people, but was of opinion that the workers would be -very lucky indeed if they escaped a-second cut. He failed to see any signs of relief within the next three years at any rate. There was a lot of talk about lowering interest rates, but no one had shown how it could be done, Sir Edwin con tinned. He blamed the Government for the high cost of money, as it paid 5 J per cent, over the counter. Tea and Sugar Duties. “We want, more production in this country, and 'every endeavour should be made to prevent people •coming into the cities unless they have jobs to go to,” said Sir Edwin. He stressed the necessity for a lower valuation of land. As a means of balancing the Budget he suggested that a duty should be imposed on tea and sugar, and that the education vote should be reduced by £1,000,000. The Hon. Colonel G. J. Smith, who seconded the motion, agreed that there should be a duty on tea and sugar. A small tex on these commodities would bring in an enormous sum which would be of very great assistance to the Government. While he appreciated the steps taken by the Economy Committee to reduce departmental expenditure, he thought better results would have been achieved if, in the case of the Education Department.,the committee had named a sum by which the estimates had to be reduced and left the adjustment to the heads themselves. Near Taxation Limit. Colonel Smith said the Government should seriously consider spreading the balanceing of the Budget over a period of two or even there years. This was precedent for this in other countries. The limit of taxation had almost been reached in New Zealand. It was possible to impose further taxation, but the , results would be disastrous. The Government should cqntinne to exercise the most dras--tic economies in all State departments. He recommended the Government to consider transferring portion of the accumulated profits of the Post and Telegraph Department to the Consolidated Fund. He also urged consideration of the suspension for one year of payment of the public debt. On the question of unemployment, Colonel Smith suggested that the burden should be more evenly distributed among the local authorities. He said the local authorities should be given the responsibility of looking, after so many men, the Unemployment Board to make grants accordingly.

The Hon. Sir John Sinclair said that free trade within the Empire was not practical; it did not suit the Dominions. He took it that no Dominion desired to benefit at the expense of the Motherland. That was the attitude Mr. Forbes hnd adopted at the Imperial Conference. A narrow view should not be taken of the work of the Imperial Conference.

FUSION OF PARTIES Support in Upper House “FOR DOMINION’S GOOD” In moving the Address-in-Reply in the Legislative Council yesterday, the Hon. Sir Edwin Mitchelson expressed himself in favour of the formation of a strong National Government in New Zealand. In this he was supported by his seconder, the Hon. Colonel G. J. Smith. Sir Edwin said he was pleased to. sea that Mr. Coates intended to help th# Prime Minister with his financial programme. “That is all very well,” he continued, “but it is the next election of which lam thinking. If there are going to be three-cornered contests, as in 1928, I don’t know where the electors will be. "I am afraid many extra Labour members will be returned. Instead of jostling for positions we should unite and thus try to relieve the country of its difficulties. “It is useless to expect the Labour Party to join in such a thing” continued Sir Edwin. “They should join if they had the interests of the country at heart. Self-reliance is one thing we have to depend upon now. It is a question of doing the best for the country and sacrificing one’s own interests to that end.” Colonel Smith said he thought the general opinion was that the creation of a strong Government would be very helpful at the present time. The two great political parties, in his opinion, had very much in common. The Reform Party had great leaders of whom it was very justly proud. The United Party was in the same position—it had had great men. The line of demarcation had practically vanished. A great number of the electors could, see very little difference in the policies of the two parties. Both stood for economy in finance, for sound administration, for land settlement. and they were both very much concerned about the unemployment problem.'

“W’here is the difficulty so far qs the creation of a strong Government is concerned?” he asked. “The Prime Minister has made a tremendously good offer ; —not an offer to an opponent but one in the best interests of the Dominion. Every endeavour should be made to consummate a fusion of the parties. It would be welcomed by the country and it would work out for the good of the Dominion. With a strong united Government we would be in a better position to meet our difficulties, and I feel sure we would probably have a return to prosperity within a very short time.”

The Hon. D. Buddo moved the adjournment, and the Council rose at 4.15 p.m.