PARLIAMENT IN SESSION

Dominion, Volume 24, Issue 250, 18 July 1931, Page 8

PARLIAMENT IN SESSION

Address-in-Reply Debate Ends

OBVIOUS DECLINE IN INTEREST

United Member Attacks His Party

(From Our Parliamentary Representative.)

The Address-in-Reply debate was brought to a close in the House of Representatives shortly before one o’clock yesterday afternoon. Mainly through the interpolation of the Unemployment Bill and partly through the appearance of other minor measures, the debate had been dragged out for almost a fortnight. It persisted throughout this week with a meagre show of life, and although it had been infused with a little vitality the previous day, it died yesterday through the obvious inability of members to support it with further interest. . . Most attention was directed toward a speech by the Minister of Agriculture, Hon. A. J. Murdoch, who for the first time this session gave the House some indication of the interest he is taking in questions affecting primary production. He announced, among other things, that the Government was taking action to prohibit the export of standardised cheese, a product which has caused considerable diversity of opinion among producers. Incidentally, the Minister expressed the' opinion that the falling off in the quality of New Zealand cheese in particular had been chiefly responsible for the Dominion losing ground at Home. According to him, every effort is to be made to right the 1 position by intensifying the application of science to methods of production, and an announcement upon future policy is expected to be made by the Prime Minister in the near future. Answers to questions were discussed the whole afternoon, but as the Ministerial replies set the seal of finality upon the queries of which notice had previously been given, several hours of useless talking were spent Much time was devoted to a reply by the Prime Minister to a question upon wheat duties by Mr. C. A. Wilkinson, Independent member for Egmont, and the House took immediate notice when Colonel T. W. McDonald, United member for Wairarapa, launched a heated attack upon his own party for falling to keep its election pledges to reduce the price of foodstuffs. His announcement that It was “only by persistently haggling and Haggling at the Government that we will get anything done” was-met with cries of astonishment from across the House, and there was Opposition applause when the Government’s latest critic sat down. Members were still discussing the answers at the 5.30 adjournment, when the House rose until Tuesday afternoon.

PRIMARY EXPORTS

Trade With Canada

PROBLEM OF CHEESE

Minister Demands Quality

Given an opening by the Leader of the Labour Party, Mr. H. E. Holland, the Minister of Agriculture, Hon. A. J. Murdoch, held the attention of the House yesterday morning while he spoke on primary production, the quality of New Zealand butter and cheese, the marketing difficulties being met, and the steps being taken by his department to force standardised cheese off the market and to raise the quality of exports so as to meet competition. “Does ■ the Minister say we can sell more of our primary produce on the British market?” asked Mr. Holland, as the Minister finished dealing with preliminary questions. The Minister said statistics showed that the quantity disposed of,-with the exception of butter, had increased. Excluding butter, a total of 87,544 tons of primary produce was sold overseas in 1930-31. It was true that the amount sold the previous year was 88,000 tons, but the amount of cheese sold increased from 78,113 tons in 1929-30 to' 82,630 tons in 1930-31. In addition the amount of butter in store to-day was considerably less than it was at this time last year. The amount being disposed of was increasing ; the Dominion’s concern was the price level. Referring to trade with Canada, the Minister said it was generally stated that Australia was gaining a great advantage over the Dominion. At the moment she was certainly enjoying an advantage as far as the tariff was concerned, having tn meet a duty of five cents ns against the eight cents a pound imposed on New Zealand butter. The wholesale price of Canadian butter to-day was 1/- a pound. There were, however, factories in New Zealand which bad realised about 1/01 a pound for the whole year, and they could not put their output on the Canadian market at 1/- a pound. It had to be remembered that allowance had to he made of a freight of .7d, a pound on butter to Halifax, and .86d. a pound on exports to Vancouver.

Return on Exchange.

At present the Dominion could not tap the Canadian market to advantage. The member for Mid-Canterbury. Mr. D. Jones, had advocated a higher exchange rate on London, stating that it would be better for New Zealand if the rate were increased to 30 per cent. However, the Dominion was already receiving about 9/- a cwt. on exchange, which was a distinct advantage. This .meant that butter selling at 114/- to 115/- a cwt. on the London market was actually returning about 123/- to 124/-, with the exchange added. He did not. think it would be an advantage to the country to have a higher exchange rate. The nearer the Dominion could get to a definite balance, the better it would be for her. It had been'stated that New Zealand could not, in the first place, dispose of her produce, and secondly, that the only way out was to increase the volume of production. However, Mr. Murdoch said, his opinion was that the Dominion could both increase production, and its total sales overseas. It was essential that a better quality article should be aimed at, and this was a question that concerned him greatly as Minister of Agriculture, especially as far as butter and cheese were concerned.

The lack of advertising was said to be one reason for the decline, of the sale of cheese in London, but as a matter of fact the quality of the article was chiefly to Hame. The quality of the Dominion's cheese had unquestionably deteriorated, and an effort was now being made to put the matter right by turning out an article that would command the highest prices. During the past year standardised cheese bad been exported, and this had had the result of lowering the quality of the product on the London market. The farmers realised as much as did the Government the extreme necessity of improving the position, In order to give effect to a resolution passed at the recent conference of farmers at New Plymouth, the Government was taking steps to prevent the export of standardised cheese. From the beginning of the new season nothing but full cream cheese would be sent out of the country. (Hear, hear.) It was proposed to advertise that fact throughout Great Britain. and to notify purchasers that nothing but the best article would be forwarded.

Research Movement.

It had also been determined that an improvement would have to be effected in the quality of milk supplied to the factories. for it could not be expected that a first-class cheese could be turned out with a poor quality milk. The department aimed at improving the quality “from the bucket up?’ Were the quality improved there was no reason why new Zealand exports could not command the prices realised by the Danish products. Important measures to be taken by the Government to bring about greater cooperation between the Agricultural and Scientific and Industrial Research Departments were forecasted by the Minister. He said he had had several conversations with the Prime Minister, who had charge of the Research Department, nnd Mr. Forbes would be making a statement shortly upon the question of cooperation in order to ensure that every

known scientific method could be applied to improving primary produce output. (Hear, hear.) Officers of the Agricultural Department had already been instructed to work in close co-operation with various sections of the industry, and as a result it was hoped that the deficiencies in products could be ascertained and rectified.

BUTTER & CHEESE BOXES

Timber Prices Differ

Differences between the prices of butter boxes and cheese crates, made locally, and the imported article, were later dealt with by the Minister of Agriculture. He replied to assertions that local timber should be used in the making of boxes and crates, stating that while he would like to see the local timber used, one had to take into consideration the disparity in price. Much depended on the “rebate” ques-. tion which had first come into prominence in 18861 and under which a rebate was allowed on the exportation of the imported article. In 1886 the rebate was applied to. sugar, and .in 1917. it was allowed'on timber. In 1922 the New Zealand Co-operative Dairy Company was the first to claim a rebate on timber used in the making of butter boxes and cheese crates.

At the present time it was seen that prices varied considerably according to locality. A certain timber mill on the Main Trunk quoted 1/3.7 for butter boxes, free on rail. The New Zealand price for standard white pine was 1/7J. and for light boxes from 1/5 to l/s|d. Imported boxes varied in, price from 11 Jd. to 1/2. However, to the imported price had to be added a duty of per box, making 1/10 i for the 1/2 box, as against 1/7} for the local standard white pine. If the boxes were re-exported the B|d. was refunded,, although a. certain amount of the imported timber was used for internal consumption. There was not such a marked difference in the prices of cheese crates. The price of boxes with pinus insignis ends and white pine sides varied from 2/OJ to 2/2. The price of white pine boxes was 2/4, and of pinus insignis, of which not much was used, from 1/91 to 1/11} Imported crates varied in price from 1/6 to 1/8. and to this had to be added a duty of 1/4,4 a crate, although this could be refunded on expbrt. It was agreed that as far as possible local timber should be used, but the matter was one largely for the suppliers and others directly concerned, and not so much for the Government. The question Would continue to have the consideration of the Government, but members 1 should 1 be urged to impress upon suppliers, dairy company directors, and fruit-growers, the need for making use of local products in packing.

WOOL INDUSTRY

. Assistance Needed

The Government's desire to assist in stimulating the woollen industry, and the use of wool among New Zealand people, was stated by the Minister of Agriculture. He mentioned that conferences between the growers and the Government had been held, and hopes were entertained for, a greater demand for woollen goods and for the greater manufacture of woollen goods in this country. It was the price of wool, and not the quantity which concerned this. country, Mr Murdoch said, and when prices were low the position of the industry should be examined very carefully regarding quality, costs, and the possibility of greater sales. He quoted figures showing the production, average price, and the yield of the New Zealand wool crop at various stages over the past 18 years, as follow: . Season Crop Av. price yield. lb. lb. .V 1913 .. 203,400,000 10.2(1. 8.7 millions 1920 .. 107,000,000 8.1(1. 0.7 1021 .. 218,000,000 (>.2d. 5.0 1924 .. 189,800,000 19.9(1. 15.8 1929 .. 252,000,000 8.5 d. 8.9 „ 1030 .. 202,000,000 5.00(1. 6.18 ~, These figures were used by the Minister to show that last year's yield was back to the 1921 figure, though the production was greater. He suggested the Dominion might help its woollen industry more. Woollen imports in 1928 were £2.900,090; in 1929, £3,000,000. and last year, £2,879,000. Mr. E. J. Howard (Lab., Christchurch South) : That is our wool coming back. Mr. Murdoch: Some of them are rermports. But if only half of this was manufactured in New Zealand it would keep a great deni of money In the country. I am confident We can grow the wool. And if a variation in quality is required, as has been suggested at Home, it can be done, although it will take a. year or two. We have had conferences with the growers, but we Intend to go further-and try to place our wool on the market to greater advantage than w are doing at the presjnt time.

BALANCING BUDGET

Difference of Opinion

Two different opinions concerning the advisability of balancing the Budget were expressed b.v the Minister of Agriculture, Hon. A. J. Murdoch and Mr. W, H.,Field (Ref., Otaki). . , The Minister said that Mr. Forbes was attacking the problem of balancing the Budget in a determined spirit, with a duo

respect for the consequences, and a proper understanding of what was at stake. He felt sure that the country would endorse his action. New Zealand. preserved her high reputation in London, and it was right that she should balance her Budget in order to maintain her integrity. Mr. D. G. Sullivan (Lab., Avon) : What do you think of the Reform statement that there is no need to balance the Budget/ The Minister: I do not think anything of it. I think it was a weak statement made In a weak moment Mr. W. E. Parry (Lab.. Auckland Central) : Do they have their weak moments? The Leader' of the Opposition, Rt. Hon. J. G. Coates: Did you say that was a Reform statement. The Minister : I did not say so. Mr Field said there was a strong impression outside the House that it was not necessary to balance the Budget in one year. Business firms that had made losses were not attempting to square their ledgers in the one year, and there was no reason why the same principle should not be applied to the national accounts. The present was no time for imposing more ** If Budget could be balanced by economies, well and good, but if it would be necessary to impose increased taxation to do that, the Government should consider budgeting for a fair deficit this year, reducing it by a certain amount next year, and still further the year jitter. Other countries were not trying to balance tneir Budgets this year.

WASTE BY SAND-DRIFT

Good Coastal Areas

Avenues of employment for the unemnloved were discussed by Mr. W. ri. Lid (Ref., Otaki) Mr. Field referred to the thousands of acres of drifting sand along the New Zealand coast-line, and the harm the sand Was doing by spreading over good land. Jt could, 1 . said, be effectively checked by the planting of lupins and marram grass, and some land he had himself treated in this way was now a paddock containing some of the best feed he had. Afforestation could be carried opt after the planting of the lupin and marram grass, and there was no reason why the unemployed should not be engaged on work of this kind. South of the Manawatu River there were large areas of sandy wastes that should be attended to. The eradication of noxious weeds and river protection works were also undertakings which .could provide work for the unemployed. It seemed for years past to have been the policy of the Agricultural Department to make no attempt to check the growth of noxious weeds, and as a result extensive areas had been ruined. Mention had been made by several speakers of the flax industry and that a revival of that industry would mean a great deal in easing the unemployment situation. There had also been references to what could be done in the way of manufacturing wool-packs and similar articles from flax-fibre. He did not wish to throw any cold water on the scheme, but one great difficulty that had to be overcome so far as the flax industry was concerned was the eradication of the yellow-leaf disease. The disease had become chronic, and unless it . could be tackled and overcome there did not seem much hope for the industry. The need for the revaluation of all rural land was also stressed by Mr, Field. Third-grade land for sheep grazing was practically worthless, while the valuations of cattle and dairying land had to come down. It was .quite impossible for farmers to continue paying rates and land tax on present valuations.

RADIO CONTROL

Policy Requested

"It ja a .matter for regret that the Postmaster-General has not yet stated what action he is contemplating regarding radio broadcasting,” said Mr. H. G. R. Mason (Lab., Auckland Suburbs). Mr. Mason said the present position was causing a great deal of dissatisfaction, particularly in regard to the B class stations, some of which gave rather better service than some of those stations to whom all listeners’ fees were given. Unfair treatment had been meted out in return to these stations. . He would, like to know to what extent the restrictions which were being imposed with ever-in-creasing severity on the B class stations were dictated by the newspapers. He had noticed a great tenderness on the part of newspapers of all kinds toward the Government, and wondered whether this was due to the way in which the Government obliged the newspapers by imposing restrictions, on the B class stations. , The Postmaster-General, Hon. .1. B. Donald: The interests of the newspapers have never been considered as far as I am concerned. . ■

Mr. Mason said he was glad to know that, and expressed the hope that other members of the Ministry would bo able to make a similar reply. In any case the House was entitled to have from the Government a clear statement of its policy on the broadcasting question.

COUPON TRADING

Effect on Jewellery Business

The effect of the gift coupon system on the jewellery business was referred to by Mr, H. Holland (Ref., Christchurch North). Mr. Holland stated that a Wellington watchmaker had informed him fiat his business had declined by 50 per cent since the gift coupons had been in circulation. He had been told that one firm giving away gifts distributed a gross of watches every week. When replying to the debate, Mr. F. Lye (U., Waikato), who first raised the Question when moving the Address-in-Reply, made a further brief reference to tho system. Mr. Lye said he had been inundated with protests at the system from all over the Dominion. Retailers’ Associations and the Master Grocers’ Association had sent him ample evidence that the system should be done away with. It had developed beyond all bounds, and it was time that legitimate trading methods were reverted to.

IMPORT DUTIES

Bran and Pollard

NO SALES RESTRICTION

Action Through Customs

A demal that the Government had issued mi order to merchants. .importing Australian bran and pollard, preventing them selling their lines direct to those engaged in the pig and poultry-raising industries, but only to merchants or retailers, was given by the Prime Minister in reply to a question by Mr, W. L- Martin <Lab., Raglan). In his question, Mr. Martin also asked the Prime Minister to give the'reason, why the Customs Department Imposed a dumping duty' equal to the amount saved through the favourable rate' of eichnnge operating between,Australia and New Zealand, So that pig and poultry raisers could not benefit by this favourable circumstance.

“The effect of the decree was to increase the landing charges on stock-food, and to subject them to duplicate profits,” he said.

“The Customs Department has not issued an order to merchants, .importing Australian bran and pollard., that they shall not sell their lines direct to those engaged in pig nnd poultry raising industries, but only to merchants or retailers,”

Mr. Forbes said. “The object of the action which has been taken by the Government in connection with exchange premiums allowed on imported Australian goods is to safeguard the primary and secondary industries of the Dominion, and to prevent the ranks of the unemployed being further increased, especially at the present time. It will be obvious, for example, that if an exchange premium of over 18 per cent, were obtained on tne Importation of Australian eggs, pork, boots or woollens, without any restrictive action, the result would be to encourage the sale of such goods in New Zealand to the injury of our local industries. “Any action which can be taken to counteract such an undesirable result must be In the nature of a dumping duty. If payment of such duty were insisted upon in every case where leviable, transactions would no doubt be so arranged that the advantage of the exchange premium would be retained by the exporter, and no dumping duty would be chargeable. “It was therefore decided not to impose this duty where the department was satisfied that local industries would not be injured.' It is obvious that if exchange premiums were obtained by importers of Australian goods selling them dire to users, the sale of local goods would be prejudiced. If, therefore, the advantage of the exchange premium is claimed by the Importer, and he elects to sell his goods only to wholesale and retail merchants, and satisfies the department as to the facts, payment of the amount leviable is waived; but, If no claim is made by the importer and the amount leviable is paid, the sale of the goods is not restricted in any way. “The only alternative to the practice which has been adopted is to insist upon levying dumping duty wherever the circumstances warrant it, with the probable result already indicated. It is recognised by economists that when the currency of a country depreciates the internal prices ot that country sooner or later adjust themeelves to the altered conditions, and hence the amount leviable by way of dumping duty has, in the meantime, been fixed at the exchange premium obtained in excess of 5 per cent.”

PENSIONS APPEAL BOARD

Chairman’s Receipts

Various particulars concerning the remuneration of the chairman of the War Pensions Appeal Board, Sir Walter Stringer, were supplied by the Minister of Justice, Hon. J, G. Cobbe, in reply to a question by Mr. R. Semple (Lab., Wellington East). Mr. Semple asked 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 £960 per annum, a salary of £9OO per annum in addition, hoard 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, and railway passes for himself and wife for four seats in the train. He also asked whether any alteration has been made by the present Government. Mr. Cobbe said the chairman of the board received a remuneration Of £5OO per annum. His headquarters were fixed at Auckland, and travelling allowances were limited . to £2/2/- daily, less 10 per cent, cut under the Finance Act, 1931. At no time was either the pension or the remuneration of the chairman as high as the amount mentioned, nor were board fees payable. z Exception to the tone of the question was taken by Mr. R. A. Wright (Ref., Wellington Suburbs), who said it was quite unfair to put the question in that way.; No Government would pay a man £9OO when he was still drawing a pension.

This attitude was promptly criticised by Mr. W. Nash (Lab., Hutt), who said that there had been persistent rumours as to excessive payments being made to Sir Walter Stringer, and the question had been asked by . Mr. Semple, who was unfortunately not in the House, so that the truth could be obtained. He paid a tribute to the excellent work done by the chairman of the board. Mr. W.-J. Jordan (Lab., Manukau) said that on behalf of the returned soldiers in the House and out of it he desired to express appreciation of the work being done on behalf of the soldiers by Sir Walter Stringer. There was not a returned man who would say that the services being performed with fairness and impartiality were not worth the payments made.

LOCAL BODY RATES

Crown Not Liable

NO CHANGE PROPOSED

It is not the Government’s intention to introduce legislation to amend the Rating Act with a view to making the Crown liable either as landlord or mortgagee for local body rates, according to a statement by the Minister of Lands, Hon. E. A. Ransom, in reply to a question by Mr. W, J. Polson (Ind., Stratford). “A decision of the Appeal Court has declared that- the mortgagee of leasehold interest is not liable for rates, and this has severely affected the finances of local bodies," Mr. Polson said. "Another decision of the court negatives the Crown’s liability as mortgagee and gives priority over other charges to the mortgage. There are counties where 80 per cent, of the rateable property is either Crown land or freehold land subject co Crown mortgage, and which are therefore compelled to decline the raising of further loans." “The recent decision of the court, referred to by the honourable member regarding the Crown’s liability as mortgagee, did not cast any additional liability upon local bodies,” Mr. Ransom said. “The Crown does not make advances for profit, but its activities are in the main intended for settlement purposes and to promote the welfare of the community jn which the local bodies share, and it would not be desirable to restrict these activities at the present time by imposing on the Crown a new set of financial liabilities. , “Regarding the suggestion that section TO of the Rating Act should be amended to make it apply to the mortgagee of leasehold interest as well as freehold, it must be recognised that it D in the borrower’s interest to be able to give the best nnd most attractive security that the nature of . his title will permit. If. a lender advancing on leasehold lands were required by law to accept the risk of being made directly liable for rates, it is to be expected that to compensate for this risk he would require a larger margin or a higher rate, or both, so that, in the long run the borrower would suffer'.”

RUSSIAN TIMBER

Precautions Against Dumping

“I have noticed the newspaper reports respecting the importation of timber, from Russia into Australia, and if shipments of such goods arrive in New Zealand the Government will take steps to ensure that the protection accorded by the tariff ,to the timber industry is not prejudiced by the. dumping of goods from Russia.” This statement was made by the Prime Minister in reply to a question by Mr. C H. Clinkarrl (U.. Rotorua). He nskril the Prime ..Minister. whether the local industry would be safeguarded from.any attempt to dump Russian timber in the Dominion..

JUDGES’ EXPENSES Reduced by 10 Per Cent. Travelling allowances of judges of the Supreme Court and the judge of the Arbitration Court, which were previously £2/2/- a day, have been reduced by 10 per cent., in accordance with the Government’s general policy. This statement was made by the Prime Minister in reply to a series of questions by Mr. R. Semple (Lab., Wellington East). “The Government is advised by the Crown Law Office that the effect of sec-, tion 64 of the Industrial Conciliation and Arbitration Act, 1925, is to give the judge of the Arbitration Court the same rights as a judge of the Supreme Court,” Mr. Forbes said. “Accordingly, his salary is not subject to reduction under the provision of the Finance Act, 1931. Travelling allowances, however, have been reduced by 10 per cent.” MATSON STEAMERS Situation Under Review The trading of the Matson line of American steamers between the United States, New Zealand, and Australia is being investigated by the Government with a view to ascertaining what action is legally practicable and desirable, according to a reply by the Prime Minister to a question by Mr. W. J. Polson (Ind., Stratford). Mr. Polson asked that the vessels should be subject to similar restrictions as those imposed on New Zealand vessels trading to American ports. He pointed out that under the American law no foreign steamship could run or trade between American ports. “The Government is fully cognisant of the advantages enjoyed by this line of steamships in contrast with the disabilities suffered by New Zealand ships trading to the United States of America and through outlying American possessions,” Mr. Forbes said. “The situation is being investigated with a view to ascertaining what action, if any, is legally practicable and desirable.” RUSSIAN BUTTER Year’s Imports Into Britain Particulars of imports of Russian butter into the United Kingdom were given by the Prime Minister, m reply to a question by Mr. H. S. S. Kyle (Ref., Riccarton). Mr. Kyle asked whether the Government had made any representations to the British Government, pointing out the effect of produce being imported _ from Russia into England and prejudicing the primary exports of a similar nature from this and other Dominions. “For the year ended March 31, 1931, the quantity of Russian butter imported into the United Kingdom was 160,140 cwt., as compared with 290,600 cwt. and 329,100 cwt. for the two preceding years,” Mr. Forbes replied. “During the five months ended May 31, 1931, the quantity imported -was 1613 cwt., as compared with 3370 cwt. for the corresponding months in 1929. “The matter of the importations of primary products from foreign countries into Great Britain is one entirely within the jurisdiction of his Majesty’s Government in the United Kingdom. The question was discussed on several occasions at the last Imperial Conference in London, and the views of Dominion Governments are well known to the British Government.” HUTT TRANSPORT ’■ ■ Inquiry Refused The Government has declined to appoint a committee to inquire into the transport system of the ’ Hutt Valley, with a view to ensuring the most economical and efficient service, as asked by Mr. W. Nash. (Lab., Hutt). In a question to the Minister of Transport. Hon. W. A. Veitch, Mr. Nash pointed out that the Hutt Valley central railway ran to a dead-end at Waterloo. The route to reconnect with the main line had already been surveyed, and a decision with regard to the line was essential to the sound development of the Hutt Valley. The road transport in the area could only be economically organised after full inquiry into lorry, bus. taxi, and private motor traffic. “The Government has already given consideration to the question of the further extension of the railway beyond Waterloo, and has decided that the work Would not be justified under present conditions,” Mr. Veitch said. "It does not appear, therefore, that any good purpose would be served at the present juncture by adopting the suggestion made by the honourable member." WHEAT DUTIES Proposed Change PROTECTING GROWERS Members at Variance It is intended by the Government to ask Parliament so to fix the duty on wheat and flour under the sliding scale of duties that the grower will as far as possible be assured a price of 4/6 a bushel for Tuscan wheat on trucks, country stations, sacks extra. This statement was made by the Prime Minister in reply to a question by Mr. C.-A. Wilkinson (Ind., Egmont). Mr. Wilkinson asked if the scale of amended duties would be as predicted in “The Dominion” of May 12, and whether it were correct that under the proposed schedule of duties wheat could not be imported into New Zealand under 6/5 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.

An Assured Price.

“It is intended to ask Parliament to so fix the duty on wheat' and fiour under the sliding scale of duties, that the '.grower will, as far as possible, be assured of a price for,Tuscan wheat of 4/6 per bushel on trucks, country Stations, sacks extra," Mr. Forbes said. “The question whether the proposed duties published in the Press on May 12 last will achieve this result is at present receiving the consideration of the Government. If the proposed rates of duty are passed by Parliament ■ the minimum prices at which wheat and flour can be imported into New Zealand will, after.the duties become effective, be approximately G/4 per bushel and £l4/8/per ton respectively. “It is proposed to ask Parliament to provide for an increase or reduction in duty to the extent that the protection intended to be granted is reduced or increased-, by the abnormal exchange posttion that may exist; between, the country of exportation nnd New Zealand,"'

Member Attacks His Party.

So seldom is a rank-and-file member-of a Government heard in revolt against hie own party upon a policy question that loud laughter and cries of encouragement greeted Colonel T. W v McDonald (U., Wairarnpa), who differed with his party on the question of wheat.duties, when the reply was being considered. ■ Last year Colonel McDonald threatened to consider his position in the party because of

a (Merence with the Government upon lancl settlement. Colonel McDonald rose to supplement remarks made by Mr. Wilkinson against the retention of the wheat duties, and he accused Distributors, Limited, of controlling the flour market to such a degree as to specify what brands of flour were to be sold to certain bakers. This brought several protests from the Opposition. ' ~ , “I do not think the Government has kept its election ■ pledges at all. Colonel McDonald went on hotly. Ido not want to be unreasonable to my own party, but the people were given to understand that the Government would reduce the import duty on foodstuffs. The Government is going to remove some of this burden, and I congratulate the Prime Minister upon it. But he has not gone far enough. Just now, when the wage cuts are operating, it behoves the Government to carry out its pledge and bring down the cost of living. I know that it is only by persistent haggling and naggling at the Government that we will get anything done.” Work of Wheat Pool.

Colonel McDonald sat down amid laughter and Opposition applause. One or two sharp passages occurred later over the same subject, which formed the chief topic for members during the afternoon. Mr. Wilkinson said the Ministerial reply was quite unsatisfactory. ,1h e , wheat pool, which had been established for the sole purpose of keeping up the price, was achieving its purpose to the detriment of the people. The price of wheat was strangling the poultry-grower of the Dominion. > The Rev. C. Carr (Lab., Timaru): How does it affect the merchant?

Mr. Wilkinson: The merchant can look after himself. Whatever happens he gets his profit. lam astonished that I receive no support from any of the three parties in the House. Mr. D. Jones (Ref., Mid-Canterbury.: Doesn’t this show you you are wrong? Another Reformer: We are all out of step- . ' . „ „ ' Mr. Wilkinson: Yes; and New Zealand is out of step in the price we are charged for wheat and flour. This is responsible for us paying 1/- here for a 41b< loaf, which costs 6d. in London. We have no guarantee that the growers of the South Island will increase their acreage in wheat. • . ’ ' „ .. Mr. T. Makitanara (U., Southern Maori) contended that the pakehas did not know how to grow wheat and that that was the whole cause of the trouble. "Let us take the example of the Maoris in the North Island,” said Mr. Makitanara. “This year they put up a record and had an average yield of 40 bushels an acre. So far as quality for making bread is concerned, the Maoris can beat the Canterbury wheat-growers by two points. Let us take our coats off and get to work instead of coming here crying.” Election Pledges.

Mr. J. S. Fletcher (Ind., Grey Lynn) said It could not be denied that a great many members of the United Party were pledged not to a reduction, but to the repeal of the wheat duties. A Member: Who are they? Mr. Fletcher: The Postmaster-General is one. The Postmaster-General, Hon. J. B. Donald (heatedly): Never in your life. A Member: And the Minister of Health was another. , _ The Minister of Health, Hon. A. J. Stallworthy: That is quite incorrect When Mr. Fletcher resumed his seat the Postmaster-Genejral was immediately on his feet to deny that in his pre-election addresses he had advocated the removal of the duties on wheat and flour. He had made it quite clear that New Zealand must have protection. He was, however, not. in favour of the present high duties. . “Seeing we have so many on the bread line,” said Mr. Donald, “it is only right that the people should be able to buy bread and flour at a cheaper rate than at present.” ' . It was stated by Mr. Jones that,the whole problem of discussion, between the millers and the Government was not a matter of 10/- per ton. Ten shillings per ton could not be reflected in the price of a loaf of bread, The egg-growers had a total prohibition on egg pulp so they were protected. 'The duty on boots cost a family more than the duty on bread. Why should the farmer be asked to make heavy reductions ■on his tariff when all other tariffs were left alone, asked Mr. Jones.

INSURANCE RISKS

Motor Vehicles Act

An attempt is being made by the Government to provide that persons injured and the representatives of persons killed by motor vehicles, shall. receive due compensation notwithstanding that the vehicle or driver was untraceable. A statement to this effect was made by the Minister of Transport, Hon. W, A. Veitch, in reply to a question by Mr. WII. Field (Ref., Otaki). Mr. Field asked if the Government would introduce legislation to amend the Motor Vehicles Insurance (Third Party Risks) Act, of 1928. in order to make this provision. He said several distressing cases had occurred owing to the lack of the authority needed. “The Government has for many months been negotiating with the insurance companies to cover the cases referred to in the honourable member’s question, and an agreement has been drawn up which is acceptable to all except one of the companies concerned." Mr. Veitch said. “Negotiations are proceeding with a view to completion of the agreement, and if success in the latter action does, not take place, the question of legislation will have to be considered.”