WORK OF SESSION

Dominion, Volume 26, Issue 67, 12 December 1932, Page 10

WORK OF SESSION

Seven-week Adjournment CABINET’S BIG TASK More Emergency Measures THE SMALL FARM PLAN (By Our Parliamentary Representative) Parliament adjourned for seven weeks on Friday evening with an air of abandon, but the general anxiety of members over the seriousness of the economic situation and the difficult nature of |the decisions in which they will be asked to concur after the resumption, was thinly disguised. Between now and January 26 Cabinet will be engaged in framing further emergency measures, and there was not one among those who left for their homes over the week-end who was not convinced that Parliament would be put to a severe test early in the New Year in devising ways and means of meeting a very acute position. Many feverish hours were spent during the couple of days before the adjournment was taken. A last-minute gesture was made by the Labour Party on the Finance Bill, which was rather obviously used to give expression to many opinions which had been bottled up during the consideration, of technical legislation throughout the eleven weeks of the session up to the adjournment. Regarded in retrospect, the session has not been productive of very much useful legislation so far. A total of 20 Government Bills and three local Bills has been passed, but one of the most marked features of the business up to the present has been the placid consideration of measures of minor importance. The Customs Amendment Act, giving effect to the Ottawa resolutions, was the most important to be put through, although, apart from the Urban Farm Land Rating Act and the Hospital and Charitable Institutions Amendment Act, there was nothing which demanded immediate attention. Legislation Held Over. Fifteen Government measures are on the Order Paper for attention after the resumption, but as Parliament will then be fully occupied with the emergency legislation it is doubtful whether very many of these will be taken any further. At the moment the most important measures already in print are tlie Reserve Bank Bill, the Government Cuperrannuation Funds Bill, and the Small Farms (Relief of Unemployment) Bill. These all form a definite part in the policy programme initiated by Cabinet after the formation of the Coalition, and which is still being prosecuted. In view of the more direct interest in national finances which has been forced upon the State by the depression, it is considered in Cabinet circles that a central bank might be of real assistance during the present difficult period in securing financial co-operation which it is felt is harder to obtain under the present system.

However, the Reserve Bank will not be ready to function fully until fibout a year after the Bill is put through, so that the Government will be forced to work as well as it can with the existing banking and credit machinery’.

More immediate importance attaches to the Small Farms Bill, whose progress through Parliament will be watched with interest in view of the far-reaching proposals contained in it for the acquisition by the State for settlement purposes of land not being adequately used. Although at first sight this provision appears revolutionary, it has been shown that similar power was taken by the United Kingdom Government many years ago, and it is emphasised that it would not be availed of except as a last resource. Possibilities of Scheme-

The Government is convinced that settlement on small holdings is essential if unemployment is to be attacked so as to bring about a permanent reduction in the number of workless. Although it is difficult to say off-hand what can be done unde* the small farms scheme, it is believed in Cabinet circles that between 4000 and 5000 families can be placed on'the land within about two years. Mr. Coates has given nearly all his time to preparing the plan during recent weeks, and he ia spending long hours considering general policy questions affecting not only unemployment siiecifically but economic problems of which unemployment forms part. Ministers of the Crown will have few spare moments during the seven weeks’ adjournment, for it is hoped to lie ready with a complete plan when the House resumes. The outlook is acknowledged to be most serious, but the Government does not by any means regard it as without hope. There is a definite opinion in Cabinet circles that the country is “bumping on the bottom.” and that although the road to recovery must be long and tortuous, rhe country can, by milking necessary sacrifices, take heart in the belief that an improvement in the general situation is within sight. Help for the Exporters. The present belief of Cabinet is that there will not be a great deal of emergency legislation required next month, although what does appear will be vitally important. Naturally, the problem will be tackled by attempting to assist exporters, for upon their welfare the prosperity of everyone depends. The Government is still unimpressed with the efficacy of a system of subsidising exports, but this may receive serious consideration within, the coming weeks.

It is acknowledged ;that £0, 000,000 will be needed this financial year if any real relief is to be given, and jt is believed the banks would be willing to assist to this extent. What rate of interest the Government would be prepared to pay is another matter.

Of one thing the Government is Convinced, and that is that there still exists too great a disparity between costs and prices, and it can be taken for granted that another attempt to bridge this gap will be made in the New Year, probably by carrying a stage further the legislation passed earlier this year.