VARIED OPINIONS

Evening Post, Volume CXIV, Issue 97, 21 October 1932, Page 9

VARIED OPINIONS

OTTAWA DEBATE

SECONDARY INDUSTRIES

PACT CEITICISED

The effect of the Ottawa agreement in the secondary industries of the Dominion was discussed at length in the House of Representatives yesterday. "When the House adjourned at 11.20 p.m., the indications were that there . were still many members anxious to speak.. Mr. F. Jones (Labour, Dunedin South) . dealt with the importation of footwear, and said that if the Govei^ment beJieved in Empire trade was it going to divert trade from Japan to Canada? As the result of New Zealand's trade ■with the East, particularly footwear, the manufacturers of New Zealand were suffering. There would, be no improve-' . ment until there was an increase in ■the purchasing power of the people. -Denmark, he contended, would meet the position that had been, created as a result of the Ottawa Conference. He criticised the'proposed investigation into the secondary industries. If Great Britain was allowed to send more of her products to New Zealand, the Dominion's own manufactures would suffer. The agreement had made no provision to meet competition from the East. ~ WORLD TRADE NECESSARY. ■ Mr. W. A. Teitch (Government, Waliganui) said that the question to be decided was, should there be exclusive trade within the Empire or should there be an Empire preference policy in addition to trade with the rest of the world? He believed that a policy of exclusive trade, within the Empire would be suicidal. The surest way to peace ■was by world trade. Mr. Veitch contended that New Zealand could trade ■with the East, exchanging wool and . butter for animal foods. Such a trade •would increase productivity and increase exports to Great Britain, which would have the effect of increasing the" spending power of the primary producers. He held the opinion that if •there was an inflation of the local cur- . rency the cost of production in New Zealand would increase, but prices would be the same. To-day deflation ' had been carried to a disastrous extent. "What was desired was a monetary system sufficiently elastic to bring" gold .prices to such a point as would make ' production profitable and at the same time permit of the adoption of some standard that would have the confidence of all nations, so as to bring about the re-establishment of international trade. Mr. F. "W. Schramm (Labour, Auckland East) said that all countries today were in a stats of financial and economic chaos. The system had failed. If British capital had any "heart," it "would develop the British countries first and leave the foreigners till the last. In the Ottawa agreement New Zealand practically signed away her authority. Manufacturers in New Zealand would be told that they would have to shut up their businesses if it did not suit British capital. The central bank was an attempt by the .financial octopus to tighten its hold on the country. Although at present he! could not see much of value in the agreement, he ■ hoped that matters would eventually turn in favour •of the people of New Zealand. He hoped that at any future conference the rights of New Zealand to make -la-ws, for itself or trade arrangements would not be jeopardised. It was the wish of the Labour Party to see farmers get a "fair deal," and he hoped that the primary producers .would be protected.- The world's real trouble to-day was" financial, and all the itrade agreements would be of no availr *There' was only one cure, and that was to cope with tho financial dictatorship that existed in every country. PROBLEM OP UNEMPLOYMENT. Mr. J. O'Brien. (Labour, Westland) said there was very little to be expected ■ from the Ottawa "Conference, as had been shown by' the speech of Mr. Neville Chamberlain in the--House of Commons. The great problem facing New Zealand, in common with all other countries, was the employment of those ■who were already out of. work and the . boys and girls who were leaving school. Nobody at Ottawa had suggested that . there should be a reduction of hours in order to provide a greater scope for employment. It was useless for New Zealand to secure a preference, for beef and dairy produce, for foreign countries would only lower their prices. Mr. G. E. Sykes (Government, Masterton) said a shortening of hours must be brought about internationally. The Ottawa Conference had marked another milestone in the consolidation of the British Commonwealth of Nations. It had been said that a proper protection of the industries of New Zealand would cure unemployment, but the more important local industries only provided employment for about 14,000 employees. If all imports were 'prohibited, New Zealand would still use only about five per cent, of her wool. What was needed to-day more than anything else was the restoration of confidence. Mr. W. J. Jordan (Labour, Manukau) said the day was coming when : the producers of New Zealand would deal with the people who" needed the food in Great Britain. Labour wanted to know, what was wrong with "the whole outfit." It did not matter what arrangements were made, Great Britain would still have to take £40,000,000 worth of goods every year from the Argentine so that the Argentine could pay her debts. The day must come in Great Britain and New Zealand when we would say to another country, "we will buy your goods to a certain measure, provided you will buy our goods "to a similar measure." When the trade agreements advocated by the Labour Party were in operation, some progress would be made. Unless there was a readjustment of the financial arrangements of all the countries he could not see that much progress would be made :. by the Ottawa agreement. Mr. E. F. Healy (Government, "Wair:*u) Paid a tribute,to the leadership o£ Mr. Coates at Ottawa, particularly in regard to the meat arrangement. The Conference discussions showed that the world s commerce was out of gear. The Rev. Clyde Carr (Labour, Timaru) said that manufacturers in New Zealand would bo more popular to-day if they had kept prices down in comparison with prices of articles from overseas. How were woollen goods to be sold if the duty was removed on . silk articles? The proposals to enable the British manufacturers to compete with New Zealand would involve an injustice to industries here which were , beginning to find their feet. The stronger and more independent New Zealand was, the greater help and asset would she be to the Old Country. The primary industries were dependent on the secondary industries. The debate was adjourned on the motion of Mr. A. E. Ansell (Government, Chalmers).