TO-DAY’S PARLIAMENT

Evening Star, Issue 21093, 4 May 1932, Page 8

TO-DAY’S PARLIAMENT

LEGISLATIVE COUNCIL [Per United Press Association.] WELLINGTON, May 4. The Legislative Council met at 11 a.in. The Fruit Control Amendment Bill, the Trade Agreement (Canada-New Zealand) Ratification Bill, and the Land and Income Tax (Annual) Bill were received from the House and read a first time. PRODUCTION AND DISTRIBUTION. Replying to the Hon. C. J. Carrington, the Hon. R. Masters said that the Government would expect wholesale and retail sellers to give effect as far as possible to reductions in the cost of production and distribution represented by reduced wages, rents, and interest. Wherever it was found that competition was inadequate to bring about an equitable reduction action would be taken. MOTOR ACCIDENTS. The Minister informed the Hon. D. Buddo that the question of* taking steps to arrest the increasing loss of life through motor accidents was receiving the Government’s attention at present. There was ample power for the restriction of the speed of motor vehicles, and much depended on the attitude of the local authorities and others. ADJUSTMENT BILL PASSED. The Council then went into committee on the National Expenditure Adjustment Bill. Sir Francis Bell said it had originally been his intention to'move that the section of the Bill relating to a reduction of rent and interest should be made to apply only to the Crown, but ho now found it impossible to do that owing to the involved nature <0 the section. He therefore moved instead to delete the preamble to the section, as a result of which the whole section would be destroyed. Sir Francis Bell said the effect of the Bill was more than Socialistic; it was Communistic. It aimed to take away from one person and give to another. It was absolutely without precedent in the Parliament of New Zealand and in the Parliament of England. His concern was that they were being asked to create a precedent which might be used against them if ever the Communist party attained power. It was the first time in the history of any country that had hitherto legislated reasonably that anything of the sort had been attempted. The Hon. R. Masters said that if Sir Francis Bell had been speaking in 1929 one could have understood his. arguments. but ho was speaking in 1932, when New Zealand was passing through the worst depression in its-history. The Bill was part of a scheme for the purpose of bringing about a_ general reduction in costs. He denied that the measure was without precedent, and said a general cut of 22 i per cent, in rent and interest had been operating in Australia for the past twelve months. It the general costs of fixed charges in New Zealand were not brought down farmers were going to be faced with the necessity of walking off their land. The principle behind the legislation was equality of sacrifice. The Government could not possibly accept the amendment, Because its adoption would defeat the whole scheme of the Bill, the proposals ot which - Were founded -on the recommendation of eminent economists in New Zealand. Sir Francis Bell contended that Mr Masters had advanced no argument at all why his amendment should not be adopted, and repeated that the only effect of the Bill was to take away from the man who had property or money and givo it to a man who had D °On a division the clause was retained by 23 votes to 3, those voting against it being Sir Francis Bell, Sir Heaton Rhodes, and Dr Collins. Sir James Allen moved an amendment with the object of making the 20 per cent, redaction apply to all mortgages irrespective ot when they were entered into. This was defeated by 20 votes to 7, those supporting Sir James Allen being Sir Thomas Sidey. the Hons. Carrington, Fagan, Hunan, M‘lntyre, and Thompson. In "reply to Sir Francis Bell, Mr Masters said that in response to representations the Minister of Finance was

reconsidering the clause making provision for the reduction of dividends on cumulative preference shares. The amendments made m the Bui oy the Statutes Revision Committee were approved, and the Bill was reported to the Council. The third reading was carried by twenty-six votes to two, the minority being the Hons. Fagan and M'lntyre. , ~ The Bill was passed, and the Council adjourned until this afternoon.