THE COMING SESSION

Evening Star, Issue 21507, 4 September 1933, Page 12

THE COMING SESSION

BANKING AND TRADE QUESTIONS BACK TO NORMAL LEGISLATION [Special to the ‘ Stab.’] WELLINGTON. September 4. A statement may shortly be expected from the Government clearly indicating its plans for dealing with the tariff, in accordance with the undertaking at Ottawa. This should enable traders to conclude their business for about six months without fear of sudden changes in conditions, so far as they are controllable within the dominion. Another reassuring feature of the legislative position is becoming evident in the absence of suggestions for any further emergency legislation of the revolutionary nature of recent sessions. There has been a suggestion that pooling arrangements in respect to defaulting mortgagors might be facilitated by some amending legislation affecting chattel mortgages, but it appears doubtful whether the Government will again venture on opening up this subject as constant interference with contracts has a disturbing effect, which is felt over a wider area than the sphere of the amending legislation itself. BANKING AND CURRENCY. The leading feature of the session will be the Reserve Bank of New Zealand Bill, which proposes to set up a reserve bank for the purpose expressed in clause 12: “It shall be the primary duty of the Reserve Bank to exercise control, within the limits of the powers conferred by this Act, over monetary circulation and credit in New Zealand, to the end that the value of the bank notes issued by it shall remain stable, and generally that the economic welfare of the dominion may be promoted and maintained.”

The remarkable growth in public interest in the questions contained in this particular clause has been one of the most striking features of recent months, and members find that their constituents are very keenly concerned. Much more than an academic interest attaches to the Reserve Bank Bill under these circumstances, especially as it raises the question of exchange (the Reserve Bank will control overseas exchange business). The measure has been drafted most carefully to exclude governmental interference with the proposed Reserve Bank, but the Government may find that in the changed condition of public opinion, reinforced by monetary developments in other parts of the world, this feature of the measure will be challenged by a strong body of opinion within the House. Mention has already been made of the movement, within the Coalition Party, of supporters who are hopeful of checking the purely agrarian tendencies of the Government, and it is on this measure that they expect to exercise some influence. TRADE TREATIES. At a very early stage of the session the new reciprocal treaty between Australia and New Zealand will be tabled, together with the necessary Customs resolutions. The extension of the Canadian Treaty will also be dealt with at an early date, but the general overhaul of the tariff in line with the Ottawa resolutions is to be left until the early session of next year. Legislation is expected in connection with the payment of overseas interest by local bodies in sterling, and it will be interesting to see whether the Government, determined to maintain in this sphere its own determination not to profit by its depreciation of loc f currency, will undertake to foot the bill for local authorities possessing, a legal, if not a moral, right to pay interest in terms of New Zealand currency. HEAVY LEGISLATIVE PROGRAMME. Even with the prospect of an early session next year it is difficult to conceive the coming session as a light one for legislators. There has been a piling up of necessary amending legislation for some years, owing to the fact that so many emergency measures have had to be hurriedly prepared and passed. Throughout this period Ministers have had to put aside legislation of the normal type necessary for the smooth working of existing machinery. Some efforts have -been made to pass this class of Bill, but while the farmers in particular have been in desperate straits members have been very outspoken in their objections to dealing with what they called second-rate matters while such urgent problems called for attention. However, this dammed-up stream of legislation must flow in on Parliament, and some will make an appearance during the coming session.

For instance, New Zealand’s company law is quite obsolete, and there are defects which call for prompt remedy in the interests of investors. Several years ago the whole situation was investigated by a representative committee of experts, including lawyers, accountants, and sharebrokers, with the late Sir Thomas Sidey (then Attorney General) as chairman. As a result a comprehensive and useful measure was drafted, and it now awaits the attention of Parliament. Another feature of New Zealand legislation which is hopelessly inadequate to cope with to-day’s situation is that of copyright. The statutes were framed before the days of radio, and take no account of the complications introduced by the wide use of gramophone representations of copyright items. This question is to bo handled by the Postmaster-General, because the outstanding point of importance in it is its relation to radio broadcasting, which is under his control.

An amendment of the Valuation of Land Act has already been announced by the Minister of Lands. This is designed to deal with the anomaly which developed as a consequence of depressed property values enabling own*

era to secure revaluation, though it has been at the expense of less alert ratepayers, who have to bear the burden in increased rates. Wellington ratepayers are sharing an extra burden this year of about £13,000 through reductions in valuations of large properties threatening to reduce the gross yield from the normal rates. A hotly contested measure of last session was the proposed amendment to the Superannuation Funds legislation. A select committee was unable to complete consideration of the Bill owing to the large amount of evidence submitted. The measure will come forward again, but as it involves not only sacrifices by superannuitants, but a heavy financial reinforcement of the various funds from the general revenue, there is a growing feeling that this is a financial problem which should await better times. Premature retirement of public servants during the economy campaign threw heavy additional burdens on these funds, but this is not continuing. As an example of the improving position, the Railway Superannuation Board at its last meeting approved pensions for eighteen retiring members, involving an annual liability of £2,222, but it was also reported that since the board’s previous meeting thirty-four pensions had ceased, removing from the fund an annual liability of £5.741.