PARLIAMENT

Evening Star, Issue 21570, 16 November 1933, Page 16

PARLIAMENT

LEGISLATIVE COUNCIL [Per United Press Association.] WELLINGTON, November 15. The Legislative Council met at 2.30 p.m. In reply to a question by the Hon. 0. J. Carrington, Mr Masters said that during the period from August 1, 1914, to December 31, 1932, the exports of gold coin had amounted to £3,140,842 and the imports to £2,267,870. The major portion of the net export had consisted of gold coin withdrawn from the public. Sir James Parr, moving the second reading of the Reserve Bank of New Zealand Bill, said the necessity for a central bank was generally recognised. It had been contended in some quarters that the bank, as constituted, was too much under political control, but under the Bill the Government would have less control over the appointment of the directorate than it had over the directorate of the Bank of New Zealand. The Railways Board was wholly appointed by the Government, but no one alleged that the board was under political control. Sir James Parr said the banks’ ownership of the gold was limited, and was conditioned by the banking legislation. On the outbreak of Avar the gold reserves of the banks had been protected by Government regulations. If these regulations Averc repealed, people could take notes to the banks and demand gold. The Government really held tlieir gold against the liability of the regulations being lifted, and not as an investment for the purpose of making a profit. The enhancement of the price of gold had been due to the depreciation of the currency, and the profit did not belong to the banks, but to tho people. On a similar problem recently a Royal Commission in India had decided that any excess value belonged to the GoA-ern-ment. Hon. 11. M'Callum said that no one could deny the worthiness of the bank’s objects. He agreed that the State should have a say in tho appointment of the directorate, as the State had to take tho responsibility in the event of anything going Avrong. He also considered that the banks had no"right to the excess profits on the gold, as they had been alJoAved to retain the gold only through GoA-ernment action. The debate was adjourned on the motion of Mr Carrington, and the Council rose at 4,15 p.m, till to-morroAv, HOUSE OF REPRESENTATIVES ’ THE BUDGET DEBATE. When the House of Representatives met at 2.30 p.m., the debate on the Budget Avas resumed. Mr IVnlter Nash (Hutt) said ho had gained the impression in Canada that there would he a market there for Ngav Zealand lamb. The Noav Zealand product Avas much superior to the Canadian, and ho Avondcred if the Government Avould take steps to market it there. Although NeAv Zealand butter Avas better than Canadian, he Avas doubtful Avhother much could he expected in that direction. Mr Nash suggested that Britain should be asked to take an increased quantity of imports from New Zealand on the dominion’s guarantee that the latter Avould take commodities of equal value from Britain. He pointed out that agreements on these lines existed between Britain and Denmark and Argentina. _ Mr Nash praised tho efforts of President Roosevelt in the United States to overcome the Avorst position, in his augav, that had ever taken place in an industrialised country. Mr Nash added that he had been impressed by the steps taken in the direction of the prevention of the employment of children under sixteen years of age, and tho increases m the minimum rates of Arnges. At the same time he criticised the destruction of cotton and Avheat Avitli a view to raising prices, and expressed the opinion that if there Avere any surplus it should be given to those Avho needed it. A lengthy examination of the effect of the high exchange rate on tho public finances Avas made by Mr Downie SteAvart (Dunedin West) Avhose speech is reported elseAvhere in this issue. Mr W. E. Barnard (Napier) said that Mr Stewart had submitted a case to Avhich it was tho duty of the Government to reply. Continuing, he referred to the section of the Budget dealing with defence, and said that consideration Avould soon have to be giA'on to the appointment of a Minister of Aviation. It seemed that the Government did not realise the tremendous ad-

vance being made in aviation and the part it was now playing in the national life. Mr Barnard added that ho considered the Budget contained a tone of easy optimism which was not justified by the condition of the country. ‘‘ The Minister in the Budget is like a hoy in the dark Avhistling to keen his. courage up,” he said. Mr W. E. Parry (Auckland Central) continued the Budget Debate Avhen the House resumed at 7.30 p.m. He said the Budget held out no hope for those in distress, and the hardship was becoming greater every day. He estimated that the present financial year would end with a deficit of nearer £6,000,000 than £2,000,000 after taking into account the £2,000,000 transferred from reserves. Mr F. Jones (Dunedin South) congratulated the Minister of Finance on his decision to erect the Dunedin Post Office, and expressed pleasure thet in spite of the difficult times it was not proposed to economise so far as the plans and specifications Avere concerned. He believed it should bo the policy of tho Government to erect beautiful buildings. No one wanted a barn for a Post Office, and he was glad that Dunedin was to have a beautiful building. Mr C. L. Carr (Timaru) said that if Britain Avas going to absorb less of Ngav Zealand’s products, it meant that Ngav Zealand would have to consume more of her own goods. He advocated the building up of an internal market. The debate was interrupted when the House adjourned at 10.30 p.m.