PARLIAMENT

Evening Star, Issue 21583, 1 December 1933, Page 8

PARLIAMENT

TO-DAY'S SITTING URGENCY FOR THE ESTIMATES SOLDIERS' SETTLEMENT ACCOUNT SAFE [Per United Press Association.] WELLINGTON, December 1. When the House of .Representatives met at 10.30 this morning urgency was obtained for the passage of fourteen classes of the Estimates, including Agriculture, Railways, Customs, Post and Telegraph, Health, and Mental Hospitals. Mr Forbes explained that the Government’s reason for desiring the Estimates to be dealt with yesterday had lieen to secure the advantage of a full day’s consideration so that southern members desiring to go home for the week-end could catch the steamer tonight. ‘ .Mr Sullivan: Do you propose to do two days’ work in one? Mr Forbes: It is the work we should have done yesterday. It was proposed to take Government Bills to-day because the sitting is ordinarily a short one. I have no objection to the policy followed by the Opposition yesterday. The questions raised had to be discussed some time.

Discussing the vote for the discharged soldiers’ settlement account, Mr Langstono asked what was the amount being paid to the banks as the result of the hypothecation of the account’s reserves. He also asked whether the money in tho fund was returning sufficient interest to meet the obligations to the banks.

Mr Stallworthy asked whether there was a possibility of the actual management of the settlements passing to the banks.

Mr Coates said the money had been advanced to the Government on the security of the reserve fund, and when it was convenient for the country it would be repaid. Mr Langstone; How much has been advanced to the Government? . Mr Coates said two and a-lialf millions had been advanced last year and two millions this year, making £4,500,000 altogether. It was a convenient wav of raising money without calling on "the taxpayer, and the money would be paid back either by internal loan or by some other method, when the finances of the country were buoyant again. The interest being paid was 5 per cent. Mr Langstone: How much is in the reserve account?

Mr Coates said the original value of the securities had been about £13,000,000, but some of them had been written down. The Minister said there was no danger of the banks gaining control of the settlements, which were perfectly safe as far as the occupiers of the properties were concerned.

Mr Ransom said the interest on discharged soldiers’ setttlement loans amounted to £1,103,750 last financial year. There was no danger of the security of the fund being jeopardised by hypothecation of the reserves. "Replying to other points raised, the Minister said if members could show him individual cases in which Crown tenants under the Discharged Soldiers’ Settlements Act had not received a fair run he would give an undertaking to reinstate them, either on the same farm or on some other. He would also suggest that if Crown tenants still on farms felt they were not getting a fair deal they should make application to the Mortgagors’ Relief Committee. The Government would be prepared to stand by the recommendation of that committee.

“ This is not a time when we can reasonably fix valuation for the next twenty-one years,” said the Minister, replying to a request by Mr Samuel for the revaluation of settlement lands. “ Markets are so unstable that it would not be possible to arrive at a sound basis on which to fix valuation. However, I can give an assurance that the Government intends, as soon as prices are reasonably stabilised, to deal with the question of revaluation.” The vote was passed. SOFTSWOODS RESOURCES. Replying to the discussion on the forestry vote, Air Coates said that as a result of a survey of world resources in softwoods, following the Imperial Conference in 1926, it was considered that there would be a definite shortage within sixteen years. There had been a chock to consumption owing to economic causes since then, but, even taking this and the use of substitutes into account, world authorities were of opinion that New Zealand’s softwood resources would he required. He predicted that the time would come, in the not very far distant future, when New Zealand would be very glad that it bad adopted an afforestation policy. The House adjourned at 1 p.m.