PARLIAMENT

Evening Star, Issue 23353, 24 August 1939, Page 14

PARLIAMENT

FULL DAY’S WORK . TWO GOVERNMENT BILLS PASSED ESTIMATES COMMENCED UPON [Pkk United Press Association.] WELLINGTON, August 23. The House met at 2.30 p.m., when the Speaker, Mr Barnard, announced that a poll on the question of the sale of liquor within the precincts of Parliament Buildings had been taken as required by Statute and had resulted as follows :—Legislative Council —in favour 28 against 4 j House of Representatives —in favour 60 against 15, making a total vote, in favour of the sale of liquor of 88 against 19. Dr M'Millan, associated with a number of Government members, gave notice to ask the Minister of Customs if the Government would consider the admission to New Zealand of a proportion of Spanish refugees who were at present in France, and who were skilled tradesmen. Mr Goosman, in an urgent question to the Acting Minister of Marketing, inquired when it was intended to announce the new guaranteed price for dairy produce, and whether the recommendations of the expert Advisory Committee on the guaranteed price were again to be rejected. Mr Lee Martin, in reply, quoted an extract from the report of the dairy industry conference’s executive which was published throughout New Zealand on August 4, and in which it was stated that decision as to the price for the 1939-40 season should not be made until the executive had had the opportunity of discussing the position with Mr Nash on his return, and to this Mr Lee Martin had agreed. x

PROPERTY LAW AMENDMENT. The House then went into committee on the Property Law Amendment Bill and the Land Transfer Amendment Bi!l. , * Several amendments made by the Statutes Revision Committee to the Property Law Amendment Bill were approved. . . The Leader of the Opposition (Mr Hamilton) contended that a number of laws being introduced from time to time had a tendency to make land mortgages less attractive, and _ this should be obviated wherever possible. Mr Bodkin said he did not think it could be argued that the present Bill would impose any undue hardship on the mortgagee. The legislative _ provision it made was generally desirable and brought New Zealand legislation into line with that in England. Mr Mason concurred with Mr Hamilton that it was necessary to protect the validity of land securities, and he was of opinion that the Bill would do this.

The Bill passed through the committee stages and was read a third time and passed with little further discussion. LAND TRANSFER, Several amendments by the Statutes Rivision Committee to the Land Transfer: Amendment Bill were also approved by the House in committee. The principal amendment was the addition of a new clause restricting the licensing of land brokers to the extent that no person be qualified to hold a land broker’s license who is the holder of a license as a land agent. Mr Hamilton stated that this clause would materially affect land brokers, and he thought they should have been consulted before the Bill was put through the House. Sir Hamilton asked if interested parties would be given an opportunity of being heard before the Statutes Revision Committee of the Upper House when the measure was before it. The Attorney-General, Mr Mason: I can give an undertaking that that will be done. The Bill then passed the committee stages and was given its third reading and passed. LEGITIMATION BILL. Mr Mason also moved the second reading of the Legitimation Bill pro \ forma to enable it to be referred to the Statutes Revision Comraitee. This was agreed to. REPLIES TO QUESTIONS. The remainder of the afternoon was occupied by consideration of written replies to questions. In reply to a question addressed to the Prime Minister by Mr M'Combs, who asked whether such action would be taken to make illegal and punishable the floating of a company in anticipation of a change in the law, the Acting Leader of the House, Mr Fraser, said the matter was receiving attention. It was questionable whether it would bo either practicable or desirable to legislate generally as suggested, as it was by no means uncommon for companies formed! to promote entirely legitimate and socially advantageous enterprises of a large scale development nature, to include in their objects the promotion of empowering legislation. The Government had not interfered in any way with the reserve of the common fund of the Public Trust Office, and there was no intention of doing so, said Mr Fraser, in reply to a question by Mr Kyle, who asked whether the Government md utilised the reserve of the common fund to the extent of £2,000,000 odd. Replying to a question by Mr Gooseman, who asked the Minister of Industries and Commerce whether he had consented, or intended to consent, to an increase in fertiliser prices to farmers, due to increased costs to the manufacturers, Mr Sullivan said no promise had been given that permission would be granted to increase fertiliser prices. If they so desired, the manufacturers would be given an opportunity of stating their case before the Pricefixing Tribunal. A question addressed to the Minister of Labour, Mr Webb, by Mr Doidge, who asked whether the Minister had rioted that the first result of the amendment to the Industrial Conciliation and Arbitration Act had been that a union on strike in Auckland made use of its provisions to obtain an increase in pay, so that the measure was likely to act not as a deterrent hut as an incentive to strike, was replied to by the Minister as follows:—The amendment did not deprive a union of the right to negotiate with the employers regarding conditions of employment. The agreement arrived at in the case referred to was purely voluntary, and the result disclosed that, instead of the measure being an incentive to strike, the opposite was achieved. Tn reply to a question by Mr Hultquist, who asked whether a committee would be set .up to investigate the flues-

tion of a universal freight-paid price for petrol, the Minister of industries iind Commerce, Mr Sullivan, said that, to the effect that such a scheme would mean an increase in the price of petrol in the main centres of something in the vicinity of 2d a gallon, the Government had given careful consideration to the question, but did not hr ul to take action.

The proposal to zone the areas in which daily newspapers in New Zealand may circulate had not been given consideration by the Government, but the question would be examined, said the Minister of Industries and Commerce, Mr Sullivan, in reply to a question by Mr O’Brien, who referred to the unfair competition caused by large city newspapers invading the territory of provincial publications. The Government had set up a departmental committee of inquiry to investigate certain anomalies in the Post and Telegraph Department. The position of officers known as “ depression juniors ” wns included in the order of reference, and the committee would sit within the next few weeks. This reply was given by the Postmaster-General (Mr Jones) to a question addressed by Mr Bodkin, who asked whether the Government intended to do .anything to improve the position of “ depression juniors.” In reply to a question addressed to the Acting Minister of Marketing, Mr Lee Martin, by MrGrigg, who asked whether any deficit in the dairy industry account was to be debited against the dairy industry or was to be met by the taxpayers generally, the Minister said any consideration of a possible deficit in the dairy industry account must take account of the fact that the guaranteed price scheme was a long-term plan. When all the 1938-39 season’s produce had been shipped and sold overseas and the final results were known, the Government ivould give consideration to the treatment of the deficit then standing to the debit of the dairy industry account. So far as concerned the acquisition of sterling funds the farmer was in no worse position than any other pei'son, said Mr Fraser, replying te a question addressed to the Prime Minister Mr Kyle, who asked whether the Government would take immediate steps to place the farmers on the same footing as other owners of sterling funds, who could sell their sterling at the full market price, which right the farmers were refused through their produce being seized at the port of shipment. In answer to a question by Mr Kidd as to whether there was any provision in the trade agreement between New Zealand and Germany making it possible for the latter to resell New Zealand produce on the London markets in order to receive foreign credits there, Mr Fraser said there, was no specific provision rendering it impossible for Germany to do this. He added, however, that no instance of Germany selling on the London market any New Zealand produce imported into Germany under the agreement had come under the Government’s notice, and such sales were considered most unlikely. END OF BUDGET DEBATE. Mr Fraser proceeded with his reply to the Financial Debate, He thanked the Opposition and all those who had expressed sympathy with the Prime Minister in his illness, and also extended the Government’s sympathy to those who had suffered in the recent floods in the Manawatu and elsewhere.

Speaking of the Budget itself, he expressed the opinion that it had been favourably received by the country. None had expected that increased taxation would be received with enthusiasm, but even to this there had not. been undue opposition. The majority of the people appeared to be in favour of the increased expenditure on social security, and also at this time of crisis on defence. The Opposition had criticised the Government as being unorthodox in its finance, said Mr Fraser, and at least one member had complained that it was too orthodox. Opposition members said the Government had gone too far, but they would not indicate in which direction. At least the debate had broken through • the Opposition’s hedging in certain directions. The Opposition’s was a depressionist policy, he contended, and held out no hope for the people of Now, Zealand. Mr Fraser said that early in the debate Mr Nordmeyer had challenged the Opposition to say what reserves the Government had raided, when and by whom such reserves were established, and when and in what manner they had been raided by the present Government. That challenge had not been accepted. The present Government had balanced its budget each year since it had been in office, and capital expenditure had been met not by borrowing overseas, but by using departmental surpluses and Post Office savings, and also by calling on the credit of the country for the use of New Zealand through the Reserve Bank, Mr Hamilton had said that the Government had promised to solve the unemployment problem, but that last year it had spent millions on unemployment relief. The Minister said he would reply to this by saying there was practically no unemployment in the Dominion to-day. The actual figures were down to what had been normal for the country for years preceding the depression. There was nothing abnormal to-day about the situation, but the Government certainly recognised its responsibility in this respect, and was not content to allow any able-bodied man or woman who was willing and able to work to remain idle. The Government, however, could not admit that because a man was on Government work he was unemployed. Referring to the question of raising loans, Mr Fraser said the members of the Government in the past had never contended that loans should not be raised. They recognised that in a young country borrowing was sometimes unavoidable, but the Government did say that overseas borrowing should bo reduced to a minimum, and it had not borrowed overseas until the recent £l7 million loan. The credit used by the present Government was the credit of the people of New Zealand, not a credit from overseas. He then went on to deal with the position of the farming community, contending that the reason why herds had decreased was that during the depression farmers had retained all their stock regardless of its value, and were only now beginning to cull out useless animals.

With regard to decreased production, he pointed out that seasonal conditions had been most unfavourable. Ho quoted the returns of various commodities used by the fanning community to show that their prosperity had increased substantially, and stressed the importance with which the Government regarded the milk in schools scheme. In this connection he wished to pay a tribute to the members of the former Government for their work in initiating the movement. He proceeded to quote the decrease in the number of farm sales, which, ho said, was proof conclusive that the farmers to-day were better off than they had ever been.

Mr Fraser said the Budget had faced up to realities in that it showed the Government's determination io main-

tain the progress made by the country. That was one thing which the Government was absolutely definite about. The internal prosperity of the country was sound, the people were good, and the resources, were great. The country was able to maintain its standard or living, and the Government _ would never he a party to cutting the incomes of the people or reducing their standards. The Government would protect the 40-hour week. THE ESTIMATES. When Mr Fraser had concluded his speech the House went into committee to discuss the first items or . the EstimMrDickie contended that our defence measures were not adequate. yG had had better defence provisions in 1911 than we had to-day. ...... Air Doidgo said Mr Lee had stated the Government would determine what to do when it knew the nature ot the crisis, but he would issue a warning that war would come overnight, and preparations could not be made as quickly as that. It had been a struggle to got 16,000 men, and wo would not have bad these to-day if the veterans of 1914-18 had not come to the rescue. If one went out into Lambtoii quay to-night and chose the first 100 young men one came across, how many of them would be able to hit the bull s eye at 500yds or were qualified to do a route march, etc.? Mr Lee: How many men were shot at 500yds ? Mr Doidge: Quite a number on Gallipoli. I would go out with the honourable member and .guarantee to get the bull nt_ 500yds even _ now. Tljaughter, in which Mr Lee joined.) Tt was not too late even now, lie said, to turn our attention to training and man power in New Zealand. The Minister of Defence, Air Jones, said the honourable members of tho Opposition seemed to bo mixing up the reserve with the Territorials. We had 16,000 men to-day, all of whom had passed the doctors. The Government had thought it would take three months to get them, and they had done it in six weeks. AA r e had doubled up tho defence expenditure, he said, although

ho did not know if all. the money provided would come to charge, because of tho difficulty in getting equipment from the manufacturers. The Government had placed large contracts in New Zealand for clothing and food, etc., and also large contracts overseas, for ammunition and stores. Even if we increased the estimate by £1,000,000 tonight how could it be spent when one of our greatest difficulties was to get the supplies we required. We had ordered small arras and heavy gun ammunition and already had supplies in the country, although it would be inadvisable to say just how much at the present time. Mr Kyle asked that more should bo done to supply remounts, and said he considered 16,000 horses were needed for the defence of New Zealand. Progress was reported at 10.30 p.m., and the House rose. On the motion for the adjournment Air Fraser said it was intended tomorrow to take the Finance Bill and' the Income Ta*x Amendment (Bill,