OPENING OF PARLIAMENT

Evening Star, Issue 23832, 12 March 1941, Page 6

OPENING OF PARLIAMENT

New Governor Officiates Colourful Ceremony In Capital ? [Special to the ‘ Star.’] WELLINGTON, March 12. For the first major public appearance of Sir Cyril Newall in the Dominion since his swearing-in as Governor-General of New Zealand —the opening of the third session of the twenty-sixth Parliament at 2,30 this afternoon—lire weather was as brilliantly fine as that which greeted His Excellency and Lady Newall in the capital. The scene in the grounds of Parliament House was extremely colourful. The building was heflagged and the vivid splashes of colour provided by the dresses of the ladies.and also the men in uniform in the large crowd which had assembled for the ceremony heightened the general spectacle. After he had inspected the guard, His Excellency entered the building, accompanied by representatives of the three services. In the Legislative Council Chamber the Leader of the Legislative Council, the Hon. D. Wilson, handed the Address from the Throne to His Excellency, who then read it.

ANXIOUS DAYS

SPEECH FROM THE THRONE DOMINION'S WAR EFFORT SURVEYED NATIONAL RESOURCES MOBILISED [Pm United Press Association.] WELLINGTON, March 12. In the Speech from the Throne, His Excellency said; “ Honourable gentlemen of the Legislative Council and members of the House of Representatives—l feel it a great pivilege to have this opportunity of meeting you for the first time in Parliament assembled. I warmly appreciate the honour conferred upon me by His Majesty the King in enabling me to associate myself as His Majesty’s representative with the life and activities of this Dominion, which has so long and so justly prided itself upon its traditions of loyalty to the Throne and devotion to the British Commonwealth and to the pinciples of democracy, for the defence of which we are now at war. Although it is but a short period since I landed on your shores, I am taking, and will continue to take, every opportunity of meeting the people in all districts, and I have been very much moved by the unmistakeable warmth of the welcome that has everywhere been extended to me and to Her Excellency. It is my earnest hope that I may, by God’s will, be permitted to assist in some measure in forwarding the prosperity and the development of the Dominion. CIVILISATION AT STAKE. “ I have come to New Zealand during the course of a struggle upon which the fate of the British Commonwealth and, indeed of civilisation itself depends, and I -have been most happy to note the strength and firmness of the determination that animates my Ministers in prosecuting this conflict to a successful conclusion. The proper and adequate direction of the Dominion’s war effort has been materially assisted by the establishment of a War Cabinet, and my advisers desire to emphasise the undoubted advantages that have resulted from this measure. In placing the higher direction of the Dominion’s war effort upon a wider basis by the establishment of a War Council, providing as it does for the direct collaboration with my Government of representatives of Labour, employers, and farmers, it is felt that every section of the community has been afforded some means of expressing its views and exercising its proper influence On the country’s war effort. Most valuable assistance has been rendered also by the National Production Council, the Industrial Emergency Council, and other advisory bodies which afford those immediately concerned in trade and industry the ' opportunity of consulting directly amongst themselves on war measures, and of advising my Ministers of their respective requirements. PROUD RECORD. “ The Dominion’s contribution to the war has been one of which we may be justly proud. An Expeditionary Force of largo numbers, well trained and equipped, is now established overseas, and when it is put to the test of arms it will undoubtedly prove a worthy successor to the New Zealand Expeditionary Force of 1914-18. Although our forces have not as yet participated as a fighting unit in the Libyan campaign, wo were, nevertheless, worthily represented in these operations by signals, engineers, and transport personnel, whose services received high praise from the Commauder-in-Chief. EXPANSION OF SERVICES. “ In New Zealand there has- been a rapid expansion of the forces available to defend our own shores against possible attack. Our coast defences, now continuously manned, have been constantly reviewed and strengthened. The Territorial Force has been expanded, and is under concentrated training. A National Military Reserve, a Homo Guard, a large and comprehensive Emergency Precautions organisation, and a Women’s War Service Auxiliary have been established and are being trained and equipped. My Ministers have taken, and will continue to take, every possible step to ensure that wo are ‘fnllv prepared here to meet any contingency that may arise. My ad-

risers are warmly appreciative of. the ready response of local authorities and the general public to all demands and requests that the requirements of the time have necessitated.

“ After the fullest consideration, and notwithstanding a steady and most encouraging flow of volunteers, my Ministers during the last year determined to introduce a system of universal military service as the most equitable method of meeting the greatly-in-creased man-power requirements of the Dominion, and I am happy to say that under this system the splendid spirit of our young manhood undergoing military instruction has been fully maintained. I am particularly happy to say that a battalion of the Maori race has left our shores to play its part in the common oause. CLOSE COLLABORATION. “ In view of the vital importance of the closest possible liaison between British and allied countries, my Government has been represented by its chiefs of staffs and others at various conferences on war strategy and supply, and, in addition, the Chief of the General Staff has visited the theatre of operations in the Middle East, and from many sources gathered recent and valuable information for my Ministers. NAVAL DEVELOPMENT. “His Majesty’s ships of the New Zealand Naval Forces are disposed and employed to the best advantage and are constantly at sea. The mine-sweep-ing flotilla, has been greatly strengthened by the taking up and conversion of suitable merchant vessels, aud fast motor launches have been requisitioned for duty as patrol craft. My Ministers have recently made provision for a naval training establishment at Motuihi Island, Auckland. This establishment has already commenced its activities, and further works and buildings to enable large numbers to be accommodated and intensively trained are making good progress. Since the outbreak of the; war the personnel of the New. Zeaand Naval Forces has increased three-fold. AIR EFFORT. “ The large and rapid expansion of the Royal New Zealand Air Force necessary to enable my Government to fulfil its commitments under the Empire Air Training Scheme has now been completed, and it is most gratifying to my Ministers that the output of New Zealand-trained Air personnel required under the Empire scheme has been achieved in so short a time. The requisite numbers of trainees of the high physical and education standard required are being maintained on a voluntary basis, not only for service abroad, "but for the growing requirements of the Air defence of New Zealand. It is within my personal knowledge how gallantly and competently New Zealanders have played their part abroad in the -war of the air. CHANGED CONDITIONS. “ The war has imposed upon us large and important alterations in the Dominion’s economic life. The inevitable restriction of imports and the burden imposed upon trade, industry, and production by • the regular withdrawal of men for the armed services have necessitated the most careful consideration of my advisers, with a view to minimising disruption to the utmost extent possible and so organising pur national economy that the Dominion is enabled to play its full part in the common effort. The necessary adjustmuts have been made, for the most part, with the consent and goodwill of all concerned, and my Ministers are confident that any alterations that the future may demand will be effected similarly. INCREASED PRODUCTION.

“ The Dominion’s achievement in production has, indeed, been a notable one. The agricultural and pastoral season has been good, and the response of farmers to the appeals from the United Kingdom for increased production of certain commodities has been outstanding. A large and growing proportion of the clothing and equipment required by the New Zealand Forces is being produced locally, and the progress made in the manufacture of munitions has been most gratifying. My Government has directed special attention to the expansion of munitions production. In June of last year a strong delegation, headed by my Minister of Supply, proceeded to Australia to discuss with His Majesty’s Government in the Commonwealth of Australia matters relating to increased production within this Dominion and the provision of the necessary supplies of raw material. Since that time the growtli of munitions production in New Zealand has been very rapid.” “ My Government was also represented at the Eastern Group Conference called by his Excellency the Viceroy of India towards the latter part of last year, and as a result of discussions at that conference the Dominion’s capacity to produce particular items of

munitions will be employed as required in. the interests of other members of the eastern group, whose resources will, in turn, bo available to us. My Government has accepted the recommendations of the conference and has appointed a representative on the Supply Council which is to operate the organisation.

“ Co-operation between employers and workers has enabled the necessary degree of flexibility to be introduced into the Dominion’s labour legislation with the object of obtaining a greater output of war requirements, and my Government proposes in addition to utilise, as far as possible, measures for the training of auxiliary workers, some of which are already successfully in operation. With the increased demand on the man power of the Dominion that must'inevitably be expected, however, it may well bo that my Government will be obliged to arrange still further for the diversion of labour from non-essen-tial to essential industries and to call to an increasing degree upon the servides of women, large numbers of ■whom have already come forward in the most commendable spirit to offer their services. PUBLIC WORKS CURTAILED. “ Activities in respect of public works have necessarily been substantially curtailed since the outbreak of war, and though, in the opinion_of my Ministers, restrictions in this direction must continue in the meantime, nevertheless they are convinced that certain urgent national works in connection with hydro-electric undertakings, transport development, and projects designed to assist primary and secondary industry, including irrigation and land development, must be continued as far as is practicable. ECONOMY OF NEW ZEALAND. “ In spite of the abnormal conditions resulting from the war, the economy of New Zealand has continued on a satisfactory basis. The exports for the year ended December 31, 1940, reached the record figure of £73,700,000, due partly to the existence of satisfactory fixed prices for most of our exports and partly to a gratifying increase in production in all the mam fields of primary industry, This figure is £7,000,000 greater than the previous record of 1937.

“ Imports for 1940 were £49,000,000, a reduction of £400,000* on the previous year. The smallness of this decrease is an indication of the extent to which increases in tho cost of imported commodities have tended to offset supply difficulties arising from the war and the restrictive effects of import selection. STERLING BALANCES. “ As a result of the year’s overseas trading there has been a substantial improvement in the sterling balances of the Dominion, but it is still necessary severely to curtail imports of non-essentials in order to provide funds for the purchase of war materials and for meeting as much as possible of the expenses of maintaining our overseas forces. The use of dollar funds is being rigorously controlled and thus restricted to the barest minimum in order not to hinder British Commonwealth war purchases from the United States of America. Moreover, the favourable export position which obtained in 1940 will not bo maintained meat will be affected by the restrictions in shipping space imposed as a result of war conditions. NATIONAL FINANCES. “ National receipts and expenditure as shown by the Public Accounts for the nine months ended December 31, 1940, indicated a gratifying position, in view of the difficult times, and it is anticipated that the end of the financial year will disclose a satisfactory surplus of receipts over expenditure. “ As regards war expenses, the actual expenditure brought to charge in the War Expenses Account from its inception in September, 1939, to December 31, 1940, was £19,900,000. On the receipts side £10,900,000 was raised by taxation and £13,900,000 by loans (including £2,672,000 given interest free), while donations amounted to £71,000. In accordance with the policy of my Government that everyone should contribute to the war effort a war loan is being raised with provision for compulsion in those cases where contributions are not appropriate to the means of the persons concerned as measured by their liability for income tax. At the same time a system of National Savings has been inaugurated with the design of collecting and using for the war effort small savings on a voluntary basis. In order to provide funds from the savings of the people for civil works of national importance my Government has recently opened for subscription National Development Loans in line with the practice in other parts of the British Commonwealth. Steps have been taken through the Reserve Bank to mobilise our holdings of overseas currency and securities in order that additional funds may be made available for the purchase of overseas war supplies. SHIPPING RESTRICTIONS, “ In the opinion of my Ministers it is necessary at all times to have regard to the possibility that war exigencies may materially alter the economic and productive structure of the Dominion, based as it is so largely upon exports to the United Kingdom. As the war develops, and tintil tho full effect is felt of the measures that are being taken, it may well be that the necessity of using the available shipping to the fullest advantage may restrict to a considerable extent the exports from this Dominion. My advisers are fully aware of the potentialities of the situation and have the matter constantly under review. PRICE CONTROL. “My Government has continued to keep the closest watch on the trend of prices, and through the Price Tribunal maintains full control over the prices of goods sold in tho Dominion. That this control has been effective is shown by the relatively small rise that has taken place' in the cost of living in New Zealand, in proportion to the considerable increase in the cost of our impox-tations. SOCIAL SECURITY LEGISLATION. “ My Ministers feel that the social security legislation which has now been in operation for almost two years has proved an unqualified success, and that they have every reason to be proud of their achievement in placing on the Statute Book a measure which effectively safeguards all residents of this Dominion from disabilities arising out of age, invalidity, widowhood, orphanhood, unemployment, sickness, or other exceptional conditions. “ My Government inaugurated on Max'dx 1 last general arrangements foxmedical benefits and for benefits in respect of out-patient treatment in public hospitals which, they are confident, will add materially to the health and well-being of tho community. . HOUSING. “ My Ministers have felt it desirable to continue, so far as circumstances allow, the operations of their housing

scheme, and during the year ending March 31, 1941, it is expected that some 4,000 houses xvill have been completed under that scheme. At that date over 20,000 applications for houses will remain unsatisfied, notwithstanding the, fact that since the . inception of the scheme tenders have been called for 13,778 houses, of which 10,106 have been , completed and are in occupation. EVACUEE CHILDREN. “My Government deeply regrets that, owing to war exigencies,- it was necessary to suspend the operation of the arrangement under which considerable numbers of British children were to be sent to the Dominion for the duration of the -war. Those who did arrive were warmly welcomed and have been well cared for, and it is hoped that before long it will be possible to. resume the operation of this greati measure of humanitarian relief. POST-WAR PROBLEMS. “ The most important and urgent problems of post-war repatx-iation, reconstruction, and expansion have for some time past been under the earnest consideration of my Government, which is determined that the conclusion of this' war will find the 'Dominion- adequately prepared to provide for the returning members of the armed forces and for their absorption into normal civil life. With this object in view, my Government has appointed a Cabinet committee, comprising those Ministers who will be most concerned, and this committee is already investigating tho provision of adequate housing accommodation; land' for settlement; the establishment of new industries, such as iron and steel, sugar beet, paper pulping, rubber tyres, erosion control, irrigation, and river control; the expan- , sion of existing industries, such as forestry, saw-milling, Jinen-flax; paper-mill-ing, manufacture of woolpacks, tobacco, fertiliser, and the expansion of our hydro-electric and railway systems. ■ “ These,' xvith the reintroduction of public works which have been postponed during the war, will, it is hoped, provide avenues of useful employment for all. -

‘ At the same time, this committee is engaged xipon the preparation of tx-aining schemes for returned men who, thx-ough previous lack of opportunity or physical disability, are not suitable for immediate absorption into ordinary forms _of employment, while adequate provision is being made for Ixospital accommodation where required to ensure the most modern treatment for disabled men. My Government, which proposes very shortly to associate with it in this matter representatives of the returned soldiers, farmers, rural and urban workers, manufacturers, commerce, and other interested sections of the community, is confident that its plans for these purposes will be adequate and ready when the need arises. STERN DAYS AHEAD.

“ The legislation that will be presented to you during the session will be of small proportions. In the opinion of my advisers, the times are such tha't the attention of all responsible men and women should be directed toward essen-, tial matters only, and that-those of less importance should properly bo postponed until the present crisis has been surmounted. . My Ministers have no •doubt that there are stern days ahead, and that the British Commonwealth and its Allies will require all- their fortitude to meet the blows that may be expected, and all their strength to overcome a fanatical and unscrupulous foe. •but they have been greatly epoouraged by the inability of the enemy to strike •any decisive blow during the period when our preparations for war as * peaceful nation were at a low ebb. “ The admirable fortitude of our kinsfolk in the United Kingdom, the magnificent exploits of the Navy, the Army, and the Air Force, and the heroic resistance of the Greeks have been an inspiration to ns all, and, with the growing weight of the resources now rapidly coming forward, the loyal co-operation of our Allies, and the rapidly increasing help and friendship extended to us by great and friendly neutrals, they are convinced that we can press forward with confidence and resolution, sure of the righteousness of our cause and certain of ultimate victory. 1 pray that in your deliberation# you may be guided by Divine Providence for the safety and prosperity of the Dominion and for the cause to which it has pledged itself.”