PARLIAMENT

Greymouth Evening Star, 21 July 1945, Page 2

PARLIAMENT

MARKETING DEPARTMENT. WELLINGTON, July 20. In the House, to-day, replying to an urgent question by Mr. Sutherland, who asked foi AnlOi mation about the availability oi seed potatoes,, the Minister of (Mr. Roberts) said there would be sufficient stocks of seed potatoes available for the current season. These stocks were largely located in the South Island and the sbo L ta^ c +l shipping facilities was hindering th delivery of adequate supplies to the North Island. The position had been further aggravated by the i ecent storms in the South Island. All available shipping space would Doused for shipments of seed to tne north. ' , ~ ~ . Debating the annual report Oi the Marketing Department Mr. Holyoake said that while other industries were subsidised out of the War Expenses Account the farmers’ subsidies were being taken out of their own accounts. He referred to the payment of lump sums by Britain and argued that they were earned by the farmers and should not be used for the purpose of subsidies. . Mr. Nash said the only subsidies paid were in respect of increased costs of production. Subsidies had been paid to farmers for that reason and when Britain made lump sum pavments in recognition of increased costs it was only right that they should, go to the subsidies to meet tne increased farming costs. As far as the meat industry was concerned the producers had agreed that stabilisacion of meat prices in New Zealand was justified. Mr. Sheat: They agreed under duress. Mr. Nash said there was no duress. The producers haci agreed to 'the iabilisation of meat, but had stipulated that if the cost of stabilisation exceeded £400,000 the money would have have to be found some other way. The Marketing Department had done a magnificent job—a job that could not be equalled anywhere for cheapness and efficiency. As far as wool was concerned Great Britain had agreed to pay Australia an extra 15 per cent., and had given the same to New Zealand without being asked for it. There was no question of that 15 per cent, belonging to the growers as there was stabilisation procedure.

Mr. Sheat: Not at that time. Mr. Nash said if other sections of the community had prices stabilised and wooi'Towers were, given the additional 15 per cent., other sections would have asked for a similar increase and stabilisation would have been upset. EXCI lANGE MANIPULATION. 'Mr. Broadloot said that if the farmers could produce goods successfully why could not they themselves market them? It was not right that the Goevrnment should commandeer the produce as well as the sterling assets derived from the goods. He considered that the primary producers, who should be subsidised from the War Expenses Ascount, had been underpaid while manipulation of the exchange had put between £11.000,000 and £15,600,000 yearly into the Government coffers. Mr. Sullivan, speaking on the marketing agreement, said those who represented the farmers were competent men and understood the agreement thoroughly. Mr. Holyoake: Did the Minister know when the agreement was signed that £28,000,000 would flow into the Government coffers? Mi-. Sullivan said no one could know what the amount would be when the agreement was signed. The clauses in the agreement were drafted in anticipation that there would be forthcoming from the United Kingdom, payments for produce to .cover costs and other payments and fo cover general subsidies. Provision was made lor the manner of dealing with such other or lump sum uaymehls and the industry representatives had agreed with the Government as to bow the proceeds should be disposed of. Mr. Holycake: What a give away! The Government knew that the lump sum payments were to be macle. Mr. Sullivan said the industry had agreed with the Government as to how the funds were to be disposed of. It was regrettable to find a tendency to run away from such agreements.

Mr. Bodkin said die Government had laid down the terms of the agreement and had said. "Take it or leave it; it is this or nothing!” Then they had the temerity to claim that the industry had made a free agreement. It was now apparent that the Government knew that lump sum payments were to be made, but had kept that fact from the farmers. The Government had created an impression. which, in the light of later •-’.vents, appeared to have been meant to deceive the farmers. The Government could not look the farmers in the face and say they had been gi'.en a lair deal. The Minister of Marketing . (Mr. Roberts) claimed that the- farmers ink' csts v.T’.e watched in London by Mr. Goodie!low and that the Marls.! !:■.■ Dopariment had assisted farmers .by keeping down the charges as compared with those paid LinciCr privnvc enterprise. Mr. Sheat said lie understood that Mr. Goodfellow had gone to London under an absolute veil of secrecy and could not report to farmers. He asked would the Minister raise that veil <.■ secrecy? He claimed, that farmers could do without subsidies if other sections of the community would do 1 the same. Tire subsidies to farmers were paid to enable them to stand up to the artificial economics of the •’rest of the community. The farmers were, in fact, subsidising the rest of the community. The debate was continued on similar line?; until the luncheon adjournment.

FINANCE BILL The debate on the Finance Bill was continued when the House resumed this afternoon. The Minister of Rehabilitation (Mr. Skinner) was the first speaker. He referred to the needs of rehabilitation. He said that one hundred and fifty thousand acres of improved land had been purchased, and this would be cut up immediately, for the settlement of returned servicemen. Already 87 properties had been balloted for. Of these, thirty were not fully developed, and the successful settlers were working for wages, reading and fencing, and they would take over as farmers when the land was sufficiently developed. Mr. Bodkin (Nat., Central Otago) said that every section of the community should be prepared to help to rehabilitate returned men. Any sacrifices necessary on their behalf should be made cheerfully. It appeared, he said, as if the State’s attitude was that fit would protect its own finances at all costs. The settlement of the soldiers appeared to be a secondary consideration. The only way to secure enough land for the soldiers was by sub-dividing the larger farms. He said that this could not be done without some loss. That was because when extra homesteads were added, the land could not be asked to cover the whole cost. The Minister of Defence, Mr. Jones, said that the better war pensions accounted for a good part of the' increased expenditure. Mr. Broadfoot said that New Zealand had made a great war effort. He said New Zealand had gone beyond i its man and woman power, i Mr. D. G. Sullivan said that he admitted, quite frankly, there were

real difficulties in the sttitihg material situation. This was due to the tremendous demands on our own mills for -the sUpply of military clothing, to the shortage Of labour, and to the restricted supplies of material available from overseas. The annual requirement in New Zealand were between two hundred and forty and two hundred and fifty thousand suits. The production last year was more than eighty thousand suits. The production for the first three months of this year was 27,000 suits. Instructions had been given that 50 per cent, of the existing stocks had to be held for the returned soldiers.

Before the House adjourned at 5.30 Mr. Nash said the debate on the Bill would be continued on Monday. Oh Tuesday evening the Prime Minister would open the debate on the UNCIO report, which would be tabled and would present a motion for the approval of the Charter and its ratification. LEGISLATIVE COUNCIL WELLINGTON, July 20. The suggestion that the time had come to remove the national security tax from incomes up to £2OO was made by the Hon. W. H. Mclntyre in the Legislative Council to-day. He claimed that those on higher incomes needed no relief from taxation, and that if the Government needed additional revenue, an extra 5 per cent, tax should be placed on the totalisator and that racing clubs could be allowed another - 50 racing days in- the year. Mr. T. F. Doyle said that it was not the time for taxation reduction, because war commitments and the rehabilitation of servicemen did not permit it. Present conditions at Westport were one of the best arguments against State control, said Mr. Mclntyre. When the Westport Harbour Board had control, he said, vessels up to 6000 or 7000 tons could enter the port, but because dredging had not been kept up sufficiently under State management, a boat of 1000 tons could not get in at present. He suggested that landing craft used in the invasion of Normandy should be secured for the transport of coal. The Union Shipping Company was partly to blame, he said because it had concentrated on colliers to bring coal from Newcastle, and did not have suitable boats for coastal work. In the past, there had been sufficient boats to enable consumers to build up ai reserve, but now if a boat was held up for a week a shortage was felt. Westport had been the third port in New Zealand, and although the bar was not always passable in heavy seas, only .30 days a year were lost. At present 90 days were lost, making all the difference.