NO-CONFIDENCE MOVE

Hawera Star, Volume LIII, 28 September 1933, Page 5

NO-CONFIDENCE MOVE

Opposition Attack Launched CABINET METHODS CRITICISED Steps Taken During Crisis TAXATION AND EXCHANGE. DEMAND FOR, REVISION (By Telegraph—Press Association.J WELLINGTON, Sept. 27. Labour’s anticipated no-confidence amendment to the Address-in-Eleply motion was moved in the House of Representatives to-day by the Leader of the Opposition, Mr H. E. Holland. The amendment was of a comprehensive nature. The debate upon it was proceeding at IQ o’clock when there was a lapse, but a Labour member filled the breach and the debate proceeded until 10.30, when the House adjourned.

Mr Holland’s amendment was : “But this House affirms that the Government has refused to recognise that the critical condition of society demands a definite .plan of financial industrial reconstruction, includf ing the preservation of equities in land and homes and a reduction of the overseas indebtedness to presentday values; that it has refused to make provision for unemployed women and youths; that by its deflationary policy it has intensified unemployment distress and privation and made home life among relief workers an impossibility; that its present system of unemployment relief is .costly and uneconomic; that high exchange has had a- disastrous effect upon the economic life of the Dominion; that increased and in- ' equitable taxation, including the sides and unemployment taxes, should he immediately revised and ultimately repealed; that curtailment of social services and reduction of wages, salaries and pensions have crippled trade and impoverished the nation; that the present monetary system has failed to provide for the requirements of the people, and that complete public control of a monetary system based on goods and services and capable of expansion according to the growing needs should be submitted. The House further affirms that your Excellency’s advisers do not possess the confidence of the country.”

Mr Holland said that neither the mover nor the seconder of the Address-in-Reply had made any attempt to explain the paradox of want and poverty in the midst of plenty. It would be better for the Government if it faced that paradox, for there was no doubt it would have to he faced sooner or later. He would like some Governmental member to explain during the course of the debate why it was necessary for men, women and children to go without sufficient food when there was no shortage in the Dominion, why

people should go without sufficient clothing While the factories and wareihouses were filled with articles they ■poukl not -sell, and why people had to without coal while the mines of the Dominion were idle. There was absolutely no reason why anybody in New Zealand should go without the necessaries of life, he continued. Apparently the only shortage was a Miortage of statesmanship and capacity to so organise the country’s affairs that the jveople who wanted work could secure it at a fair remuneration EXPENSE) AT WORLD PARLEY Mr Holland went on to refer to New Zealand’s representation at the Worid Conference, and said he had always held the opinion that there had been no need for New Zealand to send Ministers abroad for that purpose. The High Commissioner could have done ever 3'thing that Mr Forbes and Mr Masters had done. ' Mr H. Atmore : And done it better ! , Mr Holland said he could not have done worse, because nothing was done. ‘.‘l think the expenditure on tlie journey was a hopeless waste of money,” he added, “especially in vow of the asbence of any results from the conference. It is true that the Prune Minister came back with a somewhat more hopeful outlook than he generally assumes.” ' Mr S. G. Smith: It must have been a success then! Mr Holland: It was too' great a price to pay for a. more hopeful outlook for the Prune Minister. Mr Holland said there was power today to print double the number of bank notes in circulation. It was necessary that the Government should have power to produce whatever legal tender currency was necessary for tiie public and private business of the country. Over 9t) per cent, of New Zealand’s currency took the form of the cheque system, and a cheque was valuable on when the goods were Deit PEGGING OF EXCHANGE.

Referring to the Goveniuent’s hign exufiainie poi.cy, toe teaeci' oi too opposition said uv bouy Knew tne n*»tury or tne h Mine ji.mater's of front on tiiat issue, but ne fiuu ye*, to recede an explanation wily tile banks had somersaulted on the question. Hopes tout the farmer wouiu benefit from the pegging oi exehana'-' at a hign figure had not been realised. No sooner had tne action been taken than Denmark followed suu, and France hud put a heavy duty oi. goods coming from eountr.es with high exchange. The Da hour Party s p.oposal tor definite 'trade agreements and. for a guaranteed price was an in finitely better propos.tion from the farmer’s viewpoint than high exchange. He was satisfied only a vers small proportion of farmers had reap ed any direct benefit from the Government’s policy. The only farmers who had benefited were those who were mortgage free, or those who had not hypothecated 'thei_r ; i u, oines t‘o the mortgagees. Apart from those farmers he had mentioned the financial institutions were the only other oeneficiaries, and the Government had • ad to impose fresh arid unpopular taxaton to meet the cost. Mr Holland expressed the hope that a majority of the members would realise their duty to the country and give expression to the country’s desire by supporting his amendment. /The amendment was seconded by Mrs McCombs (Lab., Lyttelton). DEFENCE BY MINISTER

. .? The- Hon. J. A. Young sa d the /Leader of the Opposition had found with the Government’is administration, but had not suggested what the Government should do. In a comparative sense New Zealand had done

very well and nau macro very satisfactory provision ior The unemployed. New Zealand’s expenditure on unemployment compared with tnait oi tint am showed the Dominion was doin'l' more per capita than Britain. The Leader of the Opposition had inferred that the Labour Party would pay standard rates of wages if it were in power, but as the money was n°t available this would be impossible. High wages could not be paid it nidus try was not paying, even if the payment of such wages did keep up the purchasing power. The Government had been accused of making matters worse by its deflationary policy 7 , hut he contended deflation had been absolutely necessary so that fixed charges could he brought down in keeping with the diminishing returns. Referring to the World Conference, the Minister said no matter how small the results might have been, the fact that New Zealand had been represented in Britain at such a critical was of great value to the country. Whatever the cost might have been, it Bad been warranted. CURRENCY FACTORS.

The Minister said the currency wa» governed by the prices realised in the world markets. V allies could not be fixed in New Zealand, and anything tii at might be done would be only transitory in effect. If the Government were to issue paper - money basec. on the value of the goods produced tee value of the goods would not be increased, nor would the value of the country’s currency by increased. All that would be increased would be the volume oi' paper money in circulation, and there would be no advantage in having twice as many pound notes as previously if two notes were required to purchase what had been bought previously for one. The Leader of the Oposition had saul guaranteed prices would be better than high exchange, but debt® would have to be created to pay the guaranteed prices, and those debts would have to be redeemed. It had to be admitted that high exchange had added to the cost of imported goods, but notwithstanding that the cost of goods had continued to fall.

The Minister stated that a .lasting solution of the world’s troubles would have to be found, and all sorts of trials and experiments would have to be made to find the way out. While that was being done it was a mistake to create discontent. There was a definite improvement all over the world and the effect of improved prices tor primary products would soon be felt. Mr W. J. Jordan (Lab., Manuakau): That is the result of restricted output.

Mr Young said outputs had been inlarger and better ships to handle increased instead of restricted. The shipping companies were busy 7 building larger and better ships to handle increased trade throughout the Empire. He referred to the firming values on the stock market and said the better prices being offered for Government bonds indicated the sound position of the country and the general return to confidence.

Mr Jordan referred to the rise in the prices of primary produce and said that while the producers would soon get more for their goods the workers would have to pay more for their food. As soon as butter prices advanced in Britain the retail price in New Zealand also went up, and the people in the Dominion had to pay more for their butter than was paid for New Zealand butter in England. Dealing with the World Economic Conference, Mr Jordan said in the aggregate the work of the conference had amounted to nothing. In all the talking that had been done -nothing had been said about improving the condition of the masses. The London moneylenders’ organisation was giving greater concessions and more favourable terms generally to Austria and | Germany than to New- Zealand. He believed, however, that if an effort were made it would be possible for New Zealand to arrange a conversion of loans as Australia had done. He considered action should be taken along these lines in preference to reducing the pensions of miners’ widows, Maori war veterans and others. Mr Jordan submitted that the New- Zealand Govern inent was prepared to subject the people to starvation rather than compromise with the overseas moneylenders. EXCHANGE POLICY BENEFICIAL. Mr A. D. McLeod (Co., Wairarapa) said the huge overseas debt payments could be met only out of revenue obtained from the Dominion’s exports. It was necessary that every acre of settled farm land should produce £5 to meet these payments. He went on to refer to wool prices, and said the average return at the recent London sale had been £7 10s per br.le. The costs incurred between the time it was sold in London averaged £4 5s (id a bale, leaving less than £3 15s for the farmer. This was irrespective of farm costs prior to the time the sheep entered the shed. He added that costs in other primary producing industries were equally heavy. He was satisfied the raising'of the exchange rate had been definitely beneficial, and that while it might' not be a permanent cure It had at least temporarily eased the 'burden. | Mr M. J. Savage (Lab., Auckland West) said the Dominion’s monetarv ■system and trading conditions should be based nr>on such internal once levels as could be maintained In- the productivitv of its industries. The monetary system should further be based on grads and services in order to provide credit and currency sufficient- to meet +he rise or fall in Dominion production. Cen+ral of banking should be transferred from private banking corporations Vx the State. Prices for Porn in !<-•-> nrn-qu-ts should > e guaranteed and should ■be supported hv guaranteed incomes ' sufficient to enable the people to enjoy

the result of their labours. Anarchic methods of production and distribution must give place to planning in conjunction with price guarantees. The world indications were that all countries, including Britain, were striving to provide their own needs. That could be met only by the establishment of additional industries in the Dominion in order to employ their own people. PROBLEM OF MORTGAGES

Primary production must play a major part in the national life, and security of those already on the land called for immediate action. Mortgages pn land and homes- should be adjusted on the basis of the average of wholesale prices for the past seven years, and in the meantime legislation should be passed preventing foreclosure pending the establishment of internal price levels and rates of pay sufficient to enable the IjMders to meet commitments. Social services -should be extended and a schedule of public works, local and national, of first-class importance should be prepared for the purpose of giving immediate remunerative employment. Hours of labour should be reduced in relationship with the productive machinery and scientific processes, and wages should: be increased in relationship with the increased production. External debts should be scaled down in relationship with the increased value of money measured in exports.

Mir F. W. Schramm (Lab., Auckland East) said the Government’s deflationary policy had intensified the position it had set out to rectify. Its record had been a disastrous one. He expressed regret that no provision had been made to relieve those liable under the personal covenant in mortgages, and contended that the Government should ensure that mortgagors who had lost their equity in property should not be compelled to sustain further financial loss. The debate was adjourned. NOTICE OF NEW BILLS. SEVERAL READ FIRST TIME. QUESTIONS TO MINISTERS. WELLINGTON, Sept. 27. Mr. S. G. Smith (Co., New Plymouth) gave notice in the House of Representatives to-day of his intention to introduce the New Plymouth Borough Council and New Plymouth Harbour Board Empowering Bill. Mr. T. D. Burnett (Co., Temuka) asked, in view of the growing demand in South Canterbury for small holdings of from 20 to 50 acres- -and the marked disinclination among owners to .release areas under the Small Farms (Relief of Unemployment) Act, what steps the Government proposed to take in the matter.

The Hon. E. A. Ransom said the Government would give consideration to the necessity for bringing the compulsory provisions of the Act into operation, and if necessary would purchase lands instead of proceeding by way of lease

Mr. A. S. Richards (Lab., Rqskill) asked whether, in view of the rise in the cost of living, particularly the rise in butter and meat, arrangements would be made to provide for an extra day’s work per week for relief workers, or to provide them with extra ration allowances.

The Hon. A. Hamilton said the question u-as based on the assumption that the cost of living was steadily rising. He stated that all groups of figures compiled by the Government Statistician showed a fall in the cost of living from May last year to- August this- year of 5 per cent. August figures this year compared with August figures of last year show-ed that the cost of living had fallen about 30 per cent. The following Bills were introduced q.nd read a first time: Agricultural and Pastoral Societies Amendment (the Hon. C. E. MacMillan), Trustees Amendment (the Rt. Hon. J. G. Coates), Judicature Amendment (the Hon. J. G. Cobbe), Auckland Harbour Board Empow-ering (Mr. W. E. Parry), Law- of Libel Amendment (Mr Cobbe), Marriage Amendment (Mr Cobbe), Arbitration Clauses (Protocol) and the Arbitration Foreign Aw-ards (Mr Forbes). Scenery Preservation Amendment (Mr Ransom), Nurses and Mid-w-ives Registration Amendment (the Hon. J. A. Young) and National Art Gallery and Dominion Museum Amendment (Mr Young). GAMING AMENDMENT PLANS. TELEGRAPHING OF BETS. PUBLICATION OF DIVIDENDS. WELLINGTON, Sept. 27. Introducing the Gaming Amendment Bill in the House of Representatives to-dav Mr. E. F. Healy (Co.. Wairau) referred to a number of petitions addressed to the PTouse in supnort of the proposals contained in the Bill. M’ - Tlenlv said permission to telei rrrn.oh bets to the totalisator would en- [ able the Government to collect substantial additional revenue in the

vicinity of £220,000 a year without any cost oi collection. It would also give urgently necessary relief to racing and trotting clubs and diminish the volume of illegal betting. Referring to the proposal to remove the restriction on the publication of dividends Mr Healy said it was absurd that newspapers should not be allowed to publish these figures when it was possible in any town or village to ascertain ten minutes after a race had been run what horses were first, second and third and what had been the dividends. Advocating the introduction of the “double” totalisator he said the present prohibition against this -machine operated definitely in favour of those laying odds illegally. The Bill was read a first time. INSURANCE LIABILITY. AMENDMENTS PROPOSED. EXPLANATION BY MEMBER. WELLINGTON, Sept. 27. Introducing the Fire Insurance Companies’ Liability Bill Mr. A. M. Samuel (00., Thames’) said that in the past the contract between the assured and the insurance company had been somewhat one-sided because the former undertook to pay premiums on the- full amount of cover whereas the -insurance companies sometimes paid out no more than 50 per cent, of the cover in the event of fire. This was contrary to the principle adopted in the case of life insurance policies. _ Under these policies' the assured paid the stipulated premiums and there was no doubt as to the amount that would ultimately be paid' by the company. The purpose of the Bill was to provide for something approximating a definite contract between the assured and the fire insurance company. This would be in keeping with the policy laid down in the National Expenditure Adjustment Act because it would tend to reduce fixed charges in the direction of fire insurance premiums. The Bill was read a first time.

Debate In Legislative Council

ADDRESS-IN-REPLY MOTION. OPINIONS ON CONFERENCES. DISLOYALTY CRITICISED. WELLINGTON, Sept. 27. Continuing the Address-in-Reply debate in the Legislative" Council to-day the Hon. J. Trevithick said many of the nations which had attended tne World Conference had been more concerned with, their own domestic problems than with the welfare of the world as a whole. They forgot that the interests of the nations -were interdependent and were endeavouring to live- in isolated nationalism. In view- of the serious phase through which the world was passing trade within the Empire should be the slogan of the British Commonwealth of Nations. He was convinced that the small, farm scheme w-as the principal method by which New- Zealand could absorb large numbers of unemployed. In the manufacturing industries men were being continually displaced by machines.

The Hon. M. Fagan said the raising of the exchange rate had resulted in the transfer of money from one section of people to another section. In view- of the fact that the Imperial Conference of 1931 and the Ottawa Conference had failed there had been no reason to expect the success of the World Conference, where the problems were more difficult. Thev had. to realise that the job of rehabilitating New Zealand lay within the Dominion itself. Tt was misleading to sav there was little suffering in New Zealand from unemployment, as hundreds of families were in a serious plight. The only remedy was to~p?ace men at work on standard wages. He advocated building an aerodrome at Petone as a means of imnroving the Dominion’s defence and in order to provide w-ork for men in Hutt Valiev. The Hon. R. MeCallum -said there were peonle in New- Zealand who advocated violence and disloyalty, and he swocosted thev should be nlaeed on an bland in the Pacific. He urged the Government to increase the strength of the legislative Council in or*Ter that it could function properly.