PARLIAMENT

Hawke's Bay Tribune, Volume XXII, Issue 269, 28 October 1932, Page 8

PARLIAMENT

HOUSE OF REPRESENTATIVES BUDGET DEBATE NOT YET FINISHED. REFERENCE TO ARAPUNI. Wellington, Oct. 27. The Budget debate was continued in .the House of Representatives to-day bv Mr J. Connolly (Mid-Canterbury), who said that it was still necessary for the country to practice economy owing to the low prices of primary products and general financial conditions. He felt sure that the time would come when people would look back on the present difficulties as an experience and not as a catastrophe. He stressed the need for new markets and suggested that the potentialities of China and Japan as markets should be investigated. If exporters of meat would give one per cent of their produce to the Meat Export Board to be distributed in Eastern countries it should be possible to create a demand which would lead to the development of trade. Attention should also be given to the increasing demand for meat within New Zealand, as there were thousands, of families who had insufficient meat. Mr W. E. Parry (Auckland Central) expressed the view that Britain was more interested in what she could supply to New Zealand than in what she could buy from New Zealand. The whole subject was considered along Capitalistic business lines. He described the nations of the* Empire as comrades in competition and declared that the Government should conduct its trade.on the sound basis of taking in imports from any one country the same amount as that country took of our exports. It should see that balance was maintained no matter what country was concerned.

‘.‘REACTIONARY AND CRUEL.” Mr Parry characterised as reactionary and cruel any policy which contended that the raising of large sums of money for the alleviation of distress would add a greater interest burden to the young people of to-day on their maturity. Mr H. G. R. Mason (Auckland Suburbs) said that the only indication of policy that could be found in the Budget was the opinion that we should look abroad for a solution of our problems. He thought that before doing this we should at least ascertain that there was some prospect of our finding a solution in this manner. He referred to Mr Montagu Norman's recent speech and added that the idea was that there should be a world conference of gentlemen who were all equally lost, and it was going to be a case of "the blind leading the blind.” It was to these people, he said, that we were looking for the formulation of our monetary policy. The House adjourned at 5.30. Mr R. A. Wright (Wellington, Suburbs) quoted figures to show that New Zealand had been getting behind to the extent of £2,000,000 a year in payments on her debt. Referring to the recommendations of the National Expenditure Commission on Hospital reform, Mr Wright urged that there should be a thorough investigation of the proposal to amalgamate hospital districts provided that this could be carried out without interfering with the welfare of the patients. The cost of hospital administration had increased far too much in recent years, and the time had arrived when a halt should be called. Mr J. A. Nash (Pahnerston) voiced opposition to the* recommendations of the National Expenditure Commission regarding hospitals. He said that hospital administration in New Zealand had been reduced to a very fine art, and he sincerely hoped that the Government would not adopt the recommendations unless representatives of the Hospital Boards’ Association were given an opportunity of placing their views before a select committee of the House.

Discussing the commission’s recommendations regarding education, Mr Nash said he agreed that boards could be abolished. The whole change could be brought about by raising the status and increasing the powers of school committees. In view of the services which committees were called upon to perform, he believed that they were entitled to receive more consideration. There was room for saving in . the cost of administration of higher education. He advocated the placing under the control of one authority technical and secondary schools in any one town. AGRICULTURAL POLICY. The Minister of Agriculture (the Hon. C. E. Macmillan) referred first to the report of the National Expenditure Commission. He said that it had been necessary for the Government to formulate its policy on certain questions prior to the reception of the report from the commission. Cabinet in its wider survev of the position had decided its attitude in regard to the destruction of rabbits, the fertiliser subsidy and the free carriage of lime. It regarded these operations as investments which would offer a good return to the State. The Government was quite satisfied that it would not be wise to give effect to the recommendations of the commission on these subjects, and consequently it would not do so. Mr Macmillan expressed regret that finances did not permit the Government to do more to assist the development of gold mining. He was convinced that the Dominion was on the eve of big developments in gold mining. There had been many improvements in methods. The Government was making every‘effort so far as the limited funds available would allow to assist the industry, and it occurred to him that it would be advisable to build up funds from royalties on gold won for the purpose of enabling the Government to bore and try out country. This would be a substantial inducement to investment. ARAPUNI AN ASSET. Referring to Arapuni, the Minister said that there had been much criticism both inside and outside the House concerning the installation of hydro-elec-tric plants. People spoke of them as extravagant. He admitted that they were a good deal ahead of their times, but it would ultimately prove less costly for them to be installed in this way than to have to add to them later as the demand for power increased. He quoted figures to show that hydro«lee- ( trie plants generated at a lower cost.

per unit than steam plants. Continuing, the Minister said that there was no cause for alarm concerning Arapuni, and he believed the people of New Zealand had a very good asset in this undertaking. "Even if the worst comes to the worst,” he said, "even if it becomes necessary for engineers to relieve the pressure on the surrounding country ,y rendering the diversion tunnel capable of taking that pressure, the plant will still be capable of generating 80,000 horse-power at a cost of £32 5s per horse-power.” The debate was adjourned when the House rose at 11.25. PRIVATE MEMBERS’ BILLS MINISTERS REPLY TO QUESTIONS Wellington, Oct. 27. Mr H. G. R. Mason (Auckland Suburbs) gave notice in the House of Representatives of intention to introduce the Divorce and Matrimonial Causes Amendment Bill and the Auckland Transport Board (Conversion of Loans) Empowering Bill. Replying to a question by Mr Barnard, the Hon. J. A. Young said that he was indebted the member for Napier for having drawn his attention to a placard headed “Ridiculous Statement Denied.” He said that the advertisement misquoted .emarks by himself and had brought in words he had not used when replying to a question asked by ,Mr Barnard earlier in the session concerning a certain patent medicine. The advertisement had also omitted a veryimportant portion of the reply in which he had said the preparation was subtle in its influence and should be taken only under medical advice. He would take immediate steps to communicate with the firm concerned. The Auckland City Empowering Bill (Mr M. J. Savage) was introduced and read the first time.

OVER-SUPPLY OF BANANAS. Replying to Mr W. E. Barnard (Napier) Mr Forbes said that owing to a considerable ‘over-supply of bananas to the New Zealand market, which had resulted in ruinous prices and heavy losses, all supplying countries (including the Cook Islands and Western Samoa) had decided tb limit the quantities to be shipped so as to allow the importation into New Zealand of a total quantity of bananas equivalent to 25,000 “Fiji” cases every four weeks during the months May to September and 30,000 cases during the remainder of the year. These quantities were considered to be the utmost that could be absorbed in the Dominion at a price that would enable growers to supply. No proper indication of average prices could, of course, be obtained from sales in October, November and December, when prices were invariably higher than during the remainder of the year. Continuing, Mr Forbes said that in the absence of some such agreement many growers had been on the point of being forced out of business, and .the result would have been a shortage of supplies with a corresponding increase in the price to the consumer m New Zealand, followed by disturbing fluctuations in both supplies and prices. The position of growers in the Cook Islands and Western Samoa had been most serious, and the Government had been reluctant to consider anything in the nature of a duty, which would have been the only alternative to the quota system. The present arrangement was considered to be in the best interests of both producers and consumers, who would each benefit by a system ,gf orderly marketing.