THE H.B. TRIBUNE SATURDAY, MARCH 11, 1933 THE SESSION

Hawke's Bay Tribune, Volume XXIII, Issue 76, 11 March 1933, Page 6

THE H.B. TRIBUNE SATURDAY, MARCH 11, 1933 THE SESSION

Last evening brought to its close a session of our Parliament that is exceptional in many respects. In the first place, it has probably established something of a “record” in the period over which it has been stretched—from 22nd September to 10th March. Of this, however, something like seven weeks, from 10th December to 25th January, were occupied by the adjournment which Cabinet took with a view to preparing the measures it deemed necessary for meeting the emergencies that had arisen. The House has thus really been in actual session only some seventeen weeks, eleven before and six since the long adjournment. But it may be said that the whole of the effective work has been crowded into the latter short term, for before the adjournment, excepting some discussion on the Ottawa agreements, there was little of any real moment brought forward. But during that time it became increasingly manifest that the exigencies of the moment were even more serious than had at the outset been contemplated, so the adjournment was taken with a view to devising means for overcoming them.

The first of these came as a complete surprise in the shape of a proposal to effect an arbitrary increase from the 10 per cent, instituted by the banks to 25 per cent, in the rate of banking exchange as between the Dominion and London. This proposal was so thoroughly and publicly thrashed out, both in and out of Parliament, that there is no need to say miyh more about n how. There has not, of course, been time for the benefits promised to accrue from this step to show themselves among the community, and we can only hope against hope that they may not be long in making their appearance. The disadvantages, unhappily, are only too patent. First among them in time was the resignation from Cabinet of one of its members in which a large majority of the people put the greatest i trust and confidence. That in it-

self was, at a time when cool judgment is so essential, a very distinct and manifest loss to the country. Then followed the extra taxation that was required to meet the fresh obligations, totalling some two million a year, in which the Government had involved itself as part of the exchange plan. Most notable—as being something entirely new in this country —among the devices for raising further revenue was the sales tax, which, coming on top of the sudden lift in exchange rates, cannot but have a very hampering effect upon the recovery of the trading activities of the people that is so much to be desired. It will thus be seen that the benefits to be derived from the high exchange rate will have to be of a very appreciable order if they are to countervail against the definite impositions and. unmeasurable disadvantages that have been incurred. As has been said, in fairness - to the sponsors of the scheme we must give a little time for these possible benefits to mature and emerge. In order to bring the prospective deficit within “manageable”' limits it has been found necessary to levy yet further taxation the nature of which will be fuesli in most memories. Whatever else may be said by way ok criticism of the lines the Government has adopted, there cannot but be some admiration of the complete disregard of political popularity they indicate. At the same time, we cannot leave the subject of taxation without once more asking why relief in this respect should not have been sought by suspenidng the National Debt Sinking Fund appropriations at least until the country can better afford them. We have previously dealt fully with this suggestion and it still passes our comprehension why this quite inesential yearly exaction of £l| million should not be temporarily hungup. We can only hope that during the recess some influential section of the public may take it up and press it at least to the point of public discussion. Last of all among the noteworthy measures has come the great scheme for converting the whole of our internal State debt to a standard interest ritire of 4 per cent. Our views on this subject must also be fresh hi readers’ minds, so that we need, not repeat them here, expressing only the hope that there will be a very general active and affirmative response so as to give the movement as much of a voluntary aspect as is possible. Most people will no doubt fulfil the prediction of the Leader of the Opposition by “heaving a sigh of relief” that, for a time at any rate, we shall be free from furuther parliamentary shocks. Deep as this popular sigh may be, it will probably be nothing so profound as that issuing from members of Cabinet, who will now be able to give their undivided attention to the many difficult executive and administrative tasks that await them. The least we can do is to recognise the very serious and complex character of those difficulties.