WELLINGTON NEWS

Hokitika Guardian, 5 August 1930, Page 5

WELLINGTON NEWS

ECONOMICS AND PARLIAMENT. i (Special Correspondent.) WELLINGTON, Aug. 4. There is no gainsaying, the tact tnat economic promeins, m contrast with pie-war tunes, iar traiipoeiin. in impoi'tance tne purely poniieai isaues 01 uie uay. .Vve nave cat, to tnu u> tne' lueasaies that iiave uireauy eecii introduced into our own Parliament tci icanse uie or inn 01 uno. ude unemployment iiiu with us proposed ten tuA. or dus is pure ecmiumno. rui

weeite past, anu even oexoae Paruainenu was in session, coucenoraiwu (unmdiig anU taimng aoout , unemployment anu its economic causes, its imueuies anu ns possible palliatives. ino iluuget, wnu lus piopoaais to increase taxation burden ana us uln.geu oeOminucs is l unuaihemully • a teg promem in econoinitki. Vve unconsciously and by force of habit have come to regard imr r'arliament as uie tninaing maciune of the nation, anu there was justification lor the beliei ivhile Parliament had. to deal with purely pouucm matters but the two racts that in these uays. economic problems dominate political, and that ueinocratic parliaments are not suit- 1 eu lor tneir Handling,, have long ago received recognition in, many countries, of which Germany with her Idcuuouuo Parliament : provides the' most conspicuous example, Even m Britain this has been recognised, for the MacDonald Government hau appointed an Economic Advisory Council, tins is new machinery! to help the Government and the Leg-' islature. The Commonwealth Government has requisitioned, the services of Sir Otto Niemeyer, a high official of, the Bank of England and formerly associated with the British Treasury,i to advisp them apparently on one phase of the economic problem, that of exchange on London. But Australia is not a very satisfactory example for the Commonwealth has had an exhaustive report from the British Economic ; Commission which was specially, invited to examine into Australia’s economic condition#, and has also had the considered opinion of Sir Ernest Harney, who was at the time of his visit to Australia Comptroller of the Bank of England, and is now a director of that institution. It, is probable that the Sculiin Government, will be obliged to take notice of Sir Otto, > for .that Government requires, £30,000,000j which will probably'be granted by the Bank of England, but under stringent conditions. ’

No one claiming sanity would contend that tile Parliament of . New Zealand as it exists to-day is a competent thinking machine to deal with the subtle and complicated economic problems that confront the world today. Our Parliament is. merely an enlarged local body and there are many members of . local bodies much more '■ competent to deal with financial and economic problems than any member of the present Parliament. The only outstanding geeture that' can be credited to this Parliament is that members voted themselves an additional £IOO, and that without the least shame. Yet the members entered the House knowing that the salary was £450 a year, yet in defiance of that; unwritten contract they voted themselvojs a lump sum. A few days ago the Minister of Lands, the Hon. E. A. Ransom, who is a prominent cog in our thinking machine, when defending the Budget displayed considerable ignorance of economics and. persisted in regarding the effect as the cause. In the course of his speech he said: “I have it on reliable information that last year no less a sum than £10,000,000 went from New Zealand to Australia for investment. That is a serious matter to the primary industries, the secondary industries and the workers of the Dominion. What is the advantage to this Dominion if we borrowed money in London to develop this country if £10,000,000 goes across to Australia.” The money that went across to Australia was earned and saved, and it was sent across the Tasman >Sea besause it could be more profitably invested in the primary or secondary industries of the Dominion. Fortunately there are no tariff barriers halting the movements of Credit, which is extremely liquid and democratic, recognising no country, race, colour or creed. When one of the principal cogs in the thinking machines talks in this loose, manner what must we think of the rest? .An Economic Advisory Committee is badly needed in New Zealand.