THE DEPUTATION

Hokitika Guardian, 21 November 1932, Page 6

THE DEPUTATION

AN OFFICIAL VERSION

WHAT TOOK PLACE. WELLINGTON, November 18. The official version of what tooK place at the deputation to Mr Forbes on 'Wednesday night is set out in . a statement issued to-night, wHh the •authority of the Prime Minister, by Mr 'McLeod, who acted as spokesman for the thirty members who waited on Mr Forbes and his colleagues. Before revealing the terms of the statement he presented to Cabinet, Mr McLeod admitted that more than a week la go a number of members, but not including Mr Endean, had a lobby chat with Mr Forbes ■ telling him there vv% dangf • of a debate being forced in the House in connection with the serious position of the primary producers and the possibilities of relief through higher exchange. “We assured Mr For’* V’ lie added, “that we were not in sympathy with 'such a move, but pointed out that if the -debate e.id tnk e place many of us would be placed offside with our constituents if wo did not partic'pafe in it. Mr Forbes thanked us for mentioning t’ko matter and told us frankly that the Government was gravely concerned about the position of farmer's in geneitil and, through them, the position of all -sections -of New Zealand : people. He suggested that we should interview the .general manager of the Bank of New Zealand an-d hear his views, as the Government’s banker, on farmers’ problems.” i• \ ■ GENERAL MANAGER OF BANK.. Describing the interview with the gen era-1 manager, Mr McLeod snid .that Sir Henry Bnckletm, bevfl r j disc-ur.c-ing the possibilities of bonuses, •declined- -to discuss exchange apart from any opinion that might be held bv his directors, which he, of course, was not in a position to refer to. The deputation to Mr Forbes- and his Cabinet last Wednesday aught- followed, and vi response to pre-cure f”om the Reform group, Mr McLeod said, he-had Feted as their spokesman, but ovlv by wav of reading a written statement -which tbev had . approved. After assuring Mi* Forbes tha*- the deputation especially did not desire to embarrass the Government in any wav, Mr McLeod shid.-he had immediately proceeded to read the following statement : “This deputation r°preoen l s th'rtv supporters of the Coalit on, anart from members of - Cabinet, who dajlv are becoming more perturbed as to the serious position of this country’s foundation industry—its great pastoral jndustrv. bv which we mean the indus-t-rv which in meat, wool, dairy produce and' by-products is responsible -for more than -95 per cent, of New Zealand's total exports. We feel that if something is -riot- immediately attempted in New Zealand to bring the price level of pastoral products more in lin e with the costs directly or indirectly borne bv the pastoral industry; in -the shape of- wages, interest and other costs, the md of the present exporting season is going to find the vast majority of pastoral producers insolvent and the economic position of *he country serious’ ieopardised. We recognise to the full the difficulties of the Government, and this- deputation has no wish' to add to them. It, however, honestly feels that unless come further cpmest -and determined .attempt V made by the Government to restore a degree of equilibrium to this country's internal price -level the national results before next winter is over will be far from (pleasant. THE NEEDED .ADJUSTMENT.

“We feel that an adjustment in the internal price level can be effected only in on e of three ways : “ (1) By further drastic cut :S in wages and interest. “ (2)' By payment of substantial subsidies to those in the pastoral industry. “()3 By further raising the exchange against sterling through exports.. ‘We do not urge further drastic cuts, more especially in wages, ;and we cannot support (subsidies if provided from borrowed moneys. We do, 'however, believe that much can be accomplished toward all-round relief bv the raising of exchange to at least 2S per cent, over sterling, and w e feel every cff'V't should be made towards getting the trading 'banks of New Zealand to

adopt such ia policy. “We confess to having no clear idea yet as to what 'is diieffy .aimed at in setting up a Central Bank. If o ne of th e chief aims is to, as oirly as possible, bring New Zealand currency to a par with sterling, then .we believe a very grave risk is being taken. However the necessity for the Government attempting something on behalf of the pastoral industry is exceedingly urgent, and this is the only reason for .such alarge deputation waiting on you.” MINISTERS GENUINELY DISTURBED. Mr McLeod added that Mr Forbes and ->V Coates replied after M n Clinkarrl had expressed his opinions concisely, associating other United members with his views. Both Mr Forbes and Mr Coates definitely stated, sara M r McLeod, that the moving up or down of exchange was not a matter for the Government’s decision, but for the decision of the banks. They both, however, went on to say thy banks, if doing their rlutv, could not d’vest themselves of a national responsibility, which almost as great as the responsibility of the Government. Thov both were as genuinely disturbed as were the deputatiomsts as to the. serious position which had arispn regarding tile country’s exports, and sincerely thanked the deoiPatjon for so frankly putting its view s 'before them. . JM f '