MINISTERS RETURN

Manawatu Standard, Volume LV, Issue 226, 22 August 1935, Page 2

MINISTERS RETURN

RECEPTION AT WELLINGTON. REVIEW OF NEGOTIATIONS. A NOISY SECTION. Per Press Association. WELLINGTON, Aug. 21. A civic welcome home to tho Prime Minister (lit. Hon. O. W. Forbes) and the Minister of Finance (Rt. Hon. J. G. Coates) was extended by the city ot AVellington in the Town Hall tonight, the Mayor (Mr T. C. A. Hislop) taking the opportunity on behalf of the citizens to express good wishes to the Ministers. Messrs Forbes and Coates, replying to tire welcome, surveyed the outcome of tlieir mission, Mr Forbes discussing chiefly the King’s Jubilee celebration and Mr Coates the meat negotiations. In their own fashion a noisy minority “welcomed” Mr Forbes and Mr Coates when they addressed an audience that in the main was friendly. The Communist clement was present in force and a number of interjectors were removed by the police. Although Mr Coates, when ho could be heard, prevented other ejections by an appeal to the police to leave tire interrupters alone, Mr Forbes’s opening was lost in booing and shouting from the back of the ball, the main demand being an explanation why he in_a speech in Canada had committed New Zealand to war in the eveiit of England’s participation. Mr Forbes eventually was allowed to explain that what he had said was that liefore New Zealand would go to war in association with England the New Zealand Parliament would have to l>e called together. Tire explanation did not satisfy the back of the hall, pandemonium reigning for several minutes. Mr Forbes in his speech, once the rowdyism had died down, spoke of the Jubilee processions in London and went on to describe bis visits to the industrial centres of Leeds and Bradford, and to flic scientific research stations. He paid a i riliute to the work of Mr Coates and to their colleagues who carried the burden during their absence. Mr Coates during his speech also had to cope with repeated interjections.

During the height of the uproar, when Mr Forbes was speaking, several members of the Democrat Party at present attending the conference m Wellington left the liall, this being interpreted as a gesture dissociating themselves from the rowdy element. RELATIONS CEMENTED. Mr Coates, after returning thanks for the welcome extended to the Prime Minister and himself, said the recent discussions had further cemented Imperial relations and the United Kingdom Government, in formulating their agricultural and import poliices, would know the trend of developments in New Zealand and make full allowance for them. “For our part we have gained a surer and more intimate and personal knowledge of the great changes now taking place in the United Kingdom,” said Mr Coates. In dealing with the conversion loan Mr Coates said the conversion arrangements illustrated the high esteem in which New Zealand is held abroad, and they indicated, too, that New Zealand is regarded as one of the most economically sound countries in the world.

The conversion ioan recently negotiated was £10,135,800 of 5 per cent, stock, maturing in 1945, but the Government had an optional maturity clause whereby the stock could l>e redeemed or converted to a different rate of interest after July, 1930. “Although there was no need to pay off any of the loan, there being ample funds available in London for conversion we decided that it would be wise to meet £2.135,000 of the loan by a cash payment and to convert the remaining £8,000,000,” Mr Coates continued. “The result was a conversion at 981 to 3 per cent, maturing in 1955, but with an optional maturity date safeguard. The yield to investors wroked out at the record low rate of £3 0s lOd. With all expenses included the annual cost to the Government is £3 2s Id per cent. We feel that we could not have gauged the feeling of the London market better. The stock issued at 98] rose by. i to 98J and has remained there.

“Another feature worth noting is the long period (20 years) for which we have secured the low rate of 3 per cent. This should be remembered when comparing financial arrangements made by other countries. Australia recently converted a small part of her overseas debt at par ior 3 per cent., but this was for four to six years, a very short period. For investors to lend for 20 years at 3 per cent., as with our recent conversion, indicates that New Zealand’s credit position is sounder than it has ever been.” CO-OPERATIVE POLICY. The Finance Minister referred to the British Government’s desire to protect the British farmer and said New Zealand’s best policy was to cooperate with the United Kingdom Government so that any scheme evolved for protecting the British producer would as far as was humanly possible also he in the best interests of the New Zealand producer. New Zealand had secured nn agreement that no levy or tax would be placed bv the United Kingdom on imports of New Zealand mutton and lamli. In addition, the principle of regulated marketing was retained, so that from both points of view—prices and quantities—the mutton and lamb agreement was eminently satisfactory. Dealing with the' general outlook in Britain, Mr Coates referred to the activitv in many important lines of British industry. “While the north is comparatively depressed, there has been a shift in‘British industry to the south. Light industries are springinc up within easy distance ol London and on a scale which suggests planned development. The industrial, transport, and town-planning authorities are working together, and over a great part of England new factories are to be seen. Buildings are going up, villages are growing into towns, and housing is neing tackled on a national scale. There has been a spurt in new investment and a significant decrease in the number of unemployed. England is in better shape than before tlie world depression. Confidence and industrial activity have returned,” said the speaker. THE MEAT AGREEMENT. Mr Coates then referred to the unfinished meat agreement. It might be said that as far as New Zealand was concerned they had reached a point before he left where, a satisfactory settlement had been arrived at. All the outstanding matters of difference between themselves and the other parties to the discussions—and the differences were considerable enough at the early stages of tho negotiations —had been' cleared away. The settlement arrived at was acceptable to the New Zealand Cabinet and to the Meat Producers’ Board on behalf of the producers. But other Governments, some within and some beyond the Empire—Governments which had treaty rights in this connection—had yet to definite their attitude. One point that had general recognition was. that if the producers were to ho saved from ruin there must be intelligent regula-

tion of supplies coming on to the market. There must be a collective effort. If farmers insisted on remaining in cut-thront competition they would suffer. The next plain lact that had to be faced was that the United Kingdom Government were not prepared on their own undivided responsibility to regulate supplies coming on to their market. They had found that was a task, however necessary. it might be in the interests of producers generally, to which considerable odium and difficulty attached. THE COUNCIL SCHEME.

The plainest lesson from experience was that a tariff would not solve the present problems, even if it gave substantial preference to New Zealand, so they were driven back to the necessity for a system of regulating supplies. Hence arose the suggestion of setting up an Empire Meat Council which would have an extensive responsibility in relation to market supplies. In addition to an Empire Meat Council it might be found necessary and expedient to have another inclusive authority which would embrace representatives of _ all the supplying countries. To this conference the United Kingdom would call all who were substantially concerned with their meat market in the United Kingdom. It would lie an advisory and recommending body acquainting the Governments of the facts and outlook for various types of meat. An obviously indispensable part of any plan along the lines sketched was that within each producing country the producers themselves should lie effectively organised. Their representatives would he directly linked with the Empire Meat Council and with any other body of the kind. In the light of that it was a matter for congratulation that in New Zealand they had an organisation, the Meat Producers’ Board, already at hand and functioning. “I'liere has been a good deal of talk of imposing a levy on imports of agricultural produce in order that the United Kingdom producer might be assisted. Nothing was to bo said about that because nothing had been decided,” said Mr Coates, “but we have made it clear that if there is to bo a levy—and this would inevitably fall in part, at least, on the producers in the countries of supply—we cannot be altogether indifferent to the purposes for which it would bo used. If it were earmarked solely for subsidising the competitors of our producers regardless of their efficiency it would be moio objectionable. “If in part, at any rate, it could bo used for taking surpluses off the market and for distributing them to people who would otherwise be going short, it would to that extent be less objectionable. That is the view we have pressed. The task of increasing consumption, especially among tlie poorer sections of the community, had to he watched,” continued Mr Coates. ‘That problem was important to the discussions in London and there was every prospect that definite steps would be taken to increase the consumption of foodstuffs. LOW CONSUMPTION.

“The low consumption of butter and meat products among the wage earners and others of low incomes as well as the importance of the price factor was shown by recent inquiries in Britain. Inquiry showed that 4,500,000 of the population with an income of 4s per week per head spend lOd per week per head on meat and 2d on butter; 9,000,000 with an income of 5s 9d per head per week spend 17d per head per week on meat and 4.2 don butter; 9,000,000 with an income of 8s per head per week spend 24.5 don meat and 5.9 d on butter; 9,000,000 with an income of 10s per head per week spend 28d on meat and 7.1 d on butter. Seventy per cent of the people covered in the investigation, or, say, 31,000,000 out of the population of 45,000,000, spend on an average 21d per week on meat and 5.2 d on butter. On the other hand, those with incomes over 14s per head, or about 4,500,000, spend old on meat per week and 10.2 d on butter. Naturally it was to New Zealand’s interest to co-operate in any endeavours to increase consumption and the Government would give sympathetic support to any practicable methods of increasing consumption in New Zealand.”

Many other questions of importance to New Zealand had received attention, said Mr Coates. Careful inquiries were made into housing policies, health insurance, and pension schemes. In addition discussions were Held with representatives of Belgium, India, Germany, Russia, South Africa, and Sweden These would be dealt with in detail at a later date.