PARLIAMENT OPENS

Manawatu Standard, Volume LXI, Issue 87, 12 March 1941, Page 7

PARLIAMENT OPENS

NEW GOVERNOR'S ADDRESS

WIDE REVIEW OF WAR ACTIVITIES The new session of Parliament was opened this afternoon by His Excellency the Governor-General, Sir Cyril Newall, who delivered his first Speech- from the Throne. In this His - Excellency dealt at length with the Dominion's war effort and future aims in this connection.

In the course of his Speech His Ex-' cellency said:— . . . ' Honourable Gentlemen of tho Legislative Council and Members of House of Representatives : I feel it a great privilege to have this opportunity of meeting you for the first time in Parliament assembled. I warmly appreciate the honour conferred upon me by His Majesty tho King in enabling me to associate myself as i, His Majesty's representative with the life and activities of this Dominion) which has so long and so justly prided itself upon its traditions of loyalty to the Throne and devotion to the British Commonwealth, and to the principles of democracy for the defence of which we are now at w : ar. Although it is but a short period since I landed on your shores, I am taking, and will continue to take, every opportunity of meeting the people in all districts, and I have been very much moved by the unmistakable warmth of the welcome that has everywhere been extended to me and to Her Excellency. It is my earnest hope that 1 may, by God's will, be permitted to assist in some measure in forwarding the prosperity and the development of the Dominion.

I have come to New Zealand during the course of a struggle upon which the "fate of the British Commonwealth and, indeed, of civilisation itself depends, and I have been most happy to note the strength and firmness of the determination that animates my Ministers in prosecuting this conflict to a successful conclusion. The proper and adequate direction of the Dominion's war effort has been materially assisted by the establishment of a War Cabinet, and my advisers desire to emphasise the undoubted advantages that have resulted from this measure in placing the higher direction of the Dominion's war effort upon a wider basis. By the establishment of a War Council,* providing as it does for: the direct collaboration with my Government of representatives of labour, employers and farmers, it is felt t>iat every section of the community has been afforded some means of expressing its views and exercising its proper influence on the country's war effort. Most valuable assistance has been rendered also by the National Production Council and the Industrial Emergency Council and other advisory bodies which afford those immediately concerned in trade and industry the opportunity of consulting directly amongst themselves on war measures and of advising my Ministers of their respective requirements. The Dominion's contribution to the war has been one of which wo may be justly proud. An Expeditionary Force of large numbers, well trained and equipped, is now established overseas and when it is put to.the test of arms it will undoubtedly prove a worthy successor to the New Zealand Expeditionary Force of 1914-18. Although our Forces have not as yet participat-. ed as ■&■ .fighting-.unit, in the -Libyan | campaign, we were nevertheless worthily represented in these operations by signals, engineer and transport personnel whose services received high praise from the Commander-in-Chief. • DEFENCE OF NEW ZEALAND. In New Zealand, His Excellency proceeded, there has been a rapid expansion of the Forces available to dclend our own shores against possible attack. Our coast defences, now continuously manned, have been constantly reviewed'and strengthened; the Territorial Force has been expanded and is under concentrated training; a national Military Reserve, a. Homo Guard, a large and comprehensive Emergency Precautions Organisation, and a Women's War Service Auxiliary have been established and are being trained and equipped. My Ministers have taken, and will continue to take, every possible step to ensure that we are fully prepared here to meet any contingency that may arise. My advisers are warmly appreciative of the ready response of local authorities and the general pubJic to all demands and requests that the requirements ot the time have necessitated. . After the fullest consideration, ana notwithstanding a steady and. most encouraging flow of volunteers, my Ministers during last year determined to introduce a system of universal military service as the most equitable method of meeting, the greatly increased man-power requirements of the Dominion, and J. am happy to say that under this system the splendid spirit of our young manhood undergoing military instruction has been fully maintained. 1 am particularly, happy to say that a battalion of the Maori race has left our shores to play its part in the common cause. In view of the vital importance ot the closest possible liaison between British and Allied countries my Gov-* eminent have been represented by their Chiefs-of-Staff and others at various conferences on war strategy and. supply, and in addition the Chief of the General Staff has visited the theatre of operations in the Middle East and from many sources gathered recent and valuable information for my Ministers. OTHER EXPANSION.

Mr Speaker and Members of the House of Representatives : In spite of the abnormal conditions resulting from the war, the economy of New Zealand has continued on a satisfactory basis. Exports for the year ended December 31, 1940. reached the record figure of £73,700,000, due partly to the existence of satisfactory fixed prices for most of our exports and partly to a gratifying increase in; production in all the main fields of primary industry. This figure is £7,000,000 greater than the previous record of 1937. The imports for 1940 were £49,000,000, a reduction of £400,000 on the previous year; The smallness of this decrease is an indication of the extent to which increases in' the cost of imported commodities have tended to offset- supply difficulties arising from the war and the restrictive effects of import selection. As a result of the year's overseas trading there has been a substantial improvement in the sterling balances of the Dominion, but it is still necessary severely to curtail imports of non-es-sentials in order to provide funds for the purchase of war materials and for meeting as much as possible of the expenses of maintaining our overseas Forces. In particular, the use of dollar funds is being rigorously controlled and thus restricted to the barest minimum in order not to hinder British Commonwealth war purchases from the United States of America. Moreover, the favourable export position which obtained in 1940 will not he maintained during 1941, as exports of meat will be affected by. the restrictions in shipping .space imposed as a result of war conditions.

His Majesty's ships of the New Zealand naval iorces are disposed arid employed to the best advantage and are constantly at sea. The mmesweepina'tlotiLla has been greatly strengthened by the taking up and conversion of suitable merchant vessels, and last motor launches have been requisitioned for duty as patrol craft. My Ministers have recently made provision for a naval training establishment at Motuihi Island at Auckland. This establishment has already commenced its activities and further.works and buildings to enable large numbers to be accommodated and intensively trained ere making good progress, tomce the outbreak of war the personnel of the New Zealand naval forces has increased threefold. . The large and rapid expansion ot the Royal- New Zealand Air Fore?gendered necessary to enable my Government to fulfil their commitments under the Empire air training scheme has now been' completed, and it is most oratitying to my Ministers that the output' of New Zealand-trained air ■personnel required under the Empire scheme has been achieved in so short „ time. The requisite numbers of trainees of the high physical and educational standard required are being maintained on a voluntary basis, not » only for service abroad but for the crowing requirements of the air defence of New Zealand. It is within my personal knowledge how gallantly and competently New Zealanders have played their part abroad in the war of the air.

The war has imposed upon us large and important alterations in the Dominion's economic life. The inevitable restriction of imports and the burden imposed upon trade, industry and production by tho regular withdrawal of men for the Armed Services have necessitated the most careful consideration of my advisers with a view to minimising' disruption to the utmost extent possible and so organising our national economy that the'Dominion isenabled to play ita full part in the common effort. The necessary adjustments have been made, for the most part with the consent and goodwill of all concerned, and my Ministers are confident that any alterations that the future may demand will be effected similarly. The Dominion's achievement in production has indeed been a notable one. The. agricultural and pastoral season has been good, and the response of farmers to the appeals from the United Kingdom for increased production of certain commodities has been outstanding. A large and growing proportion of the clothing and equipment required by the New Zealand Forces is being produced locally, ancjgthe progress made in the manufacture of munitions has been most gratifying. My Government have directed special attention to the expansion of munitions production. In June of last year a strong delegation headed by my Minister of Supply proceeded to Australia to discuss with His Majesty's Government in the Commonwealth of Australia matters relating to increased production within this Dominion and the provision of the necessary supplies of raw material. Since that time the growth of munitions production in New Zealand has been very rapid. My Government were also represented at the Eastern Group Conference called by His Excellency the Viceroy of India towards the latter part of last year, and as a result of discussions at that conference the Dominion's capacity to produce particular items of munitions will be employed as required in the interests of other members of the Eastern Group, whose resources will in turn be available to us. My Government have accepted the recommendations of that conference and have appointed a representative on the Supply Council which is to operate the organisation. Co-operation between employers and workers has enabled the necessary degree of flexibility to be introduced into the Dominion's labour legislation with the object of obtaining a greater output of war requirements, and my Government propose, in addition, to utilise as far as possible measures for the training of auxiliary workers, some of which are already successfully in operation. With the increased demand on the man-power of the Dominion that must inevitably be expected, however, it may well be that my Government will be:obliged to. arranged still further for the diversion of labour from nonessential to essential industries and to call to an increasing degree upon the services of women, large numbers of whom have already come forward in the most commendable spirit to offer their services. Activities in respect of public works have necessarily been substantially curtailed since the outbreak of war, and though in the opinion of my Ministers restrictions in this direction must continue in the meantime, nevertheless they are convinced that certain urgent national works in connection with hydro-electric undertakings, transport development and projects designed to assist primary and secondary industry, including irrigation and land development, must be continued as far as is practicable. DOMINION'S TRADE.

WAR EXPENDITURE. The national receipts and expenditure, as shown by the Public Accounts for the nine months ended December 31, 1940, indicated a. gratifying position in view of the difficult times, and it is anticipated that the end of the financial year will disclose a satisfactory surplus of receipts over expenditure. \ As regards war expenses, the actual expenditure brought to charge in tile war expenses. account from its inception in September, 1939, to December 31 1940. was £19,900,000. On the receipts side £10,900,000 was raised by taxation and £13,900,000 by loans (including £2,672,000 given interest-free), while donations amounted to £71,000. In accordance with the policy of my Government that everyone should contribute to the war effort, a war loan is being raised with provision for compulsion in those cases where contributions are not appropriate to the means of the persons concerned as measured by their liability for income tax. At the same time a system of national savings has been inaugurated with the design of collecting and using for the war effort small savings on a vo untary basis. In order to provide funds from the savings of the people, lor civil works of national importance my Government have recently opened tor subscription national development loans in line with the practice m other parts

of the British Commonwealth. Steps have been taken through tho Reserve Bank to mobilise our holdings of overseas currency and securities in order that additional funds may be made available for the purchase pf overseas war supplies.' ... In the opinion of my Ministers it is necessary at all times to have regard to the possibility that war exigencies may materially alter the economic and productive structure of the Dominion, based as it is so largely upon exports to the United Kingdom. As the war develops, and until the full effect is felt ot the measures that are being taken, it may well be that the necessity of using available shipping to the fullest advantage may restrict to a considerable extent the exports from this Dominion. My advisers are fully aware of the potentialities of the situation and have the matter constantly under review. ■ My Government have continued to keep the closest watch oh the trend of prices and through the Price Tribunal they maintain full control over the prices of goods sold in the Dominion. That this control has been effective is shown by the relatively small rise that has taken place in the cost of "living'in New Zealand in proportion to the considerable increase in the cost of our importations. LABOUR'S PROGRAMME.

Honourable Gentlemen of the Legislative Council and Members ot the House of Representatives: My Ministers feel that the social security legislation which has now been in operation for almost two years has proved an unqualified success and that they have every reason to be proud of their achievement in placing on the Statute Book a measure which effect-

ively safeguards all residents of this Dominion from disabilities arising out of age, invalidity, widowhood', orphanhood, unemployment, sickness, or other exceptional conditions. My Government inaugurated on March 1 last general arrangements for medical benefits and for benefits in respect of outpatient treatment in public hospitals, which they are confident will add materially to the health and wellbemg of the community. .' : My Ministers have felt it desirable to continue, so far as circumstances allow, the operations ot their housing scheme, and during me year ending March 31, 1941, it is expected that some 4000 houses will have been completed under that scheme. At that date over 20,000 applications for houses will remain unsatisfied, notwithstanding the fact that since the inception of the scheme tenders have been called for 13,778 houses, of which 10,106 have been completed and are in occupation. My Government deeply regret that owing to war exigencies it was neccssarv to suspend the operation of the arrangement under which considerable numbers of British children were to be sent to the Dominion for the duration of the war. Those who did arrive were warmly welcomed and have been well cared for, and it is hoped that before long it will be possible to resume the operation of this great measure or ;

humanitarian relief. The most important and urgent problems of post-war repatriation, reconstruction and expansion- have tor some time past been under the earnest consideration of my Government, who are determined that the conclusion ot this war will find the Dominion adequately prepared to provide for the returning members of the Armed Forces and for their absorption into normal civil life. With this object in view, my Government have appointed a Cabinet committee comprising those Ministers who will be most concerned, and this committee is already investigating the provision of adequate housing accommodation, land for settlement, the establishment of new industries such as iron and. steel, sugar beet, paper-pulping, rubber tyres, erosion control, irrigation and river control, the expansion of existing industries 6ucb. as forestry, sawmilhng, linen-flax growing, paper-milling, the manufacture of woolpacks, tobacco, serpentine fertiliser and the expansion of our hydro-electric and railway systems. These, with the rein trod uction of public works which have been postponed during the war, will, it is hoped provide avenues of useful employment for all. At the same time this committee is engaged tipon the preparation of training schemes for returned men who, through previous lack of opportunity or physical disability, are not suitable for immediate absorption into ordinary forms of employment, while adequate provision is being made for hospital accommodation where required to ensure the most modern treatment for disabled men. My Government, who propose very shortly to associate with themselves in this matter representatives of the returned, soldiers, farmers, rural and urban workers, manufacturers, commerce and other interested sections of the community, are confident that their plans for these purposes will be adequate and ready when the need 3. r i sc s 'LITTLE LEGISLATION.

The legislation that will l»e presented to you during the session will be of small proportions. In the opinion of my advisers the times are such that the attention of all responsible men and women should be directed toward essential matters only and that those of less importance should properly bo postponed until the present crisis has been surmounted in the conflict in which we are engaged. My Ministers have no doubt that there are stern days ahead and that the British Commonwealth and its Allies will require all tneir fortitude to meet the blows that may be expected and all their strength to overcome a fanatical and unscrupulous foe; but they have been greatly encouraged by the inability of the enemy to strike any decisive blow during the period when our preparations for war as a peaceful nation were at a low ebb. The admirable fortitude of our kinsfolk in the United Kingdom, the magnificent exploits of the Navy, the Army and the Air Force, and the heroic resistance of the Greeks, have been an inspiration to us all, and with the growing weight of the resources now rapidly coining forward, the loyal co-operation of out Allies and the rapidly increasing help and friendship extended to us by great and friendly neutrals, the Government are convinced that we can press forward with confidence and resolution, sure of the righteousness of our cause and certain of ultimate victory. I pray that in your deliberations you may he guided by Divine Providence for the safety and prosperity of the Dominion and for the cause to which it has pledged itself, His Excellency concluded.