ECONOMIC PROBLEMS MAY BE HEIGHTENED BY FALLING DEMAND

Manawatu Times, Volume LIV, Issue 6954, 6 July 1929, Page 8

ECONOMIC PROBLEMS MAY BE HEIGHTENED BY FALLING DEMAND

Weak World Markets

BOUNTIES SYSTEM IN LIEU OF PREFERENCE MOST HONOURABLE PROFESSION. Her Press Association, WELLINGTON, Last Night, The House of Representatives met at 2.30. Mr. E. J. Howard asked that standing orders be suspended to allow the Christ’s College (Canterbury) Bill to be introduced and to proceed as a public Bill. Mr. Howard said the Bill was passed the previous session and owing to a typist’s mistake, contained a reference to “clause eight,” whereas there was no clause eight in the Bill and the words should have been “clause six.” The alteration did not alter the intention of the Bill or of the House. The reason he asked it should be treat ed a 3 a public Bill was to save expense. Permission was granted and leave given to introduce the Bill, which was read a first time.

•In replying to Mr. A. M. Samuel, Hon. J. G. Cobbe (Minister of Marine) said alterations in the ocean bed as a result of the recent seismic disturbances had already been considered by the department and soundings would immediately fco made. In replying to Mr. J. W. Munro, Hon. E. A. Ransom said publicworks were being arranged in the Otago district to absorb some of the unemployed. The Postmaster-General, in replying to Mr. R. Semple’s request that young men receiving small salaries should be allowed to pay radio license fees quarterly, instead of annually, said the cost of "the additional clerical work involved would result in increased charges and ho regretted he could not grant the request. “Dearest Country in the World.” The debate on the Address-in-Reply was continued by Mr. H. M. Rushworth, who said in his opinion the greatest problem before the house to-day was the economic crisis. Questions of land settlement, unemployment, idle capital and the decline in business might be called symptoms of this disease. The problem was how to increase the rewards of people on the land without attacking the standard of living of the people in other occupations. There was a possibility of a falling world market in futuro and this made the position more serious. He contended investigations by an independent outside source had indicated New Zealand wa3 at present the doarest country in the world to live in and this increase in the cost of living rested mainly on the shoulders of the primary producer. Every section of the community increased its charges for goods or services until it came to the primary producer. who, so long as he had a home market, could also increase his prices but if ho had to export his goods to a wo-M market, he could not take this step. System of Bounties.

He claimed the taxation of the necessities of life eventually rendered the land incapable of supporting human life and suggested an of the »ystem of granting bounties- as a substitute for protection. He said in recent years proportionately less money had been raised by means of income tax and more by tax on commodities. He commended this fact to the Minister of Finance, who should bo considering where to obtain money to provide bounties. He added that the cost of money in Hew Zealand was too high and probably tho rate of interest was two per cent above the level ruling in other parts of the world. The time was over-ripe for an overhaul of our finaneial system. In conclusion, Mr. Rushworth' said he agreed with the proposal to give the educational system of the Dominion a direct agricultural bias. He said in 1914 it was regarded as the most honourable calling for a man to be clothed in khaki. If the farming occupation was to he lifted into its rightful position, it must be regarded ns the most honourable profession of to-day. Mr. Makitanara, in his opening remarks, referred to the regret felt by every Maori in the country at the departure of Sir Charles and Lady Alice Fergusson and their pleasure at the rcrovery of the King.

Maori Land Purchases. The speaker said three causes of unemployment were inflated prices for land and the education system which had not encouraged our young people to stay on the land aDd immigration beyond an extent which the country could bear. Prices of land had been responsible for the urban drift and this had been encouraged by the education system of the past, which he was glad to see, was to be altered by the new Minister. He accused the Reform Government of unfairness to the Maoris in relation to the purchase of native lands and dealt lengthily with Maori land purchases from the time of the commencement of the New Zealand company's transactions. Mr. H. M. Campbell criticised tho Government’s handling of the unemployment problem and its failure to reduce taxation and the interest rate. He complained that in the case of people whom the United party had already settled on the land, it had appeared that the Government wishes, to ensure that those eventually securing land were so well-to-do that he could not see how the unemployment position would be assisted in that way. He criticised the United party’s railwav p.olicv and referred to the number e v people killed at crossings in Palmerston North, lie could not see any reason whv the deviation should not have been carried out. He considered the Tamm line should have been constructed in preference to the South Island extension and he believed the former would have been a more successful financial undertaking. Small Fruit Farmers. In referring to the fruit industry, ho said he hoped the new Government would continue to assist small men, becama without that assistance, many

of them would be in a difficult position. Mr. H. R. Jenkins supported the view j that unemployment was largely duo to i the trend from the country to the! towns. A contributing cause was tho | Government’s advances to workers toj fneiliate building in the towns. This - was no doubt necessary after the war but the time had now arrived when there were many houses in the towns that were unoccupied. He considered i more money should now be advanced j to settlers, in preference to city dwellers. He contended New Zealand could never be an industrial country. It was ( too far from the centre of the world and the standard of wages was too 1 high to allow competition with some j other countries. In referring to immigration, ho said it would be a sorry day if New Zealand ever turned her back on the immigration of British stock. Tile trouble in the past had been that people had come here with high hopes of settling but had not been offered land. ATr. H. E. Holland moved tlie adjournment of the debate and the House rose at 5.30 till 2.30 p.m. on Tuesday.