INDEMNITY BILL

Nelson Evening Mail, Volume LXVI, 11 February 1933, Page 7

INDEMNITY BILL

PASSED BY COUNCIL SIR FRANCIS BELL’S OPPOSITION (From “The Mail’s” Parliamentary Reporter) WELLINGTON, lOtli February. During the second reading of the Banks Indemnity Bill in the Legislative Council, the Right Hon. Sir Francis 801 l said he regretted they were unable to send the Bill to a select committee in order to ascertain from the Treasury and banks the liabilities of the Government under the legislation. It had been stated that the Bill was designed to help the man on the land, but under the laws passed relating to mortgages it was provided that competent farmers should be kept on their holdings. Not long ago members of the Government had denounced the raising of the exchange and had Mr W. Downio Stewart prevailed they would still be using those arguments. As a result of the Government’s action local bodies would have to meet £BBO,OOO in additional payment on overseas debt charges and their position would be intolerable. A Government should have ignored the advice of the experts and applied common sense to the question. After all, economics was not an exact science. Th e raising of the exchange meant that a great majority of people would pay for the premium which was being received by a small section. Because of its increased overseas debt charges, the loss of customs revenue, and the liability to buy surplus exchanges, the Government would be faced with the position of having to create a floating debt which would grow annually larger. Australia was being embarrassed by a floating debt at the present time and still had difficulty to face it. The Government did not seem to realise that by taking over the control of currency and exchange it was doing something which for years had been advocated by the Socialists and Communists. In his opinion the policy was in contravention of the Ottawa Agreement and even though it might be his last speech in the Council he would strongly oppose the Bill. The Hon. R.' Masters said as a result of the high exchange farmers would be able to pay their rates and county councils and other local bodies would be in a better financial position. There were difficulties in the way of conversion of the internal debt as almost half the money was held by the Government Departments. It might be theoretically sound to say prices would rise as a result of the high exchange but the Australian experiences had been that the reverse had been the case. Mr Masters said if he was assured the depression was to be permanent he would be against high exchange but the Government hoped for a recovery and as prices rose exchange could be quickly and easily brought back to par. The Hon W. H. Mclntyre said the high exchange would be the means of saving hundreds of farmers from having to walk off their land. It would also stimulate secondary industry as it would act as a tariff.

The second reading was carried by 14 votes to 4, opponents being the Hons Allen, Bell, Fagan and Sidey. The Bill was quickly put through the remaining stages and passed. The Council rose at 4.55 p.m. until [Wednesday.