THE GOVERNOR'S SPEECH

New Zealand Herald, Volume LXVII, Issue 20601, 27 June 1930, Page 15

THE GOVERNOR'S SPEECH

OUTLINE OF LEGISLATION. i THE FINANCIAL POSITION. CUTTING DOWN EXPENDITURE. INCREASED TAXATION LIKELY. [BY TVI-EGS-ira.—PRESS ASSOCIATION.] WELLINGTON, Thursday. A review of recent events in the Dominion and an outline of proposed legislation were given in the speech delivered by the Governor-General, Lord Bledisloe, at the opening of Parliament this afternoon. Addressing members of the Legislative Council and the House of Representatives, His Excellency referred with pleasure to the restoration to heairh of the King. He expressed his pleasure iu meeting members in Parliament, assembled for the first time since his assumption of the office of Gov-ernor-General, and he assured them of his deep interest and his earnest desire to co-operate with them in every way possible. The spirit of loyalty which he had fcund strikingly in evidence during his visits to several of the principal centres j had impressed him profoundly, and by none hail that spirit been mere fervently demonstrated than by the Maori race. Ha was indeed much gratified and encouraged in the task which by before him by the kindly reception which had been accorded to him by those of His Majesty's subjects, without distinction of class, occupation, or race, whom ha had been privileged to meet, since his arrival in New Zealand three months aco.

Els Excellency referred to the resignation of Sir Joseph Ward, and the succession to the Prime Ministership of the Hen. G. W. Forbes. Services. "It is fitting," he continued, "that I should take this opportunity to express a warm tribute tc the distinguished services rendered to New Zealand and the Empire by Sir Joseph Ward. For over 40 years j he has devoted himself to the public life j of the Dominion, serving as a member of ! the House of Representatives, as a Minis--1 ier of the Crown, and for seven years as | Prime Minister. I feel sura I am exnresj sing your own sentiments as well as mine I in the cordial hope that Sir Joseph Ward j will be speedily restored to good health, j and that he may be spared to enjoy many i years of well-earned happiness." | The Governor-General referred to the j Naval Conference, the work of the League j of Nations, and the representation of the j Dominion at the International Labour Conference. Earnest consideration was being directed toward the forthcoming- Im- ! penal Coniarence, which would be ouened ■ in London at the end cf September, and at I which it is hoped that the Prime Minister s will be able to represent New Zealand, | especially in view of the importance of ! the constitutional and economic questions | to be discussed and the magnitude of the i issues involved. Position in Samoa, j The situation in Western Samoa had | continued to cause anxiety. Recently. ! however, the position appeared to have; I greatly improved. Minister of the Crown ] ! desired to re-amrm their willingness to j ' consider any legitimate grievances that might be represented by the Sampans hut would continue to insist upon the observance of law and order in the territory. Addressing members of the House of Representatives, His Excellency said it was pleasing to ncis that the steps taken by the Ministry were successful in rectifying the position cf the public finances, enabling the year to be closed with a surplus of approximately £.150.000. A loan cf £5,500,000 wa»» successfully floated in London in May. "It 13 regretted, 1 ' continued His Excellency, " that the heavy fail in the prices obtained for our primary products in the overseas markets has involved a lessened return from the exports of the Dominion. This contraction in the national income arising from causes beyond. our control inevitably means a period of financial stringency for the whole community. So far as national finances are concerned, my Ministers anticipate during the current financial year a substantial decline in customs revenue and aiso a falline-oix in the yield from land and income tax. Methods cf Saving.

Recognising that the present is not an. opportune time far placing additional burdens upon the taxpayers, mv Ministers propose to meet the position as far as possible by a drastic curtailment of expenditure. This means suspending or severely restricting services and monetary assistance given by the State wherever such action is feasible without upsetting the basic organisation of the departments of State, or causing undue hardships to the institutions or sections of the community directly benefiting by particular items of expenditure. " It is a matter for regret that at a time like the present the difficulties of the situation should be greatly accentuated by the fact that the railways, owing to the'losses incurred, have now reached the end of their separata financial resources, and cannot longer' meet their obligations without substantial assistance, which in this instance can only be derived from taxation. In order that the additional burden to be borne by the taxpavers may be reduced to an absolute minion™, a Royal Commission has been set up to investigate fully all branches of the Railway Department's activities. My 3linisters will place before you legislative proposals which it is confidently expected will minimise the wasteful transport competition which now greatly ini creases the burdens of the peopie. "While it is probable that the present financial difficulties cannot be overcome without some increases in taxation, the Government is confident that, given the support and co-operation of the public, the position can be met and the Budget for iJ:e vear balanced w-.ihcn* economic strain or imposing undue hardship on any section of the community. Unemployment Problem. "It is a sad fact that unemployment is still a serious problem in this Dominion. My Government, realising tiie hardship imposed upon the unfortunate members of the community who are unable to obtain work, will continue its endeavours to provide as much employment as possible on public works and other State activities. "It is satisfactory to note that the position of the State superannuation funds is being investigated and that an increased amount of subsidy was paid into the funds last year." Addressing both Houses, the GovernorGeneral said that the Government had given close attention to the matter of land settlement and it was pleasing to record that substantia! progress had been made. "Not only have many estates | been purchased, subdivided, and disposed cf, but also a large number of sections of unimproved Crown land have been made available and selected under the provisions of the Land Laws Amendment Act of last session, which authorises the Government to grant financial assistance to the selectors. Progress has also been made in the work of developing suitable blocks of Crown land prior to their selection. My advisers propose to pursue actively '-bis method of increasing the Dominion's productive area. In the opinion of my Ministers, this phase of settlement can be greatly expanded and during

the session proposals will be submitted for your consideration extending the facilities under which such areas can he selected. "My Ministers are pleased to record that under the legislation of last -session progress is being made in the development of native lands. Many areas in both islands have been under consideration and work has definitely been commenced on eight of these blocks. These schemes -will be pursued with energy and with due regard to economy and farm efficiency and it is believed that they will inspire the Maori people to utilise their lands to tbe best advantage. Eadio-Telepbone Service. "Arrangements are in tram for the early establishment of a radio-telephone service between New Zealand and Australia. When this service is definitely established it is proposed to use it in conjunction with that easting between Sydney and London as a means of furnishing a further channel of rapid communication with Great Britain and other European countries. No doubt, as time goes on, the link between New Zealand and Australia will be only one in a chain which will render speech possible between the Mother Country and all the outposts of the Empire. "My Ministers, while keenly sensible of the importance of maintaining an adequate system of national defence, have been engaged, owing to the exigencies of the public finances of the Dominion, in a careful consideration of the expenditure involved, particularly in connection with the land forces. A curtailment of the rate of expenditure on this arm of defence has been rendered imperatively necessary and you will therefore be asked to concur in certain modifications of the present system.

"The Select Committee appointed to investigate an educational policy adapted to the needs of the Dominion will present its report early in the session. Situation at Arapuni.

"The Ministry regrets," continued His Excellency, "that recent earth movements have threatened the stability of the hydroelectric works at Arapuni and it has been found necessary to empty the reservoir, involving the temporary closing of the power-house. Very careful investigations into the causes are being made with the best geological advice available in the Dominion and. having regard to the importance of the matter, the Government has under consideration the engagement of outside expert- assistance to furnish a full report- upon the position, with a view to adopting remedial measures. Every effort will be made to restore the supply of electricity at the earliest possible moment.

"The difficult task of endeavouring to solve the problems associated with unemployment has been engaging the close and earnest consideration of my advisers. Proposals, which it is confidently hoped will result in considerably relieving, if not wholly overcoming, the hardships arising from unemployment, will be brought down at an early date. Having regard to the present difficult economic conditions and the prevalence of unemployment in the Dominion my Ministers are of tbe opinion that the restrictions now in force in connection with assisted immigrat-en must be continued."

Hit Excellence referred to the committees set up to investigate the Workers' Compensation Act and the Shops and Offices Act and also to the Ex-Soldiers' Rehabilitation Commission. Proposals dealinir with each matter would be submitted to Parliament.

Law Regarding Companies. "The present la-w relating to companies has long been oat of date and my Ministers hcpe that it will be possible to introduce daring the session a consolidating am? amendins measure, based on the Imperial Comnanies Act. 1529. with such adaptations and modifications as may be considered necessary to suit local conditions. Consolidating and amending hills will fee submitted for your consideration dealing with municipal corporations, land-drainage and river boards and with the slanghf.erinr 3nd inspection of stock intended for human consumption. Bills will also be introduced to amend the existing laws relating to judicature, coroners, apprentices. births' and deaths' registration, public works, native lands, offenders' probation. and Borstal institutions. "While sharing your zeal to enhance the prosperity of the Dominion. I earnestly pray that the discharge of yonr responsible duties ma.- be guided by Divine providence and may promote the well-being of New Zealand and its neoole."

EATES OF EXCHANGE. NEW ZEALAND AND BRITAIN. LIGHTER BURDEN SOUGHT. [BT TEUSGH.VPH. —SPECIAL P.ZPOZTKP..I WELLINGTON. Thursday. Hie rates of exchange between New Zealand and. Britain were referred to in the House of Representatives this afternoon. when notice of their intention to a.«k questions relating to the subject waa given by Messrs. J. A. Yonng (Reform — Hamilton) and C. H. Chapman (Labour — Wellington North). Mr. Young asked whether, in view of the visit to Australia of Sir Otto Niemeyer, of the Bank of England. at an early date, to consult with ihe Federal authorities on financial problems, the Government would take steps to invite Fir Otto to extend bis visit to New Zealand to consult with the New Zealand Government, in the hope that something permanent might be done to relieve th» burden of exchange between New Zealand and England. Mr. Chapman asked the Minister of Finance whether he would indicate to the House ivliat steps were being taken to reduce the high rates of exchange between New Zealand and Britain.