GOVERNOR'S SPEECH.

New Zealand Herald, Volume LXIX, Issue 21116, 25 February 1932, Page 13

GOVERNOR'S SPEECH.

DIFFICULT CONDITIONS. SPECIAL STEPS NEEDED. IMPERIAL'" TRADE AFFAIRS. DEFICIT IN NATIONAL FUNDS. [BY TELEGRAPH. —FRESS ASSOCIATION.] WELLINGTON, Wednesday. An indication of tlio Government's legislative programme was given by the Governor-General, Lord Bledisloe, in his speech at the opening of Parliament today. Addressing members of the Legislative Council and the House of Representatives, the Governor-General said the special session of the new Parliament bad been summoned owing to the abnormal financial and economic position of the Dominion. At the general election, the Government, in inviting an expression of tho country's confidence, appealed for unfettered authority in the existing emergency to adopt such measures for meeting it as circumstances might from time to time appear to justify. Since then, Ministers had devoted their earnest attention to the difficult and complex problems confronting the Dominion and suitable legislation would lie submitted. His Excellency expressed his hopes for tho success of the Disarmament Conference at Geneva and his regret at the recent disturbance of peaceful relations between China and Japan, but it was to be trusted that tho efforts of Great Britain and tho other Powers to effect reconciliation and peace might be successful Representation at Ottawa. He mentioned the Empire Economic Conference to be held at Ottawa in July. The Cabinet was now engaged in taking the preliminary steps necessary to ensure the adequate representation of the Dominion and the due presentment of its views on Imperial trade. The commercial relations between the Dominions of Canada and New Zealand had for some time been receiving the earnest consideration of tho Government, and he was pleased to say that as a result of the recent Honolulu Conference, a provisional agreement had been reached which would bo placed before Parliament fur ratification. The Government had recently arrived at .1 trade agreement with the Belgian Government and this also would laid before Parliament for endorsement. Addressing members of the House of Representatives, His Excellency said the economic difficulties which were still besetting the whole .of the civilised world continued to affect the well-being of the Dominion, and, unfortunately, the hopes which were freely expressed last year that an improvement might be expected had not been realised. As New Zealand was dependent probably to a greater extent than any other country upon her overseas trade, external conditions had a very diroct effect upon local prosperity. The low prices received for primary products continued to impose 6evere hardships upon the farming community, resulting in turn in a marked diminution in the general business of the country and in the reduction of personal incomes. "All sections of the people," he continued, "are consequently being called upon to make sacrifices, and it is gratifying to note the determination and sense of public spirit with which the crisis is being met. Tho decline in trade is intimately reflected in the public accounts "and it is estimated that the year will close with a deficit which is unavoidable in the circumstances. Public Works Retrenchment. •'Steps have already been taken to curtail greatly the expenditure upon public works, but the resources likely to be available for this purpose will be so seriously diminished by the existing financial stringency that the Cabinet considers a further drastic reduction to be inevitable. An Economy Commission has recently been appointed to review and report upon the public expenditure in all its aspects and also to indicate directions in which further economics may be effected." Addressing members of both Houses, Lord Bledisloe said a special Development of Industries Committee had been set up in pursuance of legislation passed last year and the Ministers confidently hoped that its investigations would lead to the closer application of science to industry and to the expansion upon sound lines of manufacturing enterprise. Experience having shown that the provisions of the Mortgagors Relief Act were inadequate to cope with present conditions, it was proposed to review and extend the existing legislation on this subject. Measures would also be submitted for improving the method of unemployment relief, for amending the present arbitration system and generally for meeting the special conditions which had arisen out of the current economic crisis. RETIRING RAILWAYMEN. SUPERANNUATION PAYMENTS NO DECISION ON PETITION. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON, Wednesday. A more equitable arrangement of retiring allowances of railway servants, under section 14 of tho Finance Act, 1931, was sought in a petition presented to the House last session on behalf of the Amalgamated Society of Railway Servants. A favourable report on the petition was made by the Railways Committee, and Mr. W. J. Jordan (Labour —Mannkau) asked the Prime Minister in the House to-day whether the Government proposed to act on the commit Ice's recommendation. Mr. Forbes said consideration had been given to the petition, but no decision liad yet been made. He hoped to make an early announcement on the question.