CHANCE FOR DEBATE

New Zealand Herald, Volume LXIX, Issue 21347, 23 November 1932, Page 13

CHANCE FOR DEBATE

MR. HOLLANDS'S INTENTION

NOTICE OF MOTION GIVEN

MR. FORBES NON-COMMITTAL

[BY TELEGRAPH —SPECIAL REPORTER]

WELLINGTON, Tuesday

'A move to make the exchange contro-. versy $ subject for discussion by the House was initiated to-day by the Leader of the Opposition, Mr. H. E. Holland, who notified his intention to propose the setting up of a Select Committee, representative of all sections of the House, to inquire into the most effective means of meeting the existing economic difficulties,.

Mr. Holland was anxious to know; .whether the Prime Minister, the Rt. Hon.. G. W. Forbes, would give him an opportunity to-morrow to move his motion, bub Mr. Forbes gave a non-committal reply, saying ho would first require to ascertain what the arrangements were for to-mor» row's business.

If Mr. Holland does get the opportune ity to move his motion, a long discussion would seem to be inevitable.

Mr. Holland's motion suggests that tha committee should take into consideration the following points:—(l) The restoration and stabilisation of purchasing power; (2) guaranteed prices; (3) raising of incomes for farmers and-wage-earners, employed and unemployed; (4) exchange rates; (5) effective utilisation and organisation of currency and credit; (6) bounty subsidy or bonus to primary producers; (7) establishment of a moratorium. Thß motion states that the committee should report to the House within 14 days.

Discussing Mr. Holland's proposal, Mr.' Forbes said in an interview this evening that the Government did not, consider that a further inter-party committee would be of any great use in meeting the country'B difficulties. That "expedient had once been tried, but the Labour Party had not taken its part, and had put the whole responsibility on the Government. There is a feeling in the lobbies that the Government will give an opportunity to the House to discuss the exchange question rather than have discussion forced by the Opposition. Evidently a number of members are certain that an early opportunity for discussion will be forthcoming, because it is understood they ara busy preparing speeches. Just what course will be pursued to secure an opportunity to open the debate is not known, but it is thought likely that something will develop during the present week. ,

COST TO LOCAL BODIES

TRANSPORT BOARD INCREASE

CONFERENCE TO BE HELD

A suggestion that if there is an ificrease in the exchange rate, provision should be made for local, bodies which have to meet interest payments in London, will be put before the Prime Minister by the Auckland Transport Board. It was decided at a meeting of the board yesterday to send a telegram to the Rt. Hon. G. W. Forbes pointing out the effect on the board's finances of an increase in exchange and adding that if a'ction must be taken, such action should avoid inflicting hardship on or adding to the difficulties of local authorities.

The chairman, Mr. J. A. C. Allnm, said that since the proposal to raise the rate had been made the board had established credits in London to the extent of £SOOO to meet interest charges and avoid the effects of an increase. "If the rate rises, the board will be in a serious position; it will mean an exchange bill of £20,000 a yeac, instead of £8000," added Mr. Allum.

The proposal to increase the rate of exchange is creating concern among the members and officials of the larger local bodiei which have considerable overseas interest obligations, and the fear has been expressed that in the event of the rate being fixed at 25 per cent, as suggested, some of the more important bodies will be seriously embarrassed. So far the major local bodies in Auckland have had no opportunity of discussing the matter, but a conference is to be held at the Town Hall to-morrow at 11.30 a.m. to enable representatives of these authorities to discuss the problem and make representations to the Government. The meeting is being; convened by the Mayor, Mr. G. W. Hutchison, and will be attended by the chairmen of the Auckland Harbour Board, the Auckland Power Board, the Auckland Transport Board,- the Auckland Hospital Board and the engineers of the Mount Eden and Mount Albert Borough Councils.

MEMBERS OF COALITION

VIEWS OF URBAN GROUP

NO CONCERTED ACTION TAKEN

[BY TELEGRAPH —SPECIAL REPORTER]

INVERCARGILL, Tuesday

Urban members of the Coalition Party opposed to the proposal to peg the exchange rate at 25 per cent above parity have not yet made any move a v s a body to register their protests to the Cabinet, although individual members have placed their views before the Prime Minister, Mr. Forbes.

One or two members opposing the agitation by the rural section of the party are absent from Wellington at the moment, so any action in the way of arranging counter-representations to the Cabinet are likely to be delayed for a day or two. _ One city member in close touch with the position said this-evening that it was possible that nothing would he done in that direction until the return of the Minister of Finance, the Hon. W. Downie Stewart, on Thursday. Although Mr. Stewart had made it plain on a previous occasion that he was opposed to exchange inflation, some members whose attitude was still non-committal, desired to see whether the Minister's views had undergone any modification as a result of inquiries made in London on behalf of the Government. They felt that as it generally understood that no decision would be made by the banks before Fridav, it might be convenient to defer any "further action until Mr. Stewart 8 return.

" DISASTROUS EFFECT "

PROTEST BY "BUSINESS MEN

A further protest against the suggestion to increase the rate of eAhange was made sidered that the attempt to alter art fia ally the rate of exchange would eventually be disastrous to tradespeopk/^Citywwkws and farmers. The members of the society