RELIEF MEASURES

New Zealand Herald, Volume LXXII, Issue 22205, 4 September 1935, Page 13

RELIEF MEASURES

GREAT AID TO COUNTRY LEGISLATION REVIEWED OPERATIONS OF BANKS TRIBUTE BY MR. F. LYE [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday In seconding the Address-in-Reply motion in the House of Representatives to-night Mr. F. Lye (Government — Waikato) won tho applause of the Labour Party by congratulating the new member for Lyttclton (Mr. T. H. McCombs) on his election. Although the Government had failed to win tho seat, be said, it could afford to be gracious and all members would join in congratulating Mr. McCombs on succeeding such respected members as his father and mother. Mr. Lye proceeded to analyse the causes of the depression and the breakdown of markets, claiming that monetary reform would not improve tho position and that relief must como through international action and understanding. Tho farmers and business people of New Zealand had found tho greatest difficulty in meeting their obligations and the Government had been forced to undertake determined measures to put its houso in order. Those measures had been greatly successful and there were now many promising signs of returning prosperity. It was encouraging and significant to note that there were more people employed in industry in Great Britain to-day than ever in the past, particularly as New Zealand relied 011 Britain as her main market. The various relief measures put into operation by the Government during the last few years were outlined by Mr. Lye, who said that the National Expenditure Adjustment Act of 1932 had meant a saving of £226,000 to mortgagors of the State Advances Department alone. Then came the Mortgagors and Tenants Relief Act of 1933 which protected the efficiont farmer from a disastrous fall in the price level entirely beyond his control. "I am not one of thoSo who think the banks have untold power for tho creation or destruction of wealth," Mr. Lye continued. "They are operating on lines similar to those followed in England. They have filled their place in the life of the country and have done all that has been asked of them." Mr. Lye said that although New Zealand gave a greater measure of preference to Great Britain than any other Dominion he believed there was room for more. He thought it unreasonable that there should be a duty of 12s a ton against British cement, which had to pay in addition freight and insurance charges and the cost of exchange. Behind this protection the the New Zealand cement manufacturer was able to exploit the public. The tariff should be investigated. # The House adjourned at the conclusion of Mr. Lye's speech. FALL IN DAIRY PRICES EXCHANGE NOT THE CAUSE STATEMENT CONTRADICTED [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday

A recent statement that the raising of the exchange rate had been responsible for the fall in the prices of dairy produce was contradicted by Mr. F. Lye (Government —Waikato) in seconding the Address-in-Reply motion in the House of Representatives to-night. The statement had been made, Mr. Lye said, that had it not been for the raising of the exchange rate, the price of dairy produce would not have fallen.

Mr. J. A. Nash (Government— Palmerston): Who said it?

Mr. Lye: 1 don't want to be personal, but in the Auckland Province it is well known who said it. A voice: Is he a member of this House ? Mr. Lye: No Continuing, Mr. Lye said the figures he was about to quote had been taken from the report of the Monetary Committee and referred to the supply of butter into the United Kingdom in the years 1928 and 1933. In the former year the total amount of butter received had been 306,000 tons, while in 1933 it had been increased to 442,000 tons. New Zealand's contribution in 1928 amounted to 61,000 tons, but in 1933 it had increased by more than 100 per cent to 126,000 tons. Australia's respective totals were 44,000 tons and 85,000 tons, showing an increase of about 100 per cent, and the imports from Denmark in 1928 and 1933 had amounted to 100,000 tons and 126,000 tons respectively. Is it any wonder," asked Mr. Lye, " that with such an increase of supply between 1928 and 1933 price levels should have gone down ? The story that the exchange rate is responsible for tho fall in prices is misleading and wholly incorrect."