NEW ZEALAND’S FINANCES

Otago Daily Times, Issue 21431, 4 September 1931, Page 10

NEW ZEALAND’S FINANCES

THE ECONOMIC COMMITTEE A MASS OF EVIDENCE (From Our Parliamentary Reporter.) WELLINGTON, September 3. As the panorama of evidence showing the serious financial state of New Zealand is daily laid before the Special Economic Committee of Parliament, it is proposed to sit longer hours in disposing of the final witnesses and concentrating almost its uninterrupted attention upon the task of devising a plan for economic reconstruction. During the two sittings to-day the committee heard the views of tlfe dairy industry as represented by Mr W. lorns, chairman of the Dairy Board, and Mr A. Morton, chairman of directors of the National Dairy Association. Mr W. Goodfellow, chairman of directors of the New Zealand Co-operative Dairy Company, will appear on Monday, and will give further information about the dairy industry; Among the chief representations made by to-day’s witnesses is understood to be a recital of the difficulties under which the dairy farmers are labouring on account of the heavy overhead costs. Desperate endeavours are reported to have been made to reduce farming costs and align them with the consistently low produce prices. The most pressing burden of all was stated -to be the relatively high rate of interest that is still being paid by farmers whose mortgage obligations are making the prospects for this season exceptionally black. ,

The committee was urged when considering remedial economic measures to consider the question of reducing the interest rates upon farm securities and easing the strain upon the already harrassed dairy producers. The Prime Minister (Mr G. W. Forbes) stated during the day, however, that the picture ;of the situation as painted by the dairymen, though very black, was not as bad as that represented by N the sbeepowners’ representatives before the committee last' week.

During this week questions of wage rates and arbitration awards have come under the nptice of the committee. It is agreed by the retailers who were heard a day or two ago that further salary cuts would be extremely inadvisable because of the invariable restriction of spending power among the workers who are already embarrassed by the 10 per cent, cut imposed several months ago. The employers’ representatives, too, are reported to have acknowledged the inadvisability of further wage cuts, though strong advances were made for greater elasticity among the arbitration awards, allowing wages and working conditions in certain exceptional cases to lie determined by ’ the state of the specific industry at the moment, and not by the hard and fast formula established by the court. This suggestion did hot meet with the full approval of the Labour members, who feared it would lead to undermining the standard of living established for the worker by the arbitration "system. . • , . The commercial interests, generally speaking, expressed a desire that the wage reduction should not be overdone, because of the inevitable reaction through the retail and wholesale houses, and around a vicious cycle into the "coffers of the State.

Suggestions which were made on behalf of the Associated Chambers of Commerce during the week for a reduction in the size of Parliament and general parliamentary’ reform did not progress very far, chiefly because the case was ill-prepared and delivered orally, with the result that, the Labour members by close cross-questioning established a counter-barrage upon this important point. Further financial evidence was given this afternoon by Sir Henry Buckleton, general manager of the Bank of New Zealand, who, it is understood, was asked to explain, certain , aspects of the exchange problem, as it affects the primary produce exporter from this: country. To-morrow the views of economists will be 'heard. Professors Murphy, Fisher, Belshaw, arid Tocker will give evidence, and this will be supplemented by Mr D. O. Williams, who has been making a special study of farming problems at the Massey Agricultural College. Tt is hoped that all of these witnesses will be disposed of to-morrow. The Prime Minister is hopeful that out of the evidence of these economists will be derived- Some key to the solution of our major problems. ~ “ The problems with which we are faced are fundamentally economic,” he said this evening, “and the economic professors should be able to give sotne useful evidence bearing upon the state of the national finances.” . The House of Representatives is being adjourned for to-morrow in. order that the committee may devote its whole time to its task, and a sitting will also be held on Saturday morning and again on Monday morning and afternoon. By Tuesday the Prime Minister expects that the evidence will have been completed, and that after a few days of careful, and studied deliberation the’ report will be ready for presentation to Parliament.