HOUSE OF REPRESENTATIVES

Otago Daily Times, Issue 21774, 13 October 1932, Page 10

HOUSE OF REPRESENTATIVES

The House of Representatives met at 2.30 p.m. WHEAT IMPORTATIONS. Mr 0. Carr (Timaru) asked whether the , recent importations by the Government of Australian wheat had been subject to the full amount of duty as provided under the sliding scale. The Prime Minister (Mr G. W. Forbes) replied that the recent importation ot wheat by the Government for sale and distribution as fowl food had been brought in as Government property duty free. The wheat had. however, been sold at the price of 5s 3d per bushel, sacks in, at ship’s slings, North Island ports. ‘The price, while* more than duty free value, was less than the full duty paid equivalent. The wheat to which Mr Carr might be referring had also been imported recently by the Wheat Marketing Agency Company of Christchurch under special arrangements by which the duty had been paid up to a basis.of value determined by the internal prices of wheat and flour. It was intended that the balance of the duty on that wheat would be covered by a vote on the estimates of the Customs Department, MAORI ELECTIONS. Mr E. T, Tirikatene (Southern Maori), asked. whether the Government would take immediate steps to amend the electoral laws with the object of placing the Maori people on the same electoral footing as the pakeha so as to enable the election of Maori members to Parliament , to be conducted on the same basis of ■ccrecy as all other members. Mr Forbes replied that the matter would be investigated when an amendment to the electoral laws was under consideration. PROTECTION OF TENANTS. • Replying to M? R. M'Keen (Wellington South) Mr Forbes said the question of granting further extension of the protection to tenants under the Rent Restriction legislation was under consideration by the Government. SCHOOLS OF MINES. Replying to Mr G. C. Black (Motueka) the Minister of Mines (Mr C. E. Macmillan) said that Cabinet had not yet considered the advisability or otherwise of closing any of the schools •of mines. He could give an assurance that there was no intention in the immediate future of closjng any of them. . SELECT COMMITTEES. . Various sessional select committees Were appointed. POWER OP COMMITTEES’. Mr H. G. R. Mason (Auckland Suburbs) expressed the opinion that the time had come when more power should be granted committees dealing with petitions; He said that under the present conditions the petitioners were induced to present evidence to a committee but no ropy was kept. The committee made its recommendation but Cabinet, in whose hands rested the final decision, was not placed in possession of the evidence. He thought it was inexpedient to go through a procedure which could not be regarded as a serious procedure in relation to the business of the House. Mr Forbes said the Government had to go into the question of finance. He had intimated that if effect had been given to all the petitions on which favour, able recommendations had been made during one session the cost to the country would have been £1,500,000. It was essential for the decision to rest with Cabinet. Which had to provide the ways and means. OTAGO HARBOUR BOARD BILL. The Otago Harbour Board Empowering Bill (Mr J. W. Munro) was introduced and read a first time. ARBITRATION BILL.

Introducing the Industrial Conciliation and Arbitration Amendment Bill, Mr J. M'Combs said the measure proposed to repeal the legislation passed last sermon taking away from the workers the right to appeal to an impartial tribunal in connection with industrial disputes. It had been pointed out when the last sessions legislation was before the House that .the previous wage-reducing measures had proved disastrous to trade and industry. Representatives of the wholesalers, retailers, and manufacturers had testified before the Interparty Committee in support of that contention, but the Government had amended the Arbitration Act to give the Employers’ Association an opportunity to force wages down still further. Although the Amending Act had been in operation only a few months industrial chaos was beginning to manifest itself froih one end of the country to the other. Disputes had arisen and they had not been settled. Ihc Employers’ Association,was forcing its members to take advantage of the Act and force down wages and living standards. The Arbitration Act had been reduced I to ft farce. Mr M'Combs quoted from a

letter written by the widow of Mr Pembcr Reeves, which indicated her belief that “ the pullinpc to pieces of his legislation” luid weakened him. Mr R. M'Keen (Wellington South) declared that the amending Act had placed dictatorial powers in the hands of the employers. Mr Forbes said lie had no hesitation in saying that had Mr Reeves been placed in the position in which he (Mr Forbes) had been placed Mr Reeves would have done exactly the same thing. Labour members: Never. Mr Forbes said great changes had taken place in the last, 40 years. He had been thoroughly in accord with the original Industrial Conciliation and Arbitration Act when it was passed, but conditions had changed. He submitted that greater consideration was being shown for the workers by the employers to-day than had ever been shown before. The whole object of last session’s amendment had been to provide greater freedom of employment. Mr M‘Combs asked the Prime Minister if he thought the Act had resulted in a harmonious feeling between employers and employees. Mr Forbes: How can there be harmonious feeling when reductions arc being brought about? After several Labour members had spoken in support of the measure, the Minister of Labour (Mr A. Hamilton) said that quite a number of agreements had been reached since the passing of last year’s amendment, and it was likely in those cases in which an agreement had not yet been reached that it would ultimately be arrived at. The Bill was “talked out,” 'the discussion .being interrupted by the adjournment of the House at 5.30 p.m.

EVENING SESSION LOCAL BODY INVESTMENTS. When the House resumed, the Local Authorities Sinking Funds Bill was introduced by Governor-General's Message. Mr ‘ Forbes said the Bill had been brought down to protect the Public Trustee in relation to funds invested by him for local bodies. Owing to previous legislation brought down by the Government preventing the liquidation of these securities, the Bill proposed that no alteration should be made in investments until 1935. Mr J. A. Lee (Grey Lynu) asked it, in the eveilt of a local body wishing to withdraw its funds, would the Government have to take steps to create credit to enable the Public Trustee to remain solvent? Mr Forbes said that under certain Acts the Public Trustee had invested the sinking funds of local bodies in rural securities. Some of the local bodies now claimed that they could get higher interest if they could withdraw these funds, but the Public Trustee was not in a position to repay them. The Bill would not cause any increase in interest. It would only place the Public Trustee in the same position as a mortgagor. Mr H. G. R. Mason (Auckland Suburbs) said the Prime Minister’s explanation of the Bill made an obscure position more obscure. He could see no reason for the Bill. It would prevent any change being made. That was to say, the local bodies must invest their money with the Public Trustee. Why should the local bodies be placed in a position of servitude? Mr Forbes said they could not make any change until 1935. Mr Mason: Why should that be the case? No one wishes to see the Public Trustee circumscribed, but when it comes to compulsion I think it is going too fan. Mr D. G. Sullivan (Avon) suggested that the Bill should be sent to the Local Bills Committee; He was not prepared to say that it was not justified) but he thought it a fair thing that the local bodies should have an opportunity to put their side before the committee. Mr D. W. Coleman (Gisborne) supported this view. The Leader of the Opposition (Mr H. E. Holland) also agreed, and said that if Mr Forbes would allow the Bill to be read a second time pro forma it could then be sent direct to a committee. Mr Forbes said the Bill was pnly being introduced and the local bodies would have ample opportunity to see what was in it when it was printed. The Government had tied up the investments of the Public Trustee by its legislation, and all that the Bill proposed to do was to safeguard his position until 1935. If there was a tendency on the part of local bodies to withdraw money from the Public Trustee to invest at a higher rate of interest elsewhere the BUI would prevent that. The Bill was read a first time. « WORKERS’ COMPENSATION.

The Workers’ Compensation Amendment Bill (Mr H. E. Holland) was read a second time pro forma and referred to the Labour Bills Committee. BUDGET DEBATE.

Continuing the Budget debate, the Leader of the Opposition (Mr H. E. Holland) said the Budget disclosed a deficit of £3,635,644, which did not include the huge deficit in connection with the superannuation funds. The Government proceeded to raise money by mortgaging to the bank public securities represented in the discharged soldier settlement lands. In this way it secured advances amounting to £1,494,825, and the Government wrote this into its balance sheet as income. This made it possible to present a deficit of £2,140,819 instead of the correct figure of £3,635,644. It would be seen that public securities were being used to meet a current liability. The bank issued money to the Government on the basis of these secunties; in other words, with the backing pi public credit, and would charge interest on the money so issued. Before the Government could utilise its own credit resources to meet a current liability it had to contract to pay a percentage tribute to the bank. He asked whether the Government could not have utilised its own credit resources to back its own issue of money without paying tribute to the bank? Furthermore, i£_a deficit could be made good out of reserves, those reserves could have been utilised long ago to provide remunerative work for the unemployed and the creation of additional values for the State. Dealing with the National Expenditure Commission s recommendations regarding the State superannuation funds, Mr Holland referred to the statement that . there was a total actuarial liability on the Government of approximately £23,000,000. He said the Act provided that in the month oi January in every year the Minister of Finance should pay into the fund and out of the Consolidated Fund a sum or £20,000, together with such further amount, if any, as was required to meet the charges on the fund during the ensuing year. The Government had never honoured its obligations in this respect. So long as the present default continued the position would continue to become worse. Mr Holland declared that the commissioners commenced their attack on a child at birth and pursued it to the "rave. He dealt with the recommendations relating to a reduction of the maternity allowances and the I luukct So cielv grants, the abolition of family allowances, and various other changes pronosed, adding: “Their demands are carried even beyond the grave and make reference to a saving of f 10,370 on the maintenance of overseas graves. Mr A. Stuart (Rangitikei) said he was disappointed that the Prime Minister was not taking further action to reduce n terest rates, because at the prcsent iatea practically no one could afford to borrow, and it would take the country jears to 16 Mr Coleman objected to the centralisation of Government departments as recommended by the Expenditure Commission. He said that in any scheme of centralisation there would be the initial c<ost involved in the transfer of the staff and records. It would be ft considerable time before any saving could be made, ami in the meantime the public would be put to great inconvenience. ' Mr W J. Brondfoot (Waitomo) expressed the opinion that hospital rating should be on a per capita Pams and not on a land basis. He said that under the present system people in boroughs and cities were receiving undue preference over those out back. The debate was adjourned on the motion of Mr W. J. Jordan (Manukau), and the House rose at 11.45 p.m.