PARLIAMENT

Otago Daily Times, Issue 22100, 2 November 1933, Page 10

PARLIAMENT

YESTERDAY’S PROCEEDINGS HOUSE OF REPRESENTATIVES (Peb United Press Association.) WELLINGTON, November 1. The House of .Representatives met at 2.30 p.m.. BILLS TO BE INTRODUCED. Notice was given of intention to introduce the following Bills: Bluff Harbour Board Empowering (Mr P. A. de la Perrelle); Napier Harbour Board Loans (Mr W. E. Barnard). ' DISPOSAL OF DAIRY PRODUCE. Mr C. A. Wilkinson (Egmont) asked whether the Government was aware that the Dairy Produce Board was proposing to adopt a policy of limiting by license the British firms engaged in the disposal of New Zealand butter and cheese, and that the suggestion of such a policy had caused grave dissatisfaction among dairy farmers, who remembered the losses they had suffered when a previous attempt had been made to impose impossible conditions on those engaged in the disposal of the Dominion’s dairy produce. He also asked what action was being taken on this policy by the Government nominees on the Dairy Produce Board —if they were supporting this limitation policy, were they reflecting the policy of the Government in the matter? Would the Government cause the board to hold the proposed policy in abeyance until those who idesired to maintain freedom to dispose of their dairy produce had had an opportunity further to consider the subject and if necessary make representations on the matter?

The Prime Minister (Mr 6. W. Forbes) " eaid the Government was aware of the hoard's proposal which was the outcome of representations made to the board by the New Zealand Dairy Produce Importers’ Association of the United Kingdom. These representations had included the suggestion that the board, in consultation with the association, should issue licenses to the importers. The Government was also aware that some objections had been raised to the board’s proposal. The Government nominees on the board had acted in accordance with their personal judgment. The Minister of Agriculture had already arranged to look further into the matter, and the board was not likely to take definite action until the Minister had adopted this course. RESERVE BANK BILL,

The House went into committee on the * Reserve Bank of New Zealand Bill. The short title was passed after a comparatively short discussion. To the clause providing for the establishment of a reserve bank Mr J. A. Lee (Grey Lynn) moved an amendment designed to eliminate the share capital. The Leader of the Opposition (Mr M. J. Savage) said the amendment meant that they desired to establish a purely State institution.

Mr A, S. Richards (Roskill) said a State bank was desirable in order to give people the facilities which were required at little or no cost. Mr W. A. Veitch (Wanganui) said it was undesirable that banking should be administered by the Government although Parliament by its laws rightly controlled banking within the country. Mr Savage said that the Labour members did not suggest the' bank should be operated from the Cabinet room.. All they asked was that it should be a State institution.

The amendment was defeated by 43 votee to 23, and the clause was passed. Messrs H. Atmore, H. M. Rushworth, A. M. Samuel and A. J. Staljworthy voted with the Labour members. Mr E. M'Keen (Wellington South) moved an amendment to eliminate the necessity for the concurrence of the shareholders in the alterations to the 1 rules of the bank. The House adjourned at 5.30 p.m. EVENING SESSION The. House resumed at 7.30 p.m. Supporting his amendment moved at the afternoon sitting, Mr M‘Keen said he could not understand why the Government insisted on having shareholders. He did not see what it hoped to gain by adopting such a course because shareholders would only be in the concern for what they could get out of it. Mr Forbes said it was essential that the bank should have the confidence of the people, and that was the reason for having private shareholders. It was probable that in time it would be possible to establish confidence in the State bank, but they could not afford to wait for that confidence. . They could not hope to secure confidence at once unless there were private shareholders. Mr C. L. Carr (Timaru) said there would be a minimum of 200 shareholders in the bank. Could it be said that those 200 people were going to inspire confidence in the rest of the community—over a million and a-half? The amendment was defeated by 41 votes to 27. Another amendment designed to eliminate share capital was moved by Mr W. E. Barnard (Napier) when the next clause was considered. It was defeated by 44 votes to 25. Mr R. A. Wright (Wellington 'Suburbs) sought to add a provision that no shares should be allotted to any person other than a British subject ordinarily resident in New Zealand. He said this amendment would ensure that there would be no undesirable shareholders, and ,at the same time it should inflict no hardship on the bank. Mr A. E. Ansell (Chalmers) suggested that no shares be allotted to other than New. Zealand citizens and that no voting right should be retained by persons absent from the Dominion for more than 12 months. ' Mr C. H. Clinkard (Rotorua) said he hoped the Minister would accept the amendment as there was a strong feeling that the bank should be solely a New Zealand institution. The Minister of Finance (Mr J. G. Coates) said he knew there was such a feeling. It was desirable that the shareholding should be kept as strictly as possible to New Zealand shareholders and he undertook to consider the clause with a' view to meeting the wishes of members. He would see whether a new clause could be drafted covering the position generally. Mr Wright did not press his amendment and the clause was adopted. Mr H. G. R. Mason (Auckland Suburbs) moved an amendment seeking to insert a provision that the primary duty of the bank should be l>> establish a monetary system based on goods and services and to maintain control over circulation and credit—to that end that the bank notes issued by it expressed in terms of wholesale prices of New Zea-land-produced commodities should remain The amendment was defeated by 43 votes to 26, and the House rose at 0.20 a.m., at which stage 12 clauses had been passed. 10 NEW JUMPER DESIGNS. Just to hand, Specialty Knitting Book No. 3. Instruction for knitting Sports Coatee, Jumper and Hat Outfit; one short-sleeved, two puffed sleeve,_ four longsleeved Jumpers; and a Hiking Outfit. Bend 7d stamps to Patons and Baldwins, Ltd, Box 1441 P, Wellington,—Advt.