PARLIAMENT

Otago Daily Times, Issue 22114, 18 November 1933, Page 14

PARLIAMENT

YESTERDAY’S PROCEEDINGS LEGISLATIVE COUNCIL t (Peb United .Press Association.) WELLINGTON, November 17. The Legislative Council met at 2.30 p.m. RESERVE BANK BILL. The second reading debate was continued on the Reserve Bank of New Zealand Bill. ' Sir James Allen, dealing with the statement that the bank should be free from political influence, asked whether it was easy to draw a distinction between political influence and parliamentary action. Parliament, as the representative of the people, must be supreme. He could see no good reason why the State should appoint three directors on Its own account. If he had the power lie would go back to the Bill of 1982. Mr R. Masters replied to the points made by Sir Francis Bell. Mr Masters said that Sir Otto \ Niemeyer had not eome to New Zealand of his own volition. He was invited to advise the Government on the Reserve Bank and other matters dealing with the Dominion's finances. Five of the six banks operating in New Zealand welcomed the Reserve Bank, and they should be in a position to express an opinion as to the necessity for such' an institution. The only resolution actually passed at the World Conference was one in favour of the establishment of central banks. Doubt had been expressed whether the bank would be free from political interference, and particular objection was takefa to the provision for the appointment of a governor and deputy governor. The Government already had four nominees in the Bank’ of New Zealand, and it was remarkable that the only bank opposing the Reserve Bank was the Bank of New Zealand. If the Government was in the habit of exercising Influence surely it would have exercised its influence with the directors of the Bank of New Zealand. There were Government nominees on various boards in the country and there were no more reasons for Government interference with the proposed bank than there was wilh the boards on which the Government was represented. 'The appointment of a-gov-ernor and a deputy governor by the State was made by all countries except Chile and Greece. In this respect New Zealand was not doing anything unusual, i Mr Masters said he was not going to | cast a reflection on the trading banks, ’■ but their outlook was totally different from that of a Central Bank as the trading banks were profit-making organisations. Regarding the criticism that the Bill had been amended to exclude he bank’s sole right of note issue, he said the Government had power to alb* the legislation at any time. The words were quite unnecessary. Sir Francis Bell must know that it did not matter one iota whether the words were in the Bill or not. All the profits from the bank except £25,000 must accrue to the State. The Bill was read a second time by 18 votes to 4, those voting against the Bill being Mr Pagan, Sir William HallJpnes, Sir Edwin Mitchelson and Sir Francis Bell. UNEMPLOYMENT. Mr Masters made a statement regard: ing unemployment. He said there was an Impression that New Zealand had 70.000 unemployed. “We have not got 70.000 unemployed, but 70,000 people registered as relief workers, which a totally different matter,” he said. When unemployed men were engaged on work like the Wellington station and the pay was subsidised they were still registered .as unemployed. There were 8400 men Ineligible for work and they might be called unemployable. He expressed the opinion that the number one could really state as being unemployed was 60,000, because a total of 28,000 men were engaged on farm works, ns tradesmen, on land development, on back-block roads, afforestation and gold mining as well as on public works at standard rates, the last-named being married men, on land settlement. fle was afraid the Government had been io blame for putting the worst side before London. The Council adjourned at 5 p.m. till 8 p.m. EVENING SESSION TRADE AGREEMENT BILL. When the Legislative Council resumed at 8 p.m. Sir James Parr explained that as a result of a consultation with the Minister of Customs G. Coates) h® had ascertained that it was not so urgent as he had been led to believe that the Trade Agreement (New Zealand and Australia) Ratification Bill should .be passed to-night. He therefore did not propose (as he had originally intended) to ask the Council to deal with that measure to-night. The Council rose at 8.5 p.m. till 11 a.m. on Tuesday, when the committee stage of the Reserve Bank of New Zealand Bill will be commenced. house of, representatives The House of Representatives met at - 10.30 a.m. WAIKATO WATER SUPPLY. Mr H. G. R. Mason (Auckland Suburbs) moved the second reading of the Waikato Water Supply Co., Ltd., Empowering Bill. ,He said the Bill would have to go to a committee, and it was not necessary to discuss the matter at any length at the present juncture. He suggested that the evidence before the committee he made public. _ The Leader of the Opposition (Mr M. J. Savage) said there could be no objection to sending the Bill to a committee. He had no doubt that would happen to the measure when members had been made fully acquainted with its provisions. . , ~ „ Mr A. Harris (Wa.itemata), said all the important local bodies in Auckland were asking for the Bill. . Mr F. W. Schramm (Auckland Fast ) said that whether the Bill went to committee or not, the principle would be the same, and he would oppose it at all The Bill was read a second time and referred to the Committee of Selection. BILLS REPORTED. The Greymouth Borough (Relief of Unemployment) Bill, the Bluff Harbour Board Empowering Bill, and the Napier Harbour Board and the Roman Catholic Archbishop Empowering Bill were reported from the Local Bills Committee without amendment. THE BUDGET DEBATE. 'Continuing the Budget debate, Mr Mason said it was no-wonder the country could not get out of its difficulties when the finances were based on taxation of a particularly destructive description. The present banking system did not serve the interests of the people. Mr H. T. Armstrong (Christchurch East) said New Zealand would not see prosperity until the purchasing power of the people was restored.. The Budget by no means had a healthy outlook. The House adjourned at 1 p.m.

AFTERNOON SESSION Continuing the Budget debate when the House resumed at 2.30 p.m., Mr H. T. Armstrong (Christchurch East), referring to unemployment finance, said that if reproductive work was being done it should be carried out at current rates of wages. He maintained that the Government’s policy of unemployment relief had itself created unemployment. Mr D. M'Dougall (Mataura) said that he could not see much hope in the Budget for the small dairy farmers. It appeared to him that the Government was not concerned with the dairy farmer who grew a little wheat. He criticised the operations of the Wheat Purchase Board, and said that the regulations were restrictive to the point of tyin.g the small producer up completely. Continuing, Mr said there was ample good land available for settlement if the Government would only bestir itself. Mr A. M. Samuel (Thames) said the Budget did not give a true statement of the Dominion’s financial position. Had it not been for the pledging of discharged soldiers’ settlement securities and the failure of the Minister to make any provision in respect to the amounts affected by the Hoover moratorium, Mr Samuel contended there would have been a prospective deficit of six millions. He accused the Minister of Agriculture (Mr C. E. Macmillan) of failing to give adequate consideration to the ragwort menace, which was likely to drive many settlers off their land, and he suggested that the ’ Minister should commandeer, if he could not purchase, all thq supplies of sodium chlorate in New Zealand in order to assist farmers' to combat this menace.

Mr D. W. Coleman (Gisborne) said the reduced allocation of relief work was causing indignation all over the country. It was almost impossible for the relief worker to live on less than he had been receiving during the winter. The unemployment funds were being expended in ways that had never been intended when the taxation was instituted. Men were refusing to go into camps because of the circumstances in which they would have to leave their wives and children. The House rose at 6.30 till 2.30 p.m. on Tuesday.