PARLIAMENT

Southland Times, Issue 20834, 24 July 1929, Page 6

PARLIAMENT

ADDRESS-IN-REPLY SIR JOSEPH WARD’S . SPEECH THE RAILWAYS AND FINANCE (Per United Press Association.) Wellington, July 23. The House of Representatives met at 2.30 p.m. ■ Petitions again included a large number, praying for an amendment of the Gaming Act, also two for the abolition of capital punishment. Notices were given by various members of motions to appoint select committees for the session. Messrs J. A. McPherson (Oamaru), C. 11. Clinkard and G. C. Black (Motueka) were each granted one day's leave of absence on account of urgent public business. The Earthquake. MR H. E. HOLLAND (Buller) asked the Prime Minister, (1) “Whether he has seen the Press message sent out from Westport in which the Press Association criticizes the work of the Central Earthquake Relief Committee and in which it is stated that the relief afforded to sufferers in the district covered by the Buller District Relief Committee has amounted to only £705, including £4OO for the relief of Seddonville residents ami which message also contained an allegation that in face of the small amount of relief granted, the central committee ask that local committees shall put their money into the general fund so that it may be put out at interest”; (2) “Whether any application for relief moneys from the general fund has been made by the Buller District Relief Committee and refused”; (3) “Whether the moneys are tied in any way by reason of the fact that they are earning interest”; (4) "Whether he will make a statement indicating the course to be followed and the nature of the details to be furnished by district relief committees when making application for grants from the general fund”; (5,1 “Whether he will take steps to impress upon the Press Association the amount of harm that, may result to the earthquake relief fund if its organisation is made use of to circulate inaccurate statements? such as those which have already been sent out by the association from Westport. * SIR JOSEPH WARD replied:—(l) “The transfer of local funds to the Central Committee in no way interfered with the powers of the local committee to meet relief and this was assured to all committees. As a matter of fact, the local Buller Committee had raised itself, I understand, about £2OOO and I assume that it. is using this to meet present demands for urgent relief. The Central Committee has met any request from Westport for grants, “No requests have been refused.” (3) “The moneys of the central fund are invested at call and are available at a moment s notice.” (41 "The details suggested to be furnished by applicants beyond immediate restoration or relief, etc., have been sent to each committee on lines adopted at the last central committee meeting. I propose, after the Central Committee meeting to be held to-morrow, to make a full statement covering the inaccurate and other statements reported to have been made.’ (5) “I will call the attention of the manager of the Press Association to the matter.” Sir Joseph stated that in his opinion the Press Association ought to be used for the dissemination of news and not for circulating misleading grievances all over the country, with possible consequence of detrimentally affecting contributions to the earthquake relief fund. Advances to Fishermen. In reply to the debate on the return of State Advances to fishermen, SIR JOSEPH WARD stated that the scheme, was not working satisfactorily. The principal difficulty was lack of security for the advances. He undertook to make a fresh investigation of the position. Address-in-Reply. MR S. G. SMITH (U., New Plymouth) resumed the debate on the Address-in-Reply. Referring to Mr Samuel’s statements alleging lack of confidence and public support since the United Party had assumed office, he said the complete success of the flotation of the £7,000,000 loan in London at better terms than had been obtained for a very long period, was a complete answer to the first charge. So far as the second allegation was concerned, he claimed that the failure of certain United Party supporters at the local body election could not be considered evidence of waning support for the party. The candidate in this case was untried in public affairs and had opposed a man of wide experience. Mr Smith quoted the case of the failure simultaneously at another local body election, of a Reform supporter. Referring to the cessation of work on the Palmerston North deviation, he said the unpopularity of the Reform Party was largely due. to its lavish waste of money in Palmerston' North. He criticized the cost at which the Central School in that town had been built. Mr Smith alleged that certain big interests were endeavouring to dictate through their newspapers what railway works should be undertaken. He next referred to the Government’s land policy and said there, were hundreds of young men who were anxious to go on the iand. In New Plymouth alone there were many young men who had been educated and had had actual experience on the land and who had unfortunately drifted to the city. He had had repeated inquiries from all of these men as tw when they would be given an opportunity to take up land. They, in common with young men throughout "the country, were keenly interested in the policy that had been outlined by the Government.

Wheat Duties. MR. J. BITCHENER (R., Waitaki) said he was opposed to the abolition of the duties on wheat. Unless New Zealand wheal, farmers were given a chance to grow wheat at a reasonable profit, the country would eventually find itself dependent on outside markets for its daily bread and it may then be called on to pay fabulous prices for its importations of wheat and flour. He considered wheat growing was the most hazardous form of farming and was therefore entitled to consideration. It was also responsible for the unemployment of a large number of men who would find it difficult to find work elsewhere in the event of the failure of the industry. He criticized the calculations of farmers profits on last year’s yield which, he said, was much above the average. He contended that all wheat farmers in the country would agree with him in welcoming the abolition of the duty on wheat, so long as the Government, at the same time, abolished protection in every form. MR. A. J. MURDOCH (U., Marsden) said the United Party had been criticized for its failure to carry out certain promises. He felt sure no reasonable minded elector had expected the Party to be able to give effect to all its promises in a few months. Its preelection pledges would be carried out-in rotation and the country could rest'assured that every promise would be honoured as soon as possible. Referring to the land policy, he said the Government would take every precaution against an inflation of values as the results of its purchases of land and it would endeavour to see that every man going on to the land had a chance to do well. It was time a real solution for the unemployment problem was provided. Mere palliatives such as extending money on unproductive works were npt satisfactory. Vigorous land policy was the most, pressing call .of the present time and it would be the Government’s intention to settle men who were ready and willing . to go. on the land, but had not previously been in a financial position to do so. The House adjourned at 5.30 p.nu

Prime Minister Speaks. The Debate on the Address-in-Reply was continued by the Prime Minister when the House resumed at 7.30. He said he was disappointed that the debate had occupied so much time. He had been impressed, by the sameness of the speeches of the Opposition members. All had lisked what had become of the £70,000,000 loan. It had been stated that the programme of raising £70,000,000 in eight to ten years had not materialized. He proposed to state some figures. From December 10, 1928, to July 15, 1929, the State Advances Department handled applications from 1,927 settlers and 2,604 workers for loans totalling nearly £4,500,000. The actual loans advanced were 1,286 to and 1,598 to workers the amounts totalling over £3,000,000. When the Government took office, the amount at the credit of the State Advances Department was £450,000 and there were applications for 3,971 loans, totalling over £4,000,000. The Government, as he had stated, had handled nearly £4,500,000. Funds that had been added to the State Advances capital totalled over £3,500,000 and the funds in hand available for investment amounted to nearly £2,000,000. In addition, it had provided over £1,000,000 for rural advances. That, he claimed, had fairly fulfilled his election pledges. Financial Loans. He had been twitted with having been unable to obtain money at 4! per cent.' He had an explanation to make on that subject. He had been in negotiation for the renewal of a loan when he found it had been agreed that New Zealand should not go on to the London market for two years. That was one of the first things he learnt when he took over the Treasury. The HON. W. DOWNIE STEWART (R., Dunedin West) : You are under a misapprehension.” SIR JOSEPH WARD: “I had to carry it out.” That, he said, had altered his whole course. It was that reason which he could not give out some time ago when he was criticized on the subject of finance because there was a danger of injuring pros, pects which he had to float. He had floated a loan for £7,090,000 and had arranged for the conversion of loans due for £29,000,000, of which £5,000,000 was in the course of conversion. When he took charge he was prohibited from going to the London money market. MR DOWNIE STEWART: Do you suggest it was through any action of mine?

SIR JOSEPH WARD: Yes. MR. STEWART disagreed. SIR JOSEPH WARD continued that he had to elect whether he would subscribe to what had been done before h'e took charge or embark on a fresh undertaking. He had kept off the London market for advances to settlers and workers and he intended to keep off in the meantime. He had been offered £2,000,000 from another country, but he had refused it. All the money that had been raised had been obtained in New Zealand. That was his answer to those who asked why he was not lending it at 4} per cent. It was not available in New Zealand at that rate. The Government, however, had dealt with the advances to which he had referred and had made hundreds and hundreds of settlers and workers happy and contented. Furthermore, it had not touched a shilling of the £7,000,000 loan which had been invested temporarily in London till it was required to maintain the public expenditure of the country. From the figures he had quoted, it was obvious he was carrying out his election pledges. It had been promised that £70,000,000 would be raised in eight to ten years and of this, £10,000,000 was to be for railways and £60,000,000 for workers and settlers. He maintained that the money provided so far had kept well up to average. He would deal further with the subject when he presented the Budget which would be next week if possible.

Railways. Dealing with railways, SIR JOSEPH WARD said the report of the Commission that had investigated the matter of the Taupo railway had indicated there tvas no likelihood of its returning revenue to meet the expenditure and he personally estimated that no timber would be available for transport on the line for 15 years. The Palmerston North deviation had been fully considered by Cabinet and it had been decided that the expenditure was not justified. Referring to the South Island extension, he said there were 1,790 route miles or 2,278 track miles of railways connecting with the 76 mile gap which it was intended to fill. It had never been intended by the originator of New Zealand’s railway system that there should be this 76 mile gap in the South Island. It was the Government’s intention to complete all lines and not waste money on small lines which, it had been proved, were invariably failures. There was at present £4,400,000 of public money expended on railways that were not being used. The Government’s proposed expenditure on the main line railways was £10,000,000 and this would complete the works and bring into use nearly £4,500,000 at present lying idle. The cost of the South Island extension had been estimated at £27,000 per mile. The cost of other South Island lines had been £12,000 per mile. This would give an average of about £16,000 per mile for the whole of the South Island. He could understand the opposition to the railway if the country through which it was to traverse was a wilderness, but there were a million acres of good farm land surrounding the route. Further, it was to be the connecting link between Wellington and Christchurch and in his opinion, it should have been completed 40 years ago. It would bring the railway system into one compact whole. Replying to the reference by Mr Holland to the suggestion for a curtailment of the debate, he said he had not thought it fair to ask new members who wished to take this opportunity to speak to refrain from doing so. Reply to Sir Joseph Ward. THE HON. W. DOWNIE STEWART said he wished to reply to statements that there had been financial difficulty due to the action on the part of the previous Government or himself. He wished however, to make some general remarks. First, he had been surprised to read that a speaker at a banquet had compared the Minister of Lands with Abraham Lincoln. Personally he (Mr Stewart), had not noticed the resemblance, but when he had seen this statement and had remembered that the Minister of Health had claimed that he had had his commission from a very high source, he felt that his party had a difficult task before it in facing such a combination. In reference to Sir Joseph Ward’s remarks he said the position in which Sir Joseph Ward had found himself was no more due to any action of his than of the present Finance Minister. Mr Stewart said it had been known -that £29,000,000 on London was falling due for conversion this year and it was obvious to everybody that it might be difficult to renew such a large sum. Consequently, when he went on the London market for the usual loan for public works, he included a sum for conversion, the question of further conversion being left in abeyance. Then information came from their London advisers that there was a likelihood of a hardening in the money market. The question arose whether to arrange further conversion or borrow in anticipation of next year’s requirements. As the election was so. close at hand, he cabled .London asking when a decision was necessary and the reply was that it would be required before the end of January. Mr Stewart said his tongue was tied during the election, just as Sir Joseph Ward’s was at a later stage. He could not prejudice New Zealand’s position financially by referring openly to the subject and the only hint he could give Sir Joseph Ward, was to draw his attention to the large sum due for conversion. Sir Joseph Ward had been faced with a problem to decide whether he would arrange for conversion or borrow more money before he normally would have done so and in his (Mr Stewart’s) opinion, the Prime Minister had'. made the right decision. Owing to the interpretation which had been placed on Sir Joseph Ward’s earlier

remarks, it had been assumed that the speaker had held back something and. had therefore acted prejudicially to New Zealand’s financial position. That was not so. It was clear that no publicity could be given to the subject till a decision had been reached and he considered that he had acted in fairness to Sir Joseph Ward in waiting till after the election, thereby giving the new finance Minister a free hand in the matter. It was true that circumstances had altered Sir Joseph Ward’s plans, but the position had not been caused by any action of the late Government. Mr. Stewart contended that nobody had ever doubted that the money could be borrowed flor the State Advances Department. It had been the desire to regulate the finances and keep down the public debt that had caused the hesitancy of the Reform Government to borrow for this purpose. It had also been going cautiously in regard to advances to workers because there was a growing feeling that the cities were being overbuilt. It was for that reason that the rural advances scheme had been- given such encouragement. . ' Referring to the proposed appointment of a Trade Commissioner to Canada, he emphasized that it would be necessary to make sure that the appointee had a sound knowledge of both Canadian and-New’ Zealand conditions. ' . ■ Mr. Stewart said it appeared to him that some scheme should be evolved whereby railways commenced by one Government should be continued in the event of another party gaining power. -He did not know how the difficulty could be overcome, but when projects involving such a large expenditure as the-railways were undertaken, there should be some prospect of continuity. ■ The debate was adjourned on the motion of Mr. A. E. Ansell and the House rose at 10.30."