DOMINION TO-DAY

Southland Times, Issue 22139, 6 October 1933, Page 9

DOMINION TO-DAY

ADDRESS BY DR. BEGG BALANCING RESOURCES IMMIGRATION PLAN At the request of the Wellington Divisional Council of the New Zealand Legion Dr Campbell Begg gave an address last week in which he outlined his views on the present situation in New Zealand, and the lines along which, in his opinion, action should be taken in order to bring about the future,safety and security of the Dominion. It was decided at the conclusion of the meeting that a conference of representatives of the main interests involved be convened to examine the proposals made. Dr. Begg stressed the point that one of the main objects of the Legion was the organization of the public thought of the country in the direction of bringing about the future safety and security of the country, and he said he had no hesitation in giving, for what it was worth, his own contribution. This was more in the nature of a framework for subsequent detailed consideration than a completed plan.

Bold Readjusting. “It is my belief,” said Dr. Begg, “that bold and far-seeing statesmanship in co-operation with the British Government could not only solve New Zealand’s problems but give considerable assistance to the most pressing ones of Great Britain herself.” Such statesmanship could only be effective if the parties united for the purpose, and enlisted as well the sympathies and cooperation of all organized interests and thought, capable of dealing with wide issues for real national prosperity and able to rise above the consideration merely of the exigencies of the moment. In some of the measures undertaken by the Coalition Party he was in agreement; with many he was not. He was convinced that the Labour Party, in some of its platform, had touched on questions which must be taken into serious consideration; but he did not think in either party at the present time there was a clear acknowledgment that the threatened restriction of the market for our produce in Great Britain indicated a definite and inevitable turning point in our destiny. We were emerging from infancy to adult life—from the pioneering stage to nationhood. Without a full realization of this position there was a danger of drifting on, dealing in measures of expediency directed to the immediate present, instead of boldly readjusting our ideas to meet the future.

Prices and Consuming Power. The Hon. Mr Ransom had put his finger on the spot when he pointed out that prices could not be controlled because the internal consuming power of New Zealand with its present population bore an inadequate ratio to production, continued Dr Begg. An increased population was most desirable, but when it was secured the wages level of those engaged in industry would have to be such as to give them the power to consume the necessities and'obtain the amenities of life, as well as the leisure to develop the human as distinct from the purely vocational side. But before the increase in population commenced the whole of the present unemployed would have to be absorbed in agricultural and industrial life at adequate remuneration and immigration should be carried out on such a basis that the newcomers were assurred of employment either in industry or agriculture without displacing any of the existing population. Only in this way could we balance the industrial and agricultural resources of the country—each side providing the market for the products of the other. It was madness with the undeveloped and rich assets of the Dominion to talk of cutting down production merely because it was realized that our external trade might diminish while there were those within the country who were urgently in need. Before the programme he suggested was attempted whole-hearted co-operation was essential. He believed that the present centralized administration of the country would be quite inadequate to undertake the organization required. In addition to a combined central executive comprising the best brains of all parties the immediate formation of a limited number of regional administrations with wide independent powers and adequate finance would be essential.

Points to be Recognized. The points that must be clearly recognized were:— 1. The principal and interest on our debt to Great Britain of £177,000,000 (including local body debt) could only be paid in goods or services. 2. We had not the shipping services capable of influencing the position. 3. The only goods we had to offer in payment of the principle were unacceptable to Britain in the quantities necessary. 4. Britain was forced to adopt the policy of agricultural development. 5. The payment of debt and the buying of British goods were in essence two incompatible things. 6. Britain could only accept our primary products and those of other debtor countries as payment of debt by putting herself into an extreme position of unfavourable balance of trade, thus damaging both her agricultural and industrial life. 7. Britain strove to reach a favourable balance of trade, or at least an even one, and under such condition neither the interest nor principal debtor countries could be received without further increasing the debt. 8. Great Britain could not accept payment in the only coin we had to pay. 9. Considering her total foreign debt of about £3,000,000,000, the great bulk to primary producing countries, the large interest was unacceptable, although she might still be able to accept New Zealand’s interest, a mere £8,000,000 per annum, but would prefer to sell her goods to us; and this policy together with the quota in the long run was incompatible with the payment of interest, 10. We must face the position that the principal of our debt to England was irredeemable.

11. Any future borrowing would represent a gift on which the payment of interest itself would be an embarrassment.

Fluctuating Price Level. 12. The fluctuating price level made our external debt charges the one factor which could not be controlled in balancing New Zealand internally. 13. The unpayable external debt should be eliminated and an even balance of trade attained. 14. In financial matters Governments should deal with Governments. 15. Corrporate bodies within the bonds of a severeign Government should not be allowed to deal in financial matters with external nations. 16. The decline of British industry had created 3,000,000 unemployed in England, who must either (a) Remain unemployed. (b) Be absorbed in agriculture. (c) Emigrate, or (d) Take the place of those who did emigrate. 17. The basis of cost to the British.

Government of these unemployed could be estimated at the lowest at 10/- per head per week of £26 a year. 18. By securing emigration of skilled workers and the absorption of a similar number of unemployed Britain would benefit by at least £26 per head per annum for every emigrant. 19. The emigration of one million people would give relief to the British Government to the extent of at least £26,000,000 a year.

20. New Zealand’s estimated population capacity was eight to ten millions; its present population a million and a

21. The country had been planned on a population basis of three or four millions.

22. Many railways and other public works were held up because they could not be shown to be necessary or payable.

23. The present population was paying in debt services and taxation for utilities ample for twice as many people. 24. If the population and general development were built up to twice the present level, the public utilities would justify themselves and the burden of their upkeep would be halved for each individual.

Effect of Increased Population. 25. With a million extra inhabitants the internal consuming power would rise to meet the productive power and the dependence on external factors would be diminished. 26. If it be admitted that New Zealand could support eight million people the absorption of one million people in, say, 15 years would simply be a matter of internal administrative and economic adjustment. 27. In planning the transition of the country to a more stable self-dependent position, time would be required, and the present interests of all concerned could be looked after with wise statesmanlike planning. 28. Any arrangement with Britain must be on the basis of an agreement conserving the interests of—(a) British bondholders; (b) British agriculture and industry; (c) The British taxpayer; (d) The British Government and all classes of the British community on the one hand; and (e) The New Zealand Government. (f) New Zealand local bodies; (g) Every class of the New Zealand people.

29. Realization that the principal sum of the external debt is unpayable, and that the payment and reception of interest on that sum is, while still possible, against the interest of Britain and New Zealand.

Suggested Line of Action. (1) An arrangement between the British and New Zealand Governments by which the two would be able to enter into an agreement with power to deal with all the matters concerned. (2) The New Zealand Government, by suitable arrangements, should take over the service and responsibility of the debts incurred by local bodies with bondholders in Britain, (3) The British Government to take over the service and responsibility of the New Zealand debt domiciled in Great Britain in addition to the funded war debt, (4) The agreement with the British Government to be on the following basis: — (a) New Zealand to absorbe one million British nationals in fifteen years; (b) during that period the whole of the interest owed by the New Zealand Government in Britain to be remitted, responsibility to be taken over by the British Government; (c) New Zealand to have a large share in the selection of the personnel to be received, on a fixed balance plan in regard to their calling, qualifications, etc., (d) New Zealand not to be expected to receive the first batch of immigrants until two years after the agreement has been made and in the meantime to have the advantage of the sum remitted amounting to £8,000,000 sterling per year to adjust its internal position, absorb its own unemployed and prepare for the reception of the immigrants; (e) the first batch of specially picked immigrants to arrive in the third year and not to exceed 10,000; (f) during the period of the agreement the whole of the accumulated unpaid interest. from New Zealand to Britain to bear interest on a compound basis at a rate to be fixed; (g) the total of the accrued interest to be calculated on this basis and the amount due at the end of the period, say, 1948, to be set against the accrued New Zealand credits, the latter to be calculated on the basis that £4O, or such less or greater sum as shall be arranged, be credited annually to New Zealand for every person settled, and that the accumulated credits carry the same interest rate as that charged on the deferred interest; (h) the difference bet'ween the credits due under (g) and the debits under (f) be estimated and any credit due to New Zealand be used in liquidation of the principal sum of the New Zealand debt to Great Britain; (i) £4O a head or such other sum as has been arranged as the annual credit to Nevz Zealand for all immigrants settled, continue to be credited to New Zealand as a debt redemption fund until that debt is finally liquidated approximately in 1954 or 1955; (k) in order to facilitate the settlement of the immigrants in New Zealand the British Government to make a grant per head sufficient to cover the passage and the amount required for the preliminary expenses necessary to settle the immigrants, this sum to be liquidated by the New Zealand Government by the continuance of the credit of £4O pel’ head; (1) the final adjustment to be made probably between 1964 and 1970 according to the amount allowed under (k).

Rate of Arrival. On the supposition that the agreement was made in 1933 and that the first immigrants arrived in 1936, Dr Begg suggested the following rate of arrival:— 1936, 10,000; 1937, 20,000; 1938, 40,000; 1939, 80,000; 1940, 100,000, and 100,000 each year till 1948, when the reception of 50,000 would complete the million. Dr Begg said it would be seen on the low figure of £26 estimated as the annual relief to the British Exchequer for each immigrant settled, New Zealand, although paying no interest from the time of the agreement, would be in credit by £20,000,000 at the end of the period. New Zealand would have a clear gain of £8,000,000 sterling (leaving exchange out of account) in every annual Budget from 1934 to 1948 and beyond. With the additional resources thus provided the Dominion would be able to cut down taxation immediately, undertake preparation on a large scale for land settlement, and commence operations once more on all the railway and public works now abandoned. Capital works of this kind, however, and employment upon them should really be considered as a. temporary expedient without losing sight of the real need of establishing the men in agriculture and industry. Dr Begg said that what he had given was the merest framework on which to work and the figures were given only by way of example. There were difficulties to be overcome, but they were soluble and must be solved. The simplest terms in which he could state his belief were as follows: —(1) Until the irredeemable external debt and its interest charges are abolished, there can be no permanent economic security, stability, or prosperity in the Dominion; nor can our relationship to Great Britain be firmly established and permanently maintained until this potential cause of increasing friction is done , away with. (2) The increase of population is the basis of our advance in social, cultural, and intellectual life, as well as being essential for national security. Pennant Remedy For Unemployment. Far from perpetuating the present

conditions of unemployment it was the only sure permanent remedy for its abolition. The population must be so adjusted between industry and agriculture as to avoid an impoverished peasantry on the one hand and an underpaid and overworked industrial community on the other.

“We want something big and daring,” said Dr Begg, “something that will set the imagination of the people on fire and rouse them like the blast of a trumpet. We have perhaps suffered a good deal, but the real danger is I think that we have not suffered enough to inspire those who are still living in comparative comfort with the appreciation of the dangers that beset us on all sides unless we boldly take our fate into our hands, instead, of drifting along. Our hope for action is in those who have suffered and know.... Let them see clearly that everything they are asked to do is part of one big plan to restore the community to permanent prosperity, in which they shall have their full share and none will throw themselves more wholeheartedly than they into the work towards this end.”