PARLIAMENT

Southland Times, Issue 22146, 14 October 1933, Page 6

PARLIAMENT

WORLD CONGRESS MR FORBES’S REPORT A DULL DEBATE THE QUOTA SCHEME (From Our Parliamentary Reporter.) Wellington, October 13. The continuation of the debate on the Prime Minister’s report on proceedings of the World Economic and Monetary Conference filled the whole of the proceedings in the House o( Representatives to-day, but the discussion was very uninteresting throughout and the benches in the chamber were sparsely filled. The debate was interrupted by the rising of the House at 5.30, but it is unlikely that it will be continued further. . Mr A. D. McLeod (C. Wairarapa) said that with her present population the Dominion should not solve her own problems irrespective of what was happening in the outside world. The country would require a population of at least 20.000,000 before prices could be adjusted internally without regard to world parity. At the present time, because she exported 40 per cent. of her products, New Zealand had to fall into line with world prices. Mr R. McKcen (L. Wellington South) said it had not been the fault of the delegates that the conference had failed. The whole situation had been in the hands of international bankers who were conferring at the same time. The evils from which the people were suffering were due to the policy of deflation. The deflationary policy had doubled the burden of fixed charges and so long as the monetary system was in the hands of private individuals there would be slumps and booms. Quotas Opposed.

Mr W. J. Polson (I. Stratford) said he was not one of those who believed quotas were inevitable. He thought Mr T. Baxter, on leaving New Zealand, had begun to realize that this Dominion felt it was being very unfairly treated in the matter of the proposed quotas. Mr Polson expressed the opinion that quotas once established would cause a vicious spiral of higher prices and reduced consumption and the development of industry would be hampered. He thought the Dominion should state her position to the people of Britain and rely on their commonsense. He did not believe the quotas were the accepted policy of the British people. New Zealand would have to continue developing her dairy industries to a greater extent and should not agree under any conditions to anything' that would restrict that development.

He considered there was every possibility with the assistance of better organization in Britain of, increasing the consumption of milk in the Olc. Country and stated that while the average consumption there _ was 15 gallons per capita annually, it was between 50 and 60 gallons in other countries. Forty per cent, of the cows in Britain were subject to tuberculosis, compared with a little over 4 per cent, in New Zealand. If the British farmers were prepared to produce a puiei article he believed the consumption of milk would increase. After referring to Britains trade agreement with Denmark Mr Polson said he believed New Zealand would be prepared to make similar arrangements with the Old Country and grant Britain certain trade concessions in return for an agreement by the Old Country to take our primary produce without restriction. He also believed an arrangement of this nature would be acceptable to the people of Britain. Mr Polson expressed the view that the possibility of trade with the East no longer existed. It was too late now to endeavour to establish any substantial market in this quarter. . Mr D. G Sullivan (L. Avon), said that in his opinion Mr Baxter had been absolutely unyielding in regard to quotas and if Mr Polson thought otherwise he must be extremely optimistic. He believed Mr Baxter's attitude bad been that of the British farmer and the British Government. If Parliament desired to serve the interests of the people of the Dominion it could only hope to accomplish that objective by facing the facts with which it was confronted. Continuing Mr Sullivan said that if New Zealand relied on international action to overcome the depression she would be relying on the weakest possible reed. He asserted that a remedy could only be found by internal measures, including increased wages and further protection for local industries. He urged the House to consider the feasibility of instituting a scheme something similar to the National Recovery Act in the United States. Mr E. J. Howard (L., Christchurch South), said there had been a definite necessity for New Zealand to be represented at the World Conference. In spite of her small population the Dominion was an important unit in the world but because of her small population other countries were not prone to recognize this. He was therefore glad the Dominion had been represented and that the Prime Minister had been the delegate. Mr Howard expressed the opinion that the fact that the discussion on war debts and wages and hours and conditions of labour had been barred had militated against the success of the Conference.

During the afternoon the debate was continued on similar lines, but a bright interlude took place when Mr McDougall entered the lists. The debate quickly settled down to a more prosaic level however, and was still in progress when the House rose.