ALL EYES ON REFORM

Stratford Evening Post, Volume I, Issue 80, 13 March 1931, Page 6

ALL EYES ON REFORM

LABOUR’S AMENDMENT MOVED BITTER TIRADE ON THE WAGES QUESTION ADDRESS-IN-REPLY DEBATE UNFINISHED The Labour uo-conficlcnec motion sponsored by Mr It. L. Holland and Mr L. J. Howard, has been launched ayainst the Government as an amendment to the Address-in-Rcply delude. Eyes of' the House and country naturally turned to inform benches 1 to appreciate the likely outcome of; Labour s attitude, and the Hon. J. G. Coates lost no lime in assuring the Government of his party’s support in matters of vital interest to New Zealand. He contended, however, that more would hav® to be done for the primary producer. Inferest charges were mentioned and the Government asked to set a lead by creating readjustment in its “over-the-counter business. Labour’s criticism amounted to a denunciation of the Government on the wage reduction policy forced upon it through current economic conditions. Cancellation of war debts was suggested by the Country Party member, Mr H. M. Ilusbwortb, as a means of overcoming world-wide economic problems. He also thought the abolition of the gold standard desirable. The House rose with the Addrcss-in-Keply debate unfinished.

WELLINGTON, .March H-. Moving the Addrcss-in-Reply motion Mr A. E. Jull (Waipawn) expressed the appreciation of the people of Hawke’s Bay for the kindnesses rendered by Lord and Lady Bicdisloe at the time of th e earthquake. Ho also paid a tribute to the manner in which the Hon. G. W. Forbes had represented the Dominion at the Imperial Conference. Referring to the fall in the Dominion’s revenue, Mr .lull congratulated Mr Forbes on the maimer in which lie had taken the country into his confidence concerning the economic position. Ho expressed sympathy with the people of Hawke’s Bay in the earthquake disaster and praised the Prime Minister and Cabinet for the manner in which they had handed the situation. The people of the district wished to thank the rest of New Zealand also for the assistance given. Mr Jull appealed to the House to treat the cost of repair of earthquake damage the same as a war debt. Seeing that money must be paid for reconstruction lie suggested that the State should assume all earthquake policies in the area and and raise a loan tor paying out. lie thought the question of earthquake insurance should be a straight-out State monopoly. Mr did! described the proposal to cut wages by ten per cent qs a startling illustration of the country’s needs. No one liked to reduce wages, but everyone had to share the present burdens. He believed that if there was to bo a reduction it should be a general one, and he was satisfied that a substantial fall in the cost of living would follow. ,

going a period of deflation, but there wore people who were reaping the benefit of such conditions. He con tended that the ladders of mortgages iu Australia had gained considerably under similar conditions, and it seemed that such people, wherever possible, would dictate to Governments. It appeared that the Government of New Zealand had yielded to influences o( the Reform Party on the one hand and to the bankers on the other. Air Holland quoted the Minister of Railways as having said, on former occasions, that a reduction in wages was a lazy man’s solution of difficulties iu in-dustry-mud that there should be no reduction in wages till the cost of living had fallen. Mr Holland said the Labour Party was in favour of balancing the Budget but it should bo done on the basis of equality of sacrifice. The Government, for instance, was proposing to obtain one third of the amount required Ito balance the Budget by reducing the public servants’ salaries. Public servants constituted one ninth of the wage earners and an immensely smaller proportion of the whole population. Where was the equality of sacrifice there? Equality of Sacrifice Mr Holland insisted that the burden. on the people should bo graduated. The Government should do nothing to endanger the standard of life among the working people. The Prime Minister had informed the primary producers that ho hoped the prices of I heir produce would go up, but he had informed (he workers that he was confident the cost of living would come down. How was the cost of living to come down if the prices of primary products were to go up? The Government should not have to come down to an .attack on the basic wage until every other possibility had been exhausted, and if e.vcyy other possibility had been exhausted there would be no need to attack wages.

Wheat Duties Mr J. A. MacPhersou (Oamaru) who seconded the motion endorsed Mr .Tull’s references to Lord and Lady Bicdisloe, Mr Forbes and Cabinet. Pc- . for ring to the wheat duties Mr MacPhcrson said that the time had come when the question of costs of delivery . of bread would have to be vostigated. The wheat producer had been carrying on for years .with a bare margin ot profit, and it would moan putting his capital and labour out, of action it wheat was allowed to enter this country free of duty. The problem of the price of bread should be tackled Loin the right end, namely the host of delivery. The Hon. J. G. Coates sn,id it was not his intention to hinder, but lathei to help. Mr Forbes to bring the business lie regarded as necessary before the House. He reserved the right ot criticism and felt that in the interests of the country such criticism should be withheld until the particular measures came before the House. Mr. Coates stated that the country was unanimous in extending sympathy to Hawke’s Bay and everyone was anxious that the work of .rehabilitation should be tackled as soon as possible. The disaster had come at a very bad time, but the district was such that it would speedily recuperate and it should be given every possible assistance. The Primary Producer Continuing, Air Coates said that the economic position at the present time was such that urgent measures were accessary. In view of the situation ot national emergency that had arisen the Reform Party had departed from the traditional practice of official Opposition parties, and had gone so far as to suggest measures to the Government that it regarded as essential iu the interests of the Country. The Government had, to some extent, met those suggestions, but he was satisfied that, more would have to bo done lor the primary producer on whom the conn try- ■.impended so nnn-h. The interests of five primary producer were also vital interests to all. sections of the coin- • niunity. Wages and costs were not: (1... mill- <l l (Tien! l ies to be faced. There

The amendment was seconded by Mr E. J. Howard (Christchurch .Smith). The Hon. E. A. Ransom (Pahiatua) referred to the difficulties being experienced in ’Hawke’s Bay and pointed out that in addition to the earthquake, residents there were suffering from drought and difficulty to dispose of their stock at reasonable prices. It was, therefore, essential that they should be given every possible assistance. The Minister declared that the present occasion was one oy which the Government could afford to give no attention to its own political wishes or prospects. •It had to bring forward measures that would not be popular with many electors, but it had to do what was necessary in, the interests of the country at a time of national emergency.

In reply to .-Mr Coates, the Minister of Lands said.it was the Government’s desire to protect the interests,of the primary producers in every possible way. It fully-' realised tiiat the difficult economic position of to-day was. the direct result of the fall in the values of products and the Government kept the interests of the farmers constantly before it in,framing all its legislation. The house adjourned at 5.80 p.m. I Unemployment Board. j When the House resumed in the ! evening the Hon. E. A. Ransom, continuing, said that credit must be given the Unemployment Board for the manner in which it was rendering assistance to the primary producers. The question of how it, was possible to reduce interest rates had given the Government considerable concern. He was sure there would not be many who would advocate legislation necessitating breach of contracts. The suggestion to reduce the interest rate paid by the Government for loans “over the counter,” had been given‘considerstiou, hut it was likely that if such action was taken the Government would not be able to obtain loans in this manner. It might eventually be possible to devise some means of reducing interest rates, and he for one would make every effort to attain that end. The Government’s attitude towards wages was not, a matter of change of policy, but one of a very serious change iu the economic position. It was hoped that reduction in wages would eventually benefit the wage earners themselves, and result in increased employment. Replying to the suggestion that there should be a graduated cut, the Minister said that a 10 per cent, cut on the Civil Service would result in a saving of £1,.191,097, while a graduated cut, ranging from 15 per cent, on the incomes over £IOOO a year, to 5 per ■cent, on incomes of £2OO and under, iwonbl result in a saving of only £729,252.

were interest costs as well. He was not suggesting that the (lOve.rnnient should pass legislation compelling I lie people to reduce the rale ot interest at which they had lent money but the Government itself was in the money market and it could do much by reducing the amount the State was paying ‘'over the counter”/- for loans, Finch reduction would .haw; a substantial etfect on interest rates. It was essential, he added, that the question of fertilisers should , not, be overlooked. Tim -whole country would sutler il the farmers were unable to obtain adequate supplies, and lie urged that every possible step should be taken to bring prices down. Motion of No Confidence The Leader of the Labour Party (Mr H. L. Holland! moved an amendment to the effect that the Government did not possess the confidence of the House or of the country. Briefly referring to Die earthquake lie said he was sine there would be no division of opinion in thn House on the subject and he endorsed the remarks of previous speakers. Air Holland contended that it. was the duty .of the Government to gel the opinion of the country before endeavouring to put into operation such drastic changes ot policy as it proposed. Among othci things, the United Party had gone into office on a policy of railway con struction and a refusal to reduce wages but it had now jettisoned those pledge? and surrendered to the Reform Thirty He knew that the country was under

Mr H. G. R. Mason (Auckland Suburbs) advocated the institution of a .moratorium with respect to the repayment of capital as a means of giving relief. He thought the suggestion that mortgagors should, at a time like the. present, bo called upon to pay interest rates only, was a reasonable one. Rev. C. Carr (Tirnnrn) said that some people had profited in times “I prosperity; some were profiting to-day though not so many. Those were the people who should b« called upon f “ bear the burdens of the country. They were better able, to do so than the lower paid civil servants. Mr Walter Nash (Hull) said that while admiring the Prime Minister's courage, he feared his lack of imagine-

lion would, in uic event of his proposals becoming law, result in the country going further back than it was now. The proposals would result in the people of New Zealand having less access to the world of production than they had to-day. hir Vf. E. Parry (Auckland Central) said that if the Prime Minister thought ho was going to bludgeon through legislation that was going to attack the workers’ standard of living he would lind it was going to be a fight. Mr Parry added that he, personally, would exhaust every privilege he held under Standing Orders before such legislate) nwonld get through. Mr W. E. Barnard (Napier) said the Hawke’s Bay district had realised to the full the wave of sympathy that had passed over the whole .Dominion, and it had been a great help to them in facing the disaster. He also expressed i appreciation of the manner in which (he Government, outside ’municipal! ies, Navy and others had promptly come to the aid <d' Hie stricken area. 'Plie debate was continued by Eabour Party speakers. Country Party’s View. Mr IE M. Posh worth (Country Party) said the present economic, turmoil throughout the world appeared to have developed ■ unconsciously along undirected lines. The trouble seemed to have arisen as the result, ol transfer of gold in an endeavour to settle the. question of Avar debts. Cold had gravitated largely into two countries in which it was impossible to put C all into potential circulation. Ho oelieved the cancellation of war debts would eventually provide the solution of world economic problems. An alternative solution might, bo found in the abolit ion of the gold basis as a u international standard and the snbsli tuition of the chattel basis. The House rose at midnight.