MEETING DIFFICULTIES

Taranaki Daily News, 22 December 1930, Page 14

MEETING DIFFICULTIES

i NATIONAL CO-OPERATION

i SIR ■,JAWS -GUNSON'S - VIEWS.

REMEDIAL POLICY SUGGESTED. <

A suggestion that the,three parties .in.the.New Zealand Parliament, United, Reform, and Labour,. should join/forces to : meet the present adverse conditions is made,; says tho Auckland Star, by Sir James Gunson, in reviewing tho economic situation and forecasting the prospects of the Dominion. During the past fortnight, Sir James has visited the chief centres of the country. “One cannot but impressed with the economic difficulties that are quickly and t adversely developing,” said Sir James. - “These - developments arise from, causes'-iih ; part beyond - locaL control, and are due to ■ the greatly lessened' income of the country, with the consequent’diminishing spending power- bfj a large ■ section ot -the community. . All classes of «our/national and’domestic life areinvolved, or' will shortly '/be, unfavourably affected by conditions; which have A already reached a poin t which should be regarded as a national emergency. .. - ’ . ‘‘There are three main factors in .the situation, from all of which quarters prompt and effective organisation and sacrifices are essential .in. the hour. of the country’s need. All should share in the i.effortall capitai and labour and industry, under a co-ordinated .and definite policy, should offer their quota.They are: , (lj '/Parliament,'-.which'is the paramount authority,. and . from' which the-chief direction must'emanatg; (2) the producers and traders-—those on the land ;and those in manufacturing and"-marketing;, and: (3)'-the employees/ •—all’ workers in New Zealand. - ' i / . ■■ ~v /> . -“PARLIAMENT MUST LEAD!” . ' '“Parliament must lead-the country. It aloha h'as the authority, . -.without which nothing .sufficient ; can be accomplished. The life of the present Parliament should be extended ' two years.! Tkei'three -partieA ’shbuld join forces; with equal representation in the Cabinet. If. the Labour party refused to join, then the two remaining parties should merge at once on equal; terms. This does not mean a political fusion as ordinarily discussed, blit--the merging: of/the Parliamentary forces "of. the country to meet the very serious-situa-tion which, is developing. All questions, of past Administrations "or failings, should be forgotten, and-'the: situation dealt with , now in the'interests of the country-'alone?-as' the-Dominion will be in no mobd.-next year to listen'ito politi? cal party, squabbles.’?. . .;.A <; Sir Jernes Said ? that, 5 following a upion of political forces,, no legislation,'other than economic measures to meet '.the, country’s requirements need exercise the Government. .-There should be-an, -im\. mediate resumption of. /-/borrowing in London:: for./ a ppr o ved product iv e - works totbe undertaken at<oiice. Unless, thia were.done unemployment .and industrial difficulties would quickly. ■-further develop. -. /National / borrowing... was -• essen- / tial/in times of depression to tide the

country over: its difficulties. New loan money obtained in this.way/eliould provide; for "tosettlers,--/,further-land "''settlement, ■/' ' productive., public' works,,; such; as loading in conjunction with -the Main -Highways Board,- bridging,-, anff; assistance to local .’bodies; generally. In the industrial'and rnanu-. facturing section -a great . dsal.- '■ more. could-betdone/in the way of-reciprocal-tafiffs ’ and'. the revision..',/of . general tariffs with-a view, of providing further: employment.- It was quite possible for. the country, to absorb; on /the land the' whole of the unemployed, but occupations must- be found for -■ them in 5 /tjie. cities^ and towns. - ” »• BALANCING OF BUDGET. .; ; ' .calls ; for. an-, ijpipe'diaiaibal-. ■ ancing of the Budget, as the revenue. : position is causing concern. ...The 'cajiL tai position, on t/iie~ other ; hand, he. states, .would .take- care of itself/ -with'. t, ths • borrowing. suggested. Under thesetwo/headings the country would' then.be UvinaJwithin its income. An overhaul/ of air State services .should be under-' .taken and reductions commensurate

with .those which commercial- and . othei circles are called upon to meet should be enforced. The Arbitration Act should he suspended for two years, with a definite understanding that it be restored .. at* the end of that period • oh anew ■ economic: baeis.. -The .office of. the High Commissioner in London should centre all its attention on New Zealand trade interests, ■in conjunction with. the Marketing Board land. other organisations and should make wider appeals to the travelling public. Local:bodies,and. harbour boards should ; be assisted by the Government borrowing. for .them, in one sum in London for permanent works on an agreed schedule, and the Loans Board should regard as r “essential”not only water and drainage'works, as atpresent, but .public'-buildings' and oth.er works of an approved character. The times .called for, 'a maintenance of the country’s .activities,-not i.fbr-.the restriction of'them. POSITION OF.'THE WORKERS. ' : - Touching on the' responsibilities of the-workers, Sit James .said- that what he proposed should appeal to t)ie Parliamentary ' Labour partytapd to trade unions. It provided safeguards for the - worker^..■ It was:the-'best, constructive way: of avoiding what otherwise would be a .most, disastrous, national condition. But, obviously, with the principles of the Arbitration Court and trade unions protected, there would have to be- a general recognition of . the economic' position, and the 1 ’future settlements would probably have to be made around: the 1 present level of' values.

<■ Sir'James said that at the present 'prices'a-large number of farmers would, be unable to meet their obligations. Where men had sold, properties at price's beyond the economic value of the land, taken a mortgage and retired to the cities, there appeared no -other course than to ease sufficiently ; the: interest burden of the 'mortgagor, thereby en- ■ abling.'him to carry on. The. banks’’ and several lending stock companies could not ■ carry the entire : burden. A mora-' torium would accentuate rather than overcome .'the difficulties,-and would immediately impair New Zealand’s credit. In concluding his review, Sir James said:.“The most disastrous period which New Zealand has experienced is threatening us. A great opportunity presents itself, to the . leaders ■ of. the country today to rise above all ’party- divisions'. The primary producer, the manufacturer and the : trader are the sufferers- to-day. Rut infection - will quickly spread.:- No section will be immune. Those in salary or wage positions, seemingly safe,-and actually in danger already, will, in effect,in:- offering, their contribution to the. country’s welfate, protect their-oWn Sositions— but all ■ this must come from be country’s leaders, and that before •the situation,: by failure, becomes more difficult to handle.'”