COUNTRY’S NEED

Taranaki Daily News, 23 November 1932, Page 7

COUNTRY’S NEED

SPECIAL SESSION LIKELY FARMERS’ POSITION WORSE FURTHER INTEREST RELIEF PRIME MINISTER’S HINT OTTAWA HOPE DEFERRED (By Wire— Parliamentary Reporter.) Wellington, Last Night. Although members of Parliament are not anxious to spend the greater part of their time at Wellington while their constituents are clamouring for attention, there appears to be a strong possibility that they will be called upon to attend a special session for the third time in succession, the Prime Minister stating in an interview this evening that a short session in the New Year might be necessary if the position of the primary producers did not improve in the near future. Mr. Forbes frankly admitted that next year would probably be a bad one from the producers’ point of view, and said that further reductions hi interest might have to be considered. It has been no secret for some time that the Government is greatly concerned about the position of the primary producers, since the temporary recovery in prices on the London market some time ago failed to continue, and the financial adjustments made during the emergency session are now regarded as inadequate to meet the position, especially in view of the fact that the Ottawa Conference has not yet produced any material results. The statement made by Mr. Coates at Pukekohe recently that there Was every prospect of the country being well on the way to economic recovery within nine months was believed to reflect the outlook of the Cabinet, always, however, with the reservation that overseas prices rose. ' TO ASSIST EXPORTERS. Singularly little had been heard about the immediate problems of the farming community during the first eight weeks of the session, and it was only when it was learned that a deputation of Government members had waited on the Cabinet last week and had been firm that something would have to be done to relieve the position that members generally became fully seized with the necessity for urgent steps to assist the exporters. Since then this question has overshadowed all others in the lobbies, and it has been occupying members’ interest to a greater extent than questions before the House. Although he hinted about a week ago that there was a possibility that Parliament might be called together early next year, the Prime Minister was considerably more definite when questioned on the point this evening. Mr. W. D. Stewart’s return to New Zealand so late in the session means that any action proposed would have to be taken very quickly if anything were to be achieved before the end of the year.- The opinion is growing that further drastic Government action will be imperative if an accentuation of the present economic problems is to be avoided, so that it is conceivable it will not be found opportune to tackle the question with any earnestness until the New Year. Mr. Forbes did not disguise his concern when replying to a deputation from importers yesterday, protesting against any increase in the exchange rate. “The position is getting increasingly worse,” he said. “We cannot disguise the fact. I know from the position of the Government finances that next year will be the most difficult in the history of the country.” FATE OF INTEREST RATES. The Prime Minister’s statement that interest rates would have to come down even further is regarded in political circles as the most important that has been made by a member of the Ministry for some time. Legislative action would certainly be needed to bring this about, and as Mr. Forbes has said that the Government will first have to confer on the point with Mr. Stewart, this again would indicate that hasty action will not be possible. When asked this evening whether the Government considered that wages would have to be reduced again the Prime Minister said the position with regard to them was somewhat different from that relating to interest rates. Wages had already been cut, and in addition the industrial arbitration law had been amended to provide facilities whereby arrangements could be made between employers and employees. There had not been the same “loosening” as far as interest rates were concerned, and something would have to be done to bring it about.

It is almost exactly a year ago since Mr. Coates as Leader of the Opposition moved for the setting-up of an interparty committee to consider the serious position of the State finances and the plight of the country generally. Notice of a similar motion was given in the the House yesterday by the Leader of the Opposition, Mr. H. E. Holland, who suggests that the committee should be established from all sides of the House to inquire into the most effective means of meeting the existing economic difficulties.

Questioned later concerning Mr. Holland’s proposal for the setting-up of a special committee, the Prime Minister said the Government did not consider its establishment would be of any great use in meeting the country’s difficulties. That expedient had been tried once, but the Labour Party had not taken its part and had put the responsibility on the Government.