PARLIAMENT

Timaru Herald, Volume CXXXVII, Issue 19632, 28 October 1933, Page 3

PARLIAMENT

IMPREST SUPPLY BILL AN ALL NIGHT SITTING By Telegraph—Press Association WELLINGTON, October 27. The protracted debate on the subject of unemployment was responsible for the session's first all-night sitting In the House of Representatives. Labour members made use of the opportunity afforded by the Imprest Supply Bill to criticise the Government's policy, and an amendment was submitted by the Leader of the Opposition declaring that the Government had failed to deal effectively with the question of unemployment, and expressing disapproval of the present relief work system, strongly condemning the proposal to introduce piecework on relief work, and expressing the opinion that the time had arrived for applying standard wages and conditions to all relief work.

The amendment was defeated by 42 to 23 votes, and the Bill, which provides for appropriations totalling £5,881,350, was passed through all stages by 5.40 a.r— Replying to. Mr Savage, the Rt. Hon. J. G. Coates said there were no unusual appropriations. The amounts included were simply the usual sums to comply with the country’s requirements. > Rent Restriction BilL The Rent Restriction Bill was put through the remaining stages and passed without debate. The Hon. A. Hamilton explained that its purpose was to extend the present Rent Restriction Act for another year. The legislation which would have expired at the end of the present month, would remain in force until the end of October next year. The House rose at 5.50 a.m. until 10.30 a.m. New Bills. Notice was given of intention to introduce the following Bills:—Juries Amendment Bill (Mr F. W. Schramm); Napier Harbour Board and Roman Catholic Archbishop Empowering Bill (Mr W. E. Barnard). Mr T. D. Burnett (Temuka), was granted two days leave of absence on account of illness. Answers to Questions. Replying to Mr W. J. Broadfoot, the Hon. J. G. Cobbe said the amendments to the Mortgagors Relief Act had not yet been considered by thß Government. He added that it would be difficult to Justify inte-ference with mortgages executed after the passing of the Act as Mr Broadfoot had suggested, because the contracting parties must have been aware of the provisions of the legislation. Reserve Bank BilL Urgency was accorded the second reading of the Reserve Bank of New Zealand BUI. Mr Forbes said there was a big programme of legislation ahead, and unless there was some co-operation from the Opposition the session would have to be continx d after New Year. This, however, would not be necessary if a reasonable attitude were adopted. Mr M. J. Savage said the Opposition had no desire to hold legislation up, but it did desire to have an opportunity to express opinions. Mr H. M. Rushworth said it had been stated that in establishing the Reserve Bank, New Zealand was taking a lead from other countries. When one looked at the effect of reserve banks in other countries, all that coiilJ be seen was a trail of ruin. In not one instance had they worked in thß interests -f the people They had worked in the interests of international financiers. Mr Rushworth said it had been stated that one Parliament could not bind its successors, and in theory he agreed with the contention, but in practice it was being continuaUy done. Contracts of various forms were being constantly entered into by Parliament with other countries and other Government and with individuals of this Dominion. Those contracts had a sanctity, and if Parliament could not enter into contracts that would be binding on its successors, it would find its functions considerably circumscribed. From the BIU it was clear that authority was to be given to the proposed new bank to enable it to enter into contractual relations with the Bank of International Settlements. He asked for a definite assurance that in no circumstances would the reserve bank be allowed to have any contractual relations with any bank or organisation outside the Dominion. There was a great deal of anxiety throughout tlje country over the reserve bank proposals. For instance, it would be possible for the people controlling the issue and retirement of money, by periodic inflation or deflation, to ca- se prices to

fluctuate, and by buying and selling goods with thE advantage of knowing before hand how prices would rise or fall, they could make any amount of money. Mr Rushworth insisted that the Bill was being put through without the consent of the people of the Dominion. The Government was determined to "steam roller” it through Parliament, and knew it could get it through. He pointed out that in law, contracts could be held to be null and void if it disclosed that information had been withheld. This would be regarded as fraudulent representation. He contended that if, when a successive Parliament might attempt to amend the Reserve Bank Legislation, it was raised as a plea that contractual relations hnd been entered into, and If material information concerning these contractual relations had been withheld from the House, the reply would then be that these contracts should be declared null Hnd void, because of fraudulent misrepresentation. “Suspicion.” Mr Coates: That is just a suspicion. Mr Rushworth: Yc.. But I think the suspicion is justified. Mr W. E. Barnard (Labour, Napier) said he could assure Mr Rushworth in the name of the Labour Party, that the Bill was regarded by it as being alterable in every respect by ordinary constitutional methods. The Labour Party, as tre Government of New Zealand would not hestitate to amend the Bill in whatever way It deemed necessary for the purpose of giving effect to the policy of the Party as Indicated in the Opposition amendment now before the House. Mr Barnard said there was only one way to make it truly representative of the nation and community, and that was to make it a State Bank. Mr C. H. Clinkard (C„ Rotorua) said the appointment of Governor and Deputy-Governor should be in the hands of the Government for all time. Mr F. Langs tone (Lab., Walmarlno) said there was no r.ason to hope that the reserve bank would depart from the “present obsolete system of banking.” It would be controlled by men with the same ideas as there controlling the existing banks. He contended that New Zealand required a completely new banking system, definitely linked to goods and services in New Zealand, and not controlled by outside Influences. Mr A. Harris (C., Waitemata) said tht the Central Bank would make an artificial manipulation of the exchange rate impossible. He was sure that the Dominion would, not have had to endure the present high rate if the central bank had been in existence last January. Not Understood. Mr A. J. Stallworthy (1., Eden) asked if New Zealand was to submit to world financial domination. He said that the Bill was a highly technical measure and the spectacle was presented of Government members not understanding it, though they would vote for it. There was grave reason for suspicion that one reason for the Bill was to extricate the Government from a serious financial position due to the high exchange. He could not support the measure which would throw so much power into the hands of international financiers. Mr F. W. Schramm (Lab., Auckland East) characterised the shareholders capital provision as a retrograde step. Mr A. S. Richards (Lab., Roskill) said that bankers would eventually secure a monopoly of the public credit and resources and all undertakings would h- controlled by banking institutions. Prosperity could only be achieved by increasing the consuming power of the People, and there was no provision for that in the Bill. J4r J. Hargest (C.; Invercargill) said that he believed the passage of the Bill would provide an institution of tremendous. lihpofthnce to the country, and it’ was the dutji of 6very member of the House to see that it was built on sound foundations. He urged the Government to retain the right to appoint the Governor and deputy-gover-nor of the bank, and suggested that the rate of 5 per cent, on shares was to high and should be reduced to 4 per cent. The debate was adjourned on the motion of Mr A. J. Murdoch, and the House rose at 5.30 pm. till 2.30 pm. on Tuesday. Mr Forbes intimated that it was intended to proceed with the Bank Bill on Tuesday.

LEGISLATIVE COUNCIL. By Telegraph— Press Association WELLINGTON, October 27. The Legislative Council, met at 2.30 pm. The Imprest Supply Bill and the Rent Restriction Bill were put through all their stages without amendment and passed.. The Council rose at 2.45 pm. until Thursday.