MANY TOPICS

Evening Post, Volume CXIV, Issue 89, 12 October 1932, Page 8

MANY TOPICS

FINANCIAL DEBATE

ECONOMIC SITUATION

COMMISSION'S REPORT

Many topics were discussed by the speakers who contributed to the Financial Debate in the House of Representatives yesterday. The members of the Labour Party contended that internal adjustments should be made to combat tho drop in prices on the-overseas markets, while supporters of the Coalition were o£ the opinion that the Government in attempting to adjust tho Dominion's position had faced the situation courageously. None of the party leaders entered the debate during the sitting. Mr. _W. Nash (Labour, Hutt) said the primary producer was deserving of the greatest possible help, but the help he received should be measured alongside the help given to other members of the "community. The Labour Party stood 'for T a guaranteed price for the farmer, and he thought that in the next few years it would be pbssible to guarantee a, price that would pay the farmer to the full. That definitely implied control of New Zealand's external trade. In the ultimate, world parity was not the determining factor of the standard of living in New Zealand.'The National Expenditure Commission had not given a true picture of the country's position, ■nor had it pointed to a road which New Zealand could travel if , progress was desired. HOSPITAL SYSTEM. ' Regarding hospitals, Mr. Nash said he would do everything to help in reorganising hospitals if it meant that increased efficiency would be gained at a lower cost, but the Commission's suggestion was not on those lines. The objective of New Zealand should be free medical and surgical service for everybody. Mr. Nash wont on to refer to miners' widows' pensions, and said that a promise was given by the Minister of Public Works, the implication being that there would be no hardship to anyone receiving a miner*; widow's pension. He had asked the Minister, "Does that mean that the pensions will be restored?" The Minister's answer was that he would not go so far as that. ■Mr. Nash also criticised the administration of the unemployment funds, and asked that the Government should help workers who occupied Government houses and who were experiencing trouble in trying to meet their liabilities. He also referred to the fact that the Government had over three million pound? on deposit in London, yet within the last few months they had raised three million pounds on, short-term loans to meet their indebtedness. He would like to know the reason for that. POSITION.OF KARMER. Mr. P. A. de la PerrelJe (Government, Awarua) said thefe were, a few bright spots to be found in the Budget. New Zealand was faced with the necessity of doing something to'assist the farmers, for until they recovered their position the country could not hope to recover. He believed that land values and land taxation were too high. A first essential for the recovery of the farmers was that markets should be_extended, and the Department of Industries and Commerce ehould make every endeavour to open, up fresh avenues for New Zealand produce. He was in favour of encouraging secondary industries) but only so long as those industries could stand up against the competition, of outside industries. It was gratifying •to find that the prospective deficit had been cut in. half, but that had been largely brought about by exacting taxation. They could not go on taxing the people without clogging the wheels of industry. , Mr. de la Perrelle [ deprecated alarmist reports which had been circulated abroad regarding earthquake damage, arid said such reports were seriously .damaging New Zealand's credit as well as keeping tourists away. In dealing with the unemployment pro; blem, the speaker said that he was afraid a lot of money had been wasted. He was sure the members of the National Expenditure Commission had been imbued with £he highest possible motives, and many of the recommendations of the Commission were of great value. In some respects, however, the narrow view had been taken. "MISERABLE DOCUMENT." "The Budget, in my opinion, is a mean and miserable document, and marks another step on the road to national bankruptcy," said. Mr. E. Semple (Labour, Wellington East). The only way to establish a healthy national balance-sheet was to have a prosperous people. ■ ' Economics which were supposed to result in a decrease of unemployment liad actually increased it. The amendment to the Industrial Conciliation and Arbitration Act had been a definite inducement to the employers to reduce wages further. Every avenue of taxation had been, explored. The South Island farmers had come to the conclusion that they had jiot gained a one penny-piece as the result of the cut in wages. The National Debt had increased in recent years, but the Labour Party had had no part in building up the debt. If the wealth of the wealthy had been conscripted during the war years, the country would not have been in the position it found itself in to-day. Mr. Semple stressed the necessity for monetary Teform. The present monetary system had crashed, and hecould not understand why the Ottawa Conference side-stepped the issue. If New Zealand's credit could be pledged overseas, surely it could be pledged in the country for the people here. He believed that the position was capable of being rectified. "USE MORE MODERATE LANGUAGE." The Government,, said Mr. Semple, had never mentioned tho proposal to establish a central bank during the last election. To establish a central bank would be to hand over New Zealand to the international gang of money usurers who had been responsible to a certain extent for the .present world difficulties. Mr. Speaker suggested that Mr. Semple should use more moderate language. ■ Mr. Semple: I will withdraw any offensive words I have used, sir. Mr. H. Holland (Government, Christchurch North) said that in spite of the fact that New Zealand was one of the healthiest countries in the world, she had double the number of beds per 1000 population in her hospitals than Great Britain had. It was time- that there was a curtailment in the hospital expenditure, because there was no doubt that the Dominion had too many hospitals. He- considered that some of the transport regulations were too harsh. The Transport Board had not justified its existence, and he was glad that National Expenditure Commission had recommended that the board should be placed under the Public Works Department. eHe deprecated the alarmist and false reports sent abroad of earthquakes, floods, and fires. These reports were doing a great deal of damage to the Dominion, and it was time the Government exercised a strict censorship on cables. Mr. F. Langstpne (Labour, "Waimarino) said that the Government seemed to be in the hands of the financial Beelzebubs of th& • Dominion, and it was time it changed light about face. A policy of buying cheap and selling dear was nothing more than commercial

robbery. It had been said that the farmers were receiving world parity, but they were not—they were getting the benefit of alO per cent, exchange. An adverse exchange dislocated the trade of the country. New Zealand could regulate the internal conditions irrespective, of what other countries did and there was no need for the slump in the Dominion. It was felt here simply because New Zealand had followed the policy of other countries. There was no shortage of wealth; there was simply a shortage of income. The first duty of the Government was to create- the money required by the people based on the securities of the- Dominion' Money, and credit had been taken out of circulation, and assets had fallen in value. Money was required to distribute goods and services. New Zealand could create the necessary credits to counteract .any manipulation of the markets overseas. Because of the Government's policy there were unemployment camps in which men were no better off than the men in prison. ' RAILWAYS POLICY. Mr. E. F. Healy (Government, Wairau) said he agreed with the recommendations, of "the National Expenditure Commission's report dealing with the High- Commissioner's London office. Local bodies were entitled to licence and other fees. He protested against the suggested removal of the Blenheim stamp duties office to Wellington. The closing of the Marlborough Land District Office and its removal to Nelson was also recommended by the Commission, and ho protested against this also. Marlborough was the fourth Crown land area in New Zealand. Mr. Healy dealt .with his recent trip to* Canada, and referred particularly to problems of currency and unemployment. What he had seen regarding railways made one realise how slow New Zealand was in completing main arterial railways. It made one more eager than ever to see. tho completion of the railways in 1 Ne,w Zealand. He hoped that the Unemployment Board would come to a decision shortly regarding work on the Napier-Wairoa and South Island Main Trunk railways. PROGRAMME PREPARED. Mr. J. O'Brien (Labour, Westland), dealing with the economic position, said that there had never been any equality of sacrifice, nor was there any likelihood of any economy. Dealing, with miners' widows' pensions, he said that a promise had been made that before the pensions were taken away there would be an opportunity to discuss the matter. A good deal of the Commission's report was inspired by the Health Pepartment. If ever a-board of the description proposed governed the hospitals, ■it would sound the death knell of their efficiency. The Commission had further suggested that outdoor Telief should be thrown on to the local bodies.

The ■ debate was adjourned on tho motion of the Leader of the Opposition (Mr. H. E. Holland).