TO ARREST DRIFT

Evening Post, Volume CXIV, Issue 125, 23 November 1932, Page 8

TO ARREST DRIFT

NEW YEAR SESSION

MR. FORBES THINKS IT LIKELY

DEPENDS ON PRICES

For some time it has been known that the position of the country as a result of the economic stress is such that the Government is faced with the necessity of- carrying out further remedial measures, and the opinion is growing in Parliamentary circles that it will be necessary for Parliament to be called together again early in the New Tear. The Government is naturally anxious to avoid, such a happening, both on . account of the expense that would be involved and of the unsettling effect that an emergency session always has on the business community and the country as a. whole.

Discussing the matter with a "Post" reporter to-day, the Prime Minister (the Eight Hon. G. W. Forbes) said that on present indications the possibility of an early emergency session could not be ignored, although the Government was anxious to avoid it. He was afraid a session would be inevitable if the country's trading position did not show .some signs of improvement. The whole question would be determined by the conditions of New Zealand's overseas markets during the next two months. "That is the key to the whole situation," said the Prime Minister. "We are.hoping to conclude the business of the present session before Christmas—our plans provide for that—and no one will be more pleased than the Government if Parliament does not have to meet for its third session before the normal time in June. But if the price levels of our primary produce continue to fall,- -n-o will have no option but to take immediate steps to maintain the national income." It was suggested to the Prime Minister that it might be possible" to put emergency legislation through this session, reserving the necessary authority to bring it into operation by Order-in-Council if the necessity arises, but Mr. Forbes stated that that would be impracticable on account of the amount of detail that would be involved in any such emergency measures. LOWERING OT INTEREST. Elaborating his statement to the business men's deputation yesterday that there would have to be a further readjustment of interest rates, the Prime Minister said that he was referring to all classes of interest—the bank rate interest on mortgages, interest on' debentures, and other -securities, and so on. There was no doubt in his mind that interest rates were still too high, especially the interest rates on loans, and if the national revenue continued to decline the question of making further reductions in interest rates would have to be considered. ■■■-.-•- Mr. Forbes was asked 'if further wage and salary cuts would accompany a reduction im interest rates. His reply was that that question had not arisen. Further Parliamentary action in that direction was not necessary, as there was power under the Industrial Conciliation and Arbitration Amendment Bill for the making of whatever adjustments were considered necessary. ;