DOMINION FINANCE

Gisborne Herald, Volume LXVI, Issue 20000, 27 July 1939, Page 14

DOMINION FINANCE

DEFENCE PROBLEM OPINIONS IN HOUSE ADDRESS-IN-REPLY DEBATE POLICY OF LABOUR CHAMBERLAIN CRITICISED (Pol - Press Association.) WELLINGTON, this day. Continuing the Aadress-In-ltepty ueoaie m tne House of Representatives yesterday afternoon, Mr. A. H. xWarnoyer, (Lab., Oumaru), demea *ne contention by the Leaaer of tne opposition, tne i-tt. Hon. Adam Hamilton, tnat New Zealand was on the verge ot bankruptcy. He also stated that the Minister of Finance, the Hon. W. Nash, had denied that the system of exchange control, was a breach of the Ottawa agreement. If real benefit was to be derived from the Government’s policy, there should be a clearlydefined plan of industrial development.

The .predictions that New Zealand would encounter difficulty in its financial negotiations in London had been fulfilled, he said, but the reason lor those difficulties was that both England and Australia were drawing near to the general elections and the financier was compelled to do all he could to embarrass New Zealand and improve his own chances at the coming elections. He contended that if nil emergency situation were created by British financiers attempting to embarrass New Zealand, the Government of New Zealand would be justified in mobilising her oversea funds in the same way as Britain did during the Great War.

Mr. W. J. Broadfoot (Nat., Waitomo), contended that the Minister of Housing, the Hon. 11. T. Armstrong, had never stated to the House the price of one of the houses being build by his department, and he also requested information as to contracts given to the Australian and English artisans brought to New Zealand for housing construction. He also criticised the Government’s defence policy so far as aviation was concerned, stressing the need for up-to-date planes. Visit to Washington

Dealing with finance, he asked why the Minister of Finance had visited Washington on his way to London. He had been told from overseas sources that Mr. Nash had visited Washington to discuss some sort of reciprocal agreement with America in the hope of getting a little money from the United States.

Mr. H. T. Ratana (Lab,, Western Maori), spoke of the improvements which the present Government had made with regard to Maori housing conditions and health. With regard to the latter, he Said the Maoris, were realising the necessity for cooperation with the doctors and nurses and he would like to see more Maori girls taking up nursing as a profession. Maori district nurses would b e particularly popular, he said, among Maori women and children. . , He paid a tribute to the Minister of Education, the Hon. P. Fraser, and his department for what had been done for Maori education. Mr. S. G. Holland (Nat., Christchurch North), criticised the Government for wasting time in the present debate. It was apparently _ not» prepared to go on with its legislative programme in the absence of the Minister of Finance in London, c United Front Urged In the evening, Mr. S. G. Holland -(Nat., Christchurch North) said that the previous evening the member for Camara, Mr. Nordmeyer, had made a biting attack on the British Government’s foreign policy. It was time that this sort of talk ceased, he said and we all got together and presented a united front with the Empire. Instead of that, we had the member for Camara trying to tell England how to run her affairs. “And look at what a mess the members of his .party have made of New Zealand,” he added. To-day, continued Mr. Holland, New Zealand was faced with a major crisis. We had spent beyond our income, had used up all our reserves, and th° Government was actually trying to borrow money in London to replace the funds which had disappeared. We should try to live within our income We should have the fortitude to face up to realities. We should have the courage to do the proper thing an/ not the popular thing, and, above all we needed a complete change ir attitude of the Government, especial!' the members of the Cabinet towards capital. If we did that, it would be a valuable gesture towards the recovery of the country. Minister Praises Colleague The 'Minister of Industrie® and Com merce, the 'Hon. :D. G. Sullivan, said that it 'was -inevitable -in the present state 'of international laffairs that a goodly portion of the GovernorGeneral’s speech should be devoted to matters of defence, and also that the matter should have been freely d >-

cuSsed during the present, debate it' the House. Personally, he thought that the speech of the 'Minister of Defence during the debate cti what the Government bad achieved -was an outstanding one, and he had considered 'that it would have reassured the House \and tiie country that the Government was-doing everything it could to put the •country into an effective state of defence.

He had been disappointed to hear further criticism on the subject from the Opposition. The spearhead of the Opposition attack, he said, was. that the Governmeht had failed to introduce compulsory military service. Just after the international crisis in September, ‘Mr.-. Sullivan* c'ont'nued, the •National Party had issued its defence •programme and that programme had pledged itself to the voluntary system. Had tire National Party secured a victory at the polls, it would have been compelled by its pledge, given in

September, to have carried on with the voluntary system. The Minister 'proceeded to deal with the question c'f supplies in wartime, stating this 'had received careful consideration by the Government. In the event of an outbreak of hostilities, the 'Minister continued, New Zealand would experience great difficulty in securing .essential commodities, not only because sea traffic might suffer interruption, but also because factories in other Empire countries would be fully occupied in providing for the requirements of thenown lands. It, therefore, became the ■inheren-' duty of the Government to make every preparation it could io get essential requirements into the Country on the one''hand''and on the o ther to get our own manufacturing concerns into a position to supply these requirements if need arose. Dealing with the import restrictions, Mr. Sullivan said that he did not think it could foe said that there was anything very drastic about these, and he denied the suggestion that the restrictions had anything to do with the restrictions placed on our primary products imported into Britain.

As far as the development of New Zealand secondary industries w!as concerned, 'he said these could toe increased under the agreement between, Britain and the Dominion, and New Zealand at the same time would endeavour to do everything she could to increase the percentage of imported goods from the United Kingdom. Mr. W. T. Anderton (Lab., Eden) said that Opposition, members had asked for a force of 50,000 men in New .Zealand. Did honourable members on the opposite benches know what the equipment for, such a force would cost? he added. It would cost in the vicinity of £2.000,000 a year. Capital Levy Would the Opposition support a capital levy on wealth to provide that sum? If they would not, then they •were not talking with sincerity. Then, he said, 'Opposition members had accused certain members of the Government with toeing anti-British, because they had criticised the British foreign policy at 'present. There were no more loyal members of the House than those on the Government ‘benches, tout they used their common isense. No one could be expected to support Mr. Neville 'Chamberlain when he was 'wrong. ’Wiry, London itself to-day was placarded with newspaper placards: “Get rid of Chamberlain.” As far as 'the Japanese situation was concerned, he skid, we had sold out to the burglar. Japan was the burglar. iShe had not declared war on China. An increasing number of young men were ‘going into the army because they considered the country was worth defending, tout with a Prime Minister like ’Mr. Chamberlain in Britain, he doubted the security of New Zealand and of the Empire. The ‘debate was toy the adjournment of the House at 10.30 p.m.