LEGISLATIVE COUNCIL

Hokitika Guardian, 4 August 1928, Page 4

LEGISLATIVE COUNCIL

abdress-in-reply debate.

(Hansard Report)

Tho Hon Mr Michel.—When \vc i knew that our honourable friend the I Right Hon Sir Robert Stout was to move the Addrcss-in-Reply we knew | that we should have from him an able | and interesting speech, and certainly we have not been disappointed. I was especially interested in the part of j his speech which related to Samoa. ' Those of us who were privileged, with | the Hon. Sir James Allen, to visit j somo of the islands of the Pacific a j few years ago take a special interest : in Samoa and in the events of the , last few months. Samoa has often ! been described as “the Pearl of the | Pacific,’’ but I think that from what we have heard from the Hon Mr Triggs to-day we can come to the conclusion that it has also been the “cockpit of the islands of the Southern Seas.” When we visited Samoa much of the unrest was already simmering. Those of us who were there can realise to-day the seriousness of the rebellious mood which was exhibited by a number of people there, led by Mr Nelson. It is true, as the Right Hon Sir Robert Stout has said, that the Samoan people are from many points of view a charming race. They are a spiritually-minded, a musical, and essentially a kindly people, but they aro very simple, and are consequently so much clay in the hands of such people as Mr Nelson. Very serious trouble might have ai isen had not the Administrator, backed up by the New Zealand Government, dealt with the attempt that was being made to discredit us in the eyes not only of the \Samoans, but of the nations of I was particularly the mover of the Ad-' pay tribute to tho v - by the London Mission Samoa and the other is-

■ffids of the Pacific. It came as a very graceful tribute from Sir Robert. I am reminded that when members of the Legislature . visited Samoa the one great anxiety of the chiefs and people there was on tho, Question whethci the New Zealand Government would interfere with Bible-rending in their schools and with .the prayers which n-nvrt vAvovnnf.lv offered in every Sn-

moan school each morning. It was only when Sir James Allen fissured them that the New Zealand Government would not interfere with any of their customs, and especially with the religions work of the London Mission Society and. other religious organisations, that they were satisfied. The work.of those societies has helped to develop the very fine traits tlipt are so marked in the character of the Samoan people. I had, intended to refer to some of the troubles that have taken place, in Samoan history, but the Hon Mr Triggs has dealt with that question so fully that I will only say that for many years there was much trouble in the group. We know that when there were three great nations—Great Britain, Germany, and the United States—trying to govern Samoa there was trouble. During the fourteen years from 1900 to 1914 complaints were made as to the administration of the island by Germany, so that when complaints were made against us they were no new thing. Tt is more than regrettable that this (Samoan question should have been used to the extent that we have seen in the last twelve months not only to discredit the Government of New Zealand, but also to discredit opr country in the eves of the world. It would have been a most serious matter had these attempts succeeded, There was the seed of a tremendous amount of trouble and disgrace to Now Zealand. But ,we find speakers' like the mover of the present solution, with his highly trained judicial mind, agreeing entirely with the veiy diet of the present Chief Justice and those who with him inquired into the complaints made; and we also find that the great Conference at Geneva has also found that this country was practically blameless—that the ■ only ground of blame was that our Administrator had not acted rigidly enough at the beginning of .the trouble. Now. we have been told quite the reverse. We have been told that it is the “lvig stick” nolicy—l think these nre the words that have been used—that has brought about the trouble in Samoa. The great Conference, at Geneva finds quite the reverse, and practically tells us there ought to, have been more of

the. “hig stick” at first, and tliat if there had teen the trouble, would not have developed to the extent it did. However, we can leave Samoa alone, feeling perfectly sure that New Zealand has been completely vindicated in her administration np to the present time. It must certainly hq gratifying not only to the. Prime Minister and his colleagues, especially the Hon Mr Nosworthv and the Administrator, to find not only the Commission but the Lcacue of Nations finding in favour of New Zealand. Now I wish to sav a little about the speech delivered by the Hon. Mr Witty in regard to unemployment. It was certainly refreshing. He seemed to deal with the subject in a fearless way. There appears to be no doubt that in New Zealand to-day we have three classes of unemployed. There is the class I would call the unemployable, a class that is to be found in every country at,all times, even in prosperous times. Then there are the “Won’t works,” as the Hon. Mr Witty called them; and, thirdly, we unfortunately have a good number of - men ever willing to toil

but unable to find work. There is no doubt that we have these three classes of unemployed. But it is. regrettablo in the extreme, that the unemployment problem should bo used as a stick to flog the Government, became, after all, no Government in the world can deal witli it altogether satisfactorily.

I know of no Government tliat is doing so. We know that in those States that are controlled by the Labour party the trouble, is just as intense as in this country, perhaps more so. In Now Zealand the percentage of unemployed to the total number of workers is quite small. I am not en deavouring to underestimate the seriousness of the question to those men and their families, but I repeat that the number of unemployed here is less in proportion to the number of workers than in, another , of. the overseas States. There are. several reasons for the presence of .the'problem, and, unfortunately I, for, one, feel that these reasons are not what may be termed passing or temporary ones. , I have not heard the argument, used, but I believe the entry of women into the commercial and industrial life of the hation in every country lias, to some extent, displaced countless numbers of men. Women are now doing the work - of men—in many eases admirably—and' they have conie to stay. Then, there is the development of the motor industry. There can be no doubt that it has displaced tens of thousands, of men in every country—farriers, saddlers, grooms, and coaehdriyers—who were associated with the horse traffic of the country. They have been replaced by a comparatively small number of motor drivers and motor mechanics. There is no doubt whatever that that industry has displaced an enormous number .of men., One has only to calculate the number of men who, in former(lays, ; irerp .employed on the coach routes between Christ-

church and the West Coast. Again, our railways and many of our other great public, works have been practically completed. The • Main Trunk lino and the railway between the east and west coasts and similar national works are completed, and although I do not suggest we have not other works to undertake, it must be realisled that, with the larger tasks ended, no Government can afford to employ

unlimited numbers of men merely to keep them occupied. As I have said, 1 some of tho causes of unemployment are not temporary. It is, however, I gratifying to notice that the GoremJ ment realises the seriousness of the

j problem, a fact that is apparent in j the suggested Insurance Fund to which j the State, tho employers, and the emj ployed will contribute in order to build up a fund which, to some extentwill meet tho difficulties of the unemployed. My friend the Hon. Mr Witty referred to the fact that the scheme, as outlined in His Excellency’s

Speech’ would nob assist a sick man out of work. However, that is a matter of detail about which we need not worry at present. No. doubt special provision will bo made for such eases. It is certainly gratifying to note that the Government realises the urgent necessity for doing something in this connection. The unemployed question and Samoa have been exploited during the past six or twelve months to a regrettable extent and m

a manner that has not helped towards their solution. It is a pity that, the question of unemployment should to made a political or party question. It is not a party question at all. It is not only the duty of the Government, but it is also the duty of the municipalities and other local authorities, as well as the duty of all citieens, to assist as far as possible in solving the problem and in giving relief where it is required. Reference has been made by the mover of the resolution to the cry that has been raised in New I Zealand for a State bank. That cry

is simply another piece of propaganda for political purpose. Ido not believe there is a country on the face of the earth where the necessity for a State bank is less than in New Zealand. Not only have we a hank that is a scmi-State bank, the Government owning a large share in it, and receiving substantial taxes and dividends from it, but, in addition, we have the State

Advances Department. I do not see why that Department should not bo calied the State Bank Advances Department, because it is essentially a banking Department by reason of its loans, running into tons of millions. Then, we have the Post Office with its savings-bank holding £50,000,000 available for the , use of the people of New Zealand. Again, there are the Public Trust Office and the State Accident and Fire Departments. All

these Departments are semi-banking institutions, doing business such as

many banks in, other countries aie doing. The people are not dependent upon tho Bank of New Zealand. In passing, may I say that I am not one of those who believe in the continual growth of State Departments. Tt seems to me that the richer and the more powerful tho State Departments become, tho poorer and weaker the people will become, because the Departments can grow strong and rich only at the expense of the people. However, that is a debatable question, and my comment is merely by the way. I repeat, that, apart from the activities of tho Bank of New Zealand, various Government Departments are handling many tens of millions of pounds in assisting the farmer and workers of New Zealand. Over and above that, we now .have tho rural credits; and I am afraid ;I .must disagree with, the opinions held by the Hon Mr Witty—l believe that much good jwi.ll comp from ,that measure, and I sincerely hope, he ( is wrong in his forecast that it will not help tho people. Wo always expect, when the Hon Sir John Sinclair,, ,§p,paks on international politics or, jiipou trade sub-

jeets, to be interested,, ifnid we were certainly interested by ,tli§; honourablegentleman yesterday. 1.,wi1l only say that, while we agree with.him, 1 think

most of us regret sometimes that, in spite of the inspiring speeches delivered, not .only in this country, but in every country in the world, in regard to bringing about tljat day when war shall he no more—in spite of that, T say, we still,find nation rising against nation, or preparing to do so, and wo

find barriers;, erected in rcstrqfnf or trade. Wo do not, Require to .look to distant places ir\ .the world,, we find that stato of affairs existing in the overseas States. We find New Zealand, for. example, practically prohibiting the importation of flour and wheat into New .Zealand; wp. find New South Wales retaliating by refusing to allow our potatoes into their country; wo find Victoria shutting out our hutter; we, find Canada endeavouring to keep out our better and cheese. All goes to show, that .in spite of the speeches, in spite of the high ideals and inspirations of men like the Hon/ Sir John Sinclair and others, much remains yet to.be done to bring about a better understanding not only between the nations of the Old AVorld, but also between the younger overseas States. I admit, of course, that in a young country we may sometimes have to /shelter some of our industries; but I believe, and I hope that some day Governments and peoples, will realise it, that the only satisfactory policy, generally speaking, is that we should buy in the cheapest and sell in the dearest markets. I see my friend the Hon Air Earnshaw shaking his head. I .said “generally speaking.” I admit that in some new countries some industries have to be .sheltered, but we find from experience in New Zealand that a high rate of protection has not always developed them. The Right Hon. Sir Francis Bell.— Is the honourable gentleman opposed to Empire preference ? The Hon Hr Michel.—Oh, no. But wo have highly protected industries in this country, and they make no progress whatever. And .so I say again that the only way we can hope to bring down the cost of living—and reducing the cost of living means higher wagef^—is to .have freer interchange of trade between the overseas countries, so that we may import | from those countries those articles j which we, dp not .and cannot produce j at a reasonable price ourselves, or as j well as they can, and so that we may j export to them articles which we can produce and which they cannot produce. I know the subject is a difficult one, and that it is one in which the leader of the Council and the Hon Mr Enrnsliaw take a particular interest. I know, also, that it involves the question of Empire preference. . The Hon. Mr Earnshaw. —■‘Would the honourable gentleman buy cotton from Japan, and sell’ mutton to Lancashire ? v - • * ' ,

The Hon. Mr. Michel.—No;,.,,..but they are extreme cases. Reverting to the question of State banking—l should have mentioned it before—we have tlie same - cry. about making a monopoly of insurance in this country. But,the thing is absurd. Take, for instance, the four. New Zealand insurance South British, the New Zealand, the Standard, and the National. I remember the speeches delivered by the chairman of the South British Insurance Company and, by the chairman of the New Zealand Insurance Company at the last annual general meetings of those companies respectively. The statements they delivered . were considered

statements. The statement made "by tlio chairman, of directors of the New Zealand Insurance , Company—and that made by the chairman of directors of the South, British Insurance Company was approximately similaramounts to this: that his company I was not doing too well in New Zealand, tliat insurance in New Zealand is not a profitable business. As a , matter of fact, I. know, that at the present time several companies are considering withdrawing, from Now Zealand., The South British Insurance Company and other local companies are not making their profits iu this,, country—they,,., are making them in; pastern, countries and other lands.. 'l'llis ,continual attack on our financial institutions is therefore regrettable. , There, is every reason why we should respect.- these companies, which have struggled in somo cases for sixty or seventy years. Ttcference was made in this chamber yesterday by the Hon. Mr Witty to finance. Ho said the balance of trade was no good to the farmers to-day. The Right Hon. Sir Francis Bell.— What about the cheapest market? Tlio Hon. Mr Mfcliel.—l was going to say that the honourable gentleman stated that the banks are locking up all this money and..that the balance of trade did not affect the position. That was. tlxe weakness in the honourable gentleman’s speech. The hanks cannot lock up-£10.0C0,000. i And we have £10,000,000 or £12,000,000 mere to-day than we had a few years ago, hut the financial institutions must let that money out—they could not pay-dividends unless they did. That is the sort, of stuff wo get from the soap-boxes on the street corners, and it is quite unworthy of responsible men. I do not suggest that my honourable friend- intended to say -that, and lie caii rest assured that the hanks will ho only too glad to let tlio money out. I conclude by saving that ' heartily support the resolution. I believe that the great- change in the figures in connection with our imports and exports will bring entirely different times to the Dominion —different from those we have had to go through during the last yea? or two. I do not believe the country ever had a better outlook than it has to-day. After all, it will only he what tlio people make it; and wo must have no wild, reckless finance if we wish to prosper. W e have read within the last three 01 four days what has occurred in some of the other overseas countries. We read of ft deficit of £3,500,000 as a result of a scatter cash policy in that country, and that is wliat some people in New Zealand would do to-day if they had the opportunity—they would make things hum for a year or two. and then would come the day of reckoning. For instance, we have heard a lot of nonsense to- the effect that tlio Government should provide work for everybody at award rates of wages. That policy would soon bring about a deficit in our finances, and ’ dissipate the balance wo already have as a result of the improvement in our trade returns. T heartily support the motion, and sincerely congratulate the mover, the Right Hon. Sir Robert Stout, the seconder, the Hon. Mr Witty, and the other honourable gentlemen who have spoken, on the interesting addresses they have dc- , livered.