OPENING OF PARLIAMENT

Hokitika Guardian, 25 June 1931, Page 5

OPENING OF PARLIAMENT

GOVERNOR-GENERAL’S SPEECH

(Per favour of Government.) WELLINGTON, June 25. Parliament was opened this afternoon

by the Governor-General, Lord Bledisloe, who delivered the following Mj>eech. Honourable Gentlemen of the legislative Council and Gentlemen of the House of Representatives.

It affords me 'much pleasure to meet you again at the opening of another session of Parliament. During my visits to various parts of tile Dominion since I assumed the office ot Governor General, I have been impressed by the deep seated loyalty of the people of this Dominion and gratified by the kindly welcome to myself.

IMP EiIUAL CONFERENCE. The deiberations on constitutional question of the Imperial Conference or 1930 resulted in the preparation of a draft statute of Westminster to clarify the constitutional position and trie powers of His Majesty’s Governments in the United Kingdom and in the Dominion. It is proposed that tms statute should he passed by the Parliament of Westminster on the receipt of approving resolutions from the Parliament of each Dominion, and a suitable resolution will be placed before you for that purpose during wus session. My Prime Minister believed himself to he interpreting the general view of tlijs question in taking tpo position at the conference that no desire existed in this Dominion for any alteration of its present constitutional position. In view, however, of the general desire of other Dominions for a formal recognition of alterations in

their statutes and of the requirement that the necessary enabling legislation must be approved by the Parliament of each Dominion, my Ministers are of the opinion that the best interests of the British Commonwealth of Nations would be served by the approval of the draft statute of Westminster, which will in any case notwithstanding such resolution have no application to this Dominion until legislation applying it thereto lias been passed by the N.Z. Parliament.

ECONOMIC POLICY. The failure of the Imperial OuitreT-enc-e to arrive at any effective conclusion oii the Economic policy of the British Commonwealth, and the reference of this vital subject to a future economic conference to be held at Ottawa have given my advisers much concern. The subsequent postponement of this Economic Conference from the date originally suggested in August of this year until 1932, which will allow more time for the formation of public opinion upon the necessity of a conu mon economic policy among all nlembffrs of the Commonwealth i« Hint re* garded by my Ministers tls entirely disadvantageous.

On the 21st. Mivy, in. common .with Governments of Hiis Majesty, my Gov* eminent notified their general adherence to the general act for the pacific settlement of international disputes, a convention formulated under the auspices of the League of Nations by which all signatories bind themselves to refer any international dispute that may arise either t.o arbitration or to judicial settlement as the case may be. In view of the undoubted improvement in international confidence resulting from the increasing confidence resulting from the increasing acceptance of the general act and other steps towards the peaceful solution of international disputes my Ministers earnestly trust that the Disarmament Conference to be held next year by the League of Nations may result in some general and encccjve reduction in armaments which are not only a menace to the peace of the world but involve a heavy financial burden and are in the opinion of my Ministers a factor in the present widespread depression.

IN SAMOA. In April 1931, Colonel S. A- Allen resigned bis appointment as adminis-, trator of AVestern Samoa and Brjgader General H. I. Hart was on the advice of my Ministers appointed to this position. ■ The marked improvement off conditions in the territory indicates the success of Colonel Allen’s administration.

CANADIAN TARIFF. The difficulty of disposing at a profitable rate of the Dominion’s principal products was intensified last year by tariff alterations in Canada which increased the import duty on N.Z. butter formerly admitted into that Dominion in common with Australian butter at a rate of 1 cent a pound to 8 cents a pound. My Ministers have for the past twelve months been endeavouring to initiate negotiations by which this and other trade questions at issue between two Dominions might be satisfactorily adjusted but they have been unable to arrange for effective conversations. They have tlieieloro been obliged to consider whether in the present, condition of the finances of this Dominion they would be justified in continuing the admission of Canadian goods into New Zealand at British preferential tariff rates which involve considerable remissions of duty on the entry of Canadian goods and which have facilitated an increase m Canadian importations into New Zealand to a value far exceeding that of New Zealand importations into Canada even during the currency of its maximum trade in New Zealand butter. My advisers have reluctantly been forced to the conclusion that in existing circumstances the benefit of British preferential tariff rates on Canadian goods must he suspended until arrangements can he made to ensure a more even balance of trade between the two Dominions. Action has been

taken accordingly, but tlie matter is still the subject of communications with His Majesty’s Government in Canada. EARTHAUKE RELIEF.

Prompt' steps were taken by my Government to deal with the many problems arising out of the Hawkes Bay earthquake disaster. Moneys were made available immediately to ensure ' that proper provision was forthcoming for those in urgent need. A public ’ fund for the relief of sufferers was , opened and a most generous response , was made both in the Dominion and 'elsewhere. This fund, which is being l administered by a central committee is being used for the immediate relief of distress and the restorations of ' homes. The rehabilitation of the residential areas proceeding expeditiously and practically the' whole of the former population of the devastated area have returned to assist in rebuilding the business area. The Government have obtained statutory authority to provide the amount of £1,2*50,000 for individuals and £250,000 for local bodies in need of assistance, A rehabilitation committee lias been set up to consider applications for assistance and to make such recomendations as it sees fit. Many difficulty problems will arise in adjusting the rights and liabilities of parties affected by the earthquake. The Government have accordingly set up under statutory authority, an Adjustment Court which will have power to determine questions affecting such rights and liabilities and to make such orders as seem equitable. TRADE DEPRESSION.

In almost every country the Oepre.it* sion in trade and industry existing today appears to bo unprecedented, and in consequence the problem of widespread unemployment has become more acute the question of devising a practicable solution has been, and is still engaging the close attention of statesmen and economists in all parts of the world. In this Dominion it has been possible under the provision of the Unemployment Act 1930, materially t° relieve the position and in co-operation with local bodies and prhate individmy Government have succeeded in ameliorating considerably the conditions of a large number of persons who would otherwise have experienced great hardship.

. Til a SALARY CUT. The Unemployment Board is making every effort to cope with the problem and as much work as possible is in addition being provided on public works and other State activities. it is evident, however, that increased funds must be placed at the disposal of tlie Board and proposals to this end will be submitted for your urgent considerat-

With the "real decrease in revenue my advisers were reluctantly compelled to impose reductions in the salaries and wages of public servants. The Court of Arbitration similarly decided that prevailing economic conditions necessitated the issue of a general reduction, which have also been made by public bodies and private employers. Mv Ministers am confitloirt- thm the action being taken will result in the retention in employment of a large number of workers, who otherwise, would have to be dispensed with, owing to the substantial reduction in income of employers, and thus swell the rabies of the unemployed. The spirit of selfsacrifice displayed by all sections ol the community is commendable.

R AIL WAYS CONTROL. When 1 last addressed you .1 indicated the intention of my advisers to submit legislation constituting a board to control the railways and generally to manage the affairs of the Kail ways Department in accordance with business principles. This legislation was ciuly passed and the Hoard has since been constituted and has now commenced its: duties. My advisers are of the opinion that this action will result in improving materially the financial position of the railways and thus promoting the welfare of the Dominion.

The suspension of compulsory military training due to the necessity for a reduction of defence expenditure enabled many members of the permanent Defence Force to retire on superannuation under the provisions of the Finance Act 1930, (No. 2.) DEFENCE.

M.v advisers have recently approved of the reorganisation of the defence forces on a voluntary basis. The organisation of the territorial toree will remain on the divisional basis, which has proved satisfactory in the past, and will presene the traditions of the un ts. It will provide for the training oi approximately 10,000 men. In attention uvery encouragement will be given to t,he training of cadets at secondary schools. The Government seek the co-operation of employers in making a success of the new scheme by encouraging their employees to enlist and carry out their training. DhSAHLEI) SOLDIERS.

An Act was passed last year to promote the re-establishment in civil employment of disabled ex-members of H.e .Now Zealand Forces. Unfortunately owing to the liunncial position of the Dominion it was not pcissible for my Ministers to make arrangements to give immediate effect to the Act but the necessary machinery is now being set up, which it is hoped will substantially benefit the large number of disabled ex-soldiers who are either wholly unemployed or have no regular employment. FINANCIAL. Mr Speaker and Gentlemen of the House of Representatives.

As the Dominion is still besot with great difficulties arising out of the world-wide fall in prices, as a direct result notwithstanding the industry of our producers, the value of our exports for last financial year amounted only

to £39,527,000 a decline of £17,636,000 in comparison with the financial year ending 31st March 1929. This immense fall in prices over so short a period has suddenly reduced the productive value of laud, thereby placingmany farmers in serious financial difficulty. Indeed it has prejudicially .affected the economic position of the whole community and brought about stagnation in business, the most disturbing and regrettable feature of which is the want and suffering resulting from the large increase in the number of persons who are unemployed, livery section of tlie community, however, is auected anu the problem is one mat urgently demands national co-op-eration in order that the difficulties may be speedily overcome.

FINANCIAL. The public finances although seriously affected only to warns the end of' the ■financial year, reflect the position with a deficit- for the year of £1,63s 1 ,000, which while regrettable, was, under the circumstances unavoidable. The full effect- of the -economic crisis on the nation’s linance will be felt during the current financial year, and drastic measures involving considerable sacrifice cm the part of the whole community, are unfortunately necessary to enable the budget to be balanced. RELUCT All COSTS.

As the level of world prices lies beyond our control, my 'Ministers were satisfied that the only sound method of solving our local difficulties is to restore the economic equilibrium by lowering overhead expenses, and the cost of living, Consequent on legislation passed during the last session of Parliament and with the co-operation of the business community considerable progress has already been made in tlvs direction. MORTGAGE RELIEF ACT.

Apart from the operation of the mortgagers relief Act in preventing special hardships in isolated cases ,it is pleasing to record that the difficulties of our farmers are being largely mitigated by voluntary arrangements between The parties concerned, aided in many instances by the Adjustment Commissioners appointed for that purpose.

LOCAL BODIES TAXATION. As a further means of promoting national economy and assisting the primary produce in particular, it is proposed shortly to set up a royal commission to investigate the whole question of the incidence of local bodies taxation and the possibility of giving some measureof relief to rural.ratepayers by a geherol reorganisation of the system .of local Government. BUDGET BALANCE.

Tt is recognised by my advisers that while it is essential for the national well being that the budget should be balanced, the burden of taxation should not be unduly, increased. Accordingly an economy committee has been engaged for some months past in carefully investiiro+tucj pvpvv item of Dubl’c expenditure With a view to effecting all possible reductions.

. LOAN RAISED. A Ihall of £4,600,00& was recently

raised in London to provide additional capital for carrying on -Tlf» programme of public works and a further sum of fU.0n0.099 to provide for *bp redemption of certain maturing securities. In view of the unfavourable state of the London money market ancl the effects of the present Tmrh rates of exchange, the i°kup took the form of three year bonds bearing interest at 5 per cent.

BANKING SVSTF.M. My Ministers recently obtained a report on the bank'll? system of tl>« Dominion from Sir Otto N-iemeyer of +b n Rink of England. This' report will shortly be submitted for your consideration.

Honourable gentlemen of the Leg ?- lative Council and gentlemen of the House of Representatives.—"My Ministers have given close attention to the vital auestion of increasing the volume of the Dominion’s primary products and of providing additional avenues for the employment of labour through the prosecution of an active land settlement policy. Energetic endeavours have been made to bring into production idle crown areas capable of successful development. Ais the result of the provisions of the Land Laws Amendment Act 1 Q 29. a large number of sections which had been abandoned by former tenants have been re-selected and numerous sections of virgin crown land have been taken up. The system of granting • financial help to the selectors of undeveloped areas has proved of material assistance to them.

I;AND DEVELOPMENT. The work of developing suitable blocks of crown land prior to selection is proceeding steadily and in connection particularly with tile development' of pumice land, my Ministers are pleased to record that the operations already carried out give every promise of success. The acquisition of private lands tor closer settlement has also received attention and almost all the subdivisions offered have been selected. A new feature of this policy has been the purchase of estates which afford scope for development work by the State prior to offeiing the land for selection. My Ministers are confident that bv placing large numbers of settlers on the land and providing reproductive employment for many others, a substantial contribution will he made towards alleviating the problem of unemployment,

NATIVE LANDS. Satisfactory progress is being made in the development of native lands. At the end of last financial year there were in active operation schemes affecting twenty areas jin North Island while preparations were made to commence others affecting eleven areas. The Maori communities concerned have displayed the greatest interest in the schemes, which by providing much needed employment on productive work, is assisting large numbers of them during a very difficult period. OUTPUT MAINTAINED.

Agriculture practice generally in

the Dominion is -keeping well abreast of modern methods based upon the world’s latest scientific knowledge and the instructional and advisory services provided bv the Government are extensively utilised by fanners in connection* with all phases of primary production. It is satisfactory to note that the. volume of output has been well maintained.

In connection with the dairying industry, the continued fall in the market price of New Zealand cheese has been, receiving the earnest attention of the Government. Research is nowin progress and its application* will, it is believed, lead to the removal ofmajor defects in manufacture and to the production of a high grade quality, which will restore New Zealand made cheese to the position which fit formerly occupied in the British market. An extended trial has 'been* given in recent years to tlie manufacture' from high testing milk of cheese of standardised fat content. This has proved' unacceptable to buyers, .and a strong, prejudice has arisen against it. My Ministers consider it desirable that the manufacture of this type of cheese should cease entirely, as being calculated seriously to hamper successful marketing and to alienate the goodwill of British purchasers. .. My Ministers have had under consideration the steps necessary to facilitate the more active development of tlie Dominion's industries and their more effective co-operation with the scientific service provided by the'State. Proposals for this purpose will he placed before you including, in particular, provision for a greater measure of specialisation in those Despnrtments responsible for scientific research, and for closer contact between both primary and secondary industries which they are designed to assist.

THE RAILWAYS. . Tlie question of the future prosecution of railway construction work in connection with both old and new schemes has been referred. for investigation to the Railway Board, whose reports will be duly laid before you.

ELECTRIC POWERThe construction of the' key stations for the supply of hydro electric energy to all parts of the country and:,their interconnections will be proceeded l with expeditiously-,.-while transmission lines will' be extended as the demand expands. . ,A:"i;

; .ROAD. WORKS. The idea of haying a road, capable of use under all -weather conditions from the property of .every producer to the nearest railway station, or port, will still be pursued. While it may not be possible to proceed at the same rate with the programme of improvements which has. of .late years been followed on the roads, their maintenance'which is necessary to prevent' dissipation of capital already expended will be, kept up to the'present satisfactory standard. IRRIGATION. . ■ r Irrigation woi;ks to serve' the. reg-, ion s in the South Island which can- '(■ not be otherwise fully-developed and utilised, will be continued as will laso other reoiammntion works involving ~ drainage and river control. - - "‘ The iiindwpiAcyliTexisttiig'de^ikUiißli a to regulate efficiently, commercial road transport has been particularly em- , phasised ■ during the present financial depression nnd proposals will be placed before you with .the obejet of providing suitable administrative machinery with this object, and especially to bring about in the public interest close operating relationship with the national railwyfi system. The financial loss which has occupied in railway working ha s been in a large measure caused by an overlapping in transport facilitates. Moreover, the unrestricted use of our road system is continuing to impose heavy burdens on the country ratepayers and is thus accentuating their financial difficulties. My advisers are confident that their proposals which in many respects have been framed on similar lines to those adopted in other countries, will affect considerable national economies without imposing hardship on any section of the community

NAPIER LAND TITLES. Consequent upon the destruction by earthquake and fire of the records of the Land Reigstry Office at Napier, an amendment of the Land Transfer Act will be introduced to provide for the reconstruction of the Land Transfer Register for the Hawke’s Bay district, A building construction Bill will also be introduced imposing on local autliorieties an obligation to make by-'-laws for the design and construction of building with a view* ' to securing a better degree of resistance against earthquake. OTHER MEASURES. Bills will also be laid before .you dealing with Air Navigation"; Defence. Public ' Works, Hospital and Charitable Institutions, Rural Intermediate Credits, Trading Coupons, the National Provident Fund and other subjects The various matters to which I have referred are commended to your careful consideration and T earnestly pray that with devine guidance your deliberations may promote the happiness and prosperity of the- people of this Dominion. ' ■