SPECIAL SESSION

Hokitika Guardian, 24 November 1932, Page 6

SPECIAL SESSION

POSSIBLE NEXT YEAR. WELLINGTON, November 22. Mr Forbes emph-as'sed that the whole question of whether an emergency s.e, sion would be necessary would fit determined by the- condition ol New Zealand's oversea markets during tin next two months.

‘‘That,” he said, “is the key to tn whole situation. We are hoping t; conclude the business ol the preset session before Christmas, o u r plans pro vide for that, and no one will b e moi< pleased than the Government' if Par liament does not have to meet for itt third session before the normal rime i: June, but if the price levels of out primary products continue to fall w> will have no option but to take imme diatp steps to maintain tile nationa income ”

It was suggested to Mr Forbes thn ; in anticipation of the development o such a set of. circumstances as he hac mentioned it would be possible for tlv Government before the present eessio’e:nded 'to formulate the necessary policy, translate it into legislation am reserve authority to bring the pro. visions into operation by Order-in Council if and when an emergency arose.

The Prime 'Minister replied tha' <siic.li a scheme would be impracticable on account of the amount of detai which would be involved in the emertrency measures which might have tc be adopted. '

INTEREST RATES TOO HIGH. Invited to elaborate his references to internal interest rates which h e baa ipade to an importers’ deputation during the morning Mr Foroes explainec that by interest rates he meant all classes ot interest —bank rate interest, interest on mortgages, iutereson debentures and other .securities ant. the reel. There was no doubt in hi* mind, -he added, that interest rates n. New Zealand were still too high. Ht had in mind especially the rate oi interest da loans, ilf the nariona. revenue continued to decline the question of making further reduction*; ..it interest would have to be considered. Mr Forbes contended that 5 per cent., the /rari* the, Government was a‘< present paying for money ‘‘over th* 1 counter." was too high, and observed that even at that rate the State fount it difficult to obtain funds.

Incidentally he mentioned that out of the objections the Government hac bo payment of a- bounty on production as liuggewted by the banks, .was that after the public had subscribed 'to a loan, had responded to an appeal at .a certain, interest rate, it might be found necessary subsequently, through the development of an economic crisis, arbitrarily to reduce that rate. He considered that, as Prime Minister, ■he would mot be acting fairly to the country if he allowed the Government to iplace itself in such a position.

WAGES AND SALARIES, jlfiked ■ whether further wages and sail ary cuts would take thei r place alongside. interest reductions in any future economy measures tb e Prime ■Minister replied that* that question bad not v e t arisen. He added that furthei Parliamentary action in that direction was not necessary, .sinc e under th.e operation of the amended arbitration law r ed'uctions had been made to what might be termed an adjustment level.