N.Z. PARLIAMENT

Hokitika Guardian, 1 March 1933, Page 5

N.Z. PARLIAMENT

CONVERSION BILL WELCOME RESPONSE RECEIVED. (t ‘er Press Association — Copyright., WELLINGTON, March 1. In the Legislative Council yesterday the Customs Act's Amendment Bill and the Mortgagors and Tenants Relief Amendment Bill were put through all stages and passed. , In ithe House of Representatives the Reserves and Otiier Lands Disposal (Washing Up) Bill . was introduced and read the first,time.

The New Zealand Debt Conversion. Bill was introduced by Governor-Gen-eral’s message and read the first time. The Hon. J. G. Coatee moved the second reading.

Mr Coates said that he had sent a confidential letter to a - number of large holders of securities, and already he had received offers to convert £16,5C0,000 (applause). That was out of £69,500,000. The Leader of the Opposition: Are they private holders?

Mr Coates: No, not all of them. The banks have agreed to some in. He said that the insurance companies had been approached, and while they had expressed a dislike for the proposal, they had felt it was their duty to come in, He pointed out that a number of insurance companies were responsible to their principals overseas,

The Minister added that- New Zealeaders had never failed their country, and ho had no doubt that they wouild not do so on this occasion. Mr M. T. Savage (Lab., Auckland "West), said that, in view of the large percentage of international debt held by State Departments, it was difficult to see where the benefit under the scheme was to come from. It appeared as if these Departments, which had always made advances on more favourable terms than private lending institutions, were now to he called upon to lead the way towards still lower interest rates. The Bill appeared to he an attempt to provide an orderly way for interest rates to come vlown. Incomes were insufficient to maintain the present rates, and, alia ough it wa® not a>: Solution 1 of our economic problems, legislation was inevitable under existing- condition®. Mi' Savage complained that the Bill attacked the savings df the poor in common with the savings of the rich. There was no attempt at. graduation or exemption.. The Premier, (the* ’H&ii. G. W. Forbes), raid tribute' to-' the time and attention which, the Minister of Finance had devoted to the subject of the-. Bill before the House.

The Leader of the Opposition said that it was gem orally agreed' that the step taken by' the Bill was inevitable, hut, in hi® oninioh; ' 7 it had been rendered inevitable only because l of the policy of the Government that had been pursued up to the present. Mr Holland predicted that there void cl he a general conversion throughout New Zealand, because (the Government had held out a prospect of penalties for those who did not chooseto convert. He contended that the conversion of the internal debt would not be sufficient to solve the country’s difficulties. It would be necsesary to turn their eyes to overseas debts.

Mr W. D. Stewart (Govt., Dunedin West), said that he was glad to hear that there had already been a. good response to the Government’s efforts to secure conversion, and he hoped that such response would continue. He realised the Government’s difficulties, and he was anxious to assist. Insofar as the Bill amounted to a true scheme of voluntary conversion, based on the patriotic appeal to the holders of Government bonds, he would do his best to support it, but if it amounted to the forced reduction of tho States’ Taxation Bill by penal taxation or otherwise, he held that the State could, • and should, stand by its bond. i

The debate was adjourned and the House rose at 1.40 a.m. till 10.30 o’clock this morning.

CONTINUATION OF DEBATE.

WELLINGTON, March 1

The debate on the second reading of the New Zealand Debt Conversion Bill was continued when, the House of Representatives met at 10.30 this morning. Mr W. H. Barnard (Lab., Napier), said that the Minister had appealed to the patriotism of the people in connection with the conversion, hut the terms of the Bill made it clear that !i‘ was a case of “the nailed fist in the velvet glove.” Mr C. H. Clinkard '(Govt., Rotorua), expressed the opinion that the Government was doing the right thing. Mr W. E. Parry (Lab., Auckland Central), supported the contention that the conversion would he compulsory and not voluntary. The debate is proceeding.