ADDRESS-IN-REPLY

Hokitika Guardian, 29 September 1933, Page 3

ADDRESS-IN-REPLY

WELLINGTON, September 27. Speaiung to motion ot no confidence moved, Mr H. E. Holland < Bulier), said tliat neitner the mover nor tile seconder of the Address-in-Reply had made any attempt© to expiam tne paradox 01 want and poverty m the midst of plenty, it would bo better fur the Government ii jt faced up to that paradox, for there ' was no doubt that it would have to be diced sooner or later. He would like some Government member to explain, during the debate, why it was necessary tor Uffin. women and children to go without sufficient Hod when there was r.o shortage in the Dominion; why .people- had to go without sufficient clothing while factories and wa'reJiouses were filled with articles they could not sell; and why people had to go without coal while the mines of the Dominion were idle. There was absolutely'no reason why anybody in New Zealand should go without the neces-saries-of Life. -Apparently the only shortage was a shortage in statesmanship and capacity so to organise the country’s affairs that those who wanted work could secure it at fair remuneration.

. Mr Holland went on to refer to New Zealand’s representations -at the World Economic Confereiue, and said lie, had always held the opinion that there had .been no need ‘for New Zealand to send Ministers abroad for-that purpose. The High Commissioner could have done everything that- Mr Forbes and Mr Masters had done.

-v-Mr HI "Atmore (IM., Nelson): And dene it better. Mr Holland : He could not have clone worse, because nothing was done. I think the expenditure on the journey was a hopeless waste -of money, especially in view of the absence of one it.suits, from the conference. It is true that the Prime Minister came back with a somewhat more hopeful outlook than he generally assumes.

Air S. C. ‘Smith (C., New Plymouth) : It must have been a success then. Mr Holland: It was too great a price to pov for a more hopeful outlook tor the Prime Minister.

NOTE CIRCULATION

Continuing, Mr Holland said there was .power- to-day to print double the number of banknotes in circulation. It was necessary that, the Government siiould have the power to produce whatever legal tender currency was necessary for the- public and private business-’of the country. Afore than 90 per-cent of New Zeninnnd’s currency took the form of the chequesystem, and a cheque was Only valuable when the goods. Were .hebiud it. ■Reierring to the Government’s highexchange policy, the Leader .of the Opposition said . everybody/knew the history of,.the. Prime Minister’s change of .front.on the issue; but they had yet to receive an explanation of why banks had somersaulted on the question . Hopes that the farmer avoid d benefit from pegging the exchange ;n’t a high ‘figure had not been realised. No sooner/had that action been token than' Denmark had’ followed suit, and France had put a heavy duty on goods coming from countries with a high exchange. The Labour party’s proposal for definite trade agreements and for a guaranteed price was an infinitely better proposition from the farmer’s viewpoint than high. exchange. He was satisfied that, only a verv.. small, proportion of the farmers had reaped any direct benefit from, the Government’s policy. The only farmers who had benefited were those who were mortgage free, or those who had not hypothecated their incomes to mortgagees. Apart from those farmers he had mentioned, the financial institutions w'erc the only other beneficiaries, and the Government had had to impose fresh and unpopular taxation to meet the cost. - -

Mr Holland expressed the ,'hoipe that the majority of the members would realise their duty to The country, and give expression 'to the country’s desire by supporting bis amendment.

The amendment was seconded by Airs E. It. McCombs (Lab., Lyttelton).

UNEMPLOYMENT RELIEF. The Hon, J. A. Young said the leader of the Opposition had found fault with the Government administration ;' but lie had not Suggested what the Government should do. In a comparative sense, New Zealand had done very well and had made very satisfactory provision for the unemployed. New Zealand’s expenditure on unemployment, compared with that 0 f Britain, showed that the Dominion was doing more per caput than the Old Country. The leader of the Opposition bad inferred that the Labour party would pay standard rates of wages if it was in power.; but as the money was not available this would be impossible, said the Minister; High wages could not be paid if industry was not paying, even if the payment of such wages did keep up the purchasing power. The Government had been accused of making matters worse by its deflationary policy; but lie contended that deflation had been absolutely necessary so that fixed charges' could be brought down in keeping with ’ the diminishing returns. Referring to the World Conference. Mr Young said that no matter how email the results might have been, the fact that New Zealand had been represented in Britain at such a critical time was ol’ great value to the country. Whatever the cost might have been, it had bee I; warranted. j

. , CURRENCY rA ND •BRICEtW...-Contii-uing, the Minister said currency was governed by the prices realised in world markets. Values could not be fixed in New' Zealand, and ;nythiug that n.ight ho done would only be transitory in effect. If the Government were to issue paper money Ibased on idle, value of the goods produced, the Value of goods would not bo increased, nor would the value of the country's currency be increased. All that would be increased would be the volume of paper money in 'circulation, and there woud be no advantage in having twice’ as many pound notes as previously, if two notes were required to purch 'Se what had been bought previously for one. The 'leader of the Opposition, had said that gunri.Titeed prices would be better than high exchange; but debts would have to be created' to pay the guaranteed prices, and those 'debts would have to be redeemed. It thad to be admitted that the high exchange rate had added to the cost of imported goods; but notwithstanding that, the cost of goods had continued to fall. The Minister stated that a 'lasting solution of the world’s troubles would have to be found, and all sorts of trials and experiments woo'd have to be made to find a way out. While that wa s he : ng done, it was a mistake to create discontent. There was a definite improvement all over the world, and the effect of the improved prices for primary products would soon the felt. Mr W. Jv Jordan (Lab., Mhr.uk-u): The, i's the ’result of the restricted output.

increased OUTPUTS

Mr Yoimfe' said ‘Outputs had been increased instead of restricted. The stepping companies were busy ’building larger and better ships to handle increased trade throughout the Empire. The Minister referred to he ■firming values . <on the Sock market, apd said the ’be ter price s which were being offered for Government bonds •indicated ‘the sound position of the country and the. general return to confidence.

Mr Jordan referred to the rise in the. prices of primary produce, and said that while the producers would soon get mg,re for their goods, the workers wo.uild, have to pay more tor (heir food. . As’ goon as butter prices advanced in Britain, the retail price in New Zealand, alsp went up, • and the pe- ple of the Dominion bad. to pay move for the'.r butter thin w’-s paid for New Zealand butter in England. Dealing with the world economic conference, ’Mr'Jordan said the atT'ceM »' e r-ork of the (conference hod mounfed to nothing. In all the talking that had been done, nothing bad been said fA'but improving the condition, of the rifas'ses.

Contimiiu.g’NMr Jord n sa : d the London rtioneylenilJbs’’’ o”ganis’dtidn 'diving' grOater '■ ■ebn'-essiC'Us arc! more fivoiirn’oe' term., generally to Austria and -Germany'vhaii to New Zeo'nnd. He believed,'however; that jf .pn effort were m ade it * would ,b'e possible for New Ze'land to 'arrange a epiiy&ts’on of loads as Australia had'eiohe. He cv>nsiderecl that ’ " hctifin sh'nu 1 g '’ be 'tabeh along 'those - lines, dii/‘’preference’ to ’re dnci n g the pensions of miners., widows. 'Mr-oi’i 'with ’veterans, and others. Air Jordan submitted tlvi "tfie New , Zea<lnr.d riovernmeh; wrs p-epavctl to .snb-W-t the pedpie to’ ary a G phi ( rather than with the oversea* moneylenders. The Hon. GA. D MeLe«iL,-jTnd. C.. Wairnr-pa) s.akl the huge overseas ddbt payments! jconld only'’be. met ou«< of ‘revenue obtained from the Dominion’s exports. It ’was-/ necessary that every acre of settled farm land should produce £5 to meet.-.these payments. He went on to refer• to -wool prices, and said the average A’eUu’U' at the recent . J bitdon ’safe' had ■ been £7 10s a bale. The .cost’s 'incurred between the time the' vuoop ava s . clipped from the sheep’s ■ baCk'-atid the time it was sold. "An London averaged £4 5 S 6d a bale, -leaving less' than £3 15s for the firmer. Thi s was irrespective of farm costs before the sheep entered • the shed. He added jdiat the costs in uN" primary producing' industries were equally heavy. He was satisfied that the raising of'.the exehpnge '.rate had' been definitely beneficial, ' and that while it might not be a, permanent cure it a; least temporarily eased the Durden.

MONEY AND TRADE. Air M. J. Savage (Lab., Auckland West) said the Dominion's monetary system and trading conditions should be based upon 'such internal pricelevels as could be maintained by the productivity of Its industries. The monetary system should further be based on goods and services in order to provide credit arfd currency sufficient to meet v ,the rise pi' fall in Dominion production. Control of banking should be transferred from private banking corporations to tho State. Prices tor Dominion products should be guaranteed, and should, be supported by. guaranteed incomes sufficient to enable the people to enjoy the result of their labours. O u t of date methods of production and distribution must give place to planning in conjunction with price guarantees. World indications were- that all countries, Ticludin.g Britain, were striving to provide for '‘heir own needs. That would be met only by the establishment of additional industries in the Dominion, in. order to . employ our own people. Primary production must pi y a major part in/the., jiatioiiftl life, a<nd bhe security mb those already on 'the land •'called'..; fo-r.' r 'immediate action; Mortgage* on land and homes flhoitd bo adjusted .on a basis of the average of wholesale i prices for the last seven year-s, and I

in the meantime .legislation should bo pp.ssqd ip re veil ting foreclosure, pending the establishment of internal price levels and rates of pay sufficient to enable the holders to meet their commitments. Social services should he extended, and a ! schedule of public works, local and national, of first-class importance, should he (prepared to give immediate' remunerative employment. The hours of labour should be ■reduced ii,n relationship with production. External debts should he scaled down in relationship with the increased value of money, measured iu exports. Mr F. W. Schramm (Lab., Auckland .East)' said the (tovernment’s deflationary policy h’d intensified the position •it h?d set out to rectify. 'lts record had been a disastrous one. He expressed regret that no provision had Iheen made to relieve thr_.se liable under -jhe personal 'covenant in mortgages, and be contended that the Government should ensure th a t mortgagors who had lost their equity in property should not he compelled to suf- 1 fe.v a further finarcirl loss. The debate was .adjourned on the motion of 'Mr T). 0. Sullivam (Lab.. Avon), and the House rose o; 10.25