IN THE HOUSE

Hokitika Guardian, 16 November 1933, Page 5

IN THE HOUSE

RATE OF EXCHANG

CRITICISM BY HON. STEWART. (Per Press Association—' Copyright. WELLINGTON, November 16. The Hon. Sir James Parr moved th( second reading of; the Reserve Banl of New Zealand Bill in the Legislatm Council yesterday. Tile Budget debate was continued ir the House of Representatives.

Mr Walter Nash (Lab., Hutt), sug gested that Britain should be asked t<

cauo an increased quantity of import' from New . Zealand on the Dominioi guarantee that the- latter would tak< commodities of equal value h-om Bri tain. He pointed out that agreements on these lilies existed between Britair and Denmark, and, the. Argentine.

, A lengthy examination of the effect of the high exchange rate on public finances was made by the Hon. W. I>, Stewart (Govt., - Dunedin West),-' whe expressed the .opinion that this was the Budget’s most, interesting feature, It was shown in the budget that, during the half-year ended on September 31, London funds purchased from t-lie banks had amounted' to ‘£13,345,030. From this' had'been deducted £8,500,C00 required for Use l in London and Australia, leaving £4,845,000 as n surplus of sterling assets- takcp over from t’lo banks. ...

Mr Stewart said; “It seems? safe to anticipate- that another £4,000,000 will have to bo taken pver during the latter half, and- from this there V no deduction for overseas interest '■■requirementis, as these have already; been p id. So that, unless the Minister is entitled to hold in suspense the exchange ,nst of surplus funds, it is clear his buciget should have been debited, ' not (only with £1,790,000 on hi s normal requirements: but also with-£1,200,0!)0 on the surplus sterling assets (£4,845,000) taken over up , till , September, and would probably also have to he debited with perhaps another million on surplus funds to be taken over during the current'half ye'ay. - , c ' ■ “In short his -budget’ ,would be burdened , with more than £2,000,000 additional expenditure,” Mr StewaA declared. '“The,Jass'-of goodwill, and rein -the minds -of British farmers and others is still a more serious aspect- of the higher exchange rate. In *fact,* whetT'l ; see the effects of the high exchange on the budget, and the difficulties in which it ha^'involved local -authorities, * arid when’ I sec the retaliation., .it. has created- abroad,. I am more than ever confirmed in the opinion I expressed jn January, that the temporary benefits it riiay appear to have secured have been too dearly bought, and that the end is riot yet.” Mr W. E.- Barnard (Lab., Napier), referred to.tjiat section of the budget dealing with , defence,; and; said that soon ...have, to be given to the appointment- of a Minister of Aviation. It-seemed tile Government did not realise the tremendous advance being made in aviation, and the part it wa s now playing in national life. The House rose at 10.50 p.m.