Speech From Throne

Rotorua Morning Post, Volume 2, Issue 335, 23 September 1932, Page 5

Speech From Throne

Addressing the assembled members of both Houses his Excellency said: — Honourable Gentlemen of the Legislative Council and Gentlemen of the House of Representatives. — The financial and economic position of the Dominion having rendered necessary a special session of Parliament which concluded in May last, you have been summoned to meet again for the normal session on a date later this year than is customary. During the recess I have taken the opportunity to visit various parts of the Dominion and to meet their inhabitants belonging to all classes and occupations. I desire to express my keen appreciation of the cordial welcome which they have everywhere extended to me as His Majesty's repre-

sentative, and of the courageous and resourceful spirit with which they are facing the present economic crisis. My Ministers have consistently held the view that an increase in interEmpire trade must be of benefit to the peoples of the British Commonwealth, and aecordingly they warmly welcomed the convening of the Imperial Ecomonic Conference which met recently at Ottawa. At this conference the Dominion was represented hy the Right Hon. J. G. Coates and the Hon. W. Downie Stewart, and the results of its deliberations have been a matter of much satisfaction to the Government. Details of the agreements entered into at Ottawa will he laid before you for your consideration. Signs of Recovery I have been happy to note indications that the depression from which New Zealand in common with the whole world has been suffering, is becoming less severe and it is possible to hope for a return to prosperity at no distant date. At the same time the Government are convinced that the existing economic disturbance can be overcome only hy international action directed to the abolition of the numerous financial restrictions at present hampering world trade. My Ministers have therefore attached the utmost importance to the reeent conference at Lausanne, and they have followed its deliberations with deep interest as calculated to enhance confidence and promote commercial intercourse. Complete success in. their opinion, must depend upon international co-opera-tion and my Ministers hope that a substantial moasure of progress will be achieved by the world conference which is now contemplated. My Ministers have continued their wholehearted support of the League of Nations and of the principles of permanent world peace which is its object to promote. They have been represented by their High Commissioner at the Disarmament Conference, which has been sitting at Geneva during the current year and it is their earnest hope that when the conference reassembles it will he able to effect a material reduction in international armaments. Heavy Burdens Mr. Speaker and Gentlemen of the House of Representatives: — Owing largely to the prices of primary products in the world's markets continuing to fall during the past financial year, the disorganisation of our economic life has been accentuated to such an extent that the Government felt it necessary to submit drastic proposals to meet the situation. More adequate provision to relieve unemployment was found to be essential, despite the fact that the cost of providing this relief increased the heavy burdens already pressing upon the people. Economy Measur.es The stagnation in trade and industry was inevitably reflected in the public finances and notwithstanding' additional taxation, reduction in salaries and other economies, the efforts

of my Ministers to balance the Budget were unsuccessful and the financial year closed with a deficit of £2,140,000 It is gratifying to note, however, that this amount is more than offset hy reserves accumulated in more prosperous times. The National Expenditure Commission which was appointed to assist in effecting further economies in State expenditure, consequent upon the reducea revenue, has now submitted its 'inal report Many of its recommendations have already been carried out and legislation will be submitted to give effect to others, the adoption of which is colnsidered desirable Conference Results

In spite of prevalent adverse condilions, a loan of £5,000,000 was successfully floated in London in April. Of this amount, £4,000,000 was allocated to the redemption of short-term loans and the remainder to public works. My Ministers are of opinion that the onferences at Lausanne and Ottawa, together with the large conversion loan successfully negotiated in Great Britain, have inspired a healthy and promising return of confidence. Improved trade eonditions will result, l>etter prices for the Dominion's products in extsrnal markets, and the national income thus augmented, with benefit to all classes of our people. Renewed activity in business will aid materially in accelerating economic equil-ibrium and my Ministers are anxious not to discouraga enterprise by imposing upon the community any further burden, although the budgetary position still demands anxious consideration. Every effort is being made to avoid the necessity for any increase in taxation during the current financial year. In common with other sections of ihe farming community, Crown settlers have been adversely affected by economic condiitons and in many cases it has been necessary to grant liberal concessions in order to ensure the continued occupation of their holdings. It is gratifying to learn from my Ministers that the work of developing areas of unimproved Crown land is progressing satisfactorily .and that the subdivisions already selected give promise of successful occupation. It has been found necessary, however, largely to suspend the purchase of estates for the purpose of closer settlement, hut every effort is being made to meet the demand for small dairy farms by rendering available for selection suitahle areas of Crown land and by applying the provisions of the legislation of last session under which substantial advances may be made to prospective settlers who are desirous of purchasing sections of freehold property. The development of Native lands is being pursued with energy and with due regard to the requirements of the various Maori communities concerned. The number of scheme in operation at tha end of last year was 41. On many of these subdivision has been carried out and farm units established, particular attention being directed to dairying. The provision of work on Native lands for unemployed Maoris has been of material assistance in affording th'em much-needed relief and in reducing the expenditure of unemployment funds. The assistance rendered under the Hawke's Bay Earthquake Act, 1931, to those who suffered loss as >a result of the catastrophe of last year, has been of great benefit to this area. The rehabilitation committee which was set up to consider applieations for relief has completed its difficult task and the progress already made in the restoration of the district affords ample proof th'at its work has been well done. I trust that with God's blessing your deliberations may promote the welfare and prosperity of the Dominion and its people.