SPEECH FROM THRONE

Rotorua Morning Post, Volume 3, Issue 643, 22 September 1933, Page 6

SPEECH FROM THRONE

SURVEY OF THE YEAR Addressing members of the Legis- ; lative Council and the House of ReI presentatives, His Excellency said : j "Last April the opportunity was 1 afforded me of visiting the mandated ■ territories of Western Samoa and the . island of Rarotonga. j "I was accorded everywhere a most loyal and friendly welcome. I was I particularly gratified to note the absence of all evidence of serious privation in these islands and the watchfui care for their moral and material welfare exercised by their respective administrations. "Visits which I paid in passing to Nukualofa and Pago Pago enabled me to accept the eourteous hospitality of Her Majesty the Queen of Tonga and the Governor of American Samoa, and to testify to them and to the inhabitants of their respective territories and friendly attitude towards them of this Dominion. "I trust that these visits may prove to have assisted in cementing happy and sympathetic relations between those-who have the responsibility of native administration in the Pacific. "The world monetary and economic

conference was convened by the League of Nations with the object of secuiing international co-operation in devising means of solving problems created by the economic depression. It was regarded by my advisers as of outstanding importance to New Zealand, particularly as one of its contemplated results was the raising of price levels of primary products. The Dominion was accordingly represented at the conference by the Prime ! Minister and the Minister of Industries and Commerce. ! Exploring Economic Problems j "It is a matter for regret that the i Conference has so far been unable to 1 reach any final agreement. Some progress was, however, made in exploring economic problems and in promoting among the nations of the world the mutual understanding upon which a return to general prosperity so largely depends. "My ministers who attended the Conference were afforded opportun- [ itie.s for important discussions with j the representatives of His Majesty's Government in the United Kingdom and of eommercial and agrieultural interests in Great Britain, on matters vitally affecting trade between the two countries. "My Government confidently hopes that beneficial results will accrue from these discussions, and that they will eventuate in a better realisation of our cornmon problems. "In the agreement made at Ottawa last year between representatives of His Majesty's Governments in the United Kingdom and in New Zealand respectively, an undertaking was giv-

en by the latter that an inqury ; would be instituted into the existing j protective duties in this Dominion, a | course fully in accord with the opin- | ion of my ministers that a periodieal ! investigation of the customs tariff | is desirable. A commission has ac- , eordingly been appointed for this purpose. Owing, however, to the wide scope of the inquiry the report of the commission will not be available in suffieient time to permit of revised tariff schedules being presented for your consideration during this calendar year. Trade Treaties "During the Parliamentary recess the Ai^stralian Minister for Trade and Customs visited New Zealand in order to discuss the question of eommercial relations between the Dominions. ; An agreement has been reached and j will be submitted for ratification at an early date. * The trade agreement with Canada which came into effect on May 24 last year, was originally intended to remain in force for a period of one year. It has now been extended until November 24. "The visit of the Australian Naval '

I Squadron will serye to strengthen the [ friendly relationship between the Commonwealth and New Zealand. Addressing ffiiembers of the House of Representatives Lord- Bledisloe said : "Until recent months there has been little indication of the realisation of the hopes for trade improvement, and it became imperative early - the year that some action should j be taken to avoid serious disorganisation in our basic industries. After carefully considering all remedial measures it was decided to depreciate the currency.of the Dominion in order to assist in bridging the gap between farming costs and prices. The legislation which was passed in pursuance of this decision during the last session is deemed to have afforded timely relief during the further depreciation in the value of primary products which continued until April. Price Recovery "Since then prices have tended to rise. Although the movement is slow my ministers have reason to hope that the increase will,be permanent and the beneficial effects are already becoming evident. "Recognising that falling prices automatieally increase the relative burden of all fixed charges, and that relief in this direction would be a powerful aid to economic recovery, my ministers had devoted careful attention to the question of reducing current rates of interest on an equitable basis. Conversion of the interest rate of the internal public debt of the Dominion at 4 per cent, was undertaken and the operation was an outstanding success. "At the same time legislation was passed providing for a reduetion by one-fifth in the interest on securities Sssucd by local authorities but with i a provision that such interest was not j to be reduced below 41 per cent. Ar- [ rangements were also made for a reduetion in the the rates of interest on bank overdrafts and deposits and on mortgages. "There are definite indications of the success of the plan for establishing long-term interest rates at lower levels. "Under the stress of . econom'ic conditions the Budget for the last finaneial year contemplated a substantial deficit, but as a result of progressive savings in expenditure and of an unexpected excess of' revenue over the estimated rceeipts, the finaneial year closed with a small surplus. The conditions to.be faced for the current year are nevertheless still serious, and the problem of maintaining the budgetary position within safe limits pending some measure of economic recovery continues to receive earnest attention.

The Unemployment Problem Addressing members of both Housi es again His Excellency said: — | "Unemployment remains 1a. difficult social problem and until there is a • substantial improvement in the prices I of pbimary products a return 'to more | normal conditions is unlikely to be : realised. Various schtmes of relief have been put into effect to ease the ' position and tassistance" as liberal as j possible is being rendered t0 thost who are without work. Steady progress has been maintained in plaeing new settlers upon Crown lands and in renderimg available new areas for settlement. Special measures have been taken to encourage Crown settlers to meet their many difficulties and 'in the circumstances substantial concessions have been made to them. Under the Small Farms (Relief of Un employment) Act, 1932-33, a board j has been constitute-d to place approvi ed applicants on suitable areas of land in different parts of the Dominion. The services of unemployed men ! are being utilised to dtvelop unimj proved land on wbich many of them I wi'll eventually be established as I farmers, and in addition considerable j numbers of unemployed have alrtady | been placed on individual holdings. j The board is finding some difficulty, ■ however, in acquiring suffieient land | of a suitable eharacter to meet the j current demand, and this matter is receiving consideration. Native Affairs | "Pux-suant to this legislation passed i in 1932 the Native Land Settlement I Board was constituted early in this : finaneial year. ! The amalgamation of the various branches of the Native Department is in progress and is calculated to effect considerable economies in admiinistration and in the supervision of properties on which advances by the Native Trust Offiee iand Maori land boards are secured. The development of native lands with moneys provided by the State is making satisfactory progress. The Unemployment Board has made special arnangements with the Native Department for the employment of a large number of unemployed Maoris in connection with the schemes for the development of native lands. During the recess a committee was appointed to investigate the rating of native lands.

Central Reserve Bank "My ministers, appreciating the importance of currency and credit as factors 'in the economic welfare of the people, are convinced that they should be subject to grcater control and coordination by a central body, especially established for the purpose. Legislation providing for the establishment in New Zealand of a central reserve bank will accordingly be submitted for your consideration. "In the opinion of my advisers the co-ordination of bankimg. functions under a central bank cannot fail to strengthen the finaneial structure of the Dominion. "The advisory committee appointed for the revision of the law relating to companies has eompleted its work and a bil'l which has been drafted in order to bring the law of New Zealand into harmony with English company law, but modified so as to meet local requirements, will be submitted for consideration. "Measures will also be laid before you relating to coinage :a.nd the amendment of the law of libel, weights and measures, post and telegr.aph, ammigration restriction, customs (vis a vis Australia), remedies for live stock diseases and the reduetion of interest on, and the conversion of, loans made to local authorities, also for the consolSdation of the Mortgagors' Relief Act and the Munieipal Corporations Act and the statutes amending the. same,"