Mr Veitch Talks on Rural Finance

Sun (Auckland), Volume 1, Issue 103, 22 July 1927, Page 3

Mr Veitch Talks on Rural Finance

A DOOMED BILL AGRICULTURAL BANK (THE SUN’S Parliamentary Reporter.) WELLINGTON, Thursday. hope of seeing his Agricultural Bank Bill upon the Statute Book was entertained by Mr. W. A. Veitch, member for Wanganui, who introduced this measure into the House to-day. Anticipation of Government resistance did not deter Mr. Veitch in his desire to talk upon*his proposals, however, and, with characteristic tenacity, he worked out his full half-hour in moving to introduce the Bill, instead of adopting the usual procedure and debating the second reading. “I will probably not get an opportunity of going much further with my Bill,” he said ruefully—(“hear, hear,” from Government benches) —so I will have something to say upon it at this stage.” Mr. Veitch explained his Bill, and then promptly went to sleep in his bench, leaving Labour members to carry the discussion throughout the afternoon, and leaving the House little enlightened as to what the proposed legislation aimed at. All must be agreed, he said, that the drive from the country to the towns was not in the best interests of New Zealand. But unless it were made possible for settlers to manage their affairs on sound economic lines, the end would be disastrous. State advances were all right only as far as the finances of that department went, and the same argument applied to the rural credit bank, which had been attached to that department. How was the difficulty to be overcome? He had read with great interest of the experiences of other countries in the matter of agricultural banking, and found that, as far as he could see, there was no case on record in which an agricultural bank had failed. He knew of no case in which the system of agricultural banking had not grown and extended greatly to the benefit of the farming community, and, through it to the whole nation. He believed that money would be attracted from the Rost Office Savings Bank, and .some which was now invested in the Public Trust Office. NO NEW HEAVEN Of course, he did not imagine that an agricultural bank would create a new Heaven and a new earth for the farmers, but he did believe that it would materially improve the position, and attract money from other sources. It was quite conceivable that, with a wide range of selection in safe investments, money now leaving the country permanently might be retained, and money might even be attracted from outside. The Hon. W. Downie Stewart, Minister of Finance: What’s in the Bill? Mr. Veitch: The hon. gentleman knows what is in the Bill. I have not time to explain it to him. Mr. J. Mason, Napier: Is there a Bill? Mr. Veitch: Yes. Mr. Mason: Where? Mr. Veitch: It is in my hands, ready to go to the Government Printer if hon. members will be kind enough to give me authority to send it there. Mr. Veitch was proceeding with further remarks when his time expired. MONEY, NOT SENTIMENT Mr. M. J. Savage, Auckland West, urged that “money, not sentiment.” should be the slogan. Most of the money in New Zealand was already invested in some form or another, and to take it from one industry and put it into another was not to make more of it. They were not out to turn out money as they turned sausages. The problem was not being faced at all, and simply to go from the State Advances to the Public Trust, and backwards and forwards, was not improving the situation. The Rural Credits Act was a sop to the farmers. Mr. W. E. Parry, Auckland Central, thought that a contribution from the Hon. F. J. Rollleston would be very helpful. However, the hon. gentleman’s voice was seldom heard—he had almost forgotten what it was like, and the hon. gentleman was becoming known as the silent member of the House. Mr. J. Bitchener, Waitaki: What do you want him to say? Mr. Parry: I want him to speak the truth as he knows it, on the banking situation. A contribution from him would be very interesting and acceptable at a time like this. But the Reform Party is reluctant to discuss this important question. The Bill was introduced and passed through its first reading immediately prior to the tea adjournment.