LABOUR'S DOUBTS

Sun (Auckland), Volume II, Issue 424, 4 August 1928, Page 9

LABOUR'S DOUBTS

BENEFITS OF WIRELESSCABLE MERGER COMMENT IN HOUSE (THE SUE’S i’arlic ntentary -Reporter-* WELLINGTON, Friday. Labour members appeared to think, after the Prime Minister had read details of the recent wireless-caldo merger that, there was room for doubt as to the exact benefits New Zealand is going to derive. In reply Mr. Coates said the effect of the merger would be to consolidate vital communications in British hands. ••What do we got out of it?” asked Mr. E. J. Howard, at the start of a brief discussion. Mr. P. Fraser: Wo get out. Mr. H. E. Holland. Leader of the Opposition, asked if it would not be a fair thing to give such a statement as this to individual member* at tho same time as it was handed to the Press. The Prime Minister: It’s going to l>e rather difficult to give 80 members of the House a copy as soon as the Press gets it. In answer to Mr. E. J. Howard, Mr. Coates pointed out that it was allimportant that theso world communications rest in the hands of the Empire. Mr. Howard: Does it not mean that they are being handed over to private enterprise? Mr. Coates: It does, with the provisos I have referred to. Ho added that the restrictions on tho use of wireless for commercial purposes would be no different from restrictions in force in the past. Mr. Howard: This company has been given a world monopoly. Mr. Coates: Yes, but it consists of British interests.

LABOUR SUSPICIONS RADIO-CABLE MERGER CRITICISM IN COMMONS (Australian and N.Z. Press Association) (United Service) LONDON, Thursday. Criticising the radio-cable merger proposal in the House of Commons, Mr. C. G. Ammon, Labour member for North Camberwell, said the fact that the Government had the right to approve of two of the directors of the proposed company was no safeguard, as they would be nominated by the cable companies. Thus their interests would dominate the position. The newspapers in Britain were now in the hands of five people. The effect of the merger would be that the sources of news would be in equally few hands. The Labour Party would in no way be bound by any contract or agreement that the Government might make as a result of the report. A REPUDIATION The Secretary of State for the Dominions, Mr. L. S. Amery, repudiated the suggestion that the scheme was the result of a deliberate and malicious attack by capitalists. First, the Canadian Government and then tho Australian Government had suggested a conference, to discuss the grave problem arising from unregulated competitions between the wireless and cable systems. Unrestricted competition was likely to end the cable services, which would not bo in the interests of the Empire, from the standpoint either of defence or commerce- The secrecy provided by the cables was essential for both strategic and commercial welfare. The conference came to the conclusion that the only efficient means of saving the cables and allowing full expansion for the beam wireless was unitary control. There was no possibility of the Dominions partaking in an an inter-Imperial and inter-Govern-ment unitary system. The conference therefore sought to obtain advantage of inter-Imperial State control by other means. LIMITED PROFITS The profits of the proposed merger company were limited to 6 per cent. Anything above that must be devoted to lowering the rates and improving the communications. This would give all the advantages of Empire-wide unity and co-operation, as well as the effectiveness of private enterprise. In the interests of the public and the Empire the creation of this Imperial system would in the future bo looked upon as a great landmark in the development of the Empire. If the agreement had been made at Geneva, instead of in London, and between foreign, instead of Empire, Governments, the Labour Party would havo held it up as an example of fruitful co-operation between nations.

“SPITEFUL CRABBING" OPPOSITION ASSAILED (Australian and N.Z. Press Association) LONDON, Thursday. The ‘ Daily Telegraph,” referring to the debate last evening in the House of Commons on the cables and wireless merger proposals, says:—‘Tho Government is fortified by the knowledge that the whole Empire unanimously approves of its highly complex and in some ways revolutionary proposal. The Opposition cries of a betrayal in the camp sound more than usually foolish, in the face of such unanimity.” The “Daily Chronicle” says that while several of the details require examination, the scheme as a whole merits something very different from the spiteful doctrinaire “crabbing” it received from the members of the La. hour Party.