Wireless-Cable Merger Criticised

Sun (Auckland), Volume III, Issue 753, 28 August 1929, Page 7

Wireless-Cable Merger Criticised

GOVERNMENT’S ATTITUDE LABOUR ALSO DISAPPROVES ‘ fTAe SUN’S Parliamentary Reporter) WELLINGTON, Tuesday. An opportunity was taken today by the Prime Minister, the Right Hon. Sir Joseph Ward, of placing on record the New Zealand Government's strong disapproval of the action of the British Imperial Government in consenting to the wireless-cable merger of last year. The objection was made on receipt of a Government measure formally concurring with the Dominion’s part in the transaction. When the measure was introduced, the Leader of the Opposition, the Right Hon. J. G. Coates, asked the Prime Minister whether the Bill conformed exactly with the terms of the Dominion's agreement, and if it contained any reference to the employees j of the Pacific Cable Company in New Zealand. Another question was asked by the Leader of the Labour Party, Mr. H. E. Holland, who wanted to know what would be the consequences if Parliament refused to sanction the merger. The undertaking given by the last Government had not been referred to Parliament, but, now that the Dominion had been committed, apparently Parliament was to be given an opportunity to say whether it sanctioned the transaction or not. Personally, said the Prime Minister, he was not in favour of the merger, which had been agreed to by all the other parties interested—Great Britain, Australia and Canada, It had been reported to Parliament, but then it was too late for any practical objection to be made. Mr. Holland: I think the right hon. gentleman protested against it at the time. The Prime Minister agreed. The British Government had advocated it, and the other countries having agreed, there was nothing else to be done. New Zealand had no say. Mr. Coates pointed out that negotiations had not taken place through the British Government alone. All the partners in the Pacific Cable Company —New Zealand, Canada, Australia and England—were represented, and it was purely on the combined recommendation of the others that New Zealahd had come into line. LOST OPPORTUNITY The Prime Minister said that he thought that the British Government had made a mistake in not retaining the beam system, over which it had control, and making Marconi join with it. It was the first British-owned cable service, hut. without the New Zealand Parliament having a chance to consider the merger, it was all changed. The late Prime Minister had reported the question to tire House on his return from the Imperial Conference, but in the past resolutions from the Imperial Conference had been the subject of ratification by Parliament in New Zealand. Sir Joseph was sorry that the chance of owning part of a cable like the Pacific cable had been lost; the country would never have a chance like that again. As it controlled the beam system, the British Government had had the power of controlling the Pacific cable without disposing of it. It was too late, however, to do anything now, and the Bill before the House was to ratify the agreement. Mr. P. Fraser (Wellington Central) was of opinion that had the proposal come before the last Parliament it would have been endorsed, but those who disapproved of the step should have been given the chance to air their views. It was a pity that the Baldwin Government was in office at the time of the merger, for the present British Labour Government would have opposed the proposal, as would the present New Zealand Government. WHOLE STORY NOT TOLD Mr. Coates was of opinion that the Prime Minister had not told the whole story, and that there were wider ramifications in the proposal. The figures on the official file would show that there had been extraordinary falling-off in the business of the cable companies, which undoubtedly were meeting with serious opposition. Some steps had been absolutely necessary to see whether it were possible to conserve the interests of the Governments concerned in the company, j The question was whether the respecj tive Governments were prepared to carry on with the tosses staring them in the face, or whether some arrange- ' ment could be made to conserve the | whole of the Empire services, at the same time converting the service to Empire use in the event of war or any ' other such contingency. r The Prime Minister claimed that the loss would not have been so great for New Zealand if the merger had not taken place. Because of its controlling interests. Great Britain needed only to refuse the conditions and it would have been in the position of controlling rates between itself and overseas’ countries. The British Government had made a mistake in giving up its superior interest in the beam system to allow the Eastern Company to become part proprietor with it. A phenomenal rise in shares had followed the announcement of the merger, and a lot of money had been made. It hud been a regrettable transaction, but it could not be restored, and the merger company was in the position of being able to dictate its terms. SINISTER FIGURE Agreement with the Prime Minister ■ in his contention that the British Government was wrong was expressed by Mi Holland. The lines of Empire j communication had been handed over to one of the most powerful combines the world had ever known —a combine interlocked through its leading personalities with practically every other combine that had worked disastrously against the people of the British Commonwealth of Nations. At its head was one of the most sinister figures iu British historj. A Voice: Who is that? Mr. Holland: Lord Birkenhead. He is receiving an enormous salary. Replving to the second point raised hv Mr Holland, the PostmasterGeneral, the Hon. J. B. Donald, said that up to the present nothing definite hid been settled about the employees of the Pacific Cable Company in New Zealand, but the question was under consideration. . The Bill "as then read a first time.