Government Easily Survives Divisions

Manawatu Times, Volume LIV, Issue 7279, 5 October 1933, Page 7

Government Easily Survives Divisions

Vote of 43 to 30-on Straight-out Exchange Issue

Labour Moves Portlier Amendment

Calling For Dissolution

Per Press Association-

WELLINGTON, Last Night,

The Address-in-Reply debate was continued in the House of Representatives this afternoon by Mr. It. .Semple, who said the application of scientific methods to industry was driving men into idleness. No effort had been made to organise industry in keeping with the march of science.

Mr. J. I-largest said tho raising of the exchange rate had had a good effect on industry. Ho quoted the case of a stocking factory iu Wellington which had recently been on tho vergo of bankruptcy and which was now doing well as a result of the extra protection against Australian and American manufactures. There was also the case of a similar firm in Southland, which had re-oponed after the exchange rate had been raised. The timber industry had been affected beneficially and a dairy factory in Southland had been able to pay SOO small suppliers a bonus of over Id per lb. over tho whole of the season. During the past five years, Post Office Savings Bank withdrawals had been exceeding deposits with monotonous regularity, hut four months after the raising of the exchange, there had been an excess of deposits, and during the last five months the deposits had exceeded the withdrawals by over £872,000. This sum did not represent the savings of tho wealthy, because the average deposit was £l4 a year. It demonstrated that the working people had benefited. Southland Power Board’s Loan. Referring to the controversy over the payment of interest on the Southland Power Board’s loan, Mr. Hargest said ho desired to put the case for the board, which was not the custodian of the country’s credit and had not been responsible for tho raising of the exchange. At the time the bonds had been issued it had occurred to neither party thero would be any substantial variation in the rates of exchange or some gold clause would have been, inserted in the agreement. Ho pointed out that the bonds had been issued in Invercargill and the hoard had contracted to pay interest on one hundred pounds and not on one hundred sterling. It was prepared to submit its case to tho Privy Council, and if the decision went against it, it would pay up like a shot.” Meantime, however, he contended the board could not be expected to pay to establish tho country’s credit, That was tho country’s job. Mr. C. H. Chapman, expressed the opinion that the cost of raising the exchange rate to New Zealand over 12 months would ho £12,000,000. One effect of the increase had been a reduction in imports. Air. Hargest: It gave the secondary industries a chance. Air. Chapman contended that secondary industries had not benefited. On the contrary, they had been placed at a disadvantage through having to pay extra exchange on materials which they had to import in order to manufacture. He submited that the only way m which prosperity could bo restored was to raise wages, and in this respect. America had given a lead to tho world. Divisions on the two amendments before the Houso were taken at 9 o'clock. The division on the retention of the body of the leader of the Opposition’s amendment resulted in tho defeat of Labour by 46 votes to 27, Messrs. A - more, McDougall, Itushworth, Stallworthy and Wilkinson voting with Labour. Mr. Wright's amendment on the question of the exchange rate was rejected by 43 votes to 00. It was supported by tho Labour members and

That this House affirms that, in view of the nation-wide dissatisfaction with tho administration of your Excellency’s advisers, Parliament should he dissolved and a

■general election called without dc^

’’Opinion Of tho Electors.”

Messrs. Atmore, McDougall, Harris, Itushworth, Stallworthy, Wilkinson, Veitck and Wright. Mr. Fraser then moved to add tho following words to the Address-in-Rcply motion:

lay. Laughter came from the Government benches.

Mr. Fraser said the amendment would give an opportunity for a straight-out vote in regard to tho Government’s policy and called for a dissolution, and was the opinion of an overwhelming majority of the electors in this country. No matter what electorate might be vacated at the present time, the Government would have to fight for its life to win it, and in saying that, he was putting things moderately. The Government had no right to sit on the Treasury benches and it had acted unconstitutionally by extending its term of office for a year. In effect, he contended it had purloined another year of office without asking for a mandate, iu spito of the fact that the Minister of Finance had gone down to Christchurch and with great personal exertion had stated that the Government had a mandate from the people. Mr. G. E. Jull said he was satisfied that, if another election were held immediately it would simply mean that the Government would be returned to office with a further mandate and endorsement of its policy. He st.il favoured tho increased exenange rate. As long as Australia had a 25 per cent, rate, New Zealand would have to he very guarded about altering her own rate. He considered that the Government should make a statement to the effect that the exchange rate would not be reduced for a long time, and when it was ,it should be reduced very slowly, say 5 per cent, at first and then perhaps 2i per cent. Mr. W. E. Barnard said the excess of the Post Office Savings Bank withdrawals over deposits during the threo years ended March, 1933, had demonstrated the very heavy Wen the Government’s legislation had p <l- - the poorer classes of the cornmunAhe debate was interrupted by the rising of the House at 10.30 p.m. Mr McDougall’s Position Raised ACTION in VOTING AGAINST government. Per Press AssociationWELLINGTON, Last Night. Asked what was Mr. McDougall’s position in consequence of his having voted for the Labour party’s no-con-fidence amendment, Mr. Forbes sai that was a question for Mr. McDougall to decide. He knew what the consequences of his action must be. Asked whether Mr. McDougall would bo invited to farther caucus meetings of tho Coalition party, Mr. Forbes sai Mr. McDougall would probably not expect to be invited. _ . . Invited to state Ins position, Mr. Me Dougall said that as long as the Government maintained wheat restrictions on the farmers of Southland, he would vote against it, but if it amoved the restrictions, he would vote with it. The fact that he had voted with Labour to-night did not mean he would support Labour in everything.