THE WEEK IN PARLIAMENT.

Press, Volume LXVIII, Issue 20495, 14 March 1932, Page 10

THE WEEK IN PARLIAMENT.

ECONOMY REPORT. MEMBERS FEAR LOSS OF PRIVILEGES. [From Ocb Parliamentary Reporter.] WELLINGTON, March 12. Having disposed of the Addrcss-in-Eeply Debate, Parliament has begun the first serious work of the Emergency Session. Members began the week complaining of the Government's lack of enterprise in getting on with the country's business. They retired for the week-end with mixed feelings, fearful lest the recommendations of the Economy Commission would incite the Government to over-enthusiasm in tackling Ihe major tasks ahead. Tor onee the members of all Parties are agreed. Those who have given loud and enthusiastic support in recent months to the Government's policy of cutting down expenditure and spreading the sacrifice equally throughout the community, became alarmed when they learned of the Commissioners' desire to curtail many of the privileges now enjoyed by members of Parliament. This is but a very small part of the Commission's report. As a phase in the general reduction of State expenditure, it is as a drop in the bucket. But in the minds of some members of Parliament it stands out as a brutal onslaught upon privileges which have in good times come to be regarded as a matter of course and as the natural perquisites of the position. Free railway travel, free stamps, reduced telegraphic rates, expenses for wives and families, and other concessions have come under the eye of the Commission, which incidentally appears to have missed very little among the minor economies that can be effected. Nor does the idea of reduced membership in the House of Representatives appeal to any of those members whose constituencies are liable to come within any revision of boundaries Tho report of the Commission, which is regarded as the most important document to reach Parliament for many years, will be fully discussed in the House next week, probably on Monday evening. This 'discusssion will necessarily be short, however, as tho Prime Minister unexpectedly adjourned tho Houso until Monday evening instead of Monday afternoon as provided in the new sitting hours for the session. Reductions in pensions and further wage-cuts, as well as many other economies_proposed, will be severely criticised by tho Labour Party, though this comment will be tempered by some' uncertainty as to how far the Government is likely to go in adopting the opinions and recommendations of the Commissioners. The Exchange Bate. Simultaneously with the release of the Economy Report, tho Government announced its decision not to interfere with the existing rate of exchange, and to leave the credits pool in London for the time being at least. Tho announcement was something of a surprise, because it was an open secret that Cabinet was vitally divided on the question, with a definite leaning towards a free exchange. The position altered suddenly during the week. On Tuesday evening Cabinet sat in consultation with representatives of the Associated Banks. After that meeting little was heard of Cabinet's deliberations. It was known that a statement on the question was imminent, and the difficulty in securing a decision had not been overlooked. It is suggested the banks made the position so clear to the Government, so far as tho consequences of a high rate of exchange were concerned, that Cabinet was induced for the sake of the national finances to take a definite stand. Interest and Bent. Another problem to which tho Ministry has devoted a great deal of attention has been that of interest and rent, and it is now reliably reported that the Government will incorporate provision in tho Finance Bill for the arbitrary reduction of these fixed charges by 20 per cent. Exact details of the legislation are not disclosed, but it is oxpected the advice of the Economists' Committee to establish hardship Courts will not be overlooked. Tho Government's policy of legislation, little of which has so far been framed, is gradually assuming shape. Economy is truly the keynote, .and the legislation that will appear during the next few weeks will show that all sections of the community will be called upon to bear a share of the sacrifice necessarily entailed- by the- economic reconstruction of the country. Hard Fights Ahead. The facing of the unpleasant facts has already begun. The methods of disposing of them will create one of the greatest political struggles of our Parliament. The Labour Party, despite reports to the contrary, has reiterated its intention to fight the Arbitration amendments to the last ditch, while many of the other measures in prospect will be directly opposed to their policy of retaining wage levels to preserve the purchasing power of the people. Against this will be ranged the argument for reduced overhead costs in every'direction, an argument which will doubtless carry the day in a Parliament with a heavy majority in the Government's favour. The Arbitration Bill,

The debate on the second reading of the Industrial Conciliation and Arbitration Amendment Bill, which has already occupied two days in the House, will be continued on Tuesday. It is not the intention of the Prime Minister to ask for urgency on the measure immediately", partly because he wishes the subject 'to be thoroughly discussed before the Committee stage is reached, and , )ar tiy because the Government will welcome a certain respite so that Cabinet may meet and formulate plans for subsequent legislation, little of which is ready. Ministers get little time to spare these days. Frequent Cabinet meetings fill the hours they are not in the House. Members themselves will shave this burden of hard work as soon as the necessary Bills are drafted and brought forward for passage into law.