NEW ZEALAND AFFAIRS

Hokitika Guardian, 29 April 1931, Page 6

NEW ZEALAND AFFAIRS

STATEMENT BY HON. G. W. FORBES

REVIEW OF SESSION

NATIONAL GOVERNMENT REQUIRED —a — HON. J. G. COATES INVITED

(By favour of the

WELLINGTON, April 28

THE SESSION.

The session which has just ended, was called for the purpose of dealing With measures designed to meet the change in economic conditions brought I about by the phenomenal drop in the , price of all primary products. as «» , result of this drop public finance suffered along with private incomes. A serious deficit in the years accounts was disclosed, and a further estimated i shortage of- revenue. j To meet expenditure for the current , year, the sum of £5,500,000 had to be j provided for, this necessitated moas- | ures providing for drastic economy being placed before Parliament. A reduction in salaries and increased charges for public services were required to be effected and subsidies and grants from the Consolidated Fund had to he substantially reduced. RAILWAY AFFAIRS. As a means of preventing tbe increase of railway losses, which had become a heavy drain on. the finances of the Dominion a Board of Directors has been set up, whose duty it will be to direct the future policy of the railways so that they will be run more closely on commercial lines and in that way make them more self supporting and relieve the general taxpayer from having to find huge sums annually to make up the deficiency. DRASTIC ECONOMIES. It is to be regretted that drastic economies have been required, hut with the imperative necessity ot maintaining the Dominion s financial stability, the Government had no alterative;’ ; Whilst sacrifices - have been entailed on many of the Governments employees they will no doubt feel more satisfied jn their minds to know that those sacrifices will enable the Public Service to be based on sound finance. If the issue had not been faced and dealt with the postponement could have onlv been for a short period when the economies would have had to be far more drastic. ASSISTANCE ACKNOWLEDGED. I wish to express my appreciation of the action of the Leader of tile Opposition and his party in giving tin Government their support in putting through the legislation to allow the necessary economies to be made. There are difficult times ahead. This is said in no spirit of pessimism, but sensible men and women will recognise that the effects of a world-wide depression cannot pass away quickly, and it is :■ wise policy' to shape a course accord ingly. THE SESSION WORK. The steps that have been tin kin m this session to adjust the finances 'f the country are an instalment, considerable indeed, but only an instalmeiro of what is necessary. The taxation portion; has, been loft for next session; when the effect of the economies will be known and the shortage of revenue to lie made up can he more closely estimated. With such a programme ahead and after the experience of the session just closed, T. am convinced that a Government .in a minority, in the House as i gir "

ours is, cannot deal satisfactorily j with the legislation necessary, to meet the urgent vital needs of the country, I not the least of which is the scpiaring ’ of the national accounts.

STRONG GOVERNMENT REQUIRED | In view ol this, the necessity of hav- ' ing a strong Government to control 1 affairs whilst the Dominion is passing through the present serious economic crisis must lie apparent to every thoughtful man and woman in the I community, and 1 know from the com- ! munieations that have reached me that | that belief is held by large numbers of J men and women in leading positions in the Dominion. I feel that the time has arrived when there should be a coming together of the citizens of New Zealand for the formation of a National Party. INVITATION TO MR COATES. V To give a lead m this duection, I, on behalf of the members of my party who are in unanimous agiecment have invited Mr Coales and his party and all others who have the best interests of tbe Dominion at heart to cooperate with US ill the formation of such a party and so as to allow nothing to stand in the way of the freest and fullest dealing with the situation, the slate should be wiped clean, and to effect this my colleagues have intim ated to me their willingness to place their resignations in my hands so that the Leader of the new Party, when selected, will not be hampered in any way' in his choice of a Cabinet, and 1 to provide that the question of leadership shall not be an obstacle in tin way. 1 inn prepared to abide by any decision of the new Party in regard to this matter. SERIOUS ISSUES. The issues at the present time an too serious to allow of personal oi ! party considerations standing in tin way of securing tbe strongest, possible i Government to control the affairs ol s the Dominion. T feel confident that the formation of a National Party will go a long i way towards the restoration of confidence, both in the Dominion and the i Old Land. Tt will be another evidence of New Zealand’s determination to face facts and to put her house r in order, and with confidence restored , prosperity will not be long in return , ing. ' G. W. FORBES. ! , CAUCUSES H E 1,19. WELLINGTON, -pin %*. Caucuses of the United and Retorn Parties were held this morning, a 5 which it is understood that the ivpr { sentations made recently to the re i spoctive leaders for the formation o' a national government were discuss- . ed. ■ No statement concerning Mr Forbes’ fusion proposal was available this evening from Mr Coates, f Mr H. E. Holland says that he pr< , fers to await the announcement o' l both, of the other leaders before com meeting on the situation. It is likely that there will lie som I deliberation in the Reform eirel’s b<> * fore an answer will be given to tin . proposals.