N.Z. FINANCES

Hokitika Guardian, 24 August 1931, Page 5

N.Z. FINANCES

PANIC DEPRECIATED. PREMIER’S STATEMENT, (By Teleyraph-rrPer Press Association) WELLINGTON, August 23. Referring to the political situation the Prime Minister, Mr Forbes, saiu that he was surprised that yesterday’s developments are being regarded in some quarters as indicating a sudden change for the worse in the country’s fortunes. There now seemed to be hints at something approaching panic. There was no justification whatever for this. Jt simply meant that Parliament was taking time by tho forelock. The, Budget, he said, made ample provision for immediate needs, but he hoped that the conference would be able to formulate a plan for the future. It ought to be able to lay down lines along which the country should go, as the result of the investigation by the men of the conference, who would he examining the position from an expert and not from a party point of view. The country’s problems were getting more serious as time went on, and it was for this reason that the necessity for devising a plan of action arose.

NATIONAL GOVERNMENT.

WELLINGTON SPECULATION

WELLINGTON, August 23

As the result of yesterday’s dramatic development in the political situation, speculation has been rife as to the possible forming of a National Government and of tbe prolongation of the life of the present Parliament. A' impression seemed to have developed that in the event of the All Parties Conference failing to reach unanimity, the consequence would be a fusion or a coalition of tbe United and Reform Parties, and that there would then be a majority decision to extend the term of the present Parliament. Tt had been made clear, that Labour under no circumstances, would agree to the latter course.

NO FUSION MR COATES’S STATEMENT. WELLINGTON, August 23. Interviewed by th e Press Association this morning, Mr Coates repeated his statement of yesterday, that his motion contemplated neither 1 a fusion nor the prolongation of the life of Parliament. “To him,” said Mr Coates, “a. National Government meant nothing. The position was being approached de novo, and it was the earnest hope of the Reform Party that the conference of the Parties would, with the help of outside experts, he able todevise a plan that would lead to the rehabilitation of the Dominion and its people as rapidly as possible.” Asked whether he 'was optimistic,' regarding the possibility of the conference reaching an agreement, Mr Coates said that unless one was optimistic, one got nowhere. He could not see why a conference of reasonable men, with all the facts placed before them, should not he able to agree to a plan for the future. It was equally important to all Parties that an agreement should be reached along lines that would, as lie had stated, bring about a rehabilitation as speedy as possible. The Labour Party was as vitally concerned as anyone else. , Mr Coates said that he regretted that there had been any Suggestion that the Reform Party and United might eventually line! themselves up against Labour and force through certain measures. Such a line of approach 'was destructive of the purpose of setting up the committee. The whole idea of the conference was to attain unanimity. '

PAPER’S STATEMENT.

AUCKLAND, August 22. Tn an editorial, entitled “The Hoad,” the "New Zealand Herald,” says: “The sudden turn in national polities witnessed in Wellington yesterday. can have but . one meaning. Stalemate was in prospect and has been averted only by the moral leadership passing into the hands of the Reform Party, through Mr Coates. The Budget has been jettisoned. The Budget has appeared, a great deal ot time has been Wasted /discussing it and tbe Government has jettisoned at at the first definite intimation that it was wholly unaecepabh*.

A FACTOR IN THE CHANGE. CHRISTCHURCH. August 23. W I don’t want to say anything that might have the effect of hindering the efforts of the committee that has been set up by the House, said Mr E. J. Howard, M.P. “However, I can say that the developments that took place yesterday were not so sudden as they seemed at first. Ever since Professor Copland came tn New Zealand we have known that there have been meetings between him and the Reform and United Parties, and yesterdav this proposal was sprung on the House. “Early in-the momincr notice was given to Mr Holland, (the Leader of the Opposition), that he. intended to move a. certain resolution. The Labour Party met in caucus as ns possible afterwards, and decided that it would agree to a conference, but not- fo an adjournment of the House, as there was so niueli business to be gone on with.

“The Labour Party has gone the conference with an open nund. 1 am not prepared .to say what the Labour Party will agree to, and what it will not agree to. as we have sent out delegates to the conference .with untied hands. But we will want to know the proposals submitted to the conference before we can express any opinion. Mv own private opinion is that the Labour Party will not aereto any postponement of the general election in any circumstances.

MR FORBES’S HOPES POSTPONEMENT OF ELECTION. WELLINGTON, August 23. Mr Forbes stated that there was no occasion for panic. So far as the finances of the country were ed, provision had been made foi everything in a normal way. What they were doing was planning for the future, so as not to fall into the trap of expecting a solution of the policy of “muddling through.” Mr Forbes added that he hoped that useful suggestions would result from Monday's > conference, which would draft- an order of reference for investigation, involving the national and the local body finance, and the position of all of the interests that were affected by depression. He did not expect the proceedings to he protracted.

He added that the Committee would have to consider the stability of the political position so as to enable remedial measures to he operated by means of a National Government. If a National Government were decided on, the postponement of the general elections would follow as a natural sequence.

“Speaking as the head of a minority government,” declared Mr Forbes, “T sa v that it is too much to expect any drastic measures to he brought into operation hv a party that is in office, but not in power.”

A REFORMER’S VIEW. CHRISTCHURCH. August 23. “It is now realsed that the Budgetary position is most unsatisfactory,” said Mr Kvle. M.P. “Moreover, there are about 50.000 unemrdoved and an amount of only about £50,000 a. week available for relief purposes, which means that there is only £1 a week for each man. The primary producers are in a very bad way and manv of them are quite unable to meet their interest and rent commitments.” Mr K.vle said that the Reform Party had spent three nights in caucus and it had decided that something had to he done to try and remedy the position.