THE POLITICAL SITUATION

Hokitika Guardian, 27 August 1931, Page 2

THE POLITICAL SITUATION

(Otago Daily Times). It must he obvious that a new and dramatic turn has been given to the course of political events by the appointment of a parliamentary comnrttee, representative of all parties, to investigate the finances of the Dominion and to submit proposals under which the burden of sacrifice that has to be borne by the community may be equitably distributed- The committee was appointed with the unanimous assent of the House. The fact that it was on the motion of the I Leader of the Opposition that it was set up was itself significant. This

expressed a definite recognition on the part of the Reform Party of the need for the co-operation of all parties in devising measures that are appropriate to the gravity of the economic situation.

The acquiescence, moreover, of the Labour Party in the appointment of the committee involves an endorsement by it of the view that no one party in the House is competent in existing circumstances to direct the financial policy of the country. The acceptance of this conclusion by the two parties that are opposed to- the Government must afford profound relief to the Prime Minister, He has pleaded for the co-operation with the Government of all who have the interests of the country at heart in meeting the difficulties of the crisis. Whether the Soc* ialists were embraced within those to whom this plea wan addressed in the past Is a question which at the present time hardly merits discussion, They arc now associating themselves with the other parties in the effort that is to he made to bring about ap .adjustment of the national finances and an apportionment of the sacrifice that will be necessary In order that the country may be tided over the period of adversity which is being encountered bv it.

The Budget proposals of the Government—except in so far as they are expressed in the tariff adjustments which are now operative—are to remain in suspense while (the committee is engaged in its deliberations, and, apparently. the Government is prepared to withdraw them if the committee finds itself in a position to recommend Some mo-re acceptable plan for the stabilisation of the finance of the

Dominion. It would be an aegreeable surprise if the committee could see its way to frame a unanimous recommendation to the Government concerning the policy that should be adopted. The composition of the committee, however, hardly encourages any expectation of unanimity on its part. | Yet, if the members of the committee approach the consideration of the matters remitted to them with the single purpose in view of the restoration. of the financial equilibrium of the country under a plan that will be equitable in its operation, it should not |he beyond their capacity to agree upon certain major principles of policy op* 1 plicable not to this year o'nly but to | a series of years that should be adopted- Mr Forbes has implied that . it is not with proposals affecting this I year’s finance thfit the committee will | be solely or even mainly concerned. As he puts it, a wise anticipation of the future rather than any hasty action ■to avoid panic explains the appoint* ment of the committee. In the event, i however, of the production o? the com--1 mittee of an acceptable plain, we

are brought hack again to the question of the authority by which this policy is to be executed, and it- is difficult to ignore Mr Forbes’s repeated declaration that a minority Government is no competent to direct the affairs of the country during a time of acute crisis.

| Nor is it possible to disregard tile , likelihood, which now presents itself to the mind of Mr Coates himself, that none of the three political parties may be able to command a majority lin the new Parliament. Obviously, the formation of a National Govern, ment is the logical outcome of the acceptance by an all-party committee of the responsibility of preparing a plan for the adjustment of the finances of the Dominion. Mr Forbes, says that I the postponement of the general election would follow as a natural consequence of the formation of a National ; Government, That is, however, not n statement with which it is possible .to agree. Tt would not be a necessary consequence of the formation of a ■ National Government that the dur--1 atioo of the existing Parliament should be extended, The formation of a National Goverp--ment would, indeed, constitute an. argument against a prolongation of Parliament, since it would represent a development which was not contemplated by the country at the time of the last general election. The present saving of an expenditure of £70,000 or so which a general election costs would he of distinct advantage, but, though there is probably very little j grqund for supposing, as Mr Holland supposes, that the public would be | deeply affronted if the election were postponed, the formation of a National Government would render an election desirable in order that the electors might have the opportunity of expressing their approval or disapproval of ' its existence and personnel.