TI PARLIAMENT

Rotorua Morning Post, Volume 2, Issue 398, 6 December 1932, Page 5

TI PARLIAMENT

("Post" Special Commissioner).

WORK OF SESSION BONUS ON EXPORTS IS LIKELY RELIEF A MEASURE. TTDDLY-WINIUNG- LEGISLATION

Wellington, Saturday. The unexpected twists. and turns in the political situation have been so numerous this session that, short of the downfall of the Government, one need not be surprised at anything. The whole trouble seems to be that the Government is iii a quandary. It is facing an unprecedented situation, and as soon as it thinks that it has placed the ship of State on an even keel, a eemplication sets in and throws its calculations astray. No mat'ter what one's political helief may be, oue cannot but admit that the Prime Minister and his colleagues have q most umnviable task. The ramifications of their problems are so wide „ and deep-seated that they ap'pear to be •baffl'ed at every turn. Cabinet Wants a- uBr eajher-" With the refusal of the banks to follow a policy of high exchange, pressure was exerted on the Government for an alternative method of a'ding the farmer, and there is no doubt that, in asking for an adjournment, Cabinet was seeking a "bre'ath- . in order to make a fresh survey of the position. At the Coalition caucus the suggestion for an adjournment came from the Government, not irom the rank and file of the party, and when it was agreed to there was .i sigh of relief among the members cf Cabinet. The adjournment will have this efr :?ct. however, it will focus all the at- „ mtionj on Cabinet alone and not on i arliament as a whole. Thus Cabinet v, ill he on its trial. By seeking a letup in the session; the Government has iucreased its responsibility, and it is to be hoped in the interests of national stability that it will formulate a ; lan of action which will eope with Ihe present drift. Tiddly-winking Legislation. The three central problems are the ?. light of the primary producers, the v nemployed and the falling-off of ihe taxable capacity of the people. Ihere is a general hope that the Government will concentrate on these t aestions and forget the numerous : mall measures that have taken a ■ roininent place on. the Order. Papex . 'nce the commencement of the ses•s:on. This point was raised during Ihe caucus, and several members of the party expressed their strong disc pfi'oval of the erop of tiddly-winking; egistration bills which had eitljer .een presented or promised.

The Farmer Comes Fast. The position of the farmer will prohably be placed at the head of the jatters fcr consideration. The memt ers of the House representing rural •onstituencios are united in their in?lstenee that the Government must ■do more for the farmers than it has ione in the past, and there is no oubt the problem will result in long ittings of Cabinet. It is apparent :>ow that the Dominion will have to ice another season of low prices, and ic farmers assert that, unless th'e Government comes to their rescue, heir production will fall off. Up to ,'iate there has been no falling off in he volume of production, but it is bvious that output cannot be mainained if it is unprofitable. Help Only a Palliative. It is urged by some of the Coalition :ity members that adjustments should :e allowed to take place naturally. i'hcy contend that the assistance that ,, is being given to the farmers is only x palliative and that it is keeping land 'Values at an artificial level. On ihe other hand, the farmers argtle (hat such a policy would drive hunG .. dreds off the land and bring chaO'S in ' ihe primary industry. The two schools are at present engaged iii h cug-of-war with the Government in the unonviahle position of arbitrator. As the rural members hold the . balance of power, it would seem likely chat they will gain the day.

Bonus on Exports Likely. At the present moment the most likely policy is a bonus on exports, and if this is adopted it will probably be made retrospective. It is possible that the money will be advanced bY the banks, and should this eourse bo taken, it will be interesting to see what rate of interest will be ch'argedThe Prime Minister has stated on tvyo or three occasions lately that he considers that interest rates are too high, and it is unlikely that he will pay the rates which have been prevalent for the past few years. It is possible, however, that the banks would be willing to consider a lower rate ,as it is evident that the swing is in the direccion ox cheaper money owing to the tendency for deposits to exceed ad- . vances. The Prime Minister reiterated his intention to-day of closing down Parliament on Thursday. On Fiiday he gave a long list of measures which he wished to dispose of before the House adjourned, but it would appear that 'he will ha content to hold a number of these over until Parliament reassembles on January 26.