COALITION CAUCUS

Rotorua Morning Post, Volume 2, Issue 439, 25 January 1933, Page 5

COALITION CAUCUS

("Post" Special Commissioner).

FORBES CONFIDENT HAS ENOUGH SUPPORT TO CARRY HIS BILL MEMBERS UNDER DISCIPLINE

Wellington, Tuesday. Probably one of the most momentous caucuses in history of the Coalition Party commenced at Parliament Buildings to-day. The caucus met at 10.30 o'clock this morning and up to the adjournment for the day at tea time discussion had centred on the Government's decision to raise the exchange rate. The Prime Minister, Minister of Finance, Mr. Coates and Mr. Downie Stewart, addressed the meeting. Both Mr. Forbes and Mr. Coates outlined the reasons which had actuated the Government in raising the rate and Mr. Stewart took advantage of the opportunity of stating his case against the Government's actioii and also of explaining his reasons for lea.ving the Ministry. The Prime Minister stated that all members of the party were present with the exception of Mr. A. M. Sam-

uels (Thames) and Mr. Tau Henare (Northern Maori)' both of whom are abse.nt from Wellington and Mr. A. J. Stallworthy (Eden), who has been ahsenting himself from Government causes for some time, and who, it was gathered from the Prime Minister, was not expected at the meeting. No Defeat Mr. Forbes said a very friendly atmosphere had prevailed at the meeting. "There was no body-line bowling," he remarked*with a smile. On the present indications it can be reliably foreshadowed that the Government will not be defeated in the House on the exchange issue. It may lose, either temporarily or permanently, the support of a few of its adherents, but the Prime Minister is confident of a sufficient majority to secure a rejection of any no-con-fidence amendment. When questioned on the point to-day, Mr. Forbes made it clear that no doubts as to the outcome existed in his mind. "The Government will not be defeated on the Bill inaemnifying banks against losses arising out of accumulated exchange credits in London," he declared. The Prime Minister was asked whether he was prepared to state the ground for his assumption and whether it was a fact that the consent of members of the Coalition to the raising of the exchange rate had been sought by cireular telegram prior to Cabinet's reaching its decision, Mr. Forbes replied it had been unnecessary to consult members beforehand since at the final caucus before the House adjourned for Christmas Cabinet had received from the party what could be described as a mandate. "They left it to us entirely," Mr. Forbes explained, "to do whatever we thought fit to meet the crisis and promised to support us in whatever policy we decided to adopt. The only communication sent to members was one announcing Cabinet's decision on the exchange question and requesting them to withhold their comment until the rull statement was placed before to-day's caucus." Must Toe the Line Replying to a further question the Prime Minister emphasised that voting on the Banlc Indemnifying Bill unquestionably would be on party

lines. An adverse vote would be taken as one of straightout no-con-fidence in the Coalition. It was suggested to Mr. Forbes that a few city Coalitionists might wish to oppose the measure and vote against it. "Yes," he replied, "one or two, but this is a-major policy issue and • we expect every member of the Coal- ■ ition to vote for it." ■ "Will members who vote against 1 the Bill run the risk of exphlsion?" Mr. Forbes was asked. ! The Prime Minister said members who, with the full knowledge of the facts, voted against their party on a want of confidence motion must be aware of the interpretation which the leaders would place on their action." But will they be expelled? Mr. Forbes was pressed to say. The Prime Minister smiled. "Let us talce our liurdles when we come to 3 them," he rejoined.