THE SESSION

Rotorua Morning Post, Volume 3, Issue 647, 27 September 1933, Page 6

THE SESSION

("Post" Special Commissioner).

EXCHANGE ISSUE • LYTTELTON NOT ACCURATE INDICATION OF FEELING STREXGTH OF PARTIES

Wellington, Tucsday Although the Parliamentary session has just commenced, there is every indication that the big question of the deliherations will be the exchange issue which has already been the subject -of one discussion. It is unusual to have a prolonged debate on the motion to introduce a bill, but whtn Mr. W. A. Yeitch (Coalition, Wanganui), sought leave to introduce the Banks Indemnity (Exchange) Repeal Bill, there was an animated condemnation of the Government's policy. In fact the opponents of the high exchange policy had it all to themselves as none of the Government's protagonists entertd the lists. There is~no doubt that the bill, is thc direct outcome of the meeting of representatives of urban constituencies which was held in Wellington j during the recess. This fact was partially disclosed by Mr. A. Harris (Government, Waitemata.), who, during the course of his remarks on the measure, said that he wished to take the earliest opportunity of expressing his sympathy with the movement which had been initiated by Mr. Veitch. At one stage the sponsors of the movement were confident that they would obtain sufficient followers to be able to force the hand of the Government, but so far the support they have received is unlikely to give them such a commanding position. Not Enough Support Apart irom the members of the Labour Party, who number twenty-' four, the Bill is unlikely to attract more than twelve additional supporters, whereas it would require at least sixteen anti-Labour adherents before it could have a chanee of success. Moreover, if it is to prove a source of embarrassment to the Government, Cabinet will very likely see that its chances of going to the votes are practically nil. Unless the Government is smypathetic, it is almost impossible for a private member to obtain a run for any measure that he is sponsoring. On the Banks Indemnity (lExchange) Bill last year, the Government had a majority of eight votes and the only absentce from the Chamber was Mr. W. J. Jordan (Labour, Manukau), who would' naturally have voted against the legislation. Mi Jordan has now returned from his trip abroad, but at the present time two of the opponents of the Government's policy the Hon. W. Downie Stewart (Coalition, Dunedin West), and Mr. W. Nash (Labour, Hutt), are out of thi. country. This leaves the Government one up. The only additional votes that Mr. Yeitch is likely '.o get for his bill are Messrs H. G. Diokie (Coalition, Patea) who spoke against last year's measure and then supported it, A. E. Ansell (Coalition. Chalmers), and J. Hargest (Invercargill). Among the representatives of predominately urban constituenci'.s who are practically certain tc s,; .r* the Government are Messrs S. . Smrh (Coalition, New Plymouth;, who is chairman of commitfcees, J. A. Nash (Coalition, Palmerston), who is one of the Coalitior, . whips, W. P. Endean (Coalition, Parnell i. 'i Ib'lland (Coalition, Christ » Lti ; '•?- rn'th ) and H. S. S. Kyl. 'Gualition, Riccarton). It would thus se-.m certain that the Government will obtain a majority on the exchange issue, unless the situation is altered by the budget. If the budget foi\shadows more taxation for the purpose of bridging the deficit, the hostility may increase, but so far there has been no indication that that this will be so. The Minister of Finance (the Rt. Hon. J. G. Coates, has hinted that there will be ne shocks for the taxpayer this year. and if he is able to keep to his pro sent intentions, his Government wili be safe. Company Law The Companies Bill, which is almost ready for presentation to t.e House, is to be sponsored by Hr. Coates. As Mr. Coates is not a me . - ber of the legal profession, he may find his task a difficult one, as legal legislation invariably affords the la.vyers of the House an eagerly grasped opportunity to talk at length. -..t is generally expected, however, that the bill will be sent to the Statuies Revision Committee, although I.^r. Coates considers that, owing to thc fact that the legislation has bem drafted by a committee of experts, there is no need for the committee to prolong its deliberations. As far as the general public .is concern d the chief interest will be in the provisions of the bill relating to the hawking of shares. These provisions wili give the investors greater protection, and it is expected that they will be popularly received. Lyttelton Reactions The Labour Party is hold'ng its caucus later thah usual this year. The party caucus is generally l.eld on the first day of the session, but it •was decided that the meeting should be held over until the obituary references were made in the House to the late Mr. J. McCombs. The member i of the Opposition are obviously jubilant over the Lyttelton victory. None of them expected such a big majority and there is no doubt that Labovr speakers in the Address-in-Reply debate wiii miake frequent reference to the by-election. An analysis of the figures, however, shows that Labour's big gains were made in the ui'ban areas, and that the rural districts d.d not flock to the Socialist banner as much as some expected. In view of the fact that Labour now holds most of the urban seats, the result of the by-election would seem, to indica^e in a general election the party would not make the gains some of its supporters consider it would. Elections the world over have proved thac by-elections are very infrequent ly an index of public opinion in a na • ti'onal poll. In the major issue there is altogether a different atmo~phere. Reserve Bank Sinee his return to New Zealand, the Prime Minister (the Rt. on. G. W. Forbes) has implicd that th'e Eng-

lish authorities are very favourable to the establishment of a central reserve bank in New Zealand. During his visit to the United Kingdom Mr. Forbes took the opportunity to consult the financial authorities there, and it is anderstood that he was informed that the Dominion could not reap the full benefit of any co-ordin-ated monetary policy by all the nations, or any group of nations, unless she possessed a central bank. This fact will -very likely lessen the opposition which a section of rhe Government's supporters have against the propcsed legislation. At the present time the Labour Party is not alone in the opinion tthat the State should have great control over the banking system, but there are not enough currency "reformers" in the House ro make any effectlve. protest agamst a New Zealand central bank. No Official Caucus So far the Coalition has not held an official caucus. There was a meeting of the party on Thursday night, but it was purely a social function at which the Prime Minister and the Minister of Education (the on. R. Masters) outlined their trip abroad. A few questions were asked by members on phases of the World Ecoj nomic and Monetary Conference and conditions in the United States, but there was no .general discussion. The Government has thus not yet "outlmed its legislation- to the rank and file of the party, but in view of the fact that the Address-in-Reply debate will take some days there is no hurry for a caucus meeting. It is expected that the caucus will be delayed until there have been further meetings of the full Cabinet. So far the Prime Minister has been busy acquainting- himself with the problems which have arisen during his absence, and there are questions for his decision oefore any further announcements can be made on policy. Up to the present the new member for Lyttelton, Mrs. E. R. McCombs, has been the cynosure of all eyes. She has received congratulations from women's organisations all over the world, and the wives of the members, irrespective of party, presented her with a ibouquet on the day she took her scat. A special foom has been fitted up for her, just as a room was fitted up for Lady Astor when she became the first woman member of the House of Commons. M(rs. McCombs' maiden speech is being awaited by all sides of the House.