A MINISTERIAL CRISIS.

Te Aroha News, Volume VIII, Issue 488, 12 July 1890, Page 4

A MINISTERIAL CRISIS.

THE RETRENCHMENT PARTY DETERMINED. Wellington, July 1. There was no dearth of political excitement at the seat of Government yesterday, jalthough there was no sitting of Parliament. It was well known towards the end of the provious week that the members of what is now recoguised as the Government retrenchment party were seriously considering the advisability of taking some decided action %ith a view to giving eilecb to the pledges made to their constituents in their preBessional speeches. The retrenchment party occupying the Governmicnt side of the liouse at first appeared as n cloud no bigger than a man’s hand, but as time parsed and as the financial debate dragged its weary length along, this cloud grew bigger and bigger" until it assumed the shape of a perfect thunderstorm which threatened to fall upon and seriously threaten the stability of the Ministerial situation at any moment. A sudden change took place on Friday night. When the House adjourned, however, all wa3 comparatively serene and calm, and the atmosphere surrounding the benches occupied by the now famous retrenchers gave no outward or visible sign of the approaching storm. The retrenchers, it would appear, were in the hope that Sir Harry Atkinson would look upon their proposals in a friendly spirit, and that, seeing their strength, the Government would promptly yield to their demands by consenting to make a reduction of their estimates by £50,000. In this mood they waited for Sir Harry. They anticipated considerable opposition, but wero not prepared for the very firm stand that was taken up by the Treasurer in asserting most emphatically that ho would not take back the estimates and recast them with a reduction of £50,000. The retrenchers being far from satisfied, instead of showing signs of retreat then adopted a more determined tone, and at the meeting held yesterday they decided to insist on a reduction of the estimates by the sum named, no matter what should be the cost. In other words they determined to insist upon the Government reducing the estimates by £50,000, or taking the alternative of a defeat, for the Opposition, being pledged to turn the Government out, if only to get a dissolution and an appeal to the country, would be bound to support such a proposal to a man. The retrenchcrs in all number at least (thirteen, Mr Peacock, who was one of the deputation to the Treasureron Saturday, not having been present at Monday’s meeting, while Mr J. B. Whyte, by filling the vancancy, made the number present on each occasion eleven. I understood that Mr Barron and several other Government supporters would also have been present, so that the party at least is reckoned to be thirteen strong. This, of course, was a serious disaffection from the Government ranks, and the carrying out of their threat meant nothing else but a Government defeat or a concession by the Government of the demand made upon them. THE MINISTRY FIRM. Sir Harry was waited upon a second time, and informed of the resolution arrived at by the retrenchers. Although he con* sented to again talk over the situation, the only concession he made was a promise to consult the other members of the Cabinet, and give a definite reply later on. Rumours of all sorts weresoonsown broadcast, and although the resolutions arrived at by the retrenchment party were supposed to be kept a profound secret, their general purport gradually leaked out, and towards evening everybody was considering the situation. It was boldly asserted on one side that the Government would not recode from the position taken up by the Treasurer, and I learned on very good authoiity that if the retrenchers persisted in their demands, Ministers were determined to do only one of two things, either to resign or to ask for a dissolution. This was a situation in which the retrenchers did not wish to place the Government, but they had pledged themselves to stick to their guns come what might, and nothing more was wan ting to bring about a serious crisis. History repeats itself, and it is rather interesting at the present crisis to quote a speech made by Major Atkinson wlion Treasurer of the Hull-Atkinson Ministry in 1830, as contained in Hansard in reply to a suggestion by Mr Gisborne, and on a motion to report progress, as follows : —“ Major Atkinson hoped that the motion for leporting progress would not be carried. He announced in his Financial Statement that the Government proposed to make a graduation equal to 5 per cent, upon the whole of the salaries paid for the Civil Service, railways and police. The mode in which the Government proposed to make that reduction was similar to that proposed by the hon. member for Totara (Mr Gisborne). They proposed to ask the House to pass the estimates as they were brought down, with such reductions as might be found necessary in going through them, and then to put a clause in the Appropriation Act directing that areduction of £50,000 should be made on the whole estimates as passed. The hon. member for Totara and other hon. members had suggested that the reduction should be by £'150,000 or £200,000; that, of course, would be a matter for discussion. He submitted that it would be far better to go on with the estimates at once, pass them, and then discuss the amount they should be reduced by and leave it to the Government to decide upon the mode in which that reduction was to bo made. The Government did not pretend to be in position to say off-hand what salaries or what departments should be reduced, but if the House saidthe Government must take £50,000 or £150,000, or whatever the amount might be, oil the whole estimates, they would abide by that decision.”

THE “ POST ” ON THE SITUATION.

The “Post,” commenting on the situation, says: “For the Treasurer to admit that his estimates can be substantially reduced •without detriment to the public service, would be an admission of his own incapacity and unfitness for his office. The Treasurer is always bound in duty to frame his estimates as economically as possible, and on the present occasion the Treasurer has been particularly emphatic in declaring that he has touched the utmosb limits of practical economy. To ask him, therefore, to still further substantially reduce his estimates was to pay a very poor compliment to either hi 3 capacity or his sincerity. Of course, he nevertheless received the deputation courteously, and cleverly managed to throw on them the onus of showing how any reductions could be made without injury or inconvenience to the public. This task the deputationists did not exactly see their way to undertake, and their discomfiture must have been complete when the Treasurer offered to go through the Estimates with them, and Sir John Hall, who happened to be present, chaffingly advised them to endeavour to make the desired reductions in Committee of Supply. Even the “ skinflint’ mind is absolutely impressed with the utter hopelessness of making reductions in this way.”

WHAT THE “PRESS” SAYS. The “ Press,” in the course of a lengthy leading article, already anticipates-the overthrow of the present Government, and speculates on the probable success of a Stout-Ballance combination.. “It is most certain,” says the “Press,” “that if thecolony returns at next election a majority pledged to the support of a popular Liberal Goverment, and if Sir Robert Stout is called upon to form a Ministry, he will reek as colleagues men of experience in the House, and men who have and deserve the confidence of the people. What the colony desires is to be relieved from the profound sense of mistrust which has gathered round the greater part of the present occupants of the Ministerial benches. No one can longer deceive the colony. Sir Harry Atkinson is practically quite dissociated from the Government. It is impossible to pretend then that the people have any confidence in the residuum of the Ministry, or in the members of a party who obstinately keep them in power and force them upon the country. It is clear that Mr Bryce has no hold upon the House, and that all idea that ho is a possible political leader is dispelled. He himself has satisfied the House and country that he is quite unfitted to lead. In the present conjuncture the colony desires an assurance that a definite new departure should be taken, and that a careful, examination of the revenue,expenditure audentiro fiscal system of the colony should be at once made with a view to putting tho finances on a really sound basis. That is a broad enough platform for any Ministry, and it is precise enough to justify the electors in accepting it,andreturningmembei's pledged tosupporb Sir Robert Stout and Mr Ballance, if they will themselves adopt it.” MEETING OF THE CABINET. Ministers were in Cabinet from 9 p.m. till after 10 p.m. last night considering their position, bub no definite decision was arrived at as to the reply to be given to the retrenchment party. It was resolved to meet again this morning for that purpose. Considerable speculation has been indulged in as to the result of the secessions from the Government party to swell the retrenchment party. On one hand it is claimed that by a combination of the retrenchment party and the recognised Opposition, there would be in the event of a practical trial of strength a decided majority against the Government. On the other hand the Government claim as a result of the latest pricking of the card, that at the worst there could only be a tie, or that they might possibly be beaten by ono, and the latter they consider the more improbable of the two possibilities. The Government claim to have Becured two seceders from the Opposition in consequence of the action of the retrenchment party. The retrenchment party previously named will have the support of Mr Barron, bub Mr Poacock, who made one of the deputation who waited on Sir Harry Atkinson in the first instance, is now reckoned one of the Ministerialist supporters. WHERE RETRENCHMENT CAN BE APPLIED. The total votes from the ordinary revenue account amount to £4,127,417. An impression has prevailed that reductions could be made extending over the whole of that amount. My attention has, however, been drawn to the fact that out of this sum £2,144,083 is payable under a permanent Act of the Legislature, and consequently cannot be reduced. There is also a vote of £678,000 to the Railway Department, which being managed by Commissioners is said to be out of Ministerial eontrol ; £251,477 for Postal and Telegraph Department, admittedly the worst paid in service; and £375,414 for education, which I believe the most ardent of the retrenchers do not propose to attack. Making these deductions, there i 3 only £678,443 left out of which to take the £50,000. Wellington, July 9. After the agreement arrived at between the retrenchment party and the Government as to the reduction of the estimates by £50,000, tho next question of serious moment was as to how the members of the Opposition would regard the transaction. The matter was not long in doubt, and upon the House assembling yesterday afternoon, both the Government and the retrenchment party were subjected to a most severe attack from the Opposition benches. Mr Monk, as the recognised leader of the retrenchment party, gave notice that in Committee of (Supply he would move that the first item be reduced by £l, as an instruction to the Government that while recognising' with satisfaction the decrease already ejected in the public expenditure, this Committee is of opinion that a further reduction in the estimates of at least £50,000 could be made without being injurious to tho interests of the country. Mr W. C. Smith rose shortly afterwards, and intimated that when Mr Monk’s amendment was moved he proposed to add to it tho following words, “That the retrenchment shall not apply to the Post and Telegraph Department, or to any salaries or wages under £200.” Mr Guinness (Greymouth) threw discord into the House by asking the Government whother it was true, as had been reported, that they had agreed to the proposal from a certain section of the House to reduce the estimates by £50,000. The Hon. Mitchelson : You had better give notice of motion. Mr Guinness *. I object to give notice. Hon. Mr Feigus: Then we object to answer it.

Mr Guinness : Well, I will move the adjournment of the House to have the matter discussed. lie went on to say that the House was debating the Financial Statement, and the estimates had been submitted with the statement. Certain members had gone to the Government and had expressed dissatisfaction with the amount proposed to be appropriated, and had intimated to the Government that they could nob support them unless a large reduction were made in the estimates. The Government having considered their position, had come to the conclusion to reduce the estimates by £50,000 if tho majority of the House elected to do that.

Mr Samuel (New Plymouth) said the position taken up by Government was a very unfortunate one for the good Government of the country. A number of members, small in comparison with the siz,e of the House, had waited upm the government and virtually informed the Government that they would vote against them unless some demands which they made were acceded to,. A very important step had been taken, and it. was of the greatest importance that an answer should immediately be given to tho question asked. It was disgraceful that a Government, which had just escaped defeat on a division as to whether they should stand or fall, should have been at the mercy of a small number of persons, and should have acceded to their demands for fear of their majority being taken from them, and turned into a minority. If such a small number of persons as this could obtain the granting of a request such as had been made in the present case, how could they tell that any number of persons could not in the same way enforce some demands, the concession of which would be

unfair to a large portion of the colony, in order to enable the Government to stick to their seats?

Sir George Grey said he would have preferred that this motion had been mad® in the form that the House do adjourn until the Government return an answer to the question that has been asked. (“Hear,hear,” from the Opposition.) He had carefully considered this subject, and ho felt that a majority of the House would notallow such a proceeding to continue as the Government had contemplated. He believed it was their wise course to allow nothing to be done that might embarrass the future in any way, but to insist upon an immediate end being put to the present session of Parliament. (Opposition cheers.) When ho first heard that something of this kind was to be attempted, the full enormity of the transaction did not present itself to his mind, but he now realised that what was proposed was nothing more or less than for a bribe of £50,000 to a certain party in the House for them to consent to allow "the Government to occupy these benches until June next (Opposition cheers), to shut their fellow countrymen out from their undoubted rights from the assembling of a new Parliament without the loast possible delay. He believed the memberfor Waitemafca had nob fullyrealised what tho result of his motion must necessarily be. It was nothing more nor less then to proclaim the people of New Zea’and that a Parliament that represented nobody should determine tho expenditure of the country for tho financial year, and that the present Ministry should sib undisturbed until the month of June next, and perhaps for a longer period. Whether the House would say that a new Parliament would nob make a larger reduction than £50,000, and in a much fairer form, by a new modelling of public services and by securing for New Zealand a far more effective system of government than at present, and by a new constitution of the Civil Service by tho adoption of a new form of conducting the correspondence of the Departments. The Government could nob succeed in this attempt, and he warned them that it was impossible. They might enter upon it, bub they would simply keep the House sitting there for many weeks where nothing would be accomplished. Additional expense would be incurred and disgrace must fall on innocent men, who, he believed, had no intention whatever of bringing about such a stato of things. He therefore moved, “That this House adjourn until it receives a reply to the question which has now been put to Ministers.” If Government would not give an answer bill to-morrow the House should not consent to legislate further in the dark. Honest men had no objection to tell the truth. No breach of confidence was asked for. The Government did not deny • that some arrangement had been made, and he urged the House not to consider the estimates until they knew what that arrangement was. (Opposition cheers.) Mr W. P. Reeves said it wa9 notorious that tho Government had already answered the demands made by tho retrenchment party, and he asked why should the same information be refused to the House. The course adopted had been neither decent, proper, nor becoming. It amounted to a complete reversal of the Government policy, the policy which they were so determined about a few days ago, all on account of Ministers having the backstairs influence of a little coterie for fear of losing a few votes. It was -worse than a reduction of the estimates, for it meant that the Government were to make reductions in tho recess, when they would no longer have the fear of having to meet the House to give an account of what they had done. The whole face of things had changed, and it was useless to attempt to go on with business until Ministers gave the information asked for. The Hon. Mr Mitchelson said he was nob in a position to answer the question that day. It was quito true that negotiations had been going on between certain members of the House and the Government, but at the present time he was not fully aware what tho result of these negotiations were. It was therefore reasonable for tho Government to ask that notice of motion should be given, and at the proper time he would fully inform the House of the circumstances of the case.

Dr. Fitchett commented significantly upon the ignorance of Government affairs professed by the leader of the House, and remarked that this was, no doubt, a natural result of the present system of dual premiership. Mr Walker urged that the PostmasterGeneral ought to be in a position to make a statement as to what had been done.

Mr Seddon suggested that the object- of the retrenchment party was simply to set themselves right with their consituents, seeing that they had opposed Mr Ballance’s motion for the abolition of the primage duty. He recommended the Government to agree to an adjournment until the evening, as Ministers might then be able to make a statement.

Mr Moss appealed to Mr Monk for information, and this sally was received with laughter. Tho Government, ho said, had virtually abrogated their position, and it had been taken up by certain gentlemen whose names were unknown, excepting ono, the member for Waitemata. Other members of the new Government party he did not know, although he knew that the majority of them were Auckland members. Aucklanders, singularly enough, availed themselves much more freely than other members of the opportunity of going up the backstairs of the House. (Mr Monk: “We adopt a nfoderate way of making our demands. ”) Well, others were not so moderate in their demands, because they believed the estimates could be cut down by £200,000. Mr Moss also urged that the cost of a second session had been greatly over-estimated, and asked the member for Waitemata if he know how the proposed economies would be effected. Whatever retrenchment was made under the present circumstances would, he said, be arranged by the Under-Secretary sitting in secret conclave, as was the case when a similar movement was in progress several years ago.

Mr Fish said the Government occupied an ignominious position. A fortnight ago they told the House and country that they could go no further with retrenchment, and that they must have further taxation by the re-imposition of the primage duty to enable them to carry on at all. Now, in order to save their wretched seats, Ministers had agreed at the dictation of a small party to do what they had declared to bo impossible. Ministers were discrediting themselves, and must now see that they ought to have made an immediate appeal to the country as recommended to them at their own caucus.

Mr Fisher asked how much further the House was going with this solemn farce. This was a parody on Responsible Govern ment. Ministers stated in the Financial Statement: We are convinced that it is impossible to make any further reduction in public expenditure. And yet one section of the Government party representing to the Premier their convictions that expenditure could be reduced, the Government promised to do it. He did not object to the retrenchers making themselves as ridiculous

as they chose, but ho did protest against them making Parliament ridiculous. Ministers should nob consent to bo dragged through the dirt in this way by certain honourable members. He urged that the Government should give a distinct answer to the question asked. After some further discussion, the motion for the adjournment of the House was pub and negatived.