IF BANKS REFUSE.

Auckland Star, Volume LXIII, Issue 276, 21 November 1932, Page 5

IF BANKS REFUSE.

PROCEDURE IN HOUSE.

MR. FORBES' STATEMENT.

NEXT TEAR'S BUDGET.

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, tlik day.

If the banks refuse to increase the rata of exchange and the question is raised in the House any vote 011 the subject, if initiated by Government mem-

ber, will not be taken as a vote of noconfidence. The method which will probably be adopted if 110 rise takes place will be for a member to place a notice on the Order Paper for the House to discuss the subject and make a recommendation to Cabinet. If the motion is carried, it ■ doubtleiss will be, it will be regarded as an instruction to the Ministry. Of course, if the move came from the Opposition the Government would regard it as one of want of confidence and would have it defeated. It was ascertained to-day that the Government would <j' y e facilities for a discussion if a motion was moved from within its own ranks.

The Ministry lias not been in touch with Mr. Stewart 011 the exchange issue, but it is understood that the Treasury has been in wireless communication with its Minister and with the Secretary to the Treasury.

Replying to a question, Mr. Forbes said to-day tliat a rise in the rate of exchange would not affect this year's budgetary outlook, the whole of this year's overseas debt payments having already been provided for. However, 011 the Budget for next financial year, he added, there could be no disguising the fact that an additional and heavy load would be imposed. He was unable to say off hand whether the effect of an increase in exchange would provide sufficient to compensate the national exchequer for the extra accommodation for which it would have to provide.