SHOULD RESIGN.

Auckland Star, Volume LXIV, Issue 16, 20 January 1933, Page 8

SHOULD RESIGN.

CABINET AS WHOLE. "A DISASTROUS DECISION." LABOUR LEADER'S COMMENT. Declaring that the Government's action in the present serious condition of the country was disastrous, Mr. M. J. Savage, M.P. for Auckland West, and deputy-Leader of the Labour party, suggested in an interview to-day that the remainder of the Ministry might well follow the example of Mr. Stewart and resign also. "Had the exchange rate been raised prior to, and instead of, wage and salary reductions, one could have understood such an action, but to put the rate up to 25 per cent after having reduced incomes and raised other forme of taxation is beyond understanding," said Mr. Savage. ; Less for Farmer. "The raising of the rate of exchange does not increase the income of the nation by one penny piece. It only transfers portion of the nation's present income from some pockets into others. In the case of the Dominion as a whole it must limit the amount of goods imported from Britain, which is our chief market for primary produce. That means that Britain will be at a disadvantage as a customer for our products. With a limited income nothing else can happen. It is quite clear that if importers of British goods have to pay more for their credits in London they must pass on that increased charge to their New Zealand customers.

How can all this help the farmer? As a seller in London, he is not benefiting, there being nothing in the exchange rate to raise prices abroad. As a seller in New Zealand he is also at disadvantage, because the incomes of his customers have not been'raised, while the prices of other necessaries of life have gone up. There must be less for the farmer.

It is possible to help the fanner and e\ery other section of the community at the same time if the Government will only face facts ancl give some evidence of backbone. The difficulty at present is that the world is trying to make increased production fit in with fallingincomes. That cannot be done definitely. Absolute disaster is as sure as the sun rises unless definite and hasty steps are taken in the very Opposite direction to the one followed by the Government during recent years. The time must come for definite action to-' wards making the income of the nation fit in with the nation's production. It should not be necessary for the people of New Zealand to starve in the midst of almost unlimited production becausc we cannot economically sell abroad." Discussing the possible political consequences of the Government's action, Mr. Savage said that in view of the fact that the chief Minister had seen fit to part company with his colleagues on the exchange question, it looked as though the decent thing for the remainder of Cabinet to do would be to tender their resignations also to his Excellency.

Disintegration Signs. "I think it j can 'be " felaimSd," he added, "that a considerable section <>f the community has been entirely dissatisfied with what has been going on in the past twelve months, and culminating in this cleavage. The House adjourned for the express purpose of giving Cabinet time to compose its internal differences. Aftet having spent that time with wet towels about their heads, we find the chief Minister has been forced to resign; and in my opinion what has happened furnishes convincing evidence of the disintegration of the Coalition. It will indeed be interesting to see what takes place when the House meets next week, and whether the representatives of city constituencies will follow the lead given by Cabinet, or whether they will make their first consideration the welfare of the whole community including the farmers." .