WAR CABINET CRISIS

Press, Volume LXXVIII, Issue 23750, 23 September 1942, Page 2

WAR CABINET CRISIS

Waikato Miners’ Strike

MR HOLLAND’S ATTITUDE

A major political crisis is threatened over the handling of the Waikato coal miners’ strike, and the continuance of the War Administration is in the balance. Objections to the interference with the course of the law in dealing with the miners are reported to have been made strenuously by the Minister of War Expenditure (the Hon. S. G. Holland), and he is reported also to have the support of three other National Party colleagues (the Hon, W. J. Broadfoot, the Hon. W. J. Poison, and the Hon. W. A. Bodkin) in the War Administration in his opposition to the latest proposal of the Government to nationalise the Waikato mines. The Minister of Armed Forces and War Co-ordination (the Rt. Hon. J. G. Coates) and the Associate Minister of Supply (the Hon. A. Hamilton) are known to hold views divergent from those of Mr Holland, and yesterday Mr Coates accompanied the Minister of Mines (the Hon. P. C, Webb) on a flying visit to Auckland to place tentative proposals for nationalisation of the mines before the mineowners.

The crisis is not likely to reach a climax until next week, when, unless there is a complete change of circumstances, the National Party will ho,d an urgently-convened caucus meeting. Telegrams were sent by Mr Holland, as leader of the party, to all members yesterday advising them to hold themselves in readiness for a caucus meeting next Tuesday night, and to make train and boat reservations, the message stating that they would be definitely advised on Thursday. Nationalisation Proposals

The proposals agreed upon by a majority of the War Cabinet for submission to the owners of the Waikato mines are that the State should take over the mines for the duration of the war. that the owners should be paid a dividend "averaged on dividends of recent years, that the miners should be released from serving the sentences of one month’s imprisonment, on condition of their entering into bonds to be of good behaviour, and that miners who fail to obey the law in future should be placed in concentration camps. Though he refused to agree to the nationalisation proposals, the main difference of Mr Holland with his fehow members of the War Cabinet is authoritatively reported to have been on the issue of whether the law, as written into the Emergency Regulations, was to be carried out. He is said to have declared in the strongest terms to a meeting of the War Cabinet that he was opposed to any interference with the course of justice. By that time, 183 of the striking miners had been sentenced to gaol for breaches of the regulations. Left Cabinet Room Not the slightest possible doubt Of the firm attitude which Mr Holland proposed to take Was believed to have been left with the members of the War Cabinet. A threat of resignation from the War Cabinet is said to have been made by Mr Holland when he declared that he would not consent to any interference with the course of justice, and he is reported to have “walked out” of the War Cabinet when some method of avoiding the imprisopment of the miners was seriously suggested. Political observers point to Mr Holland's statement of Tuesday of last week of bis views on the methods of handling the strikers—views which he has not changed since. In a statement then, Mr Holland said; “This is a time for the strbngcst action. I want to assure the public that th« law will be observed, and that those who break it will be dealt with fearlessly and firmly. There can be no thought of any arrangement that interferes with the processes of the law. by which those who break it are punished.” That declaration was made by Mr Holland after he had presided, as de-puty-chairman during the absence from New Zealand of the Prime Minister fthe Rt. Hon. P. Fraser), over a meeting of the War Cabinet, when the attitude of the miners was discussed at length. Loss on Mines Authority to have discussions with the mine owners was given on Monday by the War Cabinet. Mr Holland dissenting, to Mr Coates and Mr Webb, and they travelled by aeroplane to Auckland yesterday. The proposal that the State should take over the mines for the duradon of the war is supported by a decision that if the mines arc run at a loss the losses should be marie good out of the War Expenses Account. The War Cabinet sat last nigh* until 7 o’clock, but no result of the visit of the two Ministers to Auckland was announced.