NATIONAL CABINET

Dominion, Volume 24, Issue 64, 9 December 1930, Page 12

NATIONAL CABINET

Economic Difficulties PARLIAMENT’S DUTY Sir James Gunson’s View BORROWING ADVOCATED Dominion Special Service.. Auckland, December 8. A suggestion that three parties in the New Zealand Parliament —United, Reform, and Labour —should join forces to meet the present adverse conditions is made by Sir James Gunson in reviewing the economic situation and forecasting the prospects of, the Dominion. During the. past fortnight Sir Janies has visited the chief centres of the country.

“One cannot but be impressed with the economic difficulties that are quickly and adversely developing,” said Sir James. “These developments arise from causes in part beyond local control and are due to the greatly lessened income of the country with a consequent diminishing spending power of a large section of the community. aL classes of our national and domestic life are involved or will shortly be unfavourably affected by the conditions, which have already reached a point which should be regarded as a national emergency. . „ , . , ho “There are three main factors in the situation, from all of which quarters prompt and effective organisation and sacrifices are essential in the hour of the country’s need,” continued Sir James. “All should share in the effort all capital and labour and industry under a co-ordinated and definite pol--icy should offer this quota. They are: (1) Parliament, winch is the Paramount authority and trom which t e chief direction must emanate; (2) The producers and the tiaueis, those on the land and those in manufacworkers in must lead the alone has the authority withoutwhich nothing sufficient can be accomplished. The life of the present h “’!? he extended two years. The three parties should joi" f o^ c \ wlth r f C ?|“ r aboirr sentation in the Cabinet. If the Labour Party refused to join, then the two re maining parties should merge at once 1 does not mean political fusion as ordinarily discussed, but the mergin o of the Parliamentary forces of the coun?rv to meet the .very serious mtuation which is developing, said Sir Gunson “All questions of past ad ministrations and of their failings should ( ho for"otten and the situation dealt with now in the interests of the country alone, i as the Dominion will be in no mood next year to listen to political party S( “‘There' should be an immediate resumption of borrowing in London for ap proved productive works to be under tn ken nt once. Unless this were done unemployment and industrial diflicul ies would citiicklv further develop. hafibnnl borrowing was essential in times of depression to tide the country over itS Sir fl JanmS S ’caUs for an immediate balancing of the bnd B c ‘Arbitta-• position is causing concern. The.Aibitra lion Act should be suspended for two vears with a definite understanding that ft be Stored at the end of that period on a new economic basis.

ECONOMIC STRESS Early Parliament Asked For By Telegraph.—Press Association. Taumarunui, December 8. A meeting of the Waimarino Labour Representation Committee yesterday passed the following resolution:— “That in view of the serious economic situation Parliament should be called together early in February to pass remedial legislation, with particular reference to the gold standard of values and the moratorium.”