CAUSES OF CRISIS

Dominion, Volume 32, Issue 66, 10 December 1938, Page 12

CAUSES OF CRISIS

Blame Laid On Labour Government NATIONAL PARTY STATEMENT “Finances Jeopardised” “The most unfair thing that has been said during the recent announcements of the Governments intention to licence and contiol imports and exports is the Prime Minister’s charge that the responsibility for the present crisis lies with the former Government, says a statement issued by the headquarters office of the New Zealand National Party yesterday.

"It should be obvious, now that the Dominion has been brought through a period of unprecedented prosperity that is what the present Government termed it —to the brink of financial chaos, that something is radically wrong with the Labour administration of recent years,” the’ statement continues. "Undoubtedly the measures instituted in an endeavour to avert complete ■ disaster must be irksome and must create some hardship. The responsibility for that, and what will follow, rests solely witli the Labour Government. Crisis Forecast. "It is not inopportune to remind the people of New Zealand at this .juncture that the leader of the National Party, Mr. Hamilton, and other prominent members of the party, in the House of Representatives and on platforms throughout New Zealand, forecast this financial crisis mouths and months ago—forecast this very confusion and embarrassment of the Government. “It lias been extremely disturbing to note that the Prime Minister, the Minister of Finance, and supposedly responsible representatives of the Labour Party, after repeatedly telling the people of New Zealand, that all was well witli tlie Dominion’s finances, face, a few weeks later one of the gravest financial situations yet encountered. To presume that tne leaders of the Labour Government were not aware of this approaching crisis long ago is to presume a lack of knowledge which is scarcely credible. Government's \ olte Face. "Naturally every citizen in the Dominion must do his best to co-operate with the Government in its last-minute effort to right matters, but it is distressing to recall that many who will, play a prominent parr, in the work of repair were, but a short time ago, labelled as ‘traitors to their country for their support, of the National Party cause. That vilification jierhaps could have been expected from the spendthrift, since the plain, and somewhat arduous road to security must appear unpalatable to them, but it is indeed surprising today to find the members of the present Government committing a volte face.

“The National Party will continue its opposition to Labour extravagance which has jeopardised the finances ot the Dominion, and it is certain that the measures taken to meet the present crisis can only bring complication and trouble in their wake. It will be very surprising indeed if there are not repercussions in the export situation withade’mand for quantitative restrictions from Great Britain, in which case it will not be surprising to see tlie present Government endeavour to pass on the blame for that serious threat to New Zealand’s production to the farmers themselves.” U.K. MANUFACTURERS Further Meeting To Be Held On Monday Next A further meeting of Hie council of the United Kingdom .Manufacturers’ and New Zealand Representatives’ Association will be held in Wellington on Monday morning to discuss the Government’s new licensing regulations. Tlie secretary of tlie association. Mr. N. 11. Russell, stated yesterday that the council would probably lie in a jiosition to communicate informirtion to members after Monday’s deliberations.