FUSION OFFER

Evening Star, Issue 20779, 29 April 1931, Page 2

FUSION OFFER

Mr Forbes's. Gesture to Reform National Party Suggested Choice of Leader Left Over [Special to the 'Star.'] ,

WELLINGTON, April 28. The Prime Minister (the Hon. G. W. Forbes), in reviewing the work of the special session of Parliament, made the following official statement to-day:— The session which has just ended was called for the purpose of dealing with measures designed.to meet the change in the economic conditions brought about by the phenomenal drop in the price of all primary products. As a result of this drop the public finance suffered along with private incomes. A serious deficit in the year’s accounts was disclosed, and a future estimated shortage of revenue to meet the expenditure for the current year of £5,500,000 had to be provided for. This necessitated measures providing for drastic economy being placed before Parliament. A reduction in salaries and increased charges for public services were required to bo effected, and subsidies and grants from the Consolidated Fund had to be substantially reduced. As a means of preventing the increase of railway losses, which had become a heavy drain on the finances of the dominion, a board of directors lias been set up whose duty it will bo to direct the future policy of the railways, so that they will bo run more closely on commercial lines, and in that way bo made more self-supporting and relieve the general taxpayer from having to find huge sums annually to make up the deficiency. It is to bo regretted that drastic economies have been required, but with the imperative necessity of maintaining the dominion’s financial stability the Government had no alternative. Whilst sacrifices have been entailed on many of the Government’s employees, they will no doubt feel more satisfied in tlieir minds to know that those sacrifices will enable the Public Service to be based on sound finance. If the issue bad not been faced and dealt with the postponement could bare only been for a short period, when the economies would have had to be far more drastic.

I wish to express my appreciation of tho action of tho Lender of the Opposition (Mr J. G. Coates) and his party in giving tho Government their support in putting through the legislation to allow tho necessary economies to be made. There are difficult times ahead. This is said in no spirit of pessimism, but sensible men and women will recognise that the effects of a world-wide depression cannot pass away quickly, and it is a wise policy to shape a course accordingly. Tho steps that have bee t taken in tin's session to adjust the finances of tho country are an instalment—considerable, indeed, but only an instalment—of what is necessary. Tho taxation portion lias been left for next session, when the effect of the economics will bo known and tho shortage of revenue to be made up can bo more closely estimated.

With such a programme ahead, and after the experience of tho sv..,sion just closed, I am convinced that a Government in a minority in the Home, as ours is, cannot deal satisfactorily with tho legislation necessary to meet the urgent vital needs of the country, not tho least of which is the squaring of the national accounts. In view of this, tho necessity of having a strong Government to control affairs whilst tho dominion is passing through the present serious economic crisis must bo apparent to every thoughtful man and woman in tho community, and I know from tho communications that have reached me that that belief is Held by largo numbers of men and women in leading positions in the dominion. 1 feel that the time has arrived when there should ho a coming together of the citizens of New Zealand for tho formation of a national party. To give a lead in this direction I, on behalf of tho members of my party, who are unanimously in agreement, have invited Mr Coates and Ins party, and all others wl. > have the best interests of the dominion at heart, to co-operate with us in tho formation of such a parly.

So as to allow nothing to stand in the way of the freest and fullest dealing with the situation the slate should be wiped clean, and to effect this my colleagues have intimated to me their willingness to place their resignations in my hands so that the leader of the new par.ty, when selected, will not be hampered in any way in his choice of a Cabinet. To provide that the question of leadership shall not be an obstacle in the way I am prepared to abide by any decision of the new party in regard to this matter. flie issues at the present time are too serious to allow of persona] or party considerations standing in tlio way of securing tlio .strongest possible Government to" control the affairs of tlio dominion. I feel confident that tlio formation of a national party will go a long wny towards tho restoration of confidence both in tlio dominion and the Old Land. It will be another evidence of New Zealand's determination to face facts and to put her house in order, and with confidence restored prosperity will not he long in returning.

LEADERS' FRIENDLY "PRELIMINARY"

HOW MEMBERS VIEW POSITION INDEPENDENTS AND LEADERSHIP VOTE [From Our Parliamentary Reporter.] WELLINGTON,, April 28. The written statement of the Prime Minister designed to promote the formation of a National Party was handed to the Press and the Leader of the Opposition shortly before 6 o’clock tonight, but its general terms, it is believed, were communicated verbally to Mr Coates by Mr Forbes much earlier in the day. There seems to have been a frank conversation between the leaders, and the next development was naturally a submission of the offer in writing. However, long before this communication was received Mr Coates took the Reform members into Iris confidence. Their attitude, prior to- receipt of the detailed offer, was that the terms might not he so unqualified as the conversations. The situation was regarded as sufficiently important for all members of the Reform Party to cancel their travelling arrangements and remain in Wellington. When the House of Representatives met for its final procedure, it was noticeable that, while the Labour benches were thinly sprinkled, full musters of the United and Reform members were present. Both parties held meetings afterwards, and there was also a Cabinet, gathering just prior to the rdleaso of the statement. The Prime Minister and his colleagues did not return to Parliament Building in the evening, for they had nothing further to consider; the next move was obviously that of the Reform Party, and it devoted itself very thoroughly to consideration of tho matter, its caucus continuing till the adjournment for dinner, and being promptly resumed during the interval. There were naturally informal discussions between Reformers and other members. Labourites, for instance, expressed the opinion that it was an inevitable development, and that Mr Forbes’s offer contained no qualification whatever; but there appeared to bo a feeling among some of the official Opposition that the Prime Minister, by inviting all parties to co-operate in tho new party, which would r.lso decide tho leadership question, was not leaving tho position so open as appeared on the surface. The contention of these members was that tho inclusion of the half-dozen Independents would throw tho balance on the leadership election to the side of Mr Forbes. There would be no opportunity of testing this point unless such a situation actually arose. Tho present state of tho parties (with tho Hauraki seat vacant) is:—United 25, Reform 2G, Labour 20, Independent 7, Country Party 1. There is one Reform member (Mr Samuel) absent from the dominion. The Reform members’ gathering ended shortly before 11 to-night. When Mr Coates was asked if there was any comment to make on tho Prime Minister’s offer, lie replied in tho negative, adding: “ There will bo no hurried decision.” Mr Holland says ho prefers to await tho announcement of both other leaders before commenting on tho situation. It is likely that there will bo some deliberation in Reform circles before an answer is given to the proposals.

REQUIRES CAREFUL EXPLORATION [Special to the 'Star.'] WELLINGTON, April 29. The 'Dominion' says: " Tlie proposal deserves proper consideration and careful exploration of the ground in advance to see if the proposed National edifice will rest on a firm foundation. A true basis must first ho reached on matters of policy. The Reform Party has therefore wisely decided not to rush matters. It must first ascertain that essential conditions can be satisfied and not enter blindly into a pact that once accepted would be binding. This is no more than ordinary prudence, especially in view of the invitation to all parties to outer the Government parlour. The National interest may bo betrayed rather than advanced by precipitancy. It is not only a question of a party's self-respect and its future. Above all there is the future of New Zealand to be considered—a future that may he made or marred by a policy and guiding principles adopted in these testing times." ,

GUARDED APPROVAL [Special to tiie ' Star.'] AUCKLAND, April 29. The ' Now Zealand Herald's ' editorial on the National Party states: "The first impression of Mr Forbes's proposal of a National Party will bo that be and bis colleagues have madea handsome and generous offer to their political opponents. That impression may be accepted as a correct appraisement of the spirit in which the invitation has been issued. Nevertheless, the purpose of the proposal is to meet entirely practical difficulties, and its implications must be determined by practical, rather than sentimental, tests. There are two points upon which further explanation is necessary. One is the apparent lack of reason for the disturbing of the relation which assured an ample majority in support of all urgent and vital legislation; the other is an alternative to the acceptance of the present proposal. It is based upon the assumption that the majority of the present House will agree, not only upon the leadership, but also upon policy. For, notwithstanding the disparagement of party differences, the fundamental justification of the existence of a political party is its adherence to a formulated policy. That assumption may be disappointed in one or both respects. In that event, would Mr Forbes still be convinced that it was impossible for his minority Government to deal satisfactorily with the tasks confronting it, and turn then to constitutional release from his embarrassment. It does no injustice to Mr Forbes and bis colleagues to conchide that their proposal really amounts to an acknowledgment that, in the present circumstances, economic and political, they do not feel competent to curry on the government of the country. The essential meaning of Mr Forbes's announcement is that the Government cannot remain in office subservient to an independent party, so that the alternative to fusion is either the dissolution of Parliament, or the formation of a new Government to which the United Party would give its support during the remaining session."

MUST STRENGTHEN LABOUR'S POSITION [Special to the ' Star.'] AUCKLAND, April 29. The ' Star' draws a distinction between a National Government, formed for the special purposes _of the time, and a National Party, with a more or less permanent basis and aims. It would have liked to see the present Government carry on until the end of the year, and go to the country on its record, but the Government had been forced with a grave uncertainty as to the late of its measures' next session. The only justification for a union now is the serious state of the national finances. Summarising the prospects, the 'Star' concludes by saying that in every country a National Government formed by a union of parties had proved to have serious drawbacks. It questions whether Conservatism and Liberalism could dwell permanently or indefinitely in one house, and whether the country had given a mandate for such a union. The two parties should bear in mind that a union must strengthen Labour's position by making it only an alternative Government. The position was not unlike that of the war years, when the parties sank their differences, but eventually returned to their original state. There was no reason why if the United and Reform Parties * agreed to combine now that a specific term should not bo put on the union. Such a course might remove some of the more serious objections to a fusion. INDEPENDENT MEMBER'S VIEWS " THE COUNTRY FIRST " WELLINGTON, April 29. " 1 realise the necessity for a strong Government, but at this juncture I cannot say anything definite without consulting the othei Independent members of tho House," said Mr Lysnar, independent inembo- for Gisboriio. "As long as a fusion does not prolong the life of Parliament a National Government might assist the country through its present difficulties, but to my mind the elements in tho present Government do not appear to form a Government strong enough to inspire tho country with confidence. However, whether the elements are strong enough or not tho main problem > to bridge over the next session, when taxation proposals will bo brought down. " It is absolutely essential that the dominion should be placed before party. J feel that the Independents will put the country first. Ido not think party should come into tho question for a moment."