THE REFORM CAMP

Evening Star, Issue 20863, 5 August 1931, Page 10

THE REFORM CAMP

GOVERNMENT'S TAXATION PLANS DIVIDED OPIHIOiIS [From Oun Pauuamextauv Reporter.] WELLINGTON, August 5. The Reformers are linclmg it extremely difficult to reconcile the opposin'' opinions in Em parly towards the Government's taxation proposals. There is a very definite body ot opinion among them which is inclined to take, extreme measures, and tho scries of cancusos which have, already been held have tailed to produce unanimity in regard to a more modulate course. As evidence of anxiety in tho party over tho situation, there was a special caucus after tho termination ot last nhdit'.s sitting of the House, hut this did not conclude until 12.30 a.m., and still no decision had been readied. his was followed by a further caucus this altornoon. the outcome, of which is not vet known. Some' ol the Reform supporters are convinced that the taxation proposals should bo resisted with all the strength of the party, and that either by promoting a hostile amendment tliomwhich would be certain of support from the Labour Party, or by giving support to such n move from tho other camp, they should precipitate a political crisis and proceed to the country. On the other hand, it is counselled that no cliiect step should he taken until tho Land and Income Tax and Customs Amendment Bills, giving dclinite effect to the Budget proposals, appear before tho House, It is understood that tho Leader the Opposition is anxious to secure unanimity of opinion in any action that may he taken, but the circumstances suggest that this may bo impossible of 'achievement. Some Reformers arc believed to hold the view that tho Prime Minister is taking the only reasonable course in balancing his Budget, and that the Reform Par tv itself would be obliged to take similar action if it hold the reins of office. Outside Reform circles it is suggested that tho Minister of Finance in the last Reform Cabinet (Mr Downio Stewart) realises that he could take no different course from that which is now being pursued. LABOUR’S ATTITUDE. The previous indication that the Labour Party would take no action on tho Budget debate is borne out by the decision of its caucus to-day. The official report states that it was decided that Labour would move no amendment in the Budget debate, but that when the taxation proposals embodied in the Land and Income Tax Amendment and Customs Act Amendment Bills arc before tho house tho detailed proposals will be criticised, and in general opposed. It is understood that the Labour Party has particularly in mind the tea and sugar and other taxes which, in its opinion, must increase the cost of living. Amendments will consequently be moved in the committee stage of these Bills. REFORM CAUCUS NOT CONCLUDED. When the Reform caucus adjourned at 1 o’clock Mr Coates stated that he had nothing to announce yet. Ho indicated that members would meet again later this afternoon.