COALITION STABILITY

Evening Star, Issue 21319, 25 January 1933, Page 3

COALITION STABILITY

" EXCHANGE ” MADE A NO- - ISSUE TWO PROMINENT MEMBERS WILL RECORD AGAINST [From Our Parliamentary Reporter j WELLINGTON, January 24. No difficulties not already apprehended by Ministers have so far developed in the Coalition caucus. There were meetings morning and afternoon, an adjournment being then taken till Wednesday morning. It was ascertained that the whole day had been spent discussing the exchange decision, and hearing the explanations, not only of the Prime Minister and Mr Coates, but of Mr Stewart, who is said to have given a quiet, disrpassioned statement of bis objections to tire plan. Against these were placed the recommendations of the economists. If members were expecting to hoar how the anticipated additional deficit in the national accounts would bo made up, they were disappointed, for the Government made its opening move entirely on the exchange issue, and gave no details of any other features of its programme for economic rehabilitation. Six members whose votes go with the Government on a no-confidence issue are named as critics of its latest policy move. These arc Messrs Harris (Waitemata), Stallworthy (Eden), Veitch (Wanganui), Wright (Wellington Suburbs), Dickie (Patea). and 11, Holland (Christchurch North), in addition to the ex-Minister of Finance. As the Government, in no-confidence motions, has usually carried its point with a majority of 23, and the Motueka by-election now swings the vote away from the Opposition to the Ministerialists, the arithmetic of the situation does not cause anxiety, esjHicially as all critics are unlikely to cross the floor when the fate of the Government, and its possible substitution by a Labour Cabinet, would be involved. There is. however, at least one who finds himself unable to fall in line. “ Even if the matter is made one of no-confidcnce, I intend to vote against high exchange, irrespective of the political consequences to myself or the Government,” declared the prominent Wellington member, Mr Wright (Coalition Reform). “High exchange is,” lie added, “ disastrous to the cities, and something has to be done to prevent their interests from being sacrificed all the time. The holding up of the fear of a Labour Government in office is no excuse, and no justification for the state of affairs that is developing daily.” There is good ground for stating flint Dir Coates, when pressed to explain how be could make up the increasing gap in the Budget, hinted at the possibility of a sales tax, though not conveying the impression that this had been actually decided on.

[Per United Press Association.] AUCKLAND, January 24. A definite statement that lie would support a iio-confidencc motion against the Government’s exchange rate policy, even if tlie Government’s fate depended on his vote, was made by Mi" A. J. Stall worthy, M.P. for Eden, at a meeting of his electors to-night. Air Stallworthy was accorded a unanimous vote of confidence, with which a resolution of protest against the raising of the exchange rate was incorporated.

RESOLUTION OF PROTEST. WELLINGTON, January 24. The Government’s action in pegging the rate of exchange was discussed in committee by the Council of the Wellington Chamber of Commerce to-night, and the following resolution of protest was carried:—‘‘That the council of the Wellington Chamber of Commerce emphatically condemns the action of the Government in violating established banking practice by causing the rate of exchange to bo artificially pegged. This action must inevitably create greater evils than the present action is calculated to overcome, and in the meantime the majority must suffer for the benefit of the minority.” Mr Stronach Paterson, in seconding the resolution, remarked that Government interference was always cumulative, necessitating further interference. He instanced the mortgage relief legislation, and stated that they would have it again in the raising of the rate of exchange.