DISAVOWAL OF REPUDIATION

Gisborne Herald, Volume LXVI, Issue 20014, 12 August 1939, Page 14

DISAVOWAL OF REPUDIATION

VIEWS IN HOUSE PARTY DIVISION AMENDMENT REJECTED TRIAL OF LEFT WING FAITH OF GOVERNMENT CONFIDENCE OF INVESTORS (Pur Press Association.) WELLINGTON, this day. When the House of Representatives resumed at 2.30 o’clock yesterday afternoon, Mr. F. W. Doidge (.Nat., Tauranga), said that the acting Leader of the House, the Hon. P. Fraser, had repudiated repudiation, but had not repudiated the member for Grey Lynn, Mr. J. A. Lee. The Government, said' Alt'. Doidge, vvas responsible for the financial mess into which the country was plunged, but it was possible to get out of that mess. If the Government would return to a sane policy and restore the country’s credit by .following responsible methods of administration, it would be possible to conserve the overseas resources and obtain more favourable terms in loan negotiations.

The anti-repudiation amendment, said’Mr. Doidge, was not a trial of strength with tile Government, but it had been a trial of strength between the Government and the Left Wing and it had forced the Government to make a much-needed statement. This statement should have been made immediately, lie said, but Mr. Lee’s triumph had lived only 21 ihcurs.

The Minister of Housing, the Hon. H. T. Armstrong, expressed the opinion that the financial interests in Britain to-day had as much confidence in the integrity of the present Government as they had at any time in New Zealand's history. He would defy anyone, he added, to show that he had ever advocated repudiation inside the House or out of it.

It was a “malicious lie” to suggest anything of the sort, said Mr. Armstrong. The member for Hurunul, the Rt. Hon. G. W. Forbes, had attempted to throw a bomb into the Government with his amendment, but after all, it had turned out only to be n Chinese cracker. New Zealand, said Mr. Armstrong, could afford to pay her debts and at the same time advocate monetary reform hr order to better serve the people of the country. Was there anything in that that suggested repudiation? he asked.

Mr. S. G. Holland (Nat., Christchurch North) said that New Zealand could well meet its obligations in spite of the Government. Mr. ‘Fraser’s statement would bring relief to thousands of people in New Zealand who were genuinely concerned over the position It was a \ frank and courageous statement, added Mr. Holland, but the attack Mr. Fraser had made on the Opposition would have been better left to another occasion.

The country was apprehensive regarding the trend's of political affairs and now there was a cleavage in the Labour Party.

The Speaker hereupon ruled out references to a cleavage in the Labour Party and references to the Left. Wing as tedious repetition in the debate Mr. A. S. Richards (Lab., RoskilD defended Mr. Lee's statements and said the Opposition was responsible lor the present financial position. The Opposition, when in office, had borrowed beyond the national income, said Mr. Richards, but the present Government had not. done that. Mr. Lee said he did not intend to spend time in recriminations, but he ■would like to tell the House that he had received half a sackful ol congratulatory letters regarding his recent speech. Mr. W. A. Bodkin (Nat., Central Otago): That looks well for the Lett Wing.

Mi-. Lee: There are only two lobbies in this Government and the Opposition and 1 all members of the Government will he found in the former. There was no truth, said Mr. Lee, in the amendment. The Government stood for New Zealand and the Opposition for the bondholders. If a great crisis- arose this Government would see that the people did not starve because bondholders overseas were in difficulties. Unless New Zealand got decent interest rates and long term amortisation ol' loans,

she could not. meet her obligations. Mr. J. liargest (Nat., Awarua) said that the member for. Grey Lynn had tried to escape from his actions of two nights ago. Instead of repudiating his statements, he had covered them un with verbiage. The amendment was justified, if only to receive the statement from the acting Leader of the House. It was a masterly statement and would allay fears in the minds of the people. The debate then concluded on the amendment which had been proposed the previous evening by the Rt. Hon. G. W. Forbes (Nat.. Hurunui) and seconded toy Mr. H. S. S. Kyle (Nat., Riccarton). The amendment to the formal motion, “that the House go into committee,'’ was as follows: “That this House urges the Government to consider whether the time has arrived for it to state that this House has no sympathy with any suggestion of repudiation of our debts, either overseas or in New Zealand and affirms that the Dominion is determined to fulfil her obligations, both now and in the future: that the Government gives, an. emphatic contradiction to any suggestions made in this House, implied or otherwise, to the contrary and that this. House expresses appreciation to the United Kingdom for the generous treatment accorded New Zealand in the recent financial negotiations in London. When this was put to the voices a division was called for. The amendment was lost, by 39 to 21 votes, the voting being purely on party lines. With the amendment disposed of. the way was clear for the original motion that the House go into Committee (in cither words that the ordinary financial debate continue,). As soon as the amendment was disposed of Dr. D. G. McMillan (Lab., Dunedin West) moved the .adjournment of the debate and the House rose at 4,55 p.m. until 2.30 p.m. on Tuesday.