MR. FRASER DENIES REPORT OF RIFT IN LABOUR PARTY

Gisborne Herald, Volume LXXVI, Issue 22877, 22 February 1949, Page 8

MR. FRASER DENIES REPORT OF RIFT IN LABOUR PARTY

(PA.) AUCKLAND, Feb. 22. The Prime Minister, Mr. P. Fraser, issued the following . statement last night: "I have been Informed that the following statement has appeared in this morning’s Christchurch Press: “ 'lt seems that the more conservative sections of the Labour Party, including the Prime Minister, Mr. Fraser, and the Minister of Finance, Mr. Nash, have been oyer-ruled in caucus by a group which supports the militant unions. " ‘The left-wing’s usual spokesman, Mr. G. H. O. Wilson (Govt.. Palmerston North) said in his Budget speech last August that wages had not been increased to the same extent as had other sections of the national income.’ “Foolish Fabrication.”

“This statement is a _ complete and particularly foolish fabrication, especially reprehensible and sweeping in its falsity, because it applies to every member of the Parliamentary Labour Party.

"There was absolutely no division of opinion at last week’s caucus meeting of the party on industrial matters generally, or on those affecting the public service in particular. “The report of the Minister of Labour, Mr. McLagan, was accepted unanimously and he was thanked for his capable and fair treatment of industrial difficulties. “It was decided unanimously to publish the figures of national income and its distribution among various sections of the community. Those figures dismiss the suggestion of an application for an increase in wages of £2 per week into the realm of phantasy. “Indeed, the immovable facts of wealth production set a limit to the amounts available all round the economic range. Attitude to Public Service. “The Government’s attitude to the claims of the Public Service Association since the session of Parliament was approved by all members, with the exception of the publication of the Holmes’ letter, the wisdom of which was doubted by three members who voted accordingly. “There are no sections in the Parliamentary Labour Party. That conception is a sheer, distorted figment of the imagination promulgated for political purposes, mainly at the moment by Communist reactionaries and their feeble allies for the purpose of weakly and vainly endeavouring to promote disintegration in the ranks of Labour.” “To suggest that amendments to the stabilisation regulations caused a split in caucus is about as absurd as the claim of the Auckland carpenters to have forced the Labour Party into this action,” said the Minister of Labour, Mr. A. McLagan. The Minister of Industries of Commerce. Mr. A. Nordmeyer described suggestion of a left-wing victory in caucus as “absolute rubbish.” “Complete Fabrication” A denial that the proposed amendments were before caucus was issued in the form of a brief statement by the Minister of Education, Mr. T. H. McCombs. who is secretary of the Parliamentary Labour Party. “The suggestion that the Prime Minister, Mr. Fraser, and the Minister of Finance, Mr. Nash, were overruled in caucus by left-wing members of the Parliamentary Labour Party is a complete fabrication,” said Mr. McCombs. “The stabilisation emergency regulations referred to were agreed in principle between the Government and interested parties and were set up in type before the caucus met. They were not discussed by caucus. “One must expect that as the election approaches further attempts will be made to demonstrate differences which do not exist within the Parliamentary Labour Party.”