King Country Chronicle. Thursday, March 12, 1931. A MOMENTOUS SESSION.

King Country Chronicle, Volume XXV, Issue 3278, 12 March 1931, Page 4

King Country Chronicle. Thursday, March 12, 1931. A MOMENTOUS SESSION.

The special session of Parliament which opened yesterday will be one of the most momentous in the history of the Dominion. The policy of the Government as set out in the Gov-ernor-General’s speech contains some drastic proposals for economy, and these will be met with strong- opposition from the Labour members of the House. If the Government is defeated in its proposals then we can only look forward to more acute economic conditions and unemployment will become a much more serious problem than it is to-day. National costs must be reduced, otherwise this Dominion will drift into the same conditions as those now prevailing in Australia. The Prime Minister states that there will be a deficiency of a million and a half at the end of the financial year, but the more serious phase of the present economic situation in New Zealand is that the national income will be less by £20,000,000 this year as a result of the fall in prices for our primary products. While it is proposed to make a cut in the salaries of civil servants, this in itself is not going to stabilise conditions throughout the Dominion. Sacrifices have to be made, and these will have to be borne by every section of the community. It is proposed to give the Arbitration Court power to revise the present industrial awards. If the Government is defeated on this issue then there is going to be a large in-

crease in the unemployment figures throughout the Dominion. Many em-

ployers are at present retaining their staffs on the understanding that there will be a reduction in wages. If there is no reduction then the employers will have to retrench in some other way. This means the further dismissal of workers, and a consequent curtailment in production. If workers in the civil service and in industries have to bear the sacrifice of 10 per cent, in their salaries, what sacrifices have to be made by employers? In the majority of cases their profits have been cut by 50 per cent., while some show no profits at all. In the case of the primary producers they have been working at a dead loss. These are facts and not opinions, and in face of the economic position of the Dominion, it can be asked how the proposals of the Prime Minister can logically be opposed by the Labour or any other members of the House. That the cost of living has been materially reduced during the last

twelve months leaves little room for doubt. Meat and butter are much cheaper; clothing is less expensive, and there is a general downward trend in household expenses. On the other hand business men have to meet heavier taxation in a number of directions, and unless they, along with the primary producer, is given some relief, both farming and commerce will become worse. What then will be the position of the workers? It is not necessary to give any elaborate answer to this question. The time has come when there must be co-ordination between employers and employees to work for their common interests, and leave the political opportunists out. The opponents of economy and retrenchment point out that the capitalists will not be called upon to

make any sacrifices in the general economic readjustments. They need not worry about this. The mortgagees, mostly financial institutions, will in their own interests be compelled to make concessions to mortgagors, and their sacrifices in this direction will be in no way less than those of the workers. If wages are to be reduced, so must land values, both in the town and rural districts, if the Dominion is to get down to sound economic conditions. When this has been achieved, the workers will be just as well off, if not better, than they were before.

The “depoliticalisation” of the railways is another measure that the House will have to deal with during the emergency session. The Reform Party has advocated this change on several occasions and its adherents will support Mr. Forbes in such a change. The Minister of Railways is against this proposal, and it will be interesting to follow the debates which will follow when the measure is brought down. Laboui’ members wlil strongly oppose the change in control, but if the railways can be freed from political control it would meet with the general approval of taxpayers, who are called upon to meet the ever-increasing deficit from this branch of Government activity.

Mr. Forbes has an unpleasant task before him, but he states that he is determined to stand or fall by the decisions of Parliament on the very important measures he will lay before members. He has antagonised the Labour members by his attitude and therefore jeopardised his position as head of the Government. By this he has clearly shown that he is placing country before self and party in an honest endeavour to stabilise conditions in the interests of every section of the community, the workers included.