THE REFORM CAMP

Lake Wakatip Mail, Issue 4012, 11 August 1931, Page 2

THE REFORM CAMP

GOVERNMENT’S TAXATION PLANS DIVIDED OPINIONS WELLINGTON. August 5. The Reformers are finding it extremely difficult to reconcile- the opposing opinions in the party towards the Government’s taxation proposals. There is a very definite body of opinion among them which is inclined to take extreme measures, and the series of caucuses which have already been held have failed to produce unanimity in regard to a more moderate course. . . , As evidence of anxiety in the party over the situation, there was a special caucus after the termination of last night’s sitting of the House, but this did not conclude until 12.30 a.m., and still no decision had been reached. . nis was followed by a further caucus this afternoon, the outcome of which is not yet known.

Some ot the Reform supporters are convinced that the taxation proposals should be resisted with all the strength of the party, and that either by promoting a hostile amendment themselves, which would be certain of support from the Labour Party, or by giving support to such a move from the other camp, they should precipitate a political crisis and proceed to the country. On the other hand, it is counselled that no direct step should be taken until the Land and Income Tax and Customs Amendment Bills, giving definite effect to the Budget proposals, appear before the House. It is understood that the Leader the Opposition is anxious to secure unanimity of opinion in any action that may be taken, but the circumstances suggest that this may be impossible of achievement. Some Reformers are believed to bold the view that the Prime Minister is taking the on 1 v reasonable course in balancing his" Budget, and that the Reform Party itself would be obliged to take similar action if it held the reins of office.

Outside Reform circles it is suggested that the Minister of Finance in the last Reform Cabinet (Mr Dowme Stewart) realises that he could take no different course from that which i> now being pursued.

LABOUR’S ATTITUDE. The previous indication that the Labour Party would take no action on tlu> Budget debate is borne out by tlie 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 are before the house the 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 lie moved in the committee stage of these Bills. REFORM CAUCUS NOT CONCLUDED. When the Reform caucus adjourned at 1 o’clock Air Coates stated that lie had nothing to announce yet. He indicated that members would meet again later this afternoon.