LABOUR PARTY

Manawatu Standard, Volume LIX, Issue 117, 18 April 1939, Page 12

LABOUR PARTY

TEST OF UNITY. VIEWS AT VARIANCE. ■WELLINGTON, April 15. So long as Rt. Hon. DI. J. Savage remains in office as Prime Minister, no serious split in the ranks of the Parliamentary Labour Party may ho expected. That is the opinion of delegates who attended the annual cotiiorence of the Labour Party this week. For the meantime, the Labour Party appears to have welded the orthodox elements with the left or unorthodox components. Yet it would not he hazardous to predict that the consolidation in the party interests achieved in the past week will be given its real tost early in the session which is expected to open ill June. The economic opinions within tho Labour Party, both in the Parliamentary ranks and the conference representation, are deeply divergent. The possibility is that tho banking legislation which the Minister of Finance (lion. IV. Nash) is expectod to introduce this year will accelerate another division within the ranks of the 53 Parliamentary members. The weekly returns issued by the Reserve Bank suggest, so far, that the Government's policy of exchange control and import restrictions has worked by no means as satisfactorily as was anticipated by its sponsors. Tho misgivings of some members of the Cabinet over the indicated failure of the measures introduced by Ordcr-in-Council are known, and it is possible that, to build up the London exchange holdings, more drastic measures of import regulation may have to bo adopted in the next six months. The alternative to tightening up the issue of licenses is believed to be a forced increase in the rate of exchange. If the import restrictions had worked as anticipated, the raising of the exchange rate would have been inconceivable, not only because Labour opposed a similar step early in the depression, but also because the heaviest burden would have to lie shouldered by the Government itself in meeting a pro rata increase in the amount to lie found annually for the meeting of New Zealand’s debt commitments in London. DIFFERING VIEWS. No retraction of their views on the conduct of New Zealand's finances was apparently made at the conference by Mr J. A. Lee, M.P., and other members of Parliament believed to have been associated with him in the condemnation of Mr Nash’s financial policy. Although it is considered that almost 100 per cent, of the unions would stand by Mr Savage if they were compelled to make a decision in the event of any determined forward move by the Lee group, the unions allied with the Labour Partv comprise three groups—those with Liberal traditions, the men who believp in “sane” Labour, and the Radicals. The radical clement, embracing also the monetary reformers, who were attracted to the party four years ago. could not he counted on as remaining steadfast with the other two sections. It is indisputable that the Labour Party almost in its entirety has a deep respect personally for Mr Savage, and the Prime Minister, it is reported, was not backward in telling the_ conference that some members of Parliament had him alone to thank for their present positions in the House. Mr Savage exerts a remarkable personal magnetism over the rank and file of the Labour Party, and also over the members of the Parliamentary Labour Party, and if a decision had to bo made to continue allegiance to him or to. break away the great majority would undoubtedly reaffirm their faith in him. MR LEE’S REQUEST.

The friendliest personal relations between Mr Savage and Dir Lee were evidenced, according to reports, toward the end of the conference, at which Dir Lee had read, at his request, his own copy of a letter reputed to have been written by him attacking Dir Nash’s policy, and fhe unwillingness of the Cabinet to accept the decisions of caucus. Advice which circulated through the conference late on Friday was that Mr Lee was polling high votes for the central executive. The result of the ballot will not bo announced until later. The voting was taken following a long and breezy debate on Dir Lee s letter to Parliamentary members. The executive comprises five members only. Nominations totalled 46, Dir Lee being nominated by two organisations, and only 26 other candidates having greater initial support. Not the slightest surprise will he occasioned if the member for Grev Lynn is elected. Tn this eventuality, he will he a member of the committee which will discuss with the Prime Minister nnv “deadlock” consequent on the inability of the Cabinet to accept suggestions made in. caucus. The change which has taken place in the views of the Labour Party in recent years was_ illustrated when pacifists were soundly trounced on the voting taken after the debates on the defence policy at the conference. Pacifism was once almost synonymous with membership of the Labour Party. The change of front did not escape pointed comment in the debates, but the voting is reported to have been so decisive that those opposed to militaiism in any shape or form cannot lie expected to have an ear given to their counsels in the immediate luture.