Nelson Evening Mail MONDAY, FEBRUARY 23, 1931 AUSTRALIA'S DILEMMA

Nelson Evening Mail, Volume LXIV, 23 February 1931, Page 4

Nelson Evening Mail MONDAY, FEBRUARY 23, 1931 AUSTRALIA'S DILEMMA

TIIE fact that the value of Australia’s imports during the four -months ending 30th November declined from £51,000,000, the amount for the same period during 1929, to £27,000,000, is; sufficient illustration of the financial situation of the Commonwealth. When a country’s spending-power drops suddenly by nearly one half, and its revenue is largely dependent upon duties on imports;, it is easy to understand that the balancing of the budgets of the States’ and Federal Governments becamcs extremely difficult if not impossible. A perusal of recent news from the Commonwealth shows that the- greatest political and financial uncertainty prevails. While the States’ Governments are widely divided in their policies for

meeting the critical economic situation, the Federal Government is in a condition of pitiful confusion. The Government of New South Wales, under tlie leadership of Mr Lang, has pledged itself to a financial policy which, if put into operation, would land the Stato in a condition of bankruptcy, and would so cripple tlie Federal Government that it is doubtful if it could continue to function financially. To oftset Mr Lang s disastrous proposals, Mr Scullin, the Federal Premier, lias no plan, but it appears that he proposes to meet the bankers of Australia in conference, at Melbourne to-day, with a view to discussing the financial situation. It seems to us that Mr Scullin had his chance early in the month, when lie met the Prime Ministers of the States in conference, but instead of evolving with them a clear-cut national policy, he let the Premier of New South Wales monopolise the meeting with his ill digested and impracticable plans. The result to-day is that in the north and south of New South Wales there is talk of secession from the State, and in Queensland and Western Australia there is talk of secession from the Commonwealth.

It will take a strong man to put Australia on her feet again, financially and politically. Mr Scullin appears unequal to tlie occasion; his colleagues, prominent among whom is Mr Theodor®, and his friends of the Labour Party appear to be a hindrance rather than a help. With his Party at sixes-and-sevens, and no constructive policy in sight, it looks as if Mr Scullin’s Government may fall when the Federal Parliament meets, early next month. The most alarming feature of the situation is the tendency for the inefficacy and ineptitude of leaders in the Federal and New South Wales Governments to cause the political disruption of Australia. The balancing of Budgets is a most important matter, but if, tno political parties in power in the various States and at Canberra find the task too difficult' for them to perform, manifestly it is their duty to encourage the formation of coalition or national governments, rather than that the Commonwealth should be in danger of disruption, and that such a State as New South Wales should be broken up.

To a certain extent New Zealand suffers from the ill-conceived policies of Australia’s political leaders, for, in the minds of many people in Great Britain and the United States, New Zealand is part of the Australian political combination. New Zealand s .rate bf monetary exchange is detrimentally affected by Australia’s. It would be much more seriously affected if this country were actually a part of the Commonwealth. It was a fortunate day for New Zealand when, nearly thirty years ago, Richard John Seddon, strenuously solicited to include this country in the Commonwealth of Australia, then forming, decided to set up a Royal Commission to visit Australia and investigate. At the head of the Commission was a Nelsonian, the late Colonel Albert Pitt, himself an Australian by birth, but a New Zealander by adoption, and AttorneyGeneral in Richard Seddon’s Cabinet. The Report of the Commission was unfavourable to tlie inclusion of New Zealand in the Commonwealth, and so the federation of the Island Continent .took place, without New Zealand being included in it. To-day it is easy to perceive the wisdom of this country s maintenance of its separate political entity. The- mismanagement of Australia's political and financial affairs has not affected New Zealand very seriously. True, this country has plenty of troubles of its own, but it is free to inset those troubles in tlie way it thinks best, and without interference from ou'side. However grave the political dissensions may become in Australia, they cannot directly affect New Zealand, which, in managing its own affairs is at liberty

to do sc without relation to the situation in Australia. This country is happy in being at liberty to adopt Mr F6rbes’s straight-forward financial policy, instead of being involved in the divergent, and hazardous policies of the Commonwealth.