THE CRUCIAL TEST.

New Zealand Herald, Volume LXVII, Issue 20629, 30 July 1930, Page 10

THE CRUCIAL TEST.

The opening of the debate on the Financial Statement has definitely placed ihc fundamental political issue in the forefront. A year ago, when the United Government presented its first Budget, the truce that had been declared to enable it to develop its policy was still observed bv the Opposition parties, in spite of much ungracious provocation by the members of the new .Ministry. On that occasion, Mr. Downic Stewart, as Minister of Finance in the. Reform Administration, was the first speaker in the debate on the Budget. The rising of the Leader of the Opposition in the. House last evening was significant of the change in circumstances. The period of grace conceded to the United Government has expired: there has been ample time for the party to demonstrate the possibilities of its programme and for the electorate to realise its limitations. The whole country has been brought face to face with realities by the proposals in Mr. Forbes' Budget, and, as the Leader of the Opposition. Mr. (dates' plain duty was to give a direct challenge to the Government's continuance in office. As he was careful to explain, his no-confidence motion does not deny the difficulties of the financial position. They are undoubtedly serious; indeed, more serious than the Prime Minister has admitted. The essential facts are

that the administration of the I nited Government has brought the country to a national crisis, that however great the influence of external factors, the difficulties that have arisen have been aggravated by the efforts of the Government, to pursue a programme of avowed extravagance in expenditure, and, finally, that its only prescription for the remedying of this situation is the imposition of over £-2,000,000 of new taxation. That these proposals are ill-advised as a whole and inequitable in detail has been generally realised, and the Reform Party was bound to take the. first opportunity to disclaim responsibility for their enforcement. Owing to the peculiar composition of Parliament, the challenge is actually addressed to the Labour Party. It is now confronted with an issue upon which if must give a definite answer. Either its conditional support of the United Party is in practice to be conceded in all, circumstances, subject only to compliance with such demands as it may make, or it will maintain its independence and judge the Government's solely in the light of national interests. The Labour Party cannot on this occasion evade the issue by objecting to a phrase or a reason in the Reform amendment. In spite of its elaboration, the motion proposed by Mr. Coates is a direct challenge to the Government and the Labour Party to determine whether the United Party shall remain in office. It would probably have been -riser, in the .circumstances, if the soiendmmt had been confined to a statement of that fact, leaving the details of criticism to be expounded during the debate..