AUSTRALIAN CRISIS.

New Zealand Herald, Volume LXVIII, Issue 20807, 25 February 1931, Page 13

AUSTRALIAN CRISIS.

POLICY OF MB. LANG.

MR. BAVIN'S CAMPAIGN.

REPUDIATION CHALLENGED

APPEAL FOR CO-OPERATION

The Leader of Iho New South Wales Opposition, Mr. Bavin, announced last week that his party would endeavour to concentrate public attention throughout tho State upon a demand that the Government should at tho earliest possible moment submit its policy to the electors. "It is impossible," said Mr. Bavin, "to exaggerate tho seriousness of the position in this State to-day. Tho State Government evidently does not realise, or does not care about, tho dangerous feeling, of which wo have daily evidence, that is being generated by its failure to pay its debts, to relieve unemployment, to assist necessitous primary producers, and, most of all, by its adoption of a dishonest policy of repudiation. " This policy being a deliberate advocacy of illegality, is, in itself, an encouragement and incitement to those who, in their despair, are advocating the adopt - tion of illegal methods, and, apart from its disastrous effect on the credit of the State, is tending to destroy any chance of obtaining relief from our economic difficulties by constitutional methods. " Until yesterday the repudiationist policy of Mr. Lang had not been officially stated as the policy of the New South Wales Government. In Parliament yesterday, however, Mr. Lang expressly stated that it was the considered policy of the Government, and it was implicitly ratified by the unanimous vote of the party on my censure motion. Parliament was, by the use of the closure, refused the right even to discuss it. We must, therefore, take it that the Government has the intention to carry this disastrous policy into_ effect, and the necessary Parliamentary support.

Breach of the Federal Law. " It is important to remember that it is an essential part of this policy that if the other Governments of Australia refuse to adopt it, the New South Wales Government intends to carry it out in this State alone. The other Governments of Australia have emphatically rejected it. Therefore, we have to take it that the Government intends, so far as this State is concerned, to do what Mr. Lang proposed. This means that he will simply refuse to pay, out of State revenues, the money due on our share of the Commonwealth loans, and will keep that money to pay the cost of carrying on the State Government in accordance with his own policy. He also proposes to establish a separate currency for New South Wales. These proposals involve an open breach of the Federal law, and a defiance of the Federal Constitution. In other words, New South Wales is committed to a policy of open revolt against the Constitution of Australia.

" Apart from its illegality, this policy puts New South Wales out of step with the rest of Australia. This makes any restoration of our own financial position impossible. It also destroys the chance of re-establishing the credit of Australia Nothing can save Australia from financial disaster except a common policy for all the Governments. Such a, policy was adopted at the Premiers' Conference last August. " The whole of the troubles in which we find ourselves to-day, the endless and futile schemes and conferences and plans, are due solely to the fact that that agreement was not hopourably adhered to. Not only was a policy adopted, but machinery for supervising its execution through the different Governments was established. That machinery was actually functioning, and if it had been allowed to continue on the lines laid down in the Premiers' agreement would, by this time, unquestionably have restored the credit of Australia, and put us on the road back to prosperity.

ESect of State Election

" It was the New South Wales election which destroyed both this policy and the machinery for carrying: it out. It cannot be re-established until New South Wales comes back into line. The imperative, practical step for us in New South Wales, therefore, is to undo what was done at the last, election. This can only be effected through a dissolution of the existing Parliament and an appeal to the electors to ascertain whether Mr. Lang's repudiationist and separationist policy does represent the opinion of the people of New South Wales. If it does, we must face the consequences, which are the dissolution of the Commonwealth and financial chaos, not only for New South Wales, but for Australia. If it does not, then the sooner Australia knows this the better.

" At present the efforts of the other Governments to secure a sane policy are hampered by the vacillation and weakness of the Federal Government, but if a dissolution can be secured in this State, and Mr. Lang's policy repudiated, as I am satisfied it would be, nil the saner

elements in the Federal Labour Party would be strengthened, and unquestionably with the co-.operation of Mr. Latham and the Opposition in the Federal Parliament it would be possible to get some coherent and sound non-party plan, with the machinery for carrying it into effect. As I have said, Now South Wales destroyed this. It is up to New South Wales to restore it.

" In these circumstances my colleagues and I have come to the conclusion that the best service wo can render at present i sto 'invito the co-operation of other organisations and parties in the community who are determined to arrest the rapid drift towards disaster, and endeavour to create throughout the State such a body of public feeling that it will be impossible for tho Government to ignore it.

" Parliament at present is impotent. The policy which Mr. Lang is propounding is the direct opposite of that which ho announced at the elections. Ho rejected in the strongest possible terms any suggestion that tho Labour Party would tolerato repudiation. In these circumstances, every consideration of public fairness and decency demands that this policy should bo submitted to tho people, and all who want to take some practical step towards saving the situation should direct their efforts towards tho end of securing an early dissolution. There is no other constitutional means of averting the breaking up of the Commonwealth or of avoiding financial disaster."