CALL FOR ECONOMY.

New Zealand Herald, Volume LXVIII, Issue 20959, 24 August 1931, Page 10

CALL FOR ECONOMY.

TENSION IN PARLIAMENT.

MR, COATES' DRAMATIC MOVE

t ADJUSTMENT OF FINANCES.

CONSISTENCY OF REFORM.

\m TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON. Sunday.

Tho whole political atmosphere of New Zealand changed with dramatic suddenness toward the end of the week and the country is now awaiting the outcome of a move unprecedented in the history of New Zealand politics. The Budget debate had pursued its dull, weary way for tho greater part of three weeks and superficially it appeared as if it would bo prolonged for another week. It 'became widely known on Friday morning that the tenor of the Parliamentary way was about, to change and some wild speculation was indulged in. This change camo a few hours later, ■when the Leader of the Opposition, Rt. Hon. J. G. Coates, crystallised his preyious offers to tho Government to cooperate in handling the national crisis by proposing that an emergency economy committee should be established to investigate and report upon the Dominion's finances.

Actually this move was a master stroke /of political tactics. For months past the country had been agitated because of the failure of the major parties in the House to agree upon a common economic policy and the Reform Party became a target for criticism from every part of the Dominion because of its refusal to merge with the United Party for emergency purposes, in spite of the fact as recalled by Mr. D. Jones (Reform —Mid-Canter-bury) in the House on Thursday evening, that the Prime Minister, Rt. Hon. G. W. Forbes, had never replied to Mr. Coates' offer ,of a Reform committee of co-operation. Prime Minister's Intention. Tho Reform Party, members of which had experienced difficulty in settling upon a uniform policy upon the Budget, held several late-night caucuses during the ■week, tho last one, that of Thursday flight, lasting until a very late hour. Ostensibly this meeting was for the purpose of deciding upon the taxing bills which have yet to appear. Actually the result of the conclaves will change the complexion of the whole political outlook. It has now transpired that the Prime Minister's intention was to close the Financial debate late on Friday afternoon and in .the course of his reply to Euggest the formation of a National Cabinet and the postponement of the general election for two years. This, it was believed, would forever Close the door through which the Reform Party might retreat if it still desired to resist fusion proposals. Counsels of the

Reform Party meanwhile, realising that the time hail come to justify an offer which had been lying unanswered on Mr. Forbes' desk /for several months —the offer of a committee of Pieform members for the purpose ,of discussing and adjusting necessary legislation until the people

, Tvere given an / opportunity to choose a /' stable Government —completed a plan to convince the Prime Minister of the complete sincerity of this gesture. Atmosphere of Expectation.

Therefore before Mr. Forbes was enabled to reply in the debate Mr. Coates notified the party leaders of the proposal ho had decided to submit to the House. It bad been intended to do this soon after the House met in the morning. The buzz of conversation, the restiveness among Reform" members and the fixed look, upon the face of the Prime Minister confirmed the- general rumour, that something unusual was about to happen. Mr. Coates moved about the chamber conferring with his chief supporters and finally settled in the bench of the Labour Leader, Mr. H. E. Holland, with whom he discussed the plan of action. However, Mr. Coates agreed in deference to other parties to postpone his motion until the afternoon and the United and Labour Parties each held a caucus during the luncheon adjournment. The news spread rapidly that great events were about to occur and all the galleries were packed when the House met at 2.30 ' p.m. Mr. F. Langstone (Labour —Waimarino) broke the tension by calling as he entered the chamber: "There's no secret here, is there ? Is Guy Fawkes coming up ?" The gravity of the financial situation and the unusually difficult year ahead bave been consistently emphasised by members of the Reform Party in recent weeks and it is more than likely that had Mr. Forbes replied to the debate on Friday ho would have been compelled to confess the Government's inability to cope •with the situation. This, in fact, he admitted in the House on Friday afternoon -'when he committed the tactical error of presuming that Mr. Coates desired the formation of a National Government. Pending Taxation Measures. The Reform Leader did not imply any such desire, nor did he suggest postpone- , ment of the general election. The consistency of the Reform Party upon the political situation has been finally established by this most recent development, which is considered in the lobbies to be one of the most useful gestures mad« since the seriousness of the financial position became apparent. The parties have chosen their representatives and the committee will meet tomorrow afternoon. Meanwhile, under the present arrangement, the business of Parliament will go on and some of the measures which have been piling up on the stocks will have an opportunity of being discussed. The taxation measures, the Prime Minister says, represent the views of the Government and will bo pushed forward. Exactly how this is tobe done with the whole economic state of the country under review and without the whole Budgetary proposals being recast Mr. Forbes has not explained. It is I thought, furthermore, that if the committee is to become a useful one at least some of the financial proposals will have to be reconsidered. This might cause the to propose a short adjournment of thevllouse.