HISTORY OF EVENTS.

New Zealand Herald, Volume LXVIII, Issue 20982, 19 September 1931, Page 13

HISTORY OF EVENTS.

COMMITTEE PROPOSALS. NO GOVERNMENT SCHEME. CRITICISM FROM LABOUR. NEW POLICY AWAITED. [BY TELEGRAPH.—PRESS ASSOCIATION.] ' i WELLINGTON, Friday. In anticipation of important political developments, there were crowded galleries when the House of Representatives met at 2.50 this afternoon, and the keenest attention was paid to the Prime Minister's announcement of the decision to form a Coalition Government. Immediately Mr. Forbes had finished, the Leader of the Labour Party, Mr. H. E. Holland, moved the adjournment oi the House, lo enable a discussion on the situation in regard to the Economy Committee. Mr. Holland said the House would remember the incidents leading up to the formation of the committee and that the Labour Party had entered into the proposal readily, but on the distinct understanding that it would oppose a postponement of the elections. It had made it clear that it expected the committee to deal with the economic position of the Dominion and not political considerations. Attitude to Elections. Continuing, Mr. Holland said on September 15, Mr. Forbes had taken up the attitude that before there could be any further progress with the committee, there mast be an agreement to postpone the general election. Mr. Forbes had stated definiteiy that if drastic economies were made on the eve of the election and the Government were compelled to go before the electors, the Government Party would be likely to suffer decimation, and it would be asking its members to commit hari kari. . • Possibly, said Mr. Holland, that might, fce rendering good service to the people of the country. (Laughter.) The Labour Party, however, was not prepared to say this was a matter for the consideration of the committee. An adjournment of the committee had been taken to enable each section to, present coucreto proposals. Specific Proposals Made. On the following day, the Leader of the Opposition, the Rt. Hon. J. G. Coates, had prepared a statement containing specific proposals, which would have constituted a basis on which discussion could have proceeded. The Labour Party had prepared proposals in complete form and a similar statement had been prepared by Mr. C. A. Wilkinson, the Independent member. The Government, however, had no proposals to offer. In fact, at 110 stage did it appear that the Government had anything concrete to offer. The Prime Minister, 011 that day, made the definite announcement that lie would not permit the committee to go further unless it agreed to form a National Government and postpone the elections. Mr. Holland said he contended that was not the business for which the committee had been set up, and Labour members had again insisted that they were there as members of the Economy Committee. Up to that date Mr. Coates had taken the wholly logical attitude that before any Government was set up, definito proposals should be formulated and he had also expressed himself against postponement of the elections. End to Committee's Work. At this stage, however, Mr. Coates undertook to consult his party in regard to the Prime Minister's proposal, which was really an ultimatum. Tho Prime Minister was actually putting an end to the work of the committee. There had heen no meeting of the committee on Wednesday, and then to-day the Prime Minister had intimated that negotiations ■were proceeding between tho Government Tarty and the official Opposition for the formation of a Coalition Government. Mr. Holland insisted that no arrangement between any two parties should have been allowed to interfere with the work the committee. Whatever further meeting the committee might hold must necessarily bo purely formal and the result would be that nothing would have lesulted from the setting up of this body except the accumulation of a mass of convicting evidence. It was quite clear there could have been no unanimity 011 the part of the committee 7 in regard to such proposals as the abolition of the Arbitration Court or drastic economies involving wholesale dismissals and wago reductions in tho public i eeryice, as well as reductions in pensions

and social services, but there were other aspects 011 which unanimity might have been achieved. Mr. Holland then read the minority report of the Labour members of the committee. Continuing, Mr. Holland said the setting up of a fusion Government was logical enough, and ho had said in 1914 that the Reform Party and tho Liberal Party would finally bo forced into one camp. What Labour was concerned about was the consequences if unwise action were taken by the now Government. He expected tho country would have to face wholesale economies, and this could only mean wholesale dismissals, wage reductions, pension reductions and the reduction of ordinary social services. Then there was the question of dispensing with the Arbitration Court and returning to the days of the lockout and the strike. One of the witnesses before the committee had said he would prefer tho lockout and the strike. A Member: Who said that? Mr. Holland: Mr. Goodfellow. Good of the Country. Continuing, Mr. Holland said postponement of the elections would be bound to lead to trouble. Even with a popular Government, people would not, agree to disfranchisement and" the, Government on the Treasury benches was an exceedingly unpopular one. lie appealed to members to forget their own positions and consider the good of the country. Mr. M. J. Savage (Labour —Auckland West) reviewed tho position in a similar manner when the definite hold-up in the committee came, lie said Reform members were wanting figures from the Treasury. The Prime Minister had said he had the information, but there was nothing to be gained by presenting it unless they agreed to form a National Government and postponed the election. Mr. Savage asked if it was not a, fact that when the committee adjourned to enable the different, parties to prepare their proposals, members of the committee, excluding the Labour representatives, met in conference in the Prime Minister's office. Was the Secretary of the Treasury present'! It appeared to him to be an unsuccessful attempt at underground engineering. " Mutual Recriminations." Numerous interjections from Labour members punctuated Mr. Savage's remarks He read a circular which he claimed was sent out by the Reform Party to its branches, and which offered arguments against the postponement of Parliament. On the other hand, said Mr. Savage, the United Party was indulging in mutual recriminations. What sort oi" basis was that for a fusion Government ? Would anyone deny there had been secret meetings behind the backs oi' Labour members? Mr. J. S. Fletcher (Independent—Grey Lynn): llo<v was it a secret if you know ? Mr. Savage: It is the greatest accident in the world that I did find out, but T can prove it up to the hilt. Mr. Savage said in (lie later stages members of the committee had the Prime Minister telling them they were there as his guests and they were not there as a Parliamentary committee. "It took us three weeks i.O find that out," Mr. Savage said. " I appreciated the privilege very much, still I do not think Jt. was fair to Parliament or the people." Coalition Welcomed. Mr. G. A. Wilkinson, the Independent member of the Economy Committee, said he was pleased that the two mam parties had agreed to tackle the problems of the country together. He was sorry tho formation of a National Government had not been possible. Labour Members: Why? Mr. Wilkinson: Because all parties should work together at present and they would work together if it were not for the fad. that party chains bind Labour members so tightly that they arc unable to join. run \ Mr ,T McCombs (Labour— Lyttelton) said as a result of the Prime Minister's attitude the committee had been reduced to an utter fiasco. It had been apparent that the situation of the country did not matter so much to the Prime Minister as his desire to bring about fusion and deprive tho country of the right of expressing its opinion on the legislation of the last two or three years. Jhe Prime Minister had envisaged two courses, one to take the election first and effect economies afterward, and the other to make economies and postpone the clectlo"' Policy Awaited. Mr McCombs said the Government papers had recently been representing the Prime Minister as a strong man, but had they observed his actions in the course of the meetings of the committee, they would not, have regarded him as a man who would nail his flag to the mastHe alleged that Mr. Forbes had not considered how the proposals would affect the country, but how they would affect his party He had accomplished the purpose or which he had set his niind, namely, the formation of a fusion Government, but up to date, the fusion Government had no policy. Sneaking at the conclusion of the discussion, Mr. Holland said that if the new Government's policy were found to conlain proposals to reduce wages and pensions, and to disfranchise electors for any period whatever, there would be a volume of protest from the people of the country such as had never previously been experieuced in New Zealand*