FINANCIAL CHANGES.

New Zealand Herald, Volume LXVIII, Issue 20991, 30 September 1931, Page 11

FINANCIAL CHANGES.

raps? ■ > /I EFFECTS IN NEW ZEALAND. 11-WORE TRIALS FOR CABINET. SI FRAMING economic plan. ' ; JJ* GOOD PROGRESS BEING MADE." r B Y TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON. Tuesday. • 'VHf Rapid changes in the financial situation Mue intensifying the Cabinet's difficulty ' framing a comprehensive policy for r stabilising i!ie internal finances of New / • Zealand and restoring her credit abroad, economic plan has been drafted in terms and is being discussed daily Cjjy the Coalition Ministry, but the sudden ■■ : facial developments which have fob | lowed England's suspension- of the gold | standard have had immediate repercussions here, with tho result that tho complexion or. several questions which the Cabinet is considering has entirely 'altered. The position of New Zealand so far as exchange oil London is concerned, for becomes more obscuro every Hay, and is adding to the general uncertainty, making it difficult for the [Government to formulate plans for any definite period. It is anticipated, however, that tho Government's proposals Trill be sufficiently far advanced for tho Prime Minister, i>t. Hon. CI. W. Forbes, to outline the policy when the House of Representatives meets next Tuesday. Just how far the Coalition Government l»-ill go in meeting the economic situation :s not- determine'd. Main lines of policy laid down before the coalition negotiations -?rere completed, and it was then believed that a short programme of legislation occupying the House for six weeks or two months would be> sufficient, to exhaust tlie usefulness of the coalition as a national emergency. It is possible that cn account of the consistent falling off in revenue arid the obscurity of financial tendencies overseas, the Coalition Ministry might be called upon to remain in office after its legislative task is finished to perform urgent administrative work until signs of economic stability aro -- cbserved. • /, Contentious Legislation. This question." which necessarily involves the possibility of postponing the general election, has been assiduously shelved by members of the Cabinet, who are keen to ensure that whatever measures are introduced into the House as part of 'the economic reconstruction shall be as effective as possible to meet the current needs of the Dominion. The general opinion is that unless something unexpected happens in tho near future, the programme of legislation will not be exceedingly lieavy, although it will be essentially contentious, and that when it is put through the coalition will dissolve and appeal to the country as respective political parties. As orie member of the Ministry remarked -when discussing the> situation, "The people have the right to decide what Government they will have to manage their affairs." This will be possible once the emergency measures have been taken to deal with the immediate situation. The major portion of the financial proposals will be contained in a Finance Bill which will be introduced at a convenient date during the remainder of the session. The Arbitration Act.

Amendments to the Arbitration Act Yiave been discussed by the Cabinet, but r.o finality lias been reached yet upon how far tlie Government will go in dealing irilh the incidence of awards. The Piime .Minister to-day denied that any decision had been reached by the Cabinet in the direction of recommending Parliament to suspend aw'ards. "All the matters wo have been considering," he said, "relate to financial proposals—practically nothing eise has been discussed. We have made good progress and have reached the stage of making decisions." - The Cabinet is still sitting twice daily. Ministers are being besieged with deputations from various sections of the community upon a multiplicity of subjects., many of them having in view possible lines of policy to be adopted by the Coalition, y Racing and trotting interests waited upon the Minister of Finance, Hon. iW. Downie Stewart, and the Minister of Internal Affairs, Hon. A. Hamilton, today, and presented a carefully-prepared case for easement of racing taxation, and pleading financial difficulties of various clubs throughout the Dominion owing to the falling off in the attendance at meetings and totalisator investments. The Ministers promised consideration of the requests, j Two Appointments to be Made. It now appears that the leadership of the Legislative Council, which was generally regarded as having been handed to the Hon. R. Masters, is not decided. H'lie suggestion is made that certain prominent men outside are hopeful of appointment to the Upper House for this purpose, but against this it is pointed out in the lobbies that as the duration of the coalition is indefinite nothing much can be gained b.v the appointment for a term of seven years of * man whose particular usefulness might last for only a short period. The chairmanship of committees also remains to be decided. It is expected that when the leadership of the Upper House has been arranged a new Chairman of Committees will be chosen, as it is expected these positions will be divided between the parties represented in the Coalition. In ordinary circumstances a chairman of committees who is appointed for the term of Parliament canHot be dislodged even by a vote of the House. When the recent political crisis developed, Mr. W. A. Bodkin, the Chairman of Committees, expressed his willingness to abide by the wishes of Mr. Forbes. It is almost certain that he will not be reappointed. The names of Mr. J- A. Nash and Mr. S. G. Smith arc mentioned.