GOVERNMENT ATTACKED

New Zealand Herald, Volume LXX, Issue 21399, 25 January 1933, Page 10

GOVERNMENT ATTACKED

NO TIME FOR POLICY

MR. STALLWORTHY'S STAND

VOTE FOR NO-CONFIDENCE

A definite statement that he would support a no-confidence motion against the Government's exchange rate, policy, even if the Government's fate depended on his vote, was made by Mr. A. J. Stallworthy, M.P. for Eden, at a meeting of about 300 in tho Methodist Hall, Gordon Road, last evening. After a vigorous speech, lasting over two hours,, in which the exchange policy and the "party machine" were attacked, Mr. Stalhvorthy was accorded a unanimous Vote of confidence, with which a resolution of protest against tho raising of the exchange rate was incorporated. Mr. S. E. Ch.tppell was chairman.

"I called this meeting hurriedly this evening because I felt it was my duty to obtain a mandate from my electors," Mr. Stalhvorthy said. "I want to know if I am correctly interpreting your judgment in retaining myself independent to keep the Government in power only in so far as it adopts a policy of rehabilitation in conformity with your ideals and mine. The only alternative is to vote with tho party machine, right or wrong. If so, indicate that with your votes this evening. I do not even then say that I shall vote against my principles." A National Calamity

Describing tho raising of the exchange rate as a national calamity of the first magnitude, Mr. Stallworthy said the damage had been done before any of tho members of the Government party outside the Cabinet had been consulted. "At the caprices of a handful of men who do not know what they are doing, the business world on Friday morning was informed that the exchange rate had been raised to 25 per cent. Now, on the Tuesday, party members are being called together in caucus like so many sheep being herded into tho cart for the slaughter. I for one refuse to vote for a measure on which I have not been consulted and which I think is inimical to tho best interests of the country." A denial that the whole Coalition Party had been consulted in December over the exchange question was made by Mr. Stallworthy. "Mr. Wright, Mr. Samuel and I, at least, were never asked if wo would give the Government a freo hand in the matter, and I do not believe the exchange rate was mentioned at that caucus, I say that because only a few days before Mr. Forbes had said the Government had no right to interfere with the rate of exchange, and he lulled business men into a false sense of security by giving a definite assurance that the Government would not raise the exchange rate. Mr. Forbes' talk of consultation is only an attempt to put me, and perhaps other Government members, in an ambiguous position. "Like a Fantastic Tale" " After forcing a policy of deflation with the avowed object of reducing the cost of production and of living, by reducing wages by from 10 to 20 per cent, the Government suddenly adopts a policy increasing the cost of living by 15 per cent. It all reads like some horrible fantastic tale," Mr. Stallworthy said. The Ottawa Conference would be reduced to a farce by the new policy, while its cost, measured in decreased import duties, increased cost of remittances on overseas loans, and the unknown quantity of the indemnity to the banks, would be disastrous to the already strained condition of the country's finances. Mr. Stallworthy recalled that the Prime Minister had already admitted that the Consolidated Fund was "working on overdraft." Heavy drains on the banks by tho Government, with the danger of default, would have a serious effect in reducing tho ability of the banks to finance business and the farming community. Morcoverj tho premium the increased rate would pay to the farmers would actually bo paid from the pockets of other sections of the community. It was "robbing Peter to pay Paul." Party System Attacked A strong attack on the party system generally was also made by Mr. Stallworthy, "I am willing to support those confronted with the difficulties of to-day so long as I, as a representative of the people, am properly consulted, and am satisfied that an intelligent effort is being made to secure the corporate intelligence of tho Government party, but not one solitary Government bill that has been submitted to Parliament since the formation of the Coalition has first been submitted to tho members of tho party so that they could have a say in the framing of the measure. I run the risk of being flatly contradicted, since I am not in the Cabinet, but I have the most absolute assurance that tho Superannuation Bill, embodying repudiation and a reduction below the bread-line for many annuitants, was not only not considered by members of the party, but was not even considered by the Cabinet before being sent to tho Parliamentary Committee. I say that tho ultimate measure of tho modifications of the bill will bo tho measure of the Government's crime. "Others as well as I are incensed at. the mockery and humbug that have got into Parliament. Members too frequently vote on measures according to the way they see their party moving, and only after the division has been taken do they know what the bill has been." Mr. Stallworthy also referred to delays in filling vacancies in the Legislative Council and in the Cabinet. Confidence in Mr. Stallworthy The resolution, which was moved by Mr. W. J. Gatenby, was carried with applause and without any dissentient voices. Its full text was as follows: — "That this meeting of electors of Eden reaffirms its confidence in Mr. A. J. Stallworthy as its Parliamentary representative and congratulates him upon his independent and fearless attitude in placing the vital interests of the people of tho Dominion, and of his own clcctorato in particular, above those of a party machine. Further, this meeting strongly protests against the action of tho Government in precipitating a national crisis by forcing tho banks to raise tho rate of exchange, notwithstanding tho favourable trado position of New Zealand and tho serious reactions upon national and local body finance, industry and commerce, unemployment, the cost of living and the general welfare of tho Dominion." DISCONTENT IN THE HOUSE FOLLOWING FOR MR. STEWART i "Of all the members of the Cabinet,' ' the Hon. W. Downie Stewart alono appeared to have any sense of conviction or any regard for political principle," said Mr. Stallworthy yesterday. "It is a thousand pities that the Prime Minister let Mr. Stewart down so badly. Instead of Mr. Forbes resigning and giving Mr. Stewart an opportunity to form a Cabinet, he swallowed his previous statements and once more threw overboard a colleague." Mr. Stallworthy said he was afraid Mr. Forbes' Government had forfeited tho respect of the country. The honours wore with Mr. Stewart. Mr. Stallworthy thought that the Rt. Hon. J. G. Coates, as Minister of Finance, obviously would not carry the confidence of the people. "If Mr. Stewart will consent, I have no doubt that wo can secure him a strong following in the House, where there is a good deal of real discontent," Mr. Stallworthy added. "Probably tho following would be strong, enough to displaco both Mr. Conies and Mr. Forbes from a leadership in which they have proved their utmost incapacity,"