FEDERAL POLITICS

New Zealand Herald, Volume LXXI, Issue 21932, 16 October 1934, Page 11

FEDERAL POLITICS

COALITION EFFORT FAILS PARTIES AT VARIANCE SUGGESTED STUMBLING BLOCKS [from our own correspondent] SYDNEY. Oct. 11 There is general regret at the failure of the negotiations instituted by the Prime Minister with the idea of forming a composite Government in which the United Australia Party and the United Country Party would have Cabinet representation. As a result of the recent Federal elections the United Australia Party no longer has an absolute majority in the House of Representatives, although it is still by far the strongest party. The move for a coalition was made in the hope that a thoroughly stable Government would lie able to continue the work of reconstruction so ably started under the leadership of Mr. Lyons. However, when the Country Party met it was clear that the animosity displayed before the elections toward the United Australia Party had not disappeared, and even though the differences of opinion do not appear, 011 the surface, to be very great, the Country Party made demands that were summarily rejected by the Prime Minister Agreement on Main Principles The blame for the failure of the negotiations must be accepted by tho ; Country Party, which has lost many ! friends because of its attitude. At the ] same time it is felt that Mr. Lyons was a little hasty in declaring that he would not consider the position any j further, but would proceed to form a : Ministry from his own followers alone. j At the elections the people very defin- ! itelv declared for a policy upon all ! the main principles of which the two I non-Labour parties were agreed. On | matters of finance, unemployment. 1 foreign trade, and the rehabilitation of j the primary industries there is no dis- j pute, and it is suggested that those j are important enough to command a j unity of effort. The alternative to a composite Minis- | try is a state of political uncertainty, which might prejudice the industrial I and commercial recovery of Australia, i The Labour Parties can be depended ! I upon to make the most of the situaI tion, and it is conceivable that they j might succeed in bringing about the de- | feat of the Government at any time. | The point on which the negotiations ; broke down is not quite clear, but it i may have concerned the demand by j the Country Party for four portfolios, j instead of the three offered by Mr. I Lyons. The United Australia Party has 132 members, against the 15 of the | Country Party, and it is open to question whether the Country Party's demand was a reasonable one. It might be that the demand that the Leader of the Country Party should be tho Deputy Prime Minister was the stumbling block. In support of this demand it is pointed out that Dr. Page has had a wide experience in Federal politics as a member of the Bruce-Page Government, and that this should warrant his appointment to the senior portfolio. Industries and Tariff On tariff matters the demands of the ; Country Party seem to be more | reasonable than generally expected, and I these, it is claimed, should not have caused the breach. The' Country Party | asked that there should be an inquiry j by the Tariff Board into the wisdom of I a degree of protection in certain indus- | tries which, it claims, added unduly | to the cost of other industries and was I not justified by the amount of produc- ! tion or of employment that was j gained. The soundest protectionist, it I is submitted, could not take exception i to such a request. | The sudden collapse of the negotiai tions has left a rather tense feeling which will not help to establish confidence. The Country* Party is bound to resort to bargaining tactics, which might seriously embarrass the Federal Government. One of the leaders of the Country Party has already said that the party will obtain more by remaining out of the Cabinet than by entering it. In advocating its own particular policv the Country Party will always be on safe grounds, for it will have no Cabinet responsibility. Australia is hoping that the Country Party will not abuse the power it has gained by being given tho balance of power.