THE BUDGET DEBATE

Otago Daily Times, Issue 21404, 4 August 1931, Page 8

THE BUDGET DEBATE

ATTITUDE OF REFORM ANOTHER CAUCUS TO-DAY LABOUR’S INTENTIONS UNKNOWN A (From Our Parliamentary Reporter.) WELLINGTON, August 3. With the start of the Budget debate in the House of Representatives on Wednesday the most interesting phase of the present parliamentary session will begin. The attitude of the Reform Party towards the Prime Minister’s taxation proposals is being watched closely, but so far no decision of united action has been reached. Some members of the Reform Party have a difficulty in reconciling themselves with the taxation increases, and are frankly hostile to them. This factor, which amounts in some_ cases to an inherent conviction that will not be shaken by political expediency, may cause a division of opinion in the ranks when vital questions are brought down for discussion. Two short caucuses on Friday failed to produce finality upon such an important subject. Some of the members thought that if the party were retained in the city during the week-end and a comprehensive discussion of every phase of the Budget were held in the caucus the result would have been final, and therefore more satisfactory. However, several members spent the week-end at their homes away from Wellington, and will not return until to-morrow morning, when a further caucus of the party will be held. & One of the features of the Budget which worries certain Reformers is the 3 per cent, primage duty, against which the Reform Party expressed itself in principle two years ago when protesting bv a no-confidence motion against the Ward Cabinet’s imposition of a primage tax. There is a strong body of opinion within the Reform Party, on the other hand, which, considers that the Prime Minister in presenting his Budget should be allowed to give the House an indication of what he proposes to do to meet the national economic crisis. The discussion on the Budget should be helpful, not only as a definition of individual opinions but as an opportunity for Ministers of the Crown to indicate in som,e general way their financial policy for the current financial year. The Reform Leader (Mr J. G. Coates) has made no secret *of the fact that his party is dissatisfied with the manner in which the problem of the primary producer has been handled by the Government, and as the position of the man on the land has not materially improved something may be heard upon the subject in the house this week. If the Government fails to produce a satisfactory explanation of its method of handling the national finance there is likely to be some Reform support for hostile amendments to the Government’s proposals. Labour’s intentions are not announced. Mr Holland declined to state whether' he intends to challenge the Government right to the Treasury benches during the debate, and a caucus of the party will discuss the question either to-morrow or on Wednesday.