CABINET MOWS ITS WORK

Taranaki Daily News, 13 December 1932, Page 7

CABINET MOWS ITS WORK

PROBLEMS OF OT ZEALAND RELIEF FOR THE PRODUCERS ■ . ■ " ■ ■■■ •••.,: '■■■ ;’.i /. SEARCH FOR X SOLUTION _ RUMOURS OF WAGES CUTS (By wire— Parliamentary R*pertot.) Wellington, Last .-Night. The Cabinet settled down to-day to What promises to be a momentous seriea of meetings, for upon the decisionsmad* will depend the Government’s policy to meet the problems facing the country; It is unlikely that anything official wiU come from the Ministers during the next few weeks, but it can be taken for ed that the country will’ await with considerable anxiety to hear what lative proposals will be submitted to Parliament. So far the Cabinet has gone ...no further than preliminary discussions, and following a meeting this morning several hours were spent to-night in going over - the whole position with a view to enabling a free interchange of views. The Cabinet is fully aware of the fact that it must have a definite programme for the House by the time it resumes, but it is safe to say even at this early staga and from what was stated in the lobbies to-day that the Cabinet does not believe for a moment that recovery can ba effected by a magic formula, and that as overseas price levels govern the coup?. try’s prosperity the Government’s mate task will be in the direction of giving a measure of relief to the exporters ail* consolidating the internal position of th* country. . • Although there was a proviso. in th* Prime Minister’s adjournment motion on Friday enabling him to recall the merttebH bers earlier than January 26 if necessary, it is not thought this will be done, for the Government considers it will need the full seven weeks’ respite from Parliamentary work if it is to complete ; its programme and not have to present it piecemeal. ’ v END OF DEFINITE PHASE.

The Ministers generally appear to regard the adjournment of Parliament u the end of a definite phase in the succession of problems which has confronted the Coalition-since-its formation near- . ly 15 months ago. It is recalled that shortly before the present session opened the Prime Minister expressed the opinion that there would be ho need for mof* emergency legislation and that the. pass- , ing of the Estimates, legislation to .five effect to the Ottawa resolutions and the Budget would be the principal business . to be taken. Since that time, however, events have moved rapidly in the sphere of economics, and the continued slipping' \ ; of the price levels.has altered the whale • outlook. The present situation was rtot . ; Counted upon, : especially in view of the fact that there was every indication that prices overseas would rise and so give much-needed relief to the exporters of. the Dominion. The position to-day, therefore, is that A the Government has been forced to recast many pre-conceived plans for the current financial year as well as for 1933-34, which it is feared will present a major problem. The Prime Minister remarked thia evening that the adjournment would be availed of by the Cabinet to deal not only with the present crisis but also 4rith the budgetary position for next year. It is frankly acknowledged in Cabinet circles that the outlook is serious and that no half measures will be adequate to meet the position in view of the latest figures showing a further contraction of the national income, which will make it more difficult for private persons as well as the State to meet their obligations. On the other hand, it is not admitted that the future is without hope, and Mr. Forbes himself said this evening that there was every prospect that now the bottom of the ' slump had apparently been reached remedial measures" would begin to lead the way up the incline. While some benefit might be expected from what steps had already been taken, notwithstanding anything the New Zealand Government may do it is emphasised in Cabinet circles that this country te powerless beneath the weight of overseas economic and the .7 reap move toward recovery, it is urged, must come from abroad. ; sjf TEMPORARY EXPEDIENCY.

One influential member of the Cabinet went so far as to say to-day that whatever the Government did would b« / largely in the nature of a temporary expediency, for New Zealand’s .whole economic life was dependent on overseas price movements. For this reason; ;it is pointed out in Cabinet circles that it would bs wholly unreasonable to expect the Government to devise a plan which would bring a return of prosperity inja day. “Anything done must depend for its ultimate success on overseas events," the Minister said. ‘‘ “The country'' says, in effect, to the Government,'. ‘Physician, . cure me immediately.’ but the cure is not as easy as that, and it is surely un- , reasonable, to expect that it should be if it is to be lasting." No matter what course it decides to take within the next few weeks, the Cabinet is fully aware that it will have; its critics. Although even the Govern?..' ment itself has not decided- upon any definite plan, it is stated reliably in the Parliamentary lobbies that there ia every likelihood of the legislation .of last year ' :, being advanced a stage further. It i*. almost certain that steps will be taken to bring about another reduction in in- , terest rates, and there may also be. : a . move to impose another wages cist throughout the Public Service. From. what can be gathered at the moment the Cabinet may decide on a policy ef further deflation, accompanied by a measure of inflation, whether by nwwui of Increasing the primary exporters’ return* by bounty or some other way. ' ■ _ i.Jir <■ ..