CENSURE MOTION FAILS

Taranaki Daily News, 18 February 1933, Page 7

CENSURE MOTION FAILS

BRITISH UNEMPLOYMENT ’ x-: ’ ’■ f- . . .v .• i POLICY OF THE GOVERNMENT j _ ' ' V' RETURN OF CONFIDENCE . NEW FLIGHT TO THE POUND • ... British Official Wireless., Rec. 5.5 P-m. Rugby, Moving the Labour Party’s .censurS motion on the Government for its handling of the unemployment problemii'Mri G. Lansbury criticised the tariff policy of the Government and its refusal to embark on wide utility schemes for «b- , sorbing the unemployed. . In reply Mr. Neville Chamberlain argued that while much so-called utility expenditure was extravagant developments were being made. He recalled the course' of events since 1930, when confidence was badly shaken. That .confidence had been largely restored,' 90 that they to-day were embarrassed by a sort of flight to the pound. The return of confidence was due to the cessation of borrowing to balance the Budget and the active steps taken to protect the trade balance and stimulate industry. The Ottawa Conference had restored confidence, and the conversion operations had cheapened money. They must, if possible, raise gold prices and. in any case must raise sterling prices. The success of the voluntary meat regulation arrangements made at Ottawa encouraged them to think they might be extended to other commodities. Cheap money and international co-operation would help. Easy credits and low preferential rates were an essential precedent to trade recovery. Mr. Chamberlain said the Government had concluded that expenditure on public works as a remedy for unemployment had failed lamentably. Between April, 1924, and September, 1931, .£700,000,000 had been spent on such works and had only touched the fringe of the problem. Nevertheless the Government would not deter municipalities from obtaining loans for useful works. . REGAINING CONTROL. The Chancellor claimed that the Government’s financial policy for the past / year had restored confidence, Instead of Britain having to borrow foreign money as in September, 1931, there would be a drive on the pound which without the exchange equalisation fund might lead to fluctuations of the sterling, causing great embarrassment to traders. The Import Duties Act enabled Britain to regain' control of the home market, Mr. Chamberlain pointed out that the excess of imports over exports had been reduced by £120,000,000. He was surprised that America had not agreed to the postponement of the December debt payment, but he saw no reason-to despair, . “We are making progress with other nations on the subjects to be discussed' at the world conference,” said Mr. Chamberlain. “The Government’s steps are justified by the fact that other countries are suffering more than Britain, whose exports in 1932 were slightly better than in 1931, while German, American and French. exports have all dropped. Panicky, hysterical changes in policy will not restore trade.”

Mr. Chamberlain, alluded to maladjustments which had resulted in world-wide unemployment He questioned whether these could be conquered so rapidly and completely that a reduction of unemployment to comparatively small figures could be anticipated “within, shall I say, ten years.”

Mr. Ramsay MacDonald, summing up, criticised Mr. Lloyd George’s speech as reminiscent of his endeavoxirs to be an international negotiator. He had wandered along until he came to a series c£ notes which seemed to be from a ten-year-old speech. ■Referring to suggestions that relief works should be provided for the unemployed Mr.. MacDonald pointed out that 3,000,000 people had been put to work which was unproductive and unncessary. This mean that they would be living on incomes created by the mass of fellow J

workers. As soon as the House told the unemployed that it was. prepared, to spend capital uneconomically upon them it would be deluding them. The Government’s policy included the restoration of national and international trade. Mr. MacDonald begged the House to renew its confidence in the Government The speeches of the Opposition had been full of misrepresentations and misunderstandings. The work done last year was a magnificent achievement “Pitt in 1805 claimed that England saved herself by . exertions, and I trust England will save Europe by her example,”. Mn MacDonald said. He believed the Government would win the same high praise from this generation. f ' ' " ■ " .. . ’

The motion was defeated by 414 votes to 49. Welsh Liberals, including six Samuelites, joined the new group, forming the “Welsh eleven,” captained by Mr. Lloyd George, who Were supporting a censure of the - "’ Government’s .unemployment policy. The Samuelites tabled an amendment to the censure in order to escape/ th« necessity of voting on the other motion*