FACING CRISIS

Taranaki Daily News, 14 March 1935, Page 4

FACING CRISIS

COALITION DIFFERS mortgage legislation CAUCUS NOT HAPPY ONE r SECOND READING DELAY (By Wire.—Parliamentary Reporter.) Wellington, Last Night. There is every indication that if the Government persists with the Mortgagors’ Financial Adjustment Bill in its present forjn it will face a major crisis within the ranks of its party. Following the caucus of the Government party yesterday a non-committal statement was made by the Rt. Hon. G. W. Forbes, who stated that members had considered the Bill and had agreed to meet again to-day. At the same time Mr. Forbes announced that the second reading of the Bill, which had been scheduled for last evening, had been postponed in order to give the members of the Government party further time to consider certain aspects of the proposed ’cgislation. It is now revealed that the caucus yesterday was anything but a happy gathering and that the Government’s legislation received an even cooler reception than it did when introduced into the House yesterday afternoon. In fact the Government found difficulty in finding any supporters for the Bill. It is reliably stated that only one Government member rose to support the measure in its present form, and that at least one Government supporter stated definitely that he would be compelled to oppose it. He went so far as to ask what his position in the party would be if he gave voice to his opinions in the House and voted against the Government’s proposals. It is understood there are several other members of the Coalition party who are prepared to follow the lead of this member, who represents an important Auckland city constituency. There is no disguising the fact that the leaders of the Government are considerably concerned about the reception accorded the Bill by the caucus, and piquancy is added to the situation as a result of a suggestion made in the House last evening by Mr. W. A. Veitch (Ind., Wanganui) that Mr. Forbes should resign and re-form his Cabinet with the exclusion of Mr. Coates, “WAS IT INSPIRED?” The feeling expressed by Mr. Veitch that Mr. Coates was leading the Coalition party into troubled waters has apparently found support within the party itself. Opposition members are now asking whether Mr. Veitch’s suggestion was an inspired one. Mr. Forbes and Mr. Coates were obviously faced with a dilemma yesterday, and the only course left open to them was to adjourn the caucus in the hope that a solution of the difficulties could be found when the meeting was continued to-day. While members of the Coalition appear to be satisfied that the Government is making a well-intentioned endeavour to solve the troubles of farmer mortgagors there is definitely, a feel-, ing that the Cabinet has gone the wrong way round and that the proposals in the present form are likely to antagonise the working farmer whom it is desired to assist.

It is significant that when the Bill was introduced last evening not one Government member apart from the Minister of Finance rose to defend' the Government from Labour and Independent criticism. The only Government member who gave voice to his opinions was Mr. C. H, Clinkard (Rotorua), who by way of interjection supported Mr. Coates. It is certain that unloss Mr. Coates indicates in his second reading speech that the Government is prepared to amend the Bill drastically the measure will have a rocky passage through the House. There has already been considerable criticism of the proposal to place the farmers on a budgetary basis during the five-year period of the stay orders, but the main point of criticism appears to be the indefiniteness of .the Government’s proposals with regard to establishing the equity of the farmer in his property after five years have elapse ’. The opinion i? expressed that the Government is presenting a veritable puzzle to the special court of review. MEMBER CHANGES SEAT. With the rank and file of the Coalition at sixes and sevens over the mortgagors’ legislation and an atmosphere of uncertainty hanging over Parliament House some interest has been aroused by the fact that Mr. A. Harris (Waitemata) has changed his seat from the main Government to the cross benches, where he now sits with Mr. A. M. Samuel (Thames). It is stated that no political significance attaches to the transfer, but it is understood Mr. Harris was the main opponent of the Government’s policy in the caucus. There was a further caucus of the Coalition party to-day, but it was apparent when the meeting adjourned at I o’clock' that serious differences are still outstanding. An absentee from the caucus to-day was Mr. W. J. Polson, who incidentally did not attend yesterday’s meeting. Mr. Polson will continue to absent himself from the caucuses of the Government party. His reasons for this attitude are that he wishes to maintain independence in thought and action towards the proposals affecting the working farmers of New Zealand, and that by refraining from attending such gatherings he will be free to carry out this', policy without embarrassment or restriction. It is not the intention of the Government to proceed with the second reading of the Bill in the meantime. This was made clear by the Prime Minister, who could give no date for the commencement of the second reading. He said that in the meantime the House would be engaged on the third reading of the Mortgage Corporation Bill and the committee stages of the Broadcasting Amendment Bill. Mr. Forbes was asked if the caucus had adjourned with a view to considering the Bill further and he replied in the negative. He indicated, however, that it was competent for the Government to call the caucus together at any time to consider the Bill.

"Are any amendments contemplated?” the Prime Minister was asked. Mr. Forbes replied that he was unable to say at the present juncture. - It was significant that after the caucus adjourned the Prime Minister and the Minister of Finance were in close conference for 15 minutes.: