BUDGET PROPOSALS

Wanganui Chronicle, Volume 74, Issue 184, 6 August 1931, Page 7

BUDGET PROPOSALS

A CRISIS POSSIBLE EARLY ACTION UNLIKELY NO LABOUR AMENDMENT ’ [ Per Press Association. | WELLINGTON, Aug. 5. It. is unlikely that the Government’s tenure of office will be seriously chai longed during the progress of the Financial debate, which commences in the House of Representatives this even ing and will probably continue for a fortnight or longer. A crisis may be reached, however, at a later stage ot the session. Both the Reform Party and the Labour Party met in caucus this morn ing to determine their respective atti tudes. The Reform members have met several times since the introduction of the Budget last Thursday evening, and P is plain that there is a wide cleavage of opinion as to the wisdom of takinp this opportunity of turning the Government out of office or of maintaining the policy of assistance with the right to criticise, which has been followed toi the past twelve months or more. Care ful lobbying indicates that the Reform supporters are hopelessly divided in their views. Some are convinced that the taxation proposals should be re sisted with all the strength of tinparty. and that either by promoting a hostile amendment themselves, which would be certain of support from the Labour Party, or by giving support to such a move from the other camp, they should precipitate a political crisis and proceed to the country. On the other hand, it is counselled that no direct step should be taken until the Land and Income Tax and Customs Amendment Bills, giving definite effect to the Budget proposals, appear before the. House. It is under stood that the Loader of the Opposition is anxious to secure unanimity of opinion in any action that, may be taken, but circumstances suggest that this is impossible of achievement.. Some Reformers are believed., to hold the view that the Prime Minister is taking the only reasonable course in balancing his Budget, and that the Reform Party itself would be obliged to take similar action if it had control of the Treasury. Outside of Reform circles it is being speculated that the Minister of Fin a nee in the last Reform Cabinet, the Hon. W. Downie, Stewart, who is re garded as the leading authority on fin ance in the Reform Party, if not in the House, realises that he could take no different course from that now being pursued. When the Reform caucus adjourned at 1 o’clock this afternoon, the Leader of the Opposition (the Right lion. J. G. Coates) stated that he had nothing to announce yet. He indicated that members of the party would meet again this afternoon. Labour’s Attitude It was officially announced at the close of the Labour Party caucus this morning that no amendment, would be moved from those benches during the Budget debate, but that the taxation proposals embodied in the Land and Income Tax and Customs Amendment Bills at a later stage of the session would be opposed and resisted in line with the party’s policy. It is understood that the Government’s proposals in general will be opposed, particularly those adding further Customs imposts to tea, sugar, and other articles, the increased cost of which will further in crease, the cost, of living. Amendments will be moved in the. Committee stages on the Bill referred tn.