CABINET CRISIS.

Press, Volume LXVI, Issue 20025, 5 September 1930, Page 11

CABINET CRISIS.

BALANCING federal ft? . ... BUDGET. OF STRENGTH [' j . - PENDING. OPBBSENTATIVE CONFERENCE SUGGESTED. LwiO S»*II9 dSOCIATtOS—BT ELECTSIC TELBOEWn-COPYUIOHT.) Received September 4th, 8.45 p.m.) j / SYDNEY, September 4. jne New South Wales branch of the •jktralian Labour Party has definitely . M itself behind the Federal Cab--1 fait Ministers who oppose the balancing J the Federal Budget by a reduct:on nfithe public servants' salaries. The . inch is looking to the Federal Labour ' fttigmentuy Party to devise means of jilting the Federal obligations other jujj by a reduction of workers' wages. the Minister for Health, Mr Frank i&tey, one of the strongest men in Cabinet and in the Labour Party, fleflared to-day that the outcome of tortjirow's Cabinet meeting at Mel- | which would be a trial of ! jirength between the two sections of tit Ministry, was "in the lap of the cods." Eflports from Canberra indicate that the dissenting section of the Cabinet distrusts Mr J. E. Fenton's (Acting- ' Zao Minister) ability to carry the ' Government through the stormy times [•'. whicli are looming ahead, h Mr Fenton'hints that the Ministry is S'Wite'd to act upon the suggestion of Iptjjj Australian Trades Union Council Kind convene a conference of represenptstivei of thd Government, industrial fi-wj employers' organisations, also the [ <; Associated Banks, to consider a reductite in prices, wages, and interest, also ■ ' t# Increase the Federal income tax.

THE COMMONWEALTH'S ' FUTURE. '< ItjSPßftT DISCUSSES PROSPECTS. flw'; * t(Baceived September 4th, 11.20 p.m.) SYDNEY, September 4. I Otto Niemeyer, prior to sailing -tytf NwZealand, assured the people £«l Australia that he was not here as '■ifijHreceiver. emphasised that no timo should giving .effect to the Melturtle .ConjpKaay, decisions. Hd saw -j§ young Australians frith the true civic spirit and ' intelligence to grapple • problems, for never was the , positiiKOT Australia so interesting. that the settlement of tM fMdebt had been favourable The rate of interest less than the British was paying, consequently no foundation at all for belief that Australia had fioij been so well treated as the other Jltanituong. ■ added that he did not think /Amtralia's position could be retrieved taxation. the chief remedy to reduce costs. He saw little : v ;|3*jpe of easier interest rates on future ;! s lwVersions, since Australia herself had ji&jwd them up to the present level. Li |B| ,</ * y'SCGGESTED HELP FROM ■&K<- t BRITAIN. II ' ' | : DISCUSSED IN «THE ' v. TIMES." BP. ' 1 ■■ *™" I September 4.th, 8.15 p.m.) LONDON, September 3. Editor of "The Times" ralian securities have been ■ influenced by reports indigreement In Commonwealth lircles regarding tbe bali Budget, and the reluctance nents to accept tbe neces>s. The suggestion that Mr n (the Prime Minister) relief from Australia's war it Britain rather than proal administrative economight hamper development sound one, for one of the istralia's troubles has been d expenditure on developshould be retarded till a ous time arrives. The con-over-trading are as bad for as they are for companies, n's own burdens make it tat she shourd pay the < ost n development and thus i Australians of the necesing their expenditure with- ' accepting additional taxaves. Australia could not war debts without injurlit. To falter in the task «elr affairs on a sound ecowhich hns begun none too undo the good already done trcfor the eventual work of Th* Times" Cables. AND INTEREST RATES. DISCUSSED. September 4th, 9.20 p.m.) September 4. Tranter, chairman of the Janks, commenting on the lade by Mr Duggan and leaders, that the banks e interest rates on over gages, and . deposits, said were done the banks would f fall, and in turn bring »f working-class people. It ribtite to the stability of the ihey could retain their deI face of open competition Nothing but an improve le could bring down the ipointed out that the Mel--3 of Works was to-day ofper cent, for a ten-year the Stock Exchange giltshowing a return of £6 3Qt. per year. The banks, * hand, were paying only cent, per year for short;™i Mid £5 5b for two year*

TAX ON WAGES. proceeds for unemployment Relief. (Received September 4th, 9.25 p.m.) -ADELAIDE, September 4. The Premier, Mr L. L. Hill, announced that the Government had decided to impose a tax on salaries at the rate of one shilling in the pound for the vt?, ain mne moilth s of the financial £1 ftnnnnn * taX is ex P ected yield s, 1,000,000 for unemployment. federal cabinet DIFFERENCES. CALLING OF SPECIAL SESSION. SYDNEY, September 4. The "Sydney Morning Herald" says: It is authoritatively stated in Federal Labour circles that the Federal Cabinet would refer the question of a special session of the Federal Parliament to a meeting of the Federal Labour caucus. i'he proposal to convene Parliament, it was stated, would meet with opposi tion from twenty-three federal members, representing New South Wales constituencies, who will command a majority, provided that they are supported by the two Australian Workers' Union nominee Senators, Messrs Dak and Barnes. An enquiry in Federal Labour circles indicated that the position in the federal Cabinet was extremely delicate. New South Wales Ministers and members maintain that a financial session wotild jeopardise the chances of the State Labour Party at the coming elections. because it would involve measures that would clash with Mr J T. Lang's promises. Unless some method of making good the alarming drop in Federal revenue is found which will not entail the reduction of the wages of Federal public servants, it is extremely likely that a section of the Cabinet will resign. The Leader of the Opposition, Mr Latham, declared that Parliament should be summoned immediately as the Government cannot possibly postpone the complete re-casting of the Budget much longer. He said that expenditure must be reduced substantially. The longer the delay the heavier will be the reduction. Mr Lnthnm said that the Opposition would support the Government in. any action necessary to carry out the undertaking given at the Melbourne Conference in the interests of nil sections of the community. AUSTRALIA HOUSE. REORGANISATION RECOMMENDED. CONDON, September 3. The Australian Press Association is reliably informed that in his report on Australia House. Mr P. Coleman, a member of the Federal Parliament, recommends reductions totalling £30,000 annually, the reductions to include all grades of reorganisation. The recommendations include the abolition of the office of Assistant-Secre-tary, a reduction in the Financial Adviser's salary, and co-ordination of the Trade and Publicity Departments. Mr Coleman further advises the desirability of grouping the AgentsGeneral under one roof, namely Australia House.

SIR OTTO NIEMEYER. RETURN VISIT TO AUSTRALIA. MELBOURNE, September 4. Sir Otto Niemeyer, at the request of the directors of the Commonwealth Bank, has decided to return to Australia at the end of the month, after visiting New Zealand. In making this announcement, Sir Robert Gibson said that the bank directors had the support of the Pre mierst' Conference Standing Committee in this request The directors have full regard for the financial position confronting Australia and the urgent necessity for clearing up the London position. SAILED FOR NEW ZEALAND. 1 # (Received September 4th, 8.45 p.m.) SYDNEY, September 4. Sir Otto Niemeyer sailed for New Zealand by the';Makura, which left this afternoon. ECONOMIES IN QUEENSLAND. BRISBANE. September 4. Important decisions made by the Queensland Government are that Government employees be exempt from the operations of award* "for a year, the State income tax exemption to be reduced from £250 to £l5O. that the railways superannuation scheme bo broneht into operation thnt consideration be eiven the question of exempting the goldmininpr industry from *he operation of award® and thnt million" of acres of land reclaimed from micklv pear be opened for selection at attractive rates. provid : ng it was made productive in five years.