CABINET CRISIS IN AUSTRALIA

Press, Volume LXXIV, Issue 22580, 9 December 1938, Page 13

CABINET CRISIS IN AUSTRALIA

HITCH OVER. NATIONAL

INSURANCE PLAN

MINISTERS’ RESIGNATIONS

AVERTED

(UNITED PRESS ASSOCIATION—COPYRIGHT.)

(Received December 8, 11.30 p.m.)

SYDNEY, December 8

The Canberra correspondent of the Sydney “Morning Herald” states that the Lyons Government is facing the most serious crisis that has arisen since it was elected to office. This critical situation has been forced by differences , over what should be tbs fate of the national insurance scheme, and it is believed that it may lead to the resignation of the Attorney-General (Mr R. G. Menzies), and possibly the Federal Treasurer (Mr R. G. Casey).

The only alternative to this appears to be the adoption of a course in the House of Representatives that may lead to the defeat of the Government on an issue sufficiently vital to force an election —the question of the exemption of rural - industries from the insurance scheme.

After a meeting lasting 14 hours, the Ministers broke up at 2.15 a.m. to-day, without having found a way out of the impasse. The Cabinet later to-day decided to drop the National Insurance Bill, which required contributions to begin next May, and to delay the proclamation of the original act until probably May or June of next year. This decision, says the Canberra correspondent of the “Sun,” solves the problem of the threatened resignations of Mr Menzies and Mr Casey.