CABINET CRISIS

Evening Post, Volume CXXVIII, Issue 18, 21 July 1939, Page 9

CABINET CRISIS

N.S.W. MINISTER RESIGNS

RELIEF WORKS ISSUE

EFFORT TO RESTRICT ACTIVITIES

(By Telegraph—Press Association—Copyright.)

SYDNEY, July 20,

A crisis in the New South Wales Cabinet culminated tonight in the resignation of Mr. E. S. Spooner, Minister of Public Works and Local Government. The trouble, which had been simmering for some' time, originated in the efforts of the Premier, Mr. Stevens, to restrict the scope of Mr. Spooner's activities on relief works and to transfer the control of them to a sub-committee. A heated party meeting disclosed that Mr. Spooner had many supporters and also revealed a threat by Mr. Spooner to challenge Mr. Stevens for the premiership. SCENE IN ASSEMBLY. ' j There was a tense scene in the Legis- j lative Assembly when the deputy-' leader of the Labour Party, Mr. J. M. j Baddeley, asked for an inquiry into a statement alleged to have been made by Mr. Spooner to a colleague that the Budget and finances of the State had been faked, a charge which the Premier indignantly denied. The House divided on Mr. Baddeley's proposal, which was negatived by 32. votes to 29, but it would have been! carried except for the failure of thej division bell to ring in a room in which j four Labour members were gathered.! They were unaware of the division,! which saved the Government from a vital defeat. Mr. Spooner said that the major issue i was the Government's policy on relief] works. The plan for control of his j Department's expenditure was a minor i issue, and he was not prepared to re- i sign because of that. THE PREMIER'S REGRET. Mr. Stevens expressed regret at Mr. Spooner's resignation, and ' said that Mr. Sponer appeared to treat a minor difference as a reason for resignation. Dealing with the reported statement about faked finances, Mr. Spooner said he had had a talk with a member concerning variations in budgetary items, but that the newspaper reports had not given a correct interpretation of the conversation.

"The suggestion that there has been any manipulation of the accounts or of the Budget is ridiculous," said Mr. Stevens.