FORCINIG A CRISIS

Evening Post, Volume CXXVIII, Issue 47, 24 August 1939, Page 15

FORCINIG A CRISIS

WHEAT PLAN ISSUE

ViCTORIAIN PREMIER'S STAND

REFUSAL TO JOIN

(From "The Post's" Representative.) SYDNEY, August 18. The first attempt by the Commonwealth Government to persuade the six State Governments to join it in a national plan to finance assistance to wheat growers for the 1939-40 harvest failed because of the uncompromising opposition of the Victorian Premier, Mr. Deinstall. A conference of the Premiers in Melbourne broke down when Mr. Dunstan refused his State's co-operation. Four States—New South Wales, South Australia, Western Australia, and Queensland, in that order of importance as wheat producers—agreed to co-operate. The remaining State, Tasmania, is of so little importance in the wheat industry, its production being negligible, that it does not matter wthat it does. In the hope that Victoria's attitude may change, the conference was postponed to August 28, the decision being made as a last-minute effort to retrieve i the plan. If Victorian non-co-opera-'*j tion continues, the four assenting I States and the Commonwealth will i consider whether they can put the plan into operation, but it is believed that such a plan will be impracticable, if not unconstitutional. THE FEDERAL PLAN. The Prime Minister. Mr. Menzies, ; submitted to the Premiers' Conference 1 the Federal plan to ensure an average return to wheat growers of 3s 4d a bushel at ports (about 2s lOd at country railroad sidings) on a marketable crop of 140,000,000 bushels, the average over the last five years. Salient features of the Federal plan were: —The plan is to. begin with the 1939-40 season; the Commonwealth and States should find, on a 50-50 basis, £3,500,000 to provide the necessary subsidy; the present flour tax shall not be used to raise the average price above 3s 6d; an export tax on wheat will operate when the price at ports exceeds 3s 6d a bushel; adoption of the plan will depend on the State's willingness to control production in some way. In an effort to save the conference, Mr. Menzies, as a conciliatory gesture, offered another £250,000 from' the Federal Government, making that Government's contribution £2,000,000 and the States' shares: New South Wales, £500,000; Victoria, £375,000; South Australia, £250,000; Western' Australia, £200,000; Queensland, £100,000; and ■ Tasmania, £5000. The flour tax, operating on a sliding • scale according to world parity of • wheat, brings in between £3,500,000 ; and £4,000,000 each year. Thus the • total contribution by the community ' to the wheat farmers will be between r £7,000,000 and £7,500,000 yearly. > THE MOTIVE POLITICAL. [ The Victorian Government strongly '■ » holds the view that the responsibility ■ of assisting in a time of grave emer- , gency the wheat industry, which is > national in character, is one exclu- | sively for the national Government. ' Mr. Dunstan says it will not review ; its attitude before the reassembling of - the Premiers on August 28, and the : collapse of the conference then is ex- ' pected. , The motive behind Mr. Dunstan's ■ stand is political. He wishes to confront the Commonwealth with the " alternatives of accepting responsibility ; for the whole of the financing of the plan or of facing a serious threat in the Federal Parliament. He is leader of the Victorian Country party. Mr. Menzies is at loggerheads with the Federal Country Party, which refused to co-operate in the .Ministry when he succeeded the late Mr. J. A. Lyons as leader of the United Australia Party. Mr. Dunstan retains office in Victoria only with the collaboration of the Labour Parties. In the Federal Parliament, the Labour Party is the Opposition, and the United Australia Party governs only with the voting support of the Country Party. The attack on the Federal Government, if it develops, will be a combined Country Party-Labour Party move. Moves have been on foot for several weeks to draw the Labour Party and Country Party in the Federal sphere closer together on the lines that exist in Victoria. Mr. Dunstan 1 is said to be keenly interested in these manoeuvres. Moreover, a traditional T hostility between the Federal and Victorian Country Parties is said to be breaking down.