NEW SOUTH WALES CABINET

Evening Star, Issue 23324, 21 July 1939, Page 9

NEW SOUTH WALES CABINET

CULMINATION OF CRISIS PUBLIC WORKS MINISTER RESIGNS GOVERNMENT NARROWLY ESCAPES DEFEAT Press Association—By Telegraph—Copyright SYDNEY, July 20. The crisis in the New South Wales Cabinet culminated to-night in the resignation of Mr E.S. Spooner, Minister of Public Works and Local Government. The trouble has been simmering for some time, having originated in the Premier’s efforts to restrict the scope of Mr Spooner’s activities on relief works and to transfer the control thereof to a sub-committee. A heated party meeting disclosed that Mr Spooner had many supporters.. It also revealed a threat by Mr Spooner to challenge Mr Stevens for the Premiership. There was a tense scene in the Assembly when the deputy Labour leader, Mr Baddeley, asked for an inquiry into a statement allegedly made to a colleague by Mr Spooner that the Budget and finances of the State had. been faked, which the Premier indignantly denied. The House divided on Mr Baddeley’s proposal, which was rejected by 112 votes to 29. It would have been carried except for failure of the division bell to ring in a room in which four Labour members were gathered and were thus unaware of the division. This saved the Government from a vital defeat. MR SPOONER'S EXPLANATION SYDNEY, July 21. (Received July 21, at 11 a.m.) Mr Spooner said the major issue was the Government’s policy on relief works. The plan for the control of his department’s expenditure was a minor issue, and he was not prepared to resign because of that. Mr Stevens expressed regret at Mr Spooner’s resignation. He said Mr Spooner appeared to treat a minor difference as a reason for resignation. Dealing with the reported statements about faked finances, Mr Spooner said he had had a talk with a member concerning variations in the budgetary items, but the newspaper reports had not given a correct interpretation of the conversation. “ The suggetion that there has been any manipulation of the accounts or of the Budget is ridiculous,” said Mr Stevens.