BY THREE VOTES

Evening Star, Issue 24007, 4 October 1941, Page 8

BY THREE VOTES

FEDERAL GOVERNMENT . DEFEATED PRIME MINISTER ANNOUNCES RESIGNATION LABOUR EXPECTED TU FORM CABINET Press Association—By Telegraph—Copyright CANBERRA, October 3. The Fadden Government was defeated on the censure motion by 36 to 33, the two Victorian Independents, Messrs A. W. Coles and A. Wilson, voting with Labour. Mr Coles told the House that his decision was taken to end the unstable control of tho war effort. Mr Wilson said that if Labour could form a Government be would support it. Mr Fadden handed his resignation to the Governor-General, Lord Cowrie, and, it is understood, suggested that Mr Curtin, the Labour Leader, should bo sent for. The Leader of the Opposition, Mr J. Curtin, who was interviewed, said ho was convinced that Labour could form a stable Government and would willingly accept a commission. THE DEBATE. Mr Coles startled tho House when ho announced his intention to vote with Labour in order to obtain a stable Government. He admitted ho had very little objection to tho Budget. He regarded Mr Curtin’s amendment not as censure of the Ministry, _ but against the impossible position in which the Ministry found itself. The Government had shown that it did not have the numbers necessary for proper control of the war effort. The public was demanding that tho House should bo cleaned up.

The Minister for the Army, Mr P. C. Spender, interjected: You are the biggest place-seeker hero.” Mr Coles .said the Government position was degraded since it deposed Mr Menzics and became associated with, the secret fund scandal. Lie had no fault with Mr Fadden, whose ability ■was unquestioned; nevertheless, it was impossible to except a responsible Government with the Opposition practically as strong as the combined Government parties. Uproar followed when Mr I' adden interjected that Mr Coles had demanded a seat in the Cabinet as the price of his support. _ Mr Coles replied; “ That is a lie. During the debate Mr A. W. 1 adden said it could not be denied that the Federal Government’s Budget was a wage-earners’ Budget if it was compared with that of New Zealand. 11 The last New Zealand Budget included a national security tax of Is in the £ on all incomes, without exemption. Let us compare that national security tax with our own scheme. If- we had a tax of Is in the £ on all incomes we would get £28,000,000 from lower incomes. The £10,000,000 raised in New Zealand by the national security tax was not a loan. It was a straightout tax. The Federal Government has_ instituted a compulsory loan to alleviate as muck as possible the burden of taxation. We recognise that to get the money for this war from taxation might be disastrous.” Mr F. M. Forde, Deputy Leader ot the Opposition, replying to Mr Fadden, said the Prime Minister, in comparing Federal taxation with that of Zealand, had not given Australian taxation and had quoted Federal tax rates only. Federal and State taxes together would far exceed that of New Zealand. Mr Forde charged the Government with not making sufficient use of the Commonwealth Bank for war work and reproductive work. the independents. The Minister for Labour, Mr H. E. Holt, replying on behalf of the Government, said Mr Coles, after being elected as an Independent, swung behind the United Australia Party. He then became a protagonist for a National Government, but afterwards changed those views till later he was the only man who walked out of the joint party room when Mr Menzics resigned and members generally pledged their loyalty to Mr Fadden. air Coles had an unbalanced, irresponsible political mind, and the Labour Party should be careful about accepting assurances from Hr Wilson left no doubt about his attitude when he said. “ aiy sympathies have always been with the Labour Party, and I have never had much ©nthusiasm for the Government s policy, which was lopsided.” Mr Wilson added that he had no complaint about the £322,000,000 budgeted for by the Treasurer, but he did complain about the methods by which the money was to be found. then proceeded to analyse the weaknesses of the Government’s faxing methods and its failure to give adequate attention to rural interests. Two important critics of the Budget to-day were Messrs .T. A. Beasley and Dr Evatt. They were followed by the Minister for the Army. Mr Spender, who twitted Labour with office-seeking under the guise of dissatisfaction with the Government. Mr Spender declared that the militant sections of Labour in New South Wales were concerned only with gaining power and had brought the utmost pressure on the Federal Opposition for weeks past to oust the Government.

PUBLIC’S REACTION CHANGE REGARDED AS INOPPORTUNE MAGNITUDE OF MR CURTIN'S TASK (Rec. 8 a.m.) CANBERRA, Oct. 3. The fall of the Fadden Composite Government, although not entirely unexpected, has been received with mixed feelings outside Parliament. There is no doubt as to how financial and vested interests regard the position following Labour’s repeated criticism of the banks and the big industrial organisations of the type of the Broken Hill Proprietarv Company. It would also appear that there is a very large section of the Australian people who are at a loss to understand what good purpose can bo served by a change of Government at the present juncture, who are most anxious that Mr Fadden should be given a proper trial, and who are convinced of his capacity to lead the nation successfully and worthily. However, Labour, by reason of equal numerical strength and the insistent demand of the New South Wales unions, had long since resolved to displace the Government. Its chance came to-day, and, with the aid of two Victorian Independents (Messrs Coles and Wilson) it defeated the Government on Mr Curtin’s amendment to the Budget by 36 votes to 33. Mr Fadden to-night waited on _ the Governor-General, tendered the Ministry’s resignation, and advised him to commission Mr Curtin to form a new Administration. , At the same time he assured His Excellency that his party was prepared to extend to the new Government the fullest support in its war effort. In a statement Mr Fadden acknowledged the great co-operation received from Mr Curtin, the magnitude of whose task could not possibly be underestimated In adding that his party would extend to the new Government general support towards implementation of the war effort, he said; “ I am fully appreciative of the loyal co-operation which the Labour Leader extended to my Government in the prosecution of the war, and to myself while I was Acting Prime Minister." At the same time 1 do not consider that the war emergencies of the nation should be used as instruments to advance a peace-time policy I directed at a revolutionist ultimate 1 financial structure. I “ Although the Government was not ! actually defeated on the Budget, the | opportunity was used to create a vital , issue. Even Mr Coles admitted that ■ he had ho fault to find with the Bud- ; get. His complaint was of the Government’s instability. It is now for Mr Coles to reconcile his statement with the platform and policy of the Labour Party, and for the Labour Party to accept Mr Coles as a supporter in the light of his own statement. Whether Labour will get better co-operatipn from him than my Government remains to be seen.” I A later message says Mr Curtin accepted the commission, and that a caucus will select the Labour Ministry on Monday. Sir Earle Page is being recalled from overseas.