AUSTRALIA’S TURMOIL

Hawera Star, Volume L, 25 February 1931, Page 5

AUSTRALIA’S TURMOIL

CLASH IN LABOUR CAMP LANG’S LONE HAND PLAY BITTEIR CONTROVERSY RAGING. (Urnteu Pr esa Association —By Electric SYDNEY, Feb. 24. The {political turmoil m Australia shows no signs of abating. It is most, clittioult even for those well-verse<l in Jjaitour si methods to size up the situation correctly: In tuo clasn between the Now South w ales executive and the Federal executive of the Labour Party arising out of tne East Sydney by-election, and Mr Lang’s resolve to -play a lone hand with regard to finance, the latest development is a meeting held to-day of certain New South Wales members of the House of Representatives, who expressed a determination to take no part in the by-election owing to the spurious issue upon which it is being fought. They are prepared to risk, their political fate. On the other hand, Mr Kenneally, .president of the Federal Executive, is reported asi saying he would recommend .the'expulsion of -those Federal Labour members who do not take part in this campaign. Thus the result of the by-election will have an important bearing on future developments in the Labour camp. Mr Lang’s policy speech last night caused an avalanche of criticism in the Press, which generally denounces it. Public, attention is how focussed on the conference between the bankers and Federal Ministers at Melbourne, which is expected to reach important conclusions on the financial situation.

A message from Hobart states that Mr J. A. Lyons, who recently resigned his portfolio of Postmaster-General, and another Tasmanian member, Air Guy, are in danger of being expelled by the Labour executive, which has asked them to explain their recent actions in the Federal sphere.

“MERE KITE FLYING” The full Arbitration Court has disallowed an application on behalf of the Commonwealth Government for an adjournment until the end. of March of the recent 10 per cent, wage cut ordered by that Court, says a Melbourne message. . . , . . After a four-hour meeting of Cabinet at Melbourne last night, the Prime Minister, Air J. H. SoulJin, was reticent. He denied that the Ministry was likely to accede to the demand for a reduction of public service salaries, remarking that the suggestions on the' matter were mere kite-flying. He declared that the Cabinet meeting was not an emergency one, but was called merely to discuss the financial situation. He also declined to say whether Air J. A. Beasley, the junior Minister who opened the East Sydney campaign for Labour, had been invited.

Mr Scullin said he had not heard of a circular letter sent by the New South Wales Labour Party urging the State and Federal Labourites to support Mr Lang’s plan. -He added that he could not say if he would take action thereon.

It is rumoured that the Government will agree to the hanks’ demand for a reduction of civil servants’ salaries and allowances, hut will suggest the postponement for one year of the question of a, Bill cutting down old age, invalid and Avar pensions.

BANKERS DEMAND ECONOMY 'Tfnitwi PrfM* An»ncifltk»u—Bv KWtrio TVieirrapb Copy right, i MELBOURNE, Feb. 24. The bankers’ conference has ended. They have forwarded a, letter to Mr Scuillin embodying their conclusions, upon which there is no official statement, hut it is understood they insist on rigid -economies in public expenditure, including pensions, and decline to support Mr E. G. Theodore’s plan for a restoration of the 1929 price levels.