ACUTE CRISIS

Manawatu Standard, Volume IV, Issue 210, 6 August 1931, Page 7

ACUTE CRISIS

POSITION IN N.S.W. EMPTY TREASURY. LOAN COUNCIL REFUSES AID. (United Press Association.—By Electric Telegraph.—Copyright.) Received August 6, 10 a.m. SYDNEY, Aug. 6. The State Government is faced with the most acute crisis since it assumed office. There will be no Public Service salaries paid to-day. The Upper House declined to depart from its attitude toward the Salaries Reduction Bill, the Council insisting on its amendment on the ground that under the constitution it is entitled to amend any legislation. The Loan Council, meeting at Melbourne, decided to refuse to advance Mr J. T. Lang any money until he fully complies with the Melbourne agreement. The view was expressed by the Treasurers that Mr Lang must meet his public service payments the best way he can. There was not sufficient money in hand yesterday to pay the salaries and wages of the staff of the Royal Prince Alfred Hospital. The chairman of the board of directors stated that the quota from the Government was £IOOO short in July. The hospital was steadily falling into arrears, the amount owing to tradesmen, etc., being about £15,000. An earlier Sydney message stated: With an empty Treasury, Mr Lang found it necessary to instruct the heads of the Government departments to withhold salary payments from the officers of the Public Service. The wages of men on industrial services are to be paid as usual, also the police. Ministers and members of Parliament aro not affected by the empty Treasury as they received their monthly cheques on August 1. Tne existing state of affairs was referred to in blunt terms by Mr T. 11. Bavin, Leader of the Opposition. Speaking in the Legislative Assembly, he said: “I hold in my hand a circular issued by the Treasury, ordering the withholding of the Public Servants’ salaries for the time being. This emphasises the seriousness of the Government’s position, which is entirely due to the senseless action of the Premier. He is pursuing a bombastic course, arising from egotism and stubbornness —a course which has brought the country to its present condition of degradation. My suggestion is that if he cannot govern he had better make way for a Government that can.”

In the Legislative . Assembly, Mr Lang moved a motion disagreeing with the Legislative Council’s amendment to the Public Salaries Reduction Bill, and the motion was carried on a party division by 47 votes to 34. Mr Lang said it was quite evident that the Legislative Council was assuming unto itself the right to govern the country. The Government had purposely drafted its taxation Bills so that the burdens would fall on the shoulders of those best able to bear them. Indeed, the Government was definitely pledged not to attack the wages of the lower-paid people in the community, but the Legislative Council had entirely defeated this object, first by throwing out the Emergency Taxation Bill, and now by so mutilating the Public Service Salaries Bill that if the Government accepted the amendment it would be tantamount to admitting that the standard of living in New South Wales was too high. Mr Bavin said that the Premier’s criticism of the Upper House was unworthy. INTEREST REDUCTION. SYDNEY, Aug. 5. The Commercial Banking Company of Sydney, Limited, announces a reduction of interest on overdrafts of 1 per cent, from August 1. N.S.W. BREAD SCHEME. GOVERNMENT CRITICISED. SYDNEY, Aug. 5. The Lang Government is now in hot water for giving the huge bread contract to Shadler’s, Ltd. Shadler’s were relying on the master bakers supplying bread, but the latter are boycotting the scheme, asserting that the price is unpayable. Unemployed families are thus finding it difficult to obtain bread with dole coupons. The bread trade is so dislocated by the dispute that the master bakers have given notice of dismissal to 500 carters and scores of operatives. The matter was mentioned in Parliament to-day. Mr Lang declared: “The people shall have bread!” He threatened to take action against the millers for withholding supplies of flour.