Manawatu Evening Standard. MONDAY, MARCH 20, 1939. DISUNITY AT CANBERRA.

Manawatu Standard, Volume LIX, Issue 92, 20 March 1939, Page 6

Manawatu Evening Standard. MONDAY, MARCH 20, 1939. DISUNITY AT CANBERRA.

That relationships in the Federal Cabinet are far from harmonious has been borne out by the resignation from the Government of one of its strongest members, the At-torney-General (Mr R. G. Menzies), and if what close observers at Canberra predict comes true, there will be others taking- a similar course. There have been smile erings of unrest in the Cabinet for some months, and these have been brought to a head by the disagreement over social legislation, notably the proposed universal health insurance jilan. A delicate situation has arisen, too, because ot policy differences between a section of the United Australia Party members in the Cabinet and the Country Party Ministers. Un the one hand, Canberra lobbyists aver, is the belief that the Country Party is playing too big a part in the determination of the policy of the Government. On the other hand is the fear of Country Party representatives that they are gradually being- forced into the position in which they mayfind themselves saddled with responsibility for the collapse of important Government proposals or even of the Government itself if the present disunity continues. It has even been asserted that unless some way is found of composing these differences and normal Cabinet relations are resumed the Country Party may seriously consider withdrawing from the Cabinet.

The Government was reported a few weeks ago to have abandoned its health insurance plan. A recent cablegram stated, however, that it had agreed upon a compromise regarding this whereby old age and other pensions were omitted. Mr Menzies, who had earlier expressed disagreement with his colleagues on several matters of moment, particularly the question of defence, now characterises the omission ot pensions as “the last but weighty straw.” He has given up his portfolio, and with it the deputy-Leadership of the United Australia Party. The task of formulating an insurance plan acceptable to all sides, and workable, has not been an easy one. About twenty different schemes on national insurance have been prepared by the National Insurance Commission for the Government’s guidance. It

was recognised many weeks ag-o that whatever the outcome of the Cabinet discussions, a scheme less ambitious and less costly than that based on the recommendations of Sir Walter Rinnear (advising- the Government) would have to be proposed. The elimination of the pensions provisions is the outcome. A weekly unit contribution of one shilling* and sixpence was the original estimate and was considered too much; a shilling- was preferred in several quarters, but for popular support ninepence was advocated. This has been adopted. The decision now reached should greatly reduce the cost of the original scheme, and sickness and disablement benefits alone will fill a gap in the social services. Other services of the kind are provided by some States which pay widows’ pensions. Advocates of the reduced scheme have made a strongpoint of the fact that to begin well is to end well; that it is better to make a good start with a modified scheme and, if circumstances warrant, extend it to embody old age and other pensions, than see the whole structure topple because of the cost incubus. At the moment the details of the modified plan are not known, but it can be taken that there has been considerable pressure by back-bench members upon Ministers to put into operation some definite plan, even if modified, because of the promises given by members to their constituents that they would see the legislation enacted.