'Most Serious Rebuff'

Northern Advocate, 12 August 1948, Page 5

'Most Serious Rebuff'

The decision is regarded in Canberra as the most serious rebuff the Labour Government has suffered, say Canberra correspondents. Already there is intense speculation on the effect which the judgment will have on the Government’s election prospects next year and on the policy which it will pursue between now and the elections. The next Federal Cabinet meeting is set down for August 30 and the court decision is up for consideration then. It is not expected that there will be an earlier meeting, as points which have to be decided within the 14 days allowed by the court are legal and do not raise vital political issues, such as an appeal to the Privy Council. Whatever decision is made by Cabinet will be referred to caucus for approval on August 31, and the Federal Parliament reassembles on September 1. The Prime Minister (Mr Chifley) will return to Canberra from Melbourne today and will confer immediately with the acting Attorney General (Senator McKenna).

Political observers emphasise that, while the judgment raised important and intricate constitutional issues, the most vital decisions now facing the Government are of a political nature.

With only 13 months remaining be, fore the elections, the Government has to consider to what extent it desires its banking and nationalisation policy to be an issue on which that election is decided.

Party members now have no illusions about the extent of the spontaneous and angry, protests which greeted the proposals. Members with borderline seats are certain to have a strong voice in caucus.

The time factor is all„important, for an appeal to the Privy Council would keep the banking issue alive well into next year and an amendment of the 1947 act, precipitating another struggle in Parliament, would have the same effect.

There are many in the Labour Party who believe that no political good can come from an appeal to the Privy Council, which, in any case, is against official Labour policy.