VICTORIAN CABINET.

New Zealand Herald, Volume LXVI, Issue 20307, 15 July 1929, Page 11

VICTORIAN CABINET.

THREE MEMBERS RESIGN. GUARANTEE TO A COMPANY. At. a meeting of the Victorian State Cabinet on July 1 three members of the Ministry handed their resignations to the Premier, Sir William McPherson. They wcro Mr. R. G. Mcnzies, M.L.C., honorary Minister; Mr. Saltau, M.L.C., honorary Minister, and Mr. Kent Hughes, secretary to the Cabinet. The resignations were the outcome of the decision of the Ministry to renew a bank guarantee of £60,000 to the Amalgamated Freezing Company, which carries on operations in several country centres. This guarantee has been extended to tho company by previous Governments. Later in the evening Sir William McPherson announced that the places of the honorary Ministers had been filled by the appointment of Messrs. Brawn and Alan Clinic, both of whom arc members of the Legislative Council, and that Mr. Knox, M.L.C., had been appointed secretary to tho Cabinet in place of Mr. Hughes. Tho freezing company sought a continuance of its guarantee up to £60.000 against losses to enable it to operate during the coming season and the Government had agreed to grant a renewal. On the ground that this decision was uneconomic and was prompted by a desiro to yield to political consideration the three members intimated that they could no longer remain in tho Ministry. Jhe company, they contended, had already drawn heavily from the Treasury. The Premier inlinuitcd after the meeting that the Government had considerable financial interests in tho freezing company. Tho Government felt that to refuse to renew the grant which was given by the last Government Would result in closing down the works and the absoluto loss of money which had already been advanced. Although the matter should rightly have come before Parliament the Ministry felt that it was one of great urgency and that to enable tho company to continue operations an immediate decision wus necessary. Ho very much regretted to have to announce tho resignations.