DEFEAT IN COMMONS.

New Zealand Herald, Volume LXVIII, Issue 20901, 17 June 1931, Page 9

DEFEAT IN COMMONS.

(LAND TAX AMENDMENT. LAN UNEXPECTED DIVISION. HOSTILE MAJORITY OF 24. / CRISIS NOT YET AVERTED. MINISTRY'S PREDICAMENT. By Telegraph—Press Associntion—Copyright. (Received Juno 10. 8.45 p.m.) LONDOX, Juno 15. There was much liveliness in the House of Commons today whilo the House was engaged on tho Committee stage of the Finance Bill. To the general surprise an amendment, which was moved by a Conservative member, to exempt agricultural land from the provisions of the land tax was carried against tho Government by 232 votes to 208. Amid Opposition cheers and cries of "resign!" Mr. Baldwin inquired of the Prime Minister, Mr. Mac Donald, what course he proposed to adopt. Mr. Mac Donald, in reply, pointed out that tho amendment was moved as a drafting amendment, which would have no bearing on the substance of the. bill. Tn these circumstances tho Government would accept the amendment and would examine it to see if it could be thus deFcrihed.

More shouting followed 1 his statement and a Conservative member attempted to provide the occasion for <a real test of strength by moving an amendment, which ho claimed dealt with a point of ' substance. Finally, Sir Arthur Stecl-Maitland, a former Conservative Minister, moved the closure, but tho Government ranks by then had been reinforced and the motion was defeated by a narrow majority, 246 votes to 232, thus reversing the result of :ho snap division. On (lie motion for the adjournment the Chancellor »of the Exchequer, Mr. Snowden, announced his intention of exempting from the land tax land occupied by friendly societies for investment purposes, lands owned by charities and public playing fields. The Governments sixth defeat since it came into office, combined with the differences between the Labour Party and the Liberals over the land tax, has accentuated the uncertainties of the political situation.

Many Labour members express the opinion that the Government may possibly bo defeated on the major issue this evening. On tho other hand tho Conservatives are still convinced that there will bo sufficient Liberal abstentions to avert defeat.