MY RESIGN

New Zealand Herald, Volume LXXVI, Issue 23284, 1 March 1939, Page 11

MY RESIGN

INSURANCE SCHEME SPLIT [WITH CABINET POSSIBLE NEW GROUP By Telegraph—Press Association— Copyright (Received February 2s, 10.15 p.m.) SYDNEY, Feb. 28 The endorsement by a joint party meeting at Canberra to-morrow of the Federal Cabinet's decision to abandon the national insurance scheme will be followed immediately by the resignation of the AttorneyGeneral, Mr. R. G. Menzies, deputyleader of the United Australia Party in the Commonwealth Parliament, says the Sun.

The paper adds that Mr. Menzies will have the support of a strong section of his party to form a corner bloc, which will hold the balance of power on all questions on which the Government does not have the support of the Opposition. This development is regarded as the first definite stage of disintegration of the Lyons Government, and will probably result in the Prime Minister seizing a favourable opportunity for an appeal to the country. The Premier of New South Wales, Mr. B. S. Stevens, to-day equalled the record of the late Mr. W. A. Holman by being Premier for six years, nine months and 15 days, and to-morrow he will have broken the record. Political observers consider Mr. Stevens will have entered Federal politics by the end of the year, if not sooner. A cablegram yesterday stated that the Federal Cabinet's decision to abandon the scheme was made against the strong advice of Mr. Menzies. It was understood that the decision was not unanimous, but that Ministers who opposed the repeal of the National Insurance Act agreed to abide by the will of the majority.