SHAKY MINISTRY

New Zealand Herald, Volume LXXVIII, Issue 24009, 5 July 1941, Page 12

SHAKY MINISTRY

MENZIES CABINET . \ FUTURE UNCERTAIN ■ m ,\ , tOTJR DEFEATS IN NIGHT if ' UNEASINESS APPARENT By Telegraph—Press Association— Copyright (Reed. 12.25 a.m.) CANBERRA, July 4 The Federal Parliament went into recess last night until the end of - August after one of the stormiest ■weeks of its career, affording a wel- *•" come breather for what has come to be regarded as a shaky Ministry. The four defeats in the House of Representatives last night clemonetrated that the Government's position is pathetically weak. The Ministry's troubles are contributed to from the Government side, these having developed since the recent Cabinet reshuffle. Last night's voting

made it clear that the Government no

longer can depend on the Victorian V Independent, Mr. Wilson, to retain its •f slender majority. Whenever he votes * with the Labour Party the Ministry Buffers a defeat. Possible Reconstruction Federal Ministers are frankly uneasy is over the trend of events, and the demeanour to-day of some of the senior members of the Cabinet suggests that A it would take little to push them into A- L a general election, even at the risk of political suicide. Some are known to hold the view that if the position continues to deteriorate, the reconstruc•fp tion of the Cabinet, with Mr. Menzies .. no-longer Prime Minister, might with advantage be explored. Discussion in the lobbies reveals that there is a real possibility of a Govern- . ment. defeat during the forthcoming Budget session, when the Labour Party is expected to fight for increased social expenditure. Mr. Menzies has weathered the storm reasonably well, although he is obviously feeling the strain of continued heckling and overwork. Attacks on Mr. Mensies

»■ Mr. J. A. Beasley (left-wing Labour), ■who is a member of the Advisory War is the Government's most consistent and caustic critic. Mr. Beasley, in the course of his speech in the House of Representatives on Wednesday night in condemnation of the alleged lack of proper equipment of troops abroad, quoted Mr. P. Fraser's remarks of assurance to the New Zealand troops in Cairo that when next they went into the field adequate air support' and ground equipment would be provided, and also Brigadier L. M. Inglis on the same subject. Another New South Wales Labour member, Mr. J, S. Rosevear, made a personal attack on Mr. Menzies, who, he said, had failed to tell Parliament » since his return from London anything |it did not already know. The farcical * secret session of Parliament recently, | with its air of mystery, had one specific 0 purpose—to build up the Prime Minister's reputation, winch had sunk low in political estimation. |f: Independent Supports Labour ffc' The Government was defeated four times in the House of Representatives #», late list night, Two of the defeats were on policy issues, relating to the war , effort, finance and subversive statements. Private members' motions led to the defeats. Three divisions were won by Labour by one vote on each occasion. Mr. A. Wilson, the Victorian Independent, who holds the balance of power, voted with the Labour Party. A motion relating to war finance was carried on the voices. This motion demanded the disallowance of a Ndtional Security Regulation authorising the Commonwealth Bank to guarantee advances b ( y private banks to producers of essential articles. * Mr; Beasley complained to the Prime Minister that the major portion of Wednesday night's debate had been Censored without justification. Censorship Condemned ® - Mr. Menzies admitted that somebody had blundered-in issuing a blanket censorship order, and he promised to make immediate inquires now that came about. * < v Mr. A. G. Cameron, former leader of the Country Party: This is another extreme example of blundering on the part of the censorship, which in Australia is founded on entirely wrong 1 ' principle#* Mr. Menzies revealed in the House that Mr. J. Curtin, Leader of the Opposition, had acquiesced in the selection by the Government of the chairmen of O the new Parliamentary Committees. . " The announcement surprised Labour members, and an amendment, which ;+ had been moved by Mr. Beasley, providing that committees should select '-•* their own chairmen, was withdrawn. Mr. Curtin was not in the House, and the deputy-leader of the Labour Party, HP Mr. F. M. Fofde, said that he had not known of the agreement. P... - CREDIT EXPANSION RISK OF RIGHER PRICES COMMONWEALTH POLICY '{Reed. 5.35 p.m.) CANBERRA, July 4 The Government. will risk some upward pressure of prices by taking larger Advances from the Commonwealth Bank, said Mr. A. W. Fadden, Federal Treasurer, in a preliminary review of the Commonwealth finances for the year 1940-41. Mr. Fadden said that, allowing for subscriptions to loans, war savings and the yield from existing taxation, there would be a gap of about £60,000,000 to be financed. This made no provision for expenditure overseas. "Under the war conditions of the _. last two years ive have made a considerably expansion of credit," he said. "If the needs of the country require more spending power than is provided by , other factors, then the Government M will expect the Commonwealth Bank •'i to take direct means to make up the deficiency: The need for increased 'v spending power in the community above •what is provided by natural processes is the measure of the extent which the Commonwealth Bank can provide directly for the financial needs of the Government.

"Because of the urgent needs of war •finance We are, and shall be, pushing this amount upward to the limit of safety. That is to say, -we shall risk some upward pressure of prices rather than run any risk of not having in the community enough spending power, whether public or private, to use all our resources to the very fullest degree possible." Mr. Fadden has confirmed the appointment of Mr. H. T. Armitaee, deputy-governor of the Commonwealth Bank," as governor.