POSITION IN AUSTRALIA

Otago Witness, Issue 4038, 4 August 1931, Page 25

POSITION IN AUSTRALIA

FINANCIAL STRESS. MR LANG ACCEPTS CONDITIONS. CANBERRA, July 29. Mr Scullin has received the following telegram from Mr Lang: “ Replying to your wire, I undertake, on behalf of my Government, to meet the conditions stipulated. Please expedite provision for July requirements.” In the House of Representatives Mr J. H. Scullin announced that he had eent a telegram to Mr Lang conveying the terms on which the Loan Council Was prepared to provide temporarjfinancial assistance to the New South Wales Government—namely, that Mr Lang must join the Loan Council, he must actually pass and put into operation the Premiers’ Plan, embracing a 20 per cent, reduction of adjustable expenditure, and must undertake responsibility for the payment of interest on the public debts of New South Wales. Mr Scullin added that if Mr Lang complied with these conditions the Loan Council would approve of the issue of Treasury bills covering the requirements of New South Wales for July, but so far as the August requirements were concerned that matter would be dealt with by the council at its meeting in August. SALARIES OF JUDGES. SYDNEY, July 29. The Government has received notification from the members of the Supreme Court Bench that they accept voluntarily a temporary reduction of 22J per cent, in their salaries. The Governor has already made a 25 per cent, cut in his salary. SYDNEY CITY COUNCIL. SYDNEY, July 29. The Lord Mayor’s minute cutting wages and salaries from 8 1-3 to 25 per cent, was carried by the City Council. WATERSIDE WORKERS. CANBERRA, July 29. The Senate to-day, for the eighth time,, disallowed regulations affording members of the Waterside Workers’ Federation preference of employment on the waterfront. FEDERAL POLITICAL ARENA. CANBERRA, July 30. A Federal political crisis is imminent as the result of the Opposition’s attitude in attempting to restrict supply for three months. A climax was reached to-day' with dramatic suddenness when, after an allnight sitting, Mr Lyons, Leader of the Opposition, moved an amendment to the Appropriation Bill reducing the amount by £16,500,919. Mr Lyons explained that the object was to limit supply to three months instead of 12 as proposed, in view of the extraordinary circumstances in which the country was involved. Mr Scullin declared that the Government would not accept the amendment, which was most humiliating. He pointed out that the Government had no intention of going into recess for 12 months, as was perhaps anticipated. He had not the slightest doubt that the move to restrict supply originated in more astute minds than that of Mr Lyons, and was indeed aimed at preventing the rehabilitation plan from being brought to fruition. The Opposition forces were partners in the plan, and should stand by the Government. If the amendment was agreed to then the conversion loan must fail. It was quite impossible to attempt to restore confidence while somebdy was standing behind with' a dagger. No self-respecting Government would treat the amendment as anything but one of no-confidence, as the gesture was tantamount to saying that the Government could not be trusted. However, the Government intended to carry out the plan or go to the country and enlist the help of the people.

THE AMENDMENT DEFEATED. CANBERRA, July 30.

Mr Lyons said that the Opposition had no intention of defeating the Government, but as the Opposition was a partner in the rehabilitation plan it should at least have the opportunity of having the plan carried out in its entirety. It was. only with the help of the Opposition that the plan had come before Parliament.

Mr Paterson, deputy leader of the Country Party, said his party intended to vote against the amendment, which, if successful, might induce a selfish bondholder to dissent from converting in the hope that the Government might treat him more leniently. The whole rehabilitation scheme might be endangered if a general election was precipitated.

Mr F. Al. Forde (Minister of Customs) said that Mr Lyons’s move was inspired by the banks, which desired to avoid reducing interest, and by bondholders who* wanted to avoid making sacrifices. ..

The closure was applied and Mr Lyons’s amendment was defeated by 34 to 19, the Country Party voting with and saving the Government. The Beasley group left the chamber. The Prime Minister announced amidst the greatest disorder that conversion operations had been indefinitely postponed as the Government was awaiting the fate of the Appropriation Bill in

the Senate. According to well informed people the Senate will reject it. SALARIES REDUCTION. SYDNEY, July 30. The State Labour Caucus approved of the Salaries Reduction Bill, which was submitted by Mr Lang as part of the economy campaign measure which is being introduced in the Assembly to-day. It provides that the salaries of judges, ministers, and members of Parliament, with Government officials, shall be reduced to £5OO per annum. Civil servants receiving between £5 and £lO per week are being reduced 20 per cent., but there will be no reduction in the wages of less than £5 per week. An unemployment tax of Is in the pound will also be imposed on those receiving more than £5 a week. The judges’ salaries range from £2600 to £3500 a year. Mr Lang estimates that the Bill will save £1,500,000. In the Assembly the Public Service Salaries Reduction Bill is now in the second reading stage. The Premier is rushing it through to-night, and the Opposition are indulging in trenchant criticism. A united protest has been received from the judges. Mr Flynn, the Public Service Association secretary, commenting on the Bill, said it would sound the death knell of Labour for a generation. SYDNEY, July 31. The Salaries Reduction Bill passed the second reading in the Assembly. The Bill passed the Assembly and is now before the Legislative Council, where leading counsel addressed members on behalf of the Crown Employees’ Defence Association, expressing uncompromising hostility to the measure. SYDNEY, August 1. After the second reading speech of the Vice-president (Mr Concannon) in the Council, the debate on the Salaries Reduction Bill was adjourned until Tuesday. Mr Concannon stated that the lowerpaid civil servants would suffer salary reductions if the Bill did not effect the anticipated saving in Government expenditure. CONSTITUTIONAL POSITION. LONDON, July 29. In the House of Commons Mr G. G. Mander (Lib.) asked Mr Thomas what communication he had had with the New South Wales Government regarding the constitutional * position there and whether he could make a statement thereon. Mr Thomas said: “ Certain representations have been made to me by the Agent-general by the instructions of his Government. The matter is still under my consideration.” BANK MERGER NEGOTIATIONS. SYDNEY, July 30. Sir Robert Gibson, chairman of the Commonwealth Bank Board, announces that the negotiations by the Commonwealth Bank for the absorption of the New South Wales Government Savings: Bank are definitely off. He says that' 1 the atmosphere created by the New South Wales Government is such as precludes the Commonwealth Bank, in the national interest, from being further involved in the affairs of the State Savings Bank. A long statement by Sir Robert reviews events prior to the Savings Bank closing its doors on April 23, and also the subsequent negotiations for a merger with the Commonwealth Bank. He mentions that the Savings Bank was undoubtedly prejudiced by the Lang Gov ernment’s failure to meet its interest obligations, while later the Premier sought to make the merger terms a shuttlecock of politics. Sir Robert - denied that the terms were harsh; on the contrary, they were the best possible in the exceptional circumstances. The Premier had, according to reports, provided a biased criticism of the merger terms, revealing beyond doubt that the State Government had failed to realise the seriousness of the financial position. Air Hall, president of the Government Savings Bank and Rural Bank, informed Mr Lang by letter that if financial assistance is not forthcoming immediately the Rural Bank must default, being unable further to help farmers.

OVERSEA INTEREST PAYMENTS. CANBERRA, August 1. The Commonwealth Government has received written assurance from Mr Lang that he would assume responsibility for the two oversea interest payments due by his State during the next two weeks

ITWERAb wVERNMENT TO FIND THE MONEY. CANBERRA, August 2. The Federal Government has arranged to meet interest payments totalling £632,000 due in London and New York by the New South Wales Government at the end of July. Mr Scullin found the Commonwealth Bank unprepared to make the necessary advance to New South Wales, so he agreed to meet the liability, but the State is asked to refound the amount as soon as funds are available.

HAULAGE OF COAL. ' SYDNEY, August 1. The State Government has decided that the subsidy to the Railway Com missioners for the haulage of coal at •heaper rates shall bp continued until December 31. This reversed decision is

due to strong representations from the Miners’ Federation and the coal owners

MEAT BOARD APPOINTMENT. SYDNEY, August 1. The Lang Government has restored Mr A. Kay to a seat on the Metropolitan Meat Board. He was originally a mem her of this board, being a Lang appointee, but the Bavin Government removed him. Since then Mr Kay has been a prominent Domain Labour orator. His reappointment is likely to cause a lively controversy.

TREASURY BILLS RENEWED. ADELAIDE, August 1. The Premier (Mr Hill) was informed that £1,800.000 worth of South Australian Treasury bills, due yesterday, have been renewed for a further three months by the banks at 4 per cent. For the previous year the banks charged 6 per cent.

CANBERRA. August 2. A total of £21.720,000 worth of Treasury bills, issued to cover temporary Gov ernment finance, matured on Friday. Mr Scullin announces that the Common wealth and Trading Banks renewed the bills at 4 per cent, instead of 6 per cent. The interest payment is tints re duced by £424,000 per annum.

DENIAL BY PREMIER. SYDNEY, August 2. Mr Lang denies the London report that he requested Sir Philip Gaine's recall.