FEDERAL LABOR SPLIT

Poverty Bay Herald, Volume LV, Issue 17410, 7 November 1930, Page 7

FEDERAL LABOR SPLIT

TREASURER MAY RESIGN. OVERRULED BY CAUCUS NEW TAXATION CRITICISED (Elec. Tel. Copyright—-United Press Assn.) (Received Nov. 7, 11 adn.)f SYDNEY, Nov. f.. The Herald says a split is likely in the Federal Labor Party. The Treasurer, Mr. Lyons, after being overruled in the caucus on a financial 1 matter, said he'would have to consider his position and probably resign.. The caucus desired to compel ’The Commonwealth Bank to finance maturing loans, and refused to sanction the raising of a loan in the open market. Messrs. Fenton and Theodore supported Mr. Lyons. ; ‘ Uv-v W L ,♦ After the caucus .had -ouiteqted Messrs. Fenton and Lyons, >lhVlatter said lie would communicate with Ji.tr. Sciillin, and absented himself from the night sitting of Parliament. ' Mr. Fenton telephoned Mt. Seullin in Louden late last night. Unless Mr. Lyons alters his 'lntention his resignation is certain. ' The ex-Premier. Mr. Bavin, .has issued a statement severely' criticising the Federal Ministry for failing to. honor its promise given 1 at the ( Premiers’ conference in August last/tO balance the budget, effect'-'aubstantifd economies, and refrain from farther taxation. He described it as the worst kind of political cowardice; it amounted to repudiation, and Australia Would be further discredited in the eyfcs of the world. . NOT KEEPING FAITII. Ho added: “ Had it been thought that the Federal Ministry* would-'not-keep faith with the State Premiers and its own solemn undertaking, there would not have been the slightest chance .of an agreement being arrived at last August.” Mr. Latham, Leader of the Federal Opposition, expressed the opinion that-- V the new duties and taxation Will still ' further diminish the revenue, and. Wijl * therefore defeat the. Governmentobject. The fact that the Government docs not intend to balance the budget this year gave rise to the ideq that it may default in its payments either, in Australia or overseas, with’disastrous consequences to the country. Dr. Earle Page, Leader of the Country Party, said: “The old dplusion that we could tax ourselves!into prosperity is being perpetuated. This revised' budget will scarcely bring ba,ck confidence in our methods of extricating ourselves from our difficulties.”, . 1 The new tobacco duties are causing much adverse comment. Sir Mark Sheldon says they will diminish ,production and cause further 1 unemployment. Some retailers.predict that the small men will have to go out of business, as tobacco prices must rise -.20

per cent. . , , - A reaction occurred on the Stock Exchange consequent on ./the revised budget proposals. Banking securities, however, are firmer, and more confidence is displayed Bank of N*v Zealand shares recorded a rise of 3s 9d.