CRISIS AVERTED

Poverty Bay Herald, Volume LXV, Issue 19808, 9 December 1938, Page 5

CRISIS AVERTED

CANBERRA CABINET RIFT NATIONAL INSURANCE PROCLAMATION DEFERRED QUESTION OF EXEMPTIONS (Elec. Tel. Copyright —United Press Assn.) (Reed. Dec. 9, 9 a.m.) SYDNEY, Dec. 9.

The Federal Cabinet yesterday decided to drop the National Insurance Bill, which required contributions to begin next May and to delay the proclamation of the original Act until probably May or June of next year.

Tliis decision, says the Canberra correspondent of the Sydney Sun. solves the problem of the threatened resignations of the Attorney-General, Mr. R. G. Menzies, and the treasurer, Mr. R. G. Casey.

The Canberra correspondent of the Sydney Morning Herald reported yesterday that the Lyons Government was facing the most serious crisis that had arisen since it was elected to office. This critical situation had been forced by differences over what should be the fate of the national insurance scheme and it was believed that it might lead to the resignation of the Attorney-General, Mr. R. G. Menzies, and possibly the treasurer, Mr. R. G. Casey. The only alternative to this appeared to be the adoption of a course in the House of Representatives that might lead to the defeat of the Government on an issue sufficiently vital to force an election —the question of the exemption of rural industries from the insurance scheme. After a meeting lasting 14 hours the Ministers broke up at 2.15 o’clock on Thursday morning without having found a way out of the impasse.