SCULLIN SAVED

Taranaki Daily News, 31 July 1931, Page 7

SCULLIN SAVED

VOTE OF COUNTRY PARTY attack on supply bill RESTRICTION TO 3 MONTHS MOTION OF NO-CONFIDENCE FAILURE OF OPPOSITION By Telegraph—Press Assn.-r-Copyright. Rec. 8.10 p.m. Canberra, July 30. A Federal political crisis is imminent as the result of the Opposition attituro in attempting to restrict Supply to three months instead of allowing appropriations for a year. The climax was reached to-day with dramatic suddenness when after an all-night sitting Mr. J. A. Lyons, Leader of the Opposition, moved an amendment to the Appropriation Bill reducing the amount 'by £16,506,919. Mr. Lyons explained that the object was to limit supply to three months instead of twelve as proposed, in view of the extraordinary circumstances in which the country was involved. The Prime Minister, Mr. J. H. Scullin, declared 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 twelve months, as perhaps was 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 being brought to fruition. The Opposition forces were partners in the plan and shoul4 stand by the Government, Mr. Scul'lin said. If the amendment was agreed to the conversion loan must fail. It was impossible to attempt to restore confidence while somebody was standing behind with a dagger. No self-respecting Government would treat the amendment as anything but one of no-confidence. 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. Mr. Lyons said 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 selfish bondholders to uissent from converting in the hope that the Government might treat them more leniently. The whole rehabilitation scheme, might be endangered if a general election were pre•cipitatd. Mr. J. M. Forde, Minister of Customs, said Mr. Lyons’ 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’ amendment was defeated by 34 votes 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 the conversion operations had been indefinitely postponed, awaiting the fate of the Appropriation Bill in the Senate. According to well-informed people the Senate will reject the Bill.