TRADES UNION DECISION

Taranaki Daily News, 24 August 1931, Page 9

TRADES UNION DECISION

ACTION DEFERRED MONTH REPUDIATION BY CABINET SCHEME TO BE PROSECUTED WILL MINISTRY SURVIVE? By Telegraph—Press Assn. —Copyright. London, Aug. 21, The Trade Union Congress Council announced its decision to refer the Government’s economy proposal to the full congress at Bristol on September 7. This amounts to a volte-face, because the Trades Union Council is well aware of the necessity for urgent action. The Trades Union Council rejected the proposals for economies in unemployment insurance, also salary reductions. It is understood that the Trade Union Congress told the -Government that it would prefer tariffs to a reduction of unemployment benefits.

It is learned that the Cabinet, which has again been pressed by the banks, has decided to repudiate the Trades Union Council and to proceed with a plan for drastic economies. A revenue tariff was definitely ruled out.

The Conservatives and Liberals told “The Big Five” that the proposals were useless. They demanded greater economies and less taxes. Cabinet will therefore probably have to rearrange the entire proposals. There is. still a possibility of the Government falling. The Conservatives view the situation as very grave and are preparing for a possible change of administration. In response to an urgent telegram Mr. Stanley Baldwin has left Aix-les-Baius for London. TARIFF SCHEME DROPPED. The Daily Telegraph says that it was established on Friday night that the Government had come to the conclusion that a tariff for revenue could not be placed in the programme as a split in the Cabinet and possibly in the Socialist Party might occur and, moreover, make further Liberal assistance impossible. A Treasury minute was published tonight giving authority to the Bank of England to issue fiduciary bank notes for a further period of three weeks. The minute says that the bank represented to the Chancellor of the Exchequer that it was expedient to maintain an increase in the fiduciary note issue. The Daily Mail says that the Government’s position is more precarious and that a c-hange of administration is rapidly becoming a more definite possibility. It is understood that the Conservatives have suggested to the Liberals the formation of a coalition to tide over the crisis, proposing Mr. Lloyd George as Chancellor of the Exchequer. The Daily Telegraph declares that Mr. Snowden’s reply to tile Trades Union Congress to the effect that it was impossible to meet its behests led to the general impression that vital differences divided the Labour Party as at present constituted.

The Trades Union Congress declares that it is able to count at least 120 to 150 members in the House of Commons who decline to support the Government in its view of the situation which, unless firmly handled, may become exceedingly grave. Evidence was given of their determination to balance the Budget and to spread the burden equally among all classes of the community in plans of which the broad outlines were revealed. It is further known that the proposals are entirely concerned with measures for effecting economy ir. State expenditure, including, it is reported; modifications for reducing the cost of the social services. It is further stated t-hat no suggestion was made by the Government that the imposition of a tariff or any other means of raising fresh revenue could be regarded as, an alternative to drastic retrenchment.