CABINET’S RESIGNATION

Taranaki Daily News, 26 August 1931, Page 9

CABINET’S RESIGNATION

CONFERENCES OF PARTIES FINAL SPLIT OVER DOLE CUT. DIVISION OF LABOUR MEMBERS. (British Wireless.) Rugby, August 24. The political crisis ended to-day with the announcement that the Prime Minister had tendered his resignation to the King, who asked him to form a new national administration. Mr. Ramsay MacDonald accepted and kissed hands on his appointment as head of the National Government. A series of important conferences preceded this announcement. These conferences began with a visit to Buckingham Palace early this morning by Mr MacDonald, Mr. Baldwin and Sir Herbert Samuel at the M-yitation of the King, and at its conclusion the first officia. intimation was given that the formation of a National Government was under consideration. ■ On returning to Downing Street th l * Prime Minister met his Cabinet colleagues of the outgoing-administration, whose members placed their resignations in his hands. The Parliamentary Undersecretaries and holders of other minor posts in the late Government tendered their resignations later and, after a further conference with Mr. Baldwin and , Sir Herbert Samuel, the Prime Minister again went to see his Majesty. MR. MACDONALD’S ACCEPTANCE. The following statement was then Issued from 10 Downing Street:— “The' Prime Minister this afternoon tendered his Majesty the resignation of his Ministry, which .was accepted by his Majesty, who entrusted him with the task of forming.a National Government on a comprehensive basis for the \ purpose of meeting the present financial emergency. Mr. MacDonald accepted the commission and is now in conference with Mr. Baldwin and Sir Herbert Samuel, who are co-operating with him in the constitution of such 'administration.” The first task of the new Government •will be to devise measures for balancing the Budget, to be presented at a special meeting of Parliament to be summoned next month. The necessity for balancing ’ the Budget was fully recognised by the late Government, and -a considerable measure of agreement on the economies in State expenditure required was, it is understood, secured. The plan produced by the .Prime Minister and the Chancellor of the Exchequer is, however, believed to have included among other economies a reduction in the rates of unemployment insurance benefit, and the newspapers state that the deadlock which precipitated the fall of the Government arose on those proposals. • It is stated that Mr. MacDonald at last night’s meeting failed to secure sufficient Cabinet support to justify him in asking the other political parties -to support the Government. It was in these circumstances that a proposal arose for meeting the emergency by some form of National Government with the full support of the Conservative and Liberal parties and of that section of the Labour Party that would be prepared to follow Mr. MacDonald. EARLY STATEMENT OF POLICY. The new Government’s proposals to meet the financial situation will be'published with as little delay as possible. It is understood that Lord Passfield, Minister for the Colonies, will take advantage of the Ministry’s resignation to rest from active participation in politics. It is stated to-night that he will not be in .the new Government. He was - to retire in 1929, but, on the formation of the Labour Government was prevailed upon to accept office and to join the ranks of Labour peers. Mr. J. H. Thomas states that he is. in the new Cabinet. It is understood that three other Labour Ministers, including Mr. Snowden, will accompany Mr. MacDonald in the new Cabinet, which win be small, and will probably number 12 or 14.”

“I am not surprised at that,” commented Mr. Lloyd George, when informed that a National Government was being formed. It is understood that Mr. Lloyd George’s health will exclude him from the Cabinet. It is stated that the Labour Cabinet •finally split on a proposed cut of 2s. per week in the dole payments. Mr. MacDonald, smiling’b'rpadly to the ’ crowd on his Way to the Palace, said- "The crisis’' dn'ded.”