VICTORIAN DEADLOCK OVER SUPPLY BILL IS STILL UNSOLVED

Wanganui Chronicle, 4 October 1947, Page 5

VICTORIAN DEADLOCK OVER SUPPLY BILL IS STILL UNSOLVED

(N.Z.P.A.—Reuter—Copyright.) Melbourne, Oct. 2. Late tonight the Legislative Council rejected a second Supply Bill sent up from Assembly, the Council insisting that it would grant supply only if an assurance was given that "the Premier would seek a dissolution. After the second rejection, the Premier (Mr. Cain) still was adamant that he would not resign, and would thereby place on the Opposition responsibility for non-payment of Public Service salaries. The Opposition equally was insistent or. placing this responsibility on the Government. The present position is a stalemate, as the council has now adjourned till Tuesday. • The Premier has given no indication in the meantime o£ his intentions, but political circles believe that there is no alternative to a dissolution despite the Premier’s declaration that he wil not resign. Tiie serious State political crisis developed when the Legislative Council first rejected a Supply Bill in an effort to force the Cain Labour Government to an election. The Opposition is taking the Federal Bank nationalisation proposal as an issue and to get an early election as a test of Victorian public feeling against nationalisation. The refusal to grant supply is unprecedented in Victorian politics. Recd. 8.45 p.m. Canberra, Oct. 3. It was stated officially today that the Commonwealth cannot come to the assistance of Victoria so that it can pay its public servants. The reasons are that such a payment is not within the scope of any existing Appropriation Act and that if such an Act were passed it would certainly be declared unconstitutional, as it would not be raised for a Commonwealth purpose in conformity with the Constitution. The Commonwealth could make a grant to a State, but the position would be unchanged as the State would have to pass an Appropriation Bill before it could legally take the money over.