FEDERAL POLITICS.

Waikato Times, Volume 110, Issue 18395, 31 July 1931, Page 7

FEDERAL POLITICS.

CRISIS IMMINENT. OPPOSITION AND APPROPRIATION. HOSTILE AMENDMENT DEFEATED. United Press Assn.—Elec. Tel. Copyright. CANBERRA, July 30. A Federal political crisis is Imminent, as the result of the Opposition’s attitude in attempting to restrict supply to three months. 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 to reduce the amount of £16,506,919. Mr Lyons stated that the object was to limit supply to three months, instead of 12 months, as proposed, in view of the 'extraordinary circumstances in which the country was involved. The Prime Minister, Mr J. H. Scullin, declared that the Government would not accept the amendment, which was most humiliating. He said the Government had no Intention ol going into recess for 12 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 from being brought to fruition. The Opposition forces were partners in the plan and should stand by the Government. If the amendment were agreed to then the conversion loan must fail. It was quite impossible to attempt to restore confidence while somebody was standing behind with a • dagger. No selfrespecting Government would treat such an amendment as anything but one of no-confldence. The gesture was tantamount to saying that the Government could not he trusted. However, the Government intended to carry out its 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 an 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 T. Paterson, deputy-leader of the Country Party, said his party intended to vote against the amendment, which, if successful, might induce a selfish bondholder to dissent from converting, in the hope that the. Government might treat him more leniently. The whole rehabilitation scheme might be endangered if a general election were Drecipitated. The Minister of Customs, Mr F. M. Forde, said Mr Lyons' move was inspired by the banks, which desired to avoid reducing the rates of interest, and by the 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 voted with and saved the Government. The members of the Beasley group left the Chamber.

The Prime Minister then announced, amidst the greatest disorder, that the conversion loan operations had been indefinitely postponed, pending the fate of the Appropriation Bill in the Senate. According to well-informed people the Senate will reject it.