POSSIBLE DEFEAT

Gisborne Herald, Volume LXVI, Issue 20006, 3 August 1939, Page 5

POSSIBLE DEFEAT

CABINET AT SYDNEY EX-MINISTER’S ATTACK ALLEGATIONS DENIED FINANCE MANIPULATION (Elec. Tel. Copyright—United Presg Assn.) CRecd. Aug. 3, 9 a.m.) SYDNEY, Aug. 3. The strained relations between tire New Sou tlx Wales Premier, Mr. B. S. B. Stevens, and the former Minister of Public Works, Mr. E. S. Spooner, reached a climax in the State Assembly yesterday, consequent upon a motion moved by Mr. Spooner recommending a new financial policy lor 1939-40 and the creation of a- special trust account for the proceeds _of wages and! special income taxes which must be used exclusively for the relief of unemployment. In the course of his reply to Mr. Spooner's bitter criticism, Mr. Stevens announced that he had decided to regard Mr. Spooner’s motion as one of direct censure on the Government. True Deficit Queried Mr. Spooner repudiated the censure suggestion. He isaid that the motion represented' an attempt to offer constructive assistance. He declared that toe Premier had neglected the State’s finances about the time Mr. Stevens had been seeking to enter Federal politics and now he was "trying to cake it out of the hides of the unemployed.” Mr. Spooner claimed that the true deficit for the 1938-39 period 1 was £4,350,000 and not £2,750,000 os represented by the Treasurer. Moreover, £1,000,000 voted by Parliament for unemployment relief had, instead, been applied to a reduction of the real deficit, while the £1,000,000 which had eventually beeni applied to the relief of unemployment had been obtained in such a manner that it would not show as part of the general deficit Mr. Spooner said that the Government still had no policy and was heading for a tailspin. The debate is proceeding. The Premier in reply declared that Mr. Spooner would live to regret his speed). He resented the suggestion that he could not .be trusted. He repudiated the allegation of negligence in handling the State finances and said that in and out of season he had taken steps to rectify the financial drift. Warning Recalled Mr. Spooner had attended several special Cabinet meetings at which he. Mr. Stevens, had warned his colleagues of the dangers •> ahead and Mr. Spooner should have taken the honourable course of telling the Hou.se what had occurred at the Cabinet meetings on the subject. The Premier also answered Mr. Spooner's criticism relating to the deficit, disclaiming any attempt at manipulation of the taxation funds and added that tile Government already was considering a proposal to separate the wages and unemployment taxes for the ordinary receiver. Tlie Assembly adjourned until today when a division on the motion is expected to be very close. Several Government supporters are likely to cross the floor arid the result may be defeat’ of the Stevens Government. This would involve either a dissolution of Parliament or Mr. Spooner accepting a commission to form a new Ministry.