FEDERAL FINANCE

Hokitika Guardian, 4 September 1930, Page 5

FEDERAL FINANCE

SIR O. NIEMEYER TO RETURN FEDERAL CABINET DISUNITED. (.United Press Association —By Electric* Telegraph—Copyright.] (Received this day at 11 a.m., , MELBOURNE, Sept. 3. Sir O. Niemeyer, at 1 the request of the directors of the Commonwealth Bank lias decided to return to Australia at the end of the month after visiting New Zealand. In making this announcement, Sir Robert Gibson said the Bank Directors had the support of the Premiers Conference Standing Commtttoe in this request. The. directors have full regard for the financial position confronting Australia and the urgent necessity for clearing up the London position, SYDNEY, Sept. 4. The “Herald” says it is authoritatively stated in Federal Labour circles that the Federal Cabinet would refer the question of a Special session of the Federal Palrlinment to a meeting of the Federal Labour Caucus, The proposal to convene Parliament, it was stated, would meet witli unanimous opposition from 23 Federal members, rop-reseutiug New. South Wales constituencies, wlio will command a majority, provided they are supported by two Australian Workers’' .Union nominees, Senators DaJby and Barnes. An inquiry from Federal Labour circles indicated the position in the Federal Cabinet was extremely delicate.

New South Wales miners and members maintain the financial session would jeopardise the chances of the State Labour Party at tile coming elections, because it would involve measures that would clash with Mr Lang’s promises, unless some method of making good the alarming drop in Federal revenue, is found which will not entail the reducing of wages of Federal public servants. It is extremely-; likely a- sectiop of Cabinet will resign.

The Leader of the Opposition (Mr Latham) declared Parliament should be summoned immediately, as tdie Government cannot possibly postpone a complete recasting of the Budget much longer; . He said the expenditure must be reduced,' substantially, and the longer -the dejay, the heavier will he the reduction,,,Latham said the Opposition would support the Government in any action necessary to carry out the undertakings given at the Melbourne Conference, in the interests of all sections of the community.