MR DALTON RESIGNS

Otago Daily Times, Issue 26619, 15 November 1947, Page 7

MR DALTON RESIGNS

Premature Release of Budget Information “A GRAVE INDISCRETION” LONDON, Nov. 13. Mr Hugh Dalton has resigned as Chancellor of the Exchequer and Sir Stafford Cripps will be the new Chancellor. This followed Mr Dalton’s apology in the House of Commons for a “ grave indiscretion ” •in giving the correspondent of the London newspaper, the Star, information about the Budget before he made his Budget speech. Sir Stafford Cripps will continue as Economic Minister in addition to being Chancellor. The official announcement of the resignation followed Ministerial consultations, which continued throughout the evening. The Prime Minister, Mr Attlee, cancelled an engagement to speak at a dinner, and Mr Herbert Morrison deputised and read Mr Attlee’s speech.

The Star said yesterday in its midafternoon edition that it was expected the Budget proposals would include a penny a pint on beer, no change in tobacco, doubled profits tax, tax on dogs and pools, but not horse racing, and increased purchase taxes. Mr Churchill, Mr Eden, Sir John Anderson, Mr Clement Davies and others tabled a motion in the House of Commons—“ That a Select Committee be appointed to inquire into the circumstances of the disclosure of Budget information by the Chancellor yesterday to a correspondent of the Star newspaper.” * Mr Attlee, in a letter to Mr Dalton about the information given the Star before the Budget speech, said: “ I realise that this indiscretion in itself did not result in any action detrimental to the State, but the principle of inviolability of the Budget is of the highest importance, and the discretion of the Chancellor, who necessarily receives many confidential communications, must be beyond question.” Mr Dalton wrote to Mr Attlee: “ In view of the incident which was raised to-day in the House, I think it is my duty to offer my resignation. If you accept it I shall continue to the utmost to support the Government.” Mr Attlee replied: “I came to the conclusion with great regret that it is my duty to accept your resignation.” Mr Attlee's letter to Mr Dalton said: “ I sympathise very deeply in this interruption of a distinguished career. I thank you most "warmly for your good and loyal service. Our friendship remains.” Mr Dalton, in the House of Commons. had earlier apologised for a grave indiscretion in giving the correspondent of the Star information

about the Budget before his Budget speech yesterday. The Star published information about the new taxes at 3.45 p.m., before Mr Dalton had reached that part in his speech. In the House Mr Dalton .explained to-day that the publication arose out of an incident which occurred as he was entering Parliament yesterday. “In reply to questions put to me by the Star’s lobby correspondent, I indicated to him the subject matter contained in the Star. I appreciate that this was a grave indiscretion, for which I offer deep apologies.” Mr Churchill said the Opposition acknowledged Mr Dalton’s frankness, and wished to express 'their sympathy at the misuse of his confidence. Mr Churchill, who had expressed sympathy with Mr Dalton in the House of Commons, wrote to Mr Dalton this evening: “ I have now seen the very precise and comprehensive form of the report in the Star. I am also told that no obligation of secrecy was imposed on the journalist. There could have been dealings as. a result of this premature disclosure. I feel it necessary that the* incident should be subject to an inquiry by a Select Committee.”