CRISIS IN AUSTRALIA1

Wairarapa Times-Age, 8 December 1938, Page 8

CRISIS IN AUSTRALIA 1

CONTENTION OVER INSURANCE SCHEME THREATENED RESIGNATIONS. POSSIBILITY OF FORCED ELECTION. By Telegraph—Press Association —Copyright. (Received This Day, 11.50 a.m.) SYDNEY. This Day. The ‘.Herald’s” Canberra correspondent says the Lyons Government is facing the most serious crisis that has arisen since it was elected to office. This critical situation has been forced by differences over what should be the fate of the National Insurance scheme and it is believed that it may lead to the resignation of the AttorneyGeneral (Mr R. G. Menzies) and possibly that of the Treasurer (Mr R. G. Casey). The only alternative to this appears to be the adoption of a course in the House of Representatives that may lead to the defeat of the Government on an issue sufficiently vital to force an election —the question of the exemption qf rural industries from the insurance scheme After a meeting lasting for fourteen hours, Ministers broke up at 2.15 this morning without having found a way out. of the impasse. DEFENCE EXPANSION BULK OF EXPENDITURE IN AUSTRALIA. EARLY TAXATION INCREASE POSSIBLE. (Received This Day, 11.50 a.m.) CANBERRA. This Day. Instructions for an immediate startwith the naval building section of the Defence expansion programme have been given by the Minister of Defence iMr G. A. Street) who announced that £51,660,000 of sixtythree millions would be spent in Australia.

Federal taxes for this year, which were increased substantially when the Budget was introduced in September, may be increased again before the year closes. This prospect was mentioned by Mr Lyons when he was discussing problems associated with the financing of the Defence programme.